I.

Introduction

The right leadership and good management are essential and go hand in hand if a

business wants to grow. As a new intern, I do analytical reports to help people better understand

how to lead and manage an organization. The following main contents will be included in the

report: analysis of leadership and management theories and their application in the workplace to

evaluate the effectiveness of leadership and management in the organization; research on

different leadership and management approaches to assessing their effectiveness; and the impact

of leadership and management on organizational culture and performance. Through the way that

2 CEOs, Ms. Thai Huong and Ms. Mai Kieu Lien, apply at TH True Milk and Vinamilk

companies. These are two companies that jointly develop the dairy processing industry. TH True

Milk was established on December 26, 2010 and is the largest investment group in Southeast

Asia. With the application of foreign advanced techniques to process milk and feed. Therefore,

TH True Milk is developing to become the leading manufacturer and supplier of clean natural

food in Vietnam (Anon, 2022). Born before TH True Milk Company, Vinamilk officially started

trading dairy products on December 14, 2006. After acquiring the Dairy Cow Breeding Center,

Phu Lam Dairy Cow was also established. Each cow at Vinamilk's production system is fitted

with an electronic chip for identification through the Alpro system. This helps to check the milk

volume of each cow and detect whether the cow is sick or not to ensure quality for the consumer

(Le Quoc Thach, 2022). With a long-term vision to bring the company to the international

market, the CEO is the leader and the manager must have at hand the leadership style and

management method for his company. Two General Directors Ms. Thai Huong and Ms. Mai

Kieu Lien have the same leadership style, which is democratic style. This style works because

democratic leaders always listen to people's criticisms and suggestions so they can come to the
best decision. However, the management method of each company is different, and hereafter I

will go to research to find out more about this difference and evaluate whether they are effective

or not.

II. Overview of management

1. Definition

Management includes the activities of setting the strategy of an organization and

coordinating the efforts of its employees (or of volunteers) to accomplish its objectives through

the application of available resources, such as financial, natural, technological, and human

resources (Anon, 2022). A manager coordinates and supervises the work of others so that the

organization's goals can be accomplished. Managers work in an organization, which is a

deliberate arrangement of people to accomplish some specific purpose.

2. Function and role of management

A century ago, the French businessman Henry Fayol initially identified five elements as

the basic functions of management. But today, there are four generally accepted functions of

management: planning, organizing, leading, and controlling. These functions work together in

creating and implementing organizational goals. The role of management is very important

because it helps the manager to manage his or her organization (Indeed Editorial, 2021).

Managers need to first develop a plan, then organize their resources and assign

responsibilities to employees according to the plan. Then lead others to implement the plan

effectively and finally evaluate the effectiveness of the plan when it is implemented (Anon,

2022).

 Planning: this is the stage where managers establish organizational goals and create a course

of action to achieve them.

 Organizing: Along with planning, a manager's organizational skills can help ensure the

smooth running of a company or departmental unit. From setting up internal processes and

structures to knowing which employees or teams are best suited for specific tasks, keeping

everyone and everything organized throughout day-to-day operations are vital functions.

importance of management.

 Leading: The directing function is concerned with leading, communicating, motivating, and

supervising so that employees carry out their activities as efficiently as possible in order to

achieve desired goals.

 Controlling: The control function includes activities taken to ensure that events do not

deviate from prearranged plans. These activities include establishing work performance

standards, measuring performance and comparing it to these set standards, and taking

corrective actions when necessary, to correct any deviation.

3. Theories of management

Understanding and applying best practices from management theories can help a company

succeed. Management theory is a set of ideas that suggest general rules about how an

organization or business should be managed. Management theories deal with how supervisors

implement strategies to accomplish organizational goals and how they motivate employees to

perform to the best of their ability. Often, leaders apply concepts from different management

theories that best suit their employees and company culture. The following types of management

theories can be mentioned (Indeed Editorial, 2021):

 Scientific management theory

Frederick Winslow Taylor developed and published his Scientific Management Theory in

1909. At its core, this approach should be used in the workplace. He recommends leaders
 assign team members to the jobs that are best suited to their abilities, train them

thoroughly, and supervise them to ensure they fulfill their roles effectively. This theory

has demonstrated to leaders the importance of workplace efficiency, the value of ensuring

team members are trained, the need for teamwork (McCann, 2022).

