Table of Content

Introduction........................................................................................................................ 2

1. Organizational structure.................................................................................................3
Functional Organizational Structure...............................................................................3
Geographical Divisional Structure..................................................................................4
Matrix Structure..............................................................................................................4
Flat Structure...................................................................................................................5
2. The role of organizational structure................................................................................6
Establish a hierarchy.......................................................................................................6
Establish departments and teams....................................................................................6
Decision making and responsibility................................................................................6
Build advancement potential for employees...................................................................7
3. Define and compare the different roles and characteristics of a leader and a
manager.............................................................................................................................. 8
Definition and role of leadership....................................................................................8
Definition and role of manager.......................................................................................9
Differences between a leader and a manager................................................................11
Three types of Managerial Skills..................................................................................14
4. Apply different theories and models of approach.........................................................16
Situational leadership theory........................................................................................16
Systems theory.............................................................................................................17
Contingency theory......................................................................................................17
5. Strengths and Weaknesses of each leadership styles....................................................19
Authoritarian leadership style.......................................................................................19
Democratic leadership..................................................................................................20
Laissez-faire leadership................................................................................................20
6. The influence of management and leadership styles on the company..........................22

Conclusion....................................................................................................................... 23

References........................................................................................................................ 24

1
Introduction

Leadership and management is the key to success for business; all

organizations can not operate long-term and sustainable if lacking a good
leader. These are critical components to help organizations achieve goals
through the exploitation strategies and using appropriate human resources.

Vinamilk is the business that I have chosen to include in this report to analyze
and evaluate different types of leadership and management skills being applied
within the organization. Besides, I will try to analyze the strengths and
weaknesses, respectively, requirements management and operational
differences between institutions depending on the situation of the organization.

Established on August 20, 1976, up to now, Vinamilk has become the leading
company in Vietnam in processing and supplying dairy products, ranked in the
Top 10 strong brands in Vietnam. Vinamilk holds 75% of the domestic dairy
market share and exports its products to many countries around the world, such
as the US, France, Canada, etc. Vinamilk currently has over 200 dairy products
and products from milk and all products must meet international standards. In
addition, Vinamilk has also established a deep and wide distribution system,
seeing it as the backbone of its long-term business strategy. Currently, the
company has more than 180 distributors, more than 80,000 retail points
nationwide. A competitive price is also Vinamilk's strength because similar
products on the market are priced higher than Vinamilk's. Therefore, in the
context of more than 40 active businesses, hundreds of dairy brands of all
kinds, including many multinational corporations, fierce competition, Vinamilk
still stands firm and affirms its leading position in the market. Vietnamese
dairy market.

2
1. Organizational structure
This is defined as a visual diagram of a company used to define the roles,
powers and responsibilities assigned, arranged at different levels and effective
coordination to achieve the common goals of the business. Therein an
organizational structure will depend on the organization's goals and strategies.
The top management has most of the decision-making power and tight control
over departments and divisions in a centralized structure. In a decentralized
structure, decision-making power is allocated to each department at different
levels.

Four standard organizational structure models of enterprises:

Functional Organizational Structure: 

A functional structure is a type of structure in which a business is divided into
many smaller departments with specific tasks or roles. For example, a company
might have one IT department, one marketing department, one finance
department, etc. Each division has a manager or director responsible for
answering to a higher-ranking executive and is responsible for managing
various divisions. For example, a marketing director is responsible for
reporting to a vice president who manages the three marketing departments,
information technology and finance.

Pros: Employees are grouped based on their skills and responsibilities to put all
their energy into performing their departmental roles.

Cons: Because of the division of tasks by departments, there is a lack of

communication between departments, with most management issues and
debates taking place individually in each department. For example, department
A and department B are working on the same project, but the expectations and
details for each specific job are different, which will lead to problems in the
future.

3
Geographical Divisional Structure:
Under this structure, each department will operate as a separate company,
controlling the resources and costs spent on each specific project. In addition,
this structure can be divided into departments according to specific
geographical locations such as Saigon South area, Southeast region.

Pros: Offers greater flexibility for large companies with multiple departments,
allowing each department to operate as a separate company with 1 or 2 people
reporting to the company regularly, mother or senior managers.

Cons: Lack of good communication between departments. In addition, tax legal

issues may be involved.

Matrix Structure:
The matrix organizational structure is a hybrid form that optimizes the
strengths between the functional structure and the project structure. In a matrix
structure, employees can report to two or more bosses depending on the
situation or project. For example, an engineer at a large engineering company
may work for one boss, but there may arise a need for technical expertise when
on a new project. For the duration of that project, the employee will also report
to that project manager and his or her boss on all day-to-day tasks.

