ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 4: Leadership and Management (5036)

Submission date 29/11/2022 Date received (1st submission)

Re-submission date Date received (2nd submission)

Student name Nguyen Phuc Thanh An Student ID GBH210455

Class GBH1107 Assessor name Nguyen Thi Huong

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I
understand that making a false declaration is a form of malpractice.

Student’s signature: An

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Table of Contents
1. Introduction ............................................................................................................................................4
2. Leadership and management concepts....................................................................................4
a. Leader & manager ...........................................................................................................................4
b. Leadership and management ....................................................................................................5
c. Key skills and competences of effective leader & manager ......................................5
d. Differentiate leadership and management........................................................................9
3. Leadership and management theories in relation to organizational effectiveness 9
a. Leadership ...........................................................................................................................................9
i. Contingency theory.....................................................................................................................9
ii. Situational theory ..................................................................................................................... 10
iii. Transformational leadership ........................................................................................ 11
iv. Transactional leadership ..................................................................................................... 12
v. Inspirational leadership ....................................................................................................... 14
vi. Emotional leadership ............................................................................................................. 14
b. Management .................................................................................................................................... 15
i. Classical approach.................................................................................................................... 15
ii. Human relations approach.................................................................................................. 16
1. Leadership and management styles and organizational culture ............................ 16
a. Leadership and management styles ................................................................................... 16
i. Likert’s systems 1-4................................................................................................................. 17
ii. McGregor’s theory X & Y ....................................................................................................... 17
b. Cultures of organizations ......................................................................................................... 18
i. Different types of organizational cultures .................................................................. 18
ii. Factors influencing the development of organizational culture. ................... 19
4. Conclusion ............................................................................................................................................. 20
Bibliography.................................................................................................................................................... 21
1. Introduction
In this assignment, with the scenario of working as a newly appointed, Trainee Executive Search
Consultant. Part of the role is using social media platforms to contact and recruit potential clients
and employees for our clients to meet their brief (Texas Chicken and Haidilao in this case).
Understanding leadership and management skills and competencies is crucial to myrole, as I will be
reviewing CVs and filtering applicants, and interviewing and assessing their skills to see if they are
the best fit for the job.

About Texas Chicken (or Church Texas Chicken), is an American fast food restaurant chain that
specializes in fried chicken and is headquartered in Atlanta, Georgia. The chain was founded as
Church's Fried Chicken To-Go by George W. Church Sr. on April 17, 1952, in San Antonio, Texas,
across the street from The Alamo. It first appears in 2012 in Vietnam and currently having 21 stores
accross Vietnam (Texas Chicken, 2021).

About Haidilao, Haidilao is a chain of hot pot restaurants established in 1994 in Jianyang City,
Sichuan Province, serving directly across major provinces, integrating the characteristics of hotpot
from all over the world. The brand penetrate into Vietnam in 2019 and currently having 12
restaurants across Vietnam (Phuong, 2021).

2. Leadership and management concepts

a. Leader & manager
A leader sees how things can be transformed and motivates people to work toward a certain clearer
vision. Leaders may try to make their vision a reality while prioritizing people. To be effective,
leaders must be sympathetic and connect with others in addition to being able to encourage others.
Leaders do not have to come from the same family or walk the same road. Future leaders will be
more varied, bringing a range of viewpoints. (Morgan, 2020).

Leader enables their teammates to appreciate their own distinct leadership skills and act with self-
accountability and enthusiasm. And they encourage and motivate their people to keep making long-
term development and being excited about attaining their objectives (Shonna, 2021).
A manager is a professional who takes a leadership role in an organisation and manages a team of
employees. Often, managers are responsible for managing a specific department in their company.
There are many types of managers, but they usually have duties like conducting performance
reviews and making decisions. Managers are often the line of communication between a company's
employees and its high-level executives (Thomas, 2008)

b. Leadership and management

Leadership involves making sound -- and sometimes difficult -- decisions, creating and articulating
a clear vision, establishing achievable goals and providing followers with the knowledge and tools
necessary to achieve those goals.
As Macbeath and Townsend (2011) eloquently describe it, ‘ The qualities of leadership have proved
harder to pin down than the less elusive functions of management, but have, nevertheless, provided
a rich and growing seam of literature.’ This growth was dubbed ‘adjectival leadership’ by Leithwood
(1999) as the leadership typologies began to expand. Macbeath and Townsend suggest that as this
growth continued apace worldwide, universities established leadership centres, journals, such as
EMAL, were renamed, and new journals were created. This new interest was soon picked up, and
given renewed impetus by governments looking for policy solutions (Thomas, 2008).

Management is the act of getting people together to accomplish desired goals and objectives using
available resources efficiently and effectively. Since organizations can be viewed as systems,
management can also be defined as human action, including design, to facilitate the production of
useful outcomes from a system. This view opens the opportunity to manage oneself, a pre-requisite
to attempting to manage others.
Management functions include: Planning, organizing, staffing, leading or directing, and controlling
an organization (a group of one or more people or entities) or effort for the purpose of accomplishing
a goal.

c. Key skills and competences of effective leader & manager

• Skills for leaders
Decisiveness