In this theory, which takes the approach as it is today, most companies provide room for

growth and advancement for their employees instead of keeping a distinct barrier

between management and employees. This theory has had a huge impact on how

companies operate and how they can create a more balanced pay system, better training,

and a more efficient workforce.

 Administrative management theory

The theory of administrative management was developed by Henri Fayol in the early

1900s and is considered very relevant to this day. Fayol created fourteen principles that

he believes form the basis of strong and successful companies. The principles outlined

are:

- Initiative: Employees should have the freedom to perform their duties without

pressure or direction

- Fairness: Everyone in the organization must be treated equally and it must be a

good environment.

- Scalar Chain: There should be a chain of supervision from top to bottom

management and constant top to bottom communication.

- Personnel remuneration: There should be both monetary and non-monetary

remuneration on the basis of work results in order to create attachment between

employees and the organization.

- Unanimous direction: each department should have only one manager

responsible for coordinating the group's activities to achieve a single goal.

- Discipline: an organization should outline rules and regulations clarifying rules,

good supervision and reward-punishment system.

- Work division: Should divide and team members should be assigned

responsibilities based on their skills and interests so that they work more

productive and efficient.

- Authority and responsibility: There should be a balance between the rights,

responsibilities and obligations of employees in performing the tasks they are

assigned.

- Unity of command: This refers to the assertion that an employee must only

receive orders from one direct supervisor and is only accountable to that person.

- Subordination of individual interest to general interests: There must be a

balance between the interests of the individual and the organization, although the

interests of the organization should take precedence as it will bring rewards to the

individual.

- Centralization: The highest level of authority should be concentrated on the top

management, who has the power to make the most important decisions in an

organization.

- Order: This principle asserts that for an organization to function smoothly, the

right people must do the right things and therefore every material and employee

must be given a proper place.

 - Stability of tenure: According to this principle, employees must have job

security to work effectively.

- Espirit de Corps: This refers to the belief that there must be a unified group

contribution and that cooperation always outweighs individual performances.

 Theory of human relations:

Theory was developed by Elton Mayo, who conducted experiments designed to improve

productivity, laying the groundwork for the human relations movement. He focused on

varying working conditions such as lighting, rest periods, and the length of the workday.

However, Elton found that changes in lighting didn't affect productivity, but rather daily

interactions with employees throughout the process pushed them to work more efficiently

and increase output. So the approach is that they allow employees to voice their opinions,

frustrations, and successes, thereby helping employees feel more valued. Plus, since they

know they're being watched, they're even more motivated to perform at a higher level.

This is a revolutionary discovery that focuses attention on relationships between people

and highlights the importance of individual and group dynamics (McCann, 2022).

 Management Theory X&Y

Douglas McGregor developed the X&Y Management Theory, arguing that all managers

can be grouped into two categories. The first type is called Theory X which explains that

managers have a negative view of their employees and believe that employees need to be

forced or manipulated in order to work. This theory can be linked back to scientific

management theory and its focus on outputs rather than employee development and

inputs. Theory Y managers believe that employees are inherently motivated. Theory Y

focuses on the idea of a working group. McGregor argues that a team environment
 combined with an emphasis on individual professional development produces better

results and a healthier work environment. Theory Y continues to prove its relevance and

is still present in the business world today (McCann, 2022).

He concluded that large organizations can rely on theory X to keep people focused on

meeting organizational goals. Smaller businesses, where employees are part of the

decision-making process and where creativity is encouraged, tend to use theory Y.