Pros: Employees can share their knowledge across different functions, allowing
for better communication and understanding each departmental role. Besides,
they also can expand their skills and knowledge, leading to professional
advancement and benefit the company's growth.

Cons: Can cause confusion and conflicts of interest and power struggles. This
is a complex type and can result in unforeseen costs.

4
Flat Structure:
Flat structure (or horizontal organizational structure) is the type of
organizational structure that is used a lot in startups or small companies. This
structure smoothes the hierarchy and chain of command and gives employees
autonomy. Companies using this structure have a high operating speed.

Pros: There is some view that employees can be more productive in a

pressurized environment related to hierarchy. It allows employees to create
many initiatives in the workplace as well as remove the "red tape" that inhibits
the growth of the business.

Cons: It can be confusing and inconvenient if the people involved disagree with
how the structure should be organized. For example: if there is a time when
groups within an organization disagree on something, such as a project, it can
be challenging to align and stay on track without executive decisions from one
leader or manager.

Vinamilk is an enterprise operating under the Functional Organizational

Structure, which means that Vinamilk specifically defines its departments such
as finance, production, marketing, research and development, and so on, which
help employees focus on their expertise to maximize work productivity.
However, at Vinamilk, the relationship between departments has improved;
they still communicate and support each other to accomplish a common goal.

5
2. The role of organizational structure
Businesses will operate effectively if employees properly understand the
company's working process as well as their work. Establishing an
organizational structure will help employees understand their role in the
company and to whom they need to report to make decisions. With a strong
structure and a clear plan to overcome obstacles will help the business run
more smoothly.

Establish a hierarchy
The basic function of an organizational structure is to provide a clear chain of
command about which employees should report results to which management.
Many companies will have multiple levels of management, where an employee
will report to the manager and then the manager reports back to the director,
and the directors will report directly to the owners.

Establish departments and teams

Creating an organizational structure will help identify groups that work closely
together. These groups can be grouped by department, geographic location, or a
small group that works together on specific projects. As a result, these groups
will often report to the same manager or director. This helps to ensure that all
employees on the team have clearly defined work and duties working towards
the same goal, and that they can get to know each other to help balance each
other's strengths and weaknesses.

Decision making and responsibility

A structure helps to determine exactly who makes the right decisions for each
employee, although some businesses allow more decision-making power for
many employees than others. In addition, in a marketing department,
employees can place collateral on a project's budget without management
approval. However, the organizational structure helps to clearly define which
decisions need management approval and who should approve those decisions.

6
Build advancement potential for employees
Every employee wants to be promoted to have more responsibility and get a
higher salary. A structure will help them know the specific promotion path and
understand the responsibilities and duties of each specific position.

7
3. Define and compare the different roles and characteristics of a
leader and a manager

Definition and role of leadership

Leadership is the process of influencing employees to work voluntarily for the
common goals of an organization or business. Therefore, the role of a leader is
not to stand behind to motivate employees but to motivate, encourage, orient
and support employees to achieve the set goals. In addition, leaders need to
understand what employees' motivations are, what makes them satisfied and
wholeheartedly complete the work. Therefore, the primary role of a leader is to
raise the vision and bring the achievement of the goal to a higher standard,
developing the ability of the employees to exceed the normal limits.

Skills a leader should have:

- Personal prestige is high because only when employees believe they can lead
the collective.
- Having high qualifications, the foresight to make the right strategies.
- Coordinating with management.

8
Definition and role of manager
Management is the administration of an organization, a business or a non-profit
organization, a government agency. Management is a person who can
coordinate the efforts of employees to complete the company's goals on time
through the application of available resources such as finance, technology, and
human resources. In addition, management is also a process based on specific
regulations, laws or principles for that system or process to operate according
to the manager's will.

A manager is a person who works in organizations, controls the work, and is

responsible for the results of their activities to their superiors. The manager will
perform tasks such as planning, organizing, directing, controlling finance to
achieve the previously set goals.

There are four essential functions of management constituting organizational

procedures that emphasize the primary function of functional administrative
principles including:

Planning - The planning function of management controls all the planning

necessary for the organization's growth, including establishing the mission,
vision and strategy of the organization and establishing goals and objectives.
Vinamilk plans to expand the trading market and export its products to the
world market.

Organization - The organizational function of management includes the

suitability and balance of all resources an organization may have to achieve its
set goals and objectives; prioritized tasks will be pre-arranged. This helps the
business control the company's overall organizational structure, without which
it would not be able to function in day-to-day operations. At Vinamilk, the
division and arrangement of tasks occur every day to focus enough and the
right resources to accomplish that goal.