4. Management of approaches

 Scientific approach to management

The first pioneer of Scientific Management Theory was Frederick Taylor. He

recommends the following approach to solving any management task (Jason Gordon,

2022):

- Developing science for the elements of work to replace the rule of thumb

- Recruiting, training and teaching workers

- Cooperate with Employees to ensure work gets done

- Reasonable division of work between employees and managers

 Administrative Approach to Management

The father of Administrative or Management Process Theory is Henri Fayol. In his first

text, he proposed several management functions such as categories for all management

activities. Functions include:

- Planning

- Organization

- Command

- Coordinator
 - Control

This framework has evolved into a highly influential P-O-L-C (Plan, Organize, Lead,

Control) framework for management functions. The functions of coordination and control

are reduced to leadership (Jason Gordon, 2022).

 Human relations approach: The focus of the human relations approach is on formal

structure and organization, but social factors in the workplace and the behavior of

workers within an organization. position needs more consideration. This strategy focuses

more on the craftsmen themselves and their need for satisfaction. They will ensure that

the installation they operate provides comprehensive safety protections (Jason Gordon,

2022).

 Theory X and Theory Y approach: This approach involves people's individual

adjustments in the structure of the organization, as well as the effects of group

interactions and leadership styles (Jason Gordon, 2022).

II. Leadership overview

1. Definition of Leadership

Leadership is too much of an influence on people to be ready to work toward their goals,

to the best of their ability, possibly in a different way than they have chosen (Kruse, 2022).

2. Function and role of leadership

 Here are the 7 roles and functions of a leader to do:

- Set goals: create a roadmap for team members to steer them in the right direction

and help them achieve the set goals.

 - Organization: They should know how to assign roles to individuals according to

their ability to get the best out of them. Therefore, this function is very important

to increase the productivity of groups and individuals.

- Take initiative: Leaders should confidently share their new ideas and also

encourage others to do the same.

- Cooperation among employees: They must ensure that individuals in the group

voluntarily cooperate towards common goals.

- Motivation and direction: Motivating and pointing the right direction for a

group or individual is a key function of a leader. They need to motivate team

members to work towards their goals and guide them when they encounter

difficulties in the process of working towards it.

- Liaison between workers and management: Leaders have a very important

role, acting as a bridge between workers and management.

- Policy making: Policy making is a very important function of the leader for

smooth operation.

3. Leadership theories

Leadership theory that managers need to know to always guide:

 Contingency theory

Contingency theory highlights several variables in a forerunner that determine the

leadership style best suited for that love. It is based on the idea that there is no one style

of leadership that works for everyone and can be used in all situations.

 Situational Leadership Theory

 Like Contingency Theory, Sentiment Theory emphasizes the importance of variable

languages and does not consider anyone's leadership style to be better than others.

Situation theory is a combination of two factors - the leadership style and the chieftain of

the followers. According to this theory, different situations meet the requirements of

different leadership and decision-making styles. Leaders must operate by assessing the

emotions they are experiencing.

 Transformational Leadership Theory

Leadership Theory Shifts focus to the relationship between leaders and followers. This

theory is about an inspirational and charismatic leader who encourages their followers to

change and become better at a mission.

 Trading theory

Theoretical deals, also known as management presentations or exchange leadership

presentations, revolve around the roles of supervision, organization, and teamwork. These

leadership presentations see rewards and punishments as the basis for the leader's

activities. This is one of the most commonly used persuasion in business, and advocates

of this leadership style use rewards and punishments to motivate employees

 Behavioral Theory

In Behavior Theory, emphasis shifts from a leader's characteristics or qualities to their

behavior and actions. This theory considers effective leadership to be the result of many

skills learned or acquired. It proposes that an individual can learn how to be a good

leader. This is one of the best leadership theories (Anon, 2022).

 The Great Man Theory

 This is one of the earliest leadership theories and is based on the assumption that

leadership is an innate phenomenon and that leaders are "born" not "made". According to

this theory, a person who is able to lead has the personality traits of a leader - charm,

confidence, intelligence, communication skills, and social aptitude - from birth. make

them different. This theory emphasizes leadership as a quality you either have or don't

have, it's not something you can learn.

 Charismatic Leadership Theory

Charismatic leadership is said to have characteristics such as: energetic communication,

confidence in what is being said, good vision, humbly listening to employees, and good

self-awareness. A charismatic leader's behaviors help followers pay more attention,

which in turn improves task performance, job satisfaction, collective identity, and

stronger team cohesion, more organized civic behaviors and stronger self-leadership

among followers (Anon, 2022)

4. Leadership of approaches

 2 main approaches to leadership:

- The Qualities or Traits approach: Bernard and Ordway Teed developed this

theory between 1930 and 1950. This theory suggests that there are a number of

personal qualities and characteristics required to be a leader. successful. That

ability is innate and it cannot be achieved by any effort. This means that if a

person possesses certain traits, she will make a good leader (Gabrielle Brown,

2022)
 - The Functional or Group approach: Leadership can be learned and developed.

Any member of the team can do them. This means that any member can take the

lead (Anon, 2022).

IV. Management and leadership application of TH true milk and Vinamilk:

 Vinamilk
Vinamilk has a decentralized company style in which decisions are conveyed from higher to
lower levels, which employees must obey, and the principle of Unity of command is followed.
Because it is a public corporation, the position of a member of the Members' Council is elected
by shareholders and is accompanied by titles in the firm, and the CEO is no exception. As a
result, Vinamilk's General Director's superior viewpoint is always toward ensuring that the firm
performs well, in accordance with the company's regulations, and in the interests of shareholders
rather than her own. With her leadership, she developed a Vinamilk organizational chart that is
displayed professionally and allocates departments in the company in a scientific and logical
manner, notably decentralizing the responsibilities of each member and department in the
company. The organization chart has aided in increasing the members' responsibility, which is
the motivation for all employees to have the opportunity to demonstrate their full intellectual
potential, consequently fostering higher production and inspiring employees.
Through years of experience and business development, CEO Kieu Lien can be described as a
transformational leader when she believes that a good leader must have a good vision, in which
she encourages employees to freely contribute any opinion to the leader as well as freely
complain about their dissatisfaction, as well as push forward. Teamwork inspires and motivates
employees to make significant changes.
In general, Ms. Mai Kieu Lien's leadership and management style is highly effective, as she has
had numerous accomplishments and may be credited with bringing a Vietnamese firm to the list
of 200 enterprises for the first time. Asia's top enterprise, as rated by Forbes magazine, and one
of 15 enterprises on the stock exchange with a profit of more than 1,000 billion VND. Indeed,
she has performed admirably as a "conductor" in Vinamilk's "orchestra" of 4,000 individuals.
https://text.123docz.net/document/4878784-phong-cach-lanh-dao-cua-mai-kieu-lien-tong-giam-
doc-cong-ty-vinamilk.htm
The Vision and Mission of the Company are also important in contributing to the creation of
culture in organizations.

+ Vision: To become a symbol of Vietnamese service to people's long-term health.

+ Mission: With commitment and great responsibility, bring back to society high-quality
products to customers.

According to Vinamilk's vision, the company's major purpose is to add value to society, with an
emphasis on promoting the quality of each product to assure consumer health. At the
organizational level, the Company announces that each organization should commit to offering
high quality products, greater value for health, and price transparency for customers in order to
contribute to the growth of society.