9
Control- This is the function that controls the operation to make sure
everything goes as planned. Management helps to check that all other functions
of the boards are working efficiently and effectively and to take corrective
measures. In general, it is a process that involves continuously monitoring the
performance of employees and increasing their output. At Vinamilk's
production and distribution sites, the control is regularly monitored and
checked by managers to ensure the supply of a sufficient number of products to
the market.

Directing - The function of directing is primarily to motivate and inspire to

encourage employees to be active and maximize productivity to achieve the
unified goals of the organization. At Vinamilk, the relationship between all
levels in the enterprise is ensured at the best level in order to create a
comfortable working atmosphere and the best performance for employees.

Skills a manager should have:

- Understand and abide by the decisions of leaders.
- Highly disciplined.
- Meticulous, careful, always keeping a close eye on details.
- Have a qualification corresponding to the job.

10
Differences between a leader and a manager
1) Leaders provide vision; managers set goals
Leaders provide an overall vision of what they see and inspire their followers
to work together to make that picture a reality. They are responsible for
thinking up and putting new ideas into the company's plans for the next period.
Therefore, leaders must always have a vision while constantly developing new
strategies and tactics. Therefore, they need to be knowledgeable about the latest
trends, research and skills updates.

Meanwhile, managers focus on setting, measuring, and achieving goals. They

control situations so that everything is maintained and operating as planned.

2) Leaders are change agents; managers maintain the status quo

Leaders are people who are always looking for innovation. They accept change
even knowing that everything is working correctly; they think they have found
a new way that works better. Leaders understand and are willing to accept that
changes often create a ripple of instability in the enterprise apparatus.

Managers are always dedicated, engaged and closely following what is going
on in the company. They choose to tweak the system, structure and process to
make it more efficient.

3) Leadership is unique; management is learning

Ready leaders are themselves; they are self-aware and work hard to build their
unique, distinct personal brand. As a result, leaders are comfortable with their
own style and ready to stand out, and they are also known for being authentic
and transparent.

Managers learn their management skills and abilities through work experience
or from others. They are more inclined to learn to create their leadership style
than to define and create themselves.

11
4) Leaders accept risks; managers control risks
Leaders are willing to take on new things even when they may fail miserably.
They know that the more fantastic the risk, the more excellent the opportunity,
and failure will be a step on the road to success.

Managers work to reduce risks or unforeseen situations. They always seek to

avoid and control these problems rather than head into dangerous things.

5) Leaders prepare for the long haul; managers control the short term
Leaders are always visionary. They do what they say they will and work
towards a big goal in the distant future. Leaders can work toward this goal with
burning motivation without receiving any reward other than reaching the finish
line.

In contrast, managers work on short-term goals. They continuously monitor,

check the process and seek recognition and rewards from superiors or actual
performance.

6) Leaders prefer personal expansion and development; manager controls the

development and refinement of existing skills.
Leaders know that they will stand still and fall behind if they do not learn
something new every day. They are always curious and seek to embrace new
things in an ever-changing business environment.

Managers often seek to grow from what has made them successful, perfect
existing skills and apply proven methods through the knowledge and
experience they have gone through.
7) Leaders reinforce trust; managers supervise and lead in terms of work
Leaders inspire employees. If people are excited about your idea, it is because
they have instilled "fire" and faith in them.

12
As managers, they are responsible for maintaining control over employees to
maximize their ability to create products and increase profits for the company.
To do this effectively, managers need to understand their subordinates'
behavioral trends, preferences, passions, and welfare expectations.

8) Leaders coach and train subordinates; managers directly instruct

employees.
Leaders know that the people who work for them already have the answers or
can find them. They know they have recruited competent and trusted people,
creating conditions for their subordinates to develop freely. Leaders do not tell
their employees what to do and how to do it until they see it as necessary.

Managers always assign tasks step-by-step and guide how to complete them for
their team.

9) Leaders ask “What and why”; managers ask “How and when”
If the company makes a mistake, the leader will be the one to ask: “What can
we learn from this mistake?” and “Why didn't this case be considered in the
original plan?” and they will draw lessons for the next time.

However, managers do not focus on mistakes. Their job is to ask “how” and
“when” to make sure the plan will work as intended. Furthermore, employees
will be held accountable for their mistakes.

John Kotter once said, “Leadership and management are two distinct but
mutually reinforcing systems of action. Both are essential for success in an
increasingly complex and volatile business environment.” The truth is that both
leadership and management are important, they are two different but necessary
systems of action, each performing different jobs but ultimately helping the
company grow.