● TH true milk
Ms. Ceo Thai Huong of TH True Milk still maintains a participative style, which tends to create
a familiar and gentle working environment, as well as always considering employees' thoughts
before making choices and empowering staff to contribute to the company's policies and
strategies.
Ms. Ceo Huong, like Lien, has a participatory leadership style that focuses on listening to
employees' perspectives and using this to develop the best growth strategy for TH. She is an
administrator who understands how to lead employees, harmonize people, and exploit
knowledge for everyone so that they can continue to contribute to the external market and uphold
the People elements. Her secret to success as a leader is knowing how to interact with and
evaluate her staff, renew them, and achieve goals via them.
https://vir.com.vn/milking-israeli-hi-tech-dairy-farming-techniques-23832.html
As a result, the company under her guidance has developed considerably, particularly in 2008,
when True Milk was recognized as the company with the largest dairy farm, with over 45,000
cows using modern technology. In 2013, TH was ripe with an income of more than 3 trillion
VND and good green development. Through that, it can be seen that CEO Thai Huong's
management strategy and reasonable leadership are highly beneficial in assisting the company's
further growth. Similarly, vision and mission play a key role in shaping the culture of TH true
milks.
 + Vision: To create products that help the community and bring true happiness to each
citizen.
+ Mission: To add value to the health of the community with each product.
The parallels between the two companies can be seen from TH's perspective when they both
have similar goals, which are primarily to offer value to society and promote the quality of each
product in order to assure the best quality and consumer health protection. The name TH True
Milk partially refers to the value "TH-True Happiness," in which they stress delivering clients
the best value in each product based on the 5 key principles that they have. proposed: For the
truth, happiness, community health, environmental friendliness, greenness, and harmony are all
important.
1. The impact of organization culture:
a, Definition: Organizational culture has been described as the shared values, principles,
traditions, and ways of doing things that influence the way organizational members act.
 Characteristics of organizational culture:
- Perception: It’s not something that can be physically touched or seen, but employees
perceive it on the basis of what they experience within the organization
- Descriptive: It’s concerned with how members perceive the culture and describe it, not
with whether they like it.
- Shared: Even though individuals may have different backgrounds or work at different
organizational levels, they tend to describe the organization’s culture in similar terms.
 7 dimensions of organizational culture:
  6 dimensions of culture:
- Adaptability: The decorator which employees are encouraged to be innovative and
flexible and to take risks and experiment.
- Attention to detail: The degree to which employees are expected to exhibit precision,
analysis, and focus on details
- Outcome orientation: The degree to which management emphasizes results rather than on
the techniques and processes used to achieve them.
- People orientation: The degree to which management decisions consider the effect of
outcomes on people within and outside the organization.
- Team orientation: The degree to which collaboration is it courage and what activities are
organized around teams rather than individuals.
- Integrity: The degree to which people exhibit honesty and high ethical principles in the
work.

b, Strong culture: those in which the key values are deeply held and widely shared—have a
greater influence on employees than do weaker cultures.
 Contrast strong vs weak culture:
 Strong and Weak Cultural Differences (Bakhri et.al., 2018)
https://www.researchgate.net/figure/Strong-and-Weak-Cultural-Differences-Bakhri-etal-2018-
15_tbl1_335529127
c, Culture comes from and how it continue:
The original source of the culture usually reflects the vision of the founders. Once the culture is
in place, certain organizational practices help maintain it. The actions of top managers also have
a major impact on the organization’s culture. Company founders are not constrained by previous
customs or approaches and can establish the early culture by articulating a vision of what they
want the organization to be. Also, the small size of most new organizations makes it easier to
instill that vision with all organizational members.
Once the culture is in place, however, certain organizational practices help maintain it. For
instance, during the employee selection process, managers typically judge job candidates not
only on the job requirements, but also on how well they might into the organization. At the same
time, job candidates find out information about the organization and determine whether they are
comfortable with what they see.
Through what they say and how they behave, top managers establish norms that filter down
through the organization and can have a positive effect on employees’ behaviors. For instance,
Gravity CEO, Dan Price, raised the minimum wage at his firm to $70,000 annually and has cut
his million dollar salary to fund those pay increases. Since making this decision, Gravity’s
financial performance has soared. However, as have seen in numerous corporate ethics scandals,
the actions of top managers also can lead to undesirable outcomes.
 Establishing and Maintaining Culture:
https://slideplayer.com/slide/13885943/
d, Employees Learn Culture:
 STORIES: Organizational “stories” typically contain a narrative of significant events or
people including such things as the organization’s founders, rule breaking, reactions to
past mistakes, and so forth
 RITUALS : Corporate rituals are repetitive sequences of activities that express and
reinforce the important values and goals of the organization
 MATERIAL ARTIFACTS AND SYMBOLS: The layout of an organization’s facilities,
how employees dress, the types of automobiles provided to top executives, and the
availability of corporate aircraft are examples of material symbols. Material symbols
convey to employees who is important and the kinds of behavior (for example, risk
taking, conservative, authoritarian, participative, individualistic, and so forth) that are
expected and appropriate.
  LANGUAGE: Many organizations and units within organizations use language as a way
to identify and unite members of a culture. By learning this language, members attest to
their acceptance of the culture and their willingness to help preserve it