13
Three types of Managerial Skills

Management skills are the knowledge and ability of each individual (who is
holding the role of a manager) in performing work and people management
activities effectively. They can be formed through self-study and daily
cultivation. However, a second way to acquire this management skillset is
through performing the necessary professional activities and tasks. Therefore,
each sub-skill of the management skill cluster can be gradually developed
through individuals' learning and practical experience. According to Robert L.
Katz, three types of skills in the management skillset that every administrator
should have include:

Technical Skills are not simply the ability to use machines, technical support
tools, and production tools, but these are skills required to increase sales
efficiency, create new products, and create new products. sales ability to sell
services, products, etc

For example, a sales manager comes from a seasoned marketing staff whose
valuable experience is distilled through each work experience with many
different clients. When assigned a new role, this person also has to learn and
build his skills to work with his subordinates and other departments. In
addition, the person who will become a sales director in the future will have to
continue to build new expressions, new expressions of the skills required for
this position.

From that, it can be seen that technical skills are one of the most critical skills
for senior leaders. For these leaders, it is not too lofty, too tricky, or too
abstract because if we follow the bureaucracy in the company from low to high
- from the From subordinates to senior leaders, this skill gradually loses its
importance. Because the higher the level, the more popular the specialized
content, and the fewer managers have to do more typical management jobs.

14
Conceptual Skills demonstrate both a manager's knowledge and the ability for
things that are considered abstract and complex such as company development
strategies, guidelines, and policies. It means that they can easily see the essence
of things by analyzing and diagnosing various specific phenomena and
reducing complexities to an acceptable level within an organization. By doing
this, they can predict the future of the business or any department in the
company. A company consists of many business or functional elements such as
sales, marketing, finance, production, etc. All of these business elements have
different or even opposite goals. Conceptual skills will help managers see
beyond the goals of their company's departments, help them think systems, and
analyze the relationships between departments. Therefore, making decisions to
meet the company's business goals will not be too difficult.

Human resource skills of managers are understood as the ability to work

together, control and attract people around, be members of the organization and
be a leader to run the work smoothly. Human resource skills are demonstrated
through practical expression, having a positive attitude towards employees,
building an atmosphere of cooperation between people working together, and
motivating them.

For example, upper management can create healthy sales contests among
employees or offer rewards for outstanding job completion. This has created an
excellent motivation for sales staff to achieve sales targets.

This HR skill is a must-have for any manager and allows managers to move up
to a leadership position at a higher level while also motivating employees to
work hard and achieve success. Get better results at work. In addition, having
this skill also makes the division, use, and control of human resources more
effective, avoiding employees being sluggish, refuse to work or work
unenthusiastic, not highly productive.

15
16
4. Apply different theories and models of approach, including
situational leadership, systems leadership and contingency

Situational leadership theory suggests that the effectiveness of leadership

styles depends on the situation. Both the maturity of the employees and their
attitude determines that. Hersey and Blanchard distinguish four levels of
maturity in the Situational Leadership model:

Orientation: Leaders who mainly direct but provide little support lead to weak
and less motivated employees. This leadership style is also known as
micromanagement: employees just do precisely what they are asked to do from
top to bottom.
Coaching: More direct leadership, more support; employees have low
competence but high motivation. This style often works well with
inexperienced employees who are still learning how.
Support: Leadership is less direct and more supportive. People who work well
with this leadership style have the necessary skills but lack the confidence or
motivation to achieve them.
Empowerment: This leadership style, although the leader can still participate in
direction or give feedback, is much lesser than other leadership styles. With
this style, employees know their role and perform it with little supervision.

Leaders and managers need to be aware of their leadership styles in different

situations. The maturity level of the employees determines the leadership style
of the leader. For those with little experience, they need a directive style. For
highly competent people, an empowering style would be appropriate.

Vinamilk has applied this theory to evaluate employees and based on that;
managers can easily divide the amount of work and ensure that each job must
be suitable for their employees.

17
Systems theory focuses on the internal environment and subsystems of an
organization. It considers the interdependencies and interactions between
subsystems. Furthermore, depending on the organization's expectations, the
organization's interaction and the environment are constantly changing. In
addition, this approach provides a theoretical model for the organization and its
various subsystems. However, it does not downgrade any of the classical
management principles in which the target industry operates typically. Lack of
universality and abstract approach is considered limitations of systems theory.

At Vinamilk, employees are always encouraged to exchange between

departments. This creates a solid connection to help businesses increase
productivity because the departments are always connected and support each
other.

Contingency theory complements systems theory because it considers the

relationship between the organization and the external environment to fill in the
shortcomings of system theory. The theory states that there is no specific
management action or organizational design that fits all situations. In fact, it is
the circumstances that will determine the design and the manager's decision. In
other words, it does not describe the most appropriate way to organize a
company or lead an organization or make management decisions. Therefore,
the best course of action depends or is responsible for internal and external
conditions. Besides, this theory also highlights the impact of the environment
on the organization's design, principles, and hierarchy. Organizations are
treated as a single entity. According to contingency theory, the impact of the
environment on the structure of the organization and the structure of authority
is described as the primary concern.

Furthermore, contingency theory is used to highlight the multivariate nature of

an organization. It illustrates how an organization operates under different
conditions under specific circumstances. Furthermore, contingency theory

18
suggests that the most appropriate problem-solving approach is to provide
practical solutions within the organization. Ultimately, this approach rejects the
blind application of classical management principles.

Vinamilk uses contingency theory to assist businesses in handling decisions

made on aspects related to their current position to suit the company's
circumstances.

19
5. Strengths and Weaknesses of each leadership styles

Authoritarian leadership style

This is an authoritarian imperative management style characterized by the fact
that all power in the organization is concentrated in the hands of a manager or
leader. They manage organizations and businesses by their will, suppressing
and rejecting the will and initiative of all collective members.

Advantages
- Decisions are made quickly and decisively under the authoritarian leadership
style of the administrator.
- The leader directly manages all business issues, avoiding the accumulation of
work in each department.
- Managers with an authoritarian leadership style will significantly influence,
forcing individuals in the organization to perform all assigned tasks on time.
- Members of the organization must regularly update and hone their knowledge
and soft skills to perform assigned tasks effectively.

Defect
- People with this authoritarian leadership style are often seen as conservative
and authoritarian. Alternatively, sometimes, within the enterprise, there will be
conflicts and disagreements among members.
- Authoritarian leaders often do not care about the opinions of others, so it is
easy for their employees to be discouraged, feel unimportant
- Sometimes authoritarian leadership style ignores creative solutions to
problems, does not absorb new ones, adversely affects the organization's
development.

20
Democratic leadership style is in the formation and development of an
enterprise where the contribution, participation or leadership is divided among
many people. The members of the organization will contribute more to the
ideation process. However, the leader is still the one who makes the final
decision, but every member of the enterprise or organization has the
opportunity to contribute ideas, freely exchange and discuss. The administrator
will be responsible for listening and choosing the most optimal idea to apply
for implementation.

Advantages
- Create trust and respect among members involved in the organization.
- Members are also inspired to act and contribute their strength to the
organization and business. Good managers also tend to seek and learn new and
diverse ideas for organizational development.
- Applying this way of managing human resources will create cohesion and
bring higher labor productivity.

Defect
- Decisions must be passed through many people, cannot be made quickly,
decisively
After each decision-making, the members of the minority group will be easily
discouraged, no longer working spirit.

Laissez-faire leadership style is a way of managing people in which the leader

allows his employees to make decisions but must hold themselves accountable
for the decisions made. Employees need to be able to analyze situations well
and determine the best way to handle the situation.

Advantages: The atmosphere in the organization is usually friendly, the group

is oriented to develop quickly and sustainably.

21
Defect:
- Low labor productivity because the leader does not directly control closely.
- Functions and management decisions are entirely decided by members of the
organization, which will cause many controversies internally.
-Lack of organizational leaders will cause disorder; groups will be small, not
optimal.

For a long time, Vinamilk has used the democratic leadership style to create
equality between senior managers and employees. Vinamilk's application of
democratic leadership not only helps businesses get more contributions from
employees but also makes employees feel that they are valued and motivated to
work for them.

22
6. The influence of management and leadership styles on the
company

Each business will choose a different way of leadership and management,

which creates a diversity of businesses in the economy. However, choosing the
right leadership style determines 70% of the success or failure of a business.
Depending on the size and scope of each business, choose a leadership style
that suitable for the goal set by the business. For example, in small businesses,
it is unnecessary to divide too many levels or departments because it will dilute
the connection between employees. Alternatively, conversely, large companies
without a clear division of work will be very prone to the disorder. From there,
we can see the importance of choosing a leadership method that meets the
goals set by the business. Nevertheless, once businesses have done that, the
management will become extremely easy and the destinations will also become
closer.

23
Conclusion

In summary, Vinamilk has selected the type of leadership suitable for the
business. That helps the company grow sustainably and grow. In the future,
businesses need to apply more new management methods to optimize
employee productivity and create breakthroughs in the production process.

24
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