e, Culture Affects Managers:

 Planning:
+ The degree of risk that plans should contain
+ Whether plans should be developed by individuals or teams
+ The degree of environmental scanning in which management will engage
 Organizing:
+ How much autonomy should be designed into employees’ jobs
+ Whether tasks should be done by individuals or in teams
+ The degree to which department managers interact with each other
 Leading:
+ The degree to which managers are concerned with increasing employee job satisfaction
+ What leadership styles are appropriate
+ Whether all disagreements—even constructive ones—should be eliminated
 Controlling:
+ Whether to impose external controls or to allow employees to control their own actions
+ What criteria should be emphasized in employee performance evaluations
+ What repercussions will occur from exceeding one’s budget
2. Critical evaluates:
Fiedler on contingency theory stated that the leader’s particular style of leadership
that is only effective circumstances, in which may be bad toward other cases. He indicated
that the organization will be in trouble in a new challenge that the existing leader cannot
afford to tackle the problem and the changes is necessary for the development of company. In
terms of TH True Milk, in 2018, Thai Huong have decided to leave out of the CEO position
after 10 years, first in the awareness of the unprecedented changes in society, and it have
been becoming more and more dynamic with the advent of technology into life as well as the
change in business structure. She realized that she’s been too old to steer as well as obsolete
to steer the business to the new limestones as well as realize that the company need a new
 leader that have the enough sharpness as well as modern leadership style that help shape the
success of business.
Recommendations
In view of the foregoing discussion, the following recommendations are made;
1. Efforts should be geared by the leaders to encourage the interpersonal relationship with the
staff of the organization.
2. Annual merit award should be established in every organization to enhance greater
performance and as a motivational compensation programmer for the best behaved and
highest performer of the year.
3. The democratic and participative leadership styles should be encouraged, so as to
encourage workers to participate in decision making process. Every worker in an
organization should be encouraged to work whenever he or she is given freedom to work and
allow participating fully towards the realization of the organization goals and objectives.
4. It is necessary for organization to always organize orientation programmers for the leaders
and subordinates to enable them know what it takes to lead and direct people. The leaders
and their subordinates should work as a team; that is, all hands should be on deck to enhance
the organization to sustain its standard in productivity and survival.

C. Conclusion:
Leadership is the art of influencing workers to work willingly and enthusiastically for
group goal accomplishment. There are several alternatives available to every leader to make a
choice in order to develop his employees and mobilize them to get the work done. Leaders
influence subordinates to contribute effectively in the manner that all strive towards the
achievement of desired goals. This study is basically a review of the leadership skills, leadership
style and its approaches and impact on workers performance. The paper reveals that in order for
any organization to succeed in actualizing its goals and objectives, there must be a good leader
with the appropriate leadership style such as democratic and participative style of leadership
which are capable of involving employees in decision making process as well as persuading
them towards the attainment of organizational goals and objectives. The acquisition of leadership
skills were also proved to be very important for a leader to lead well and with positive impact on
the organization.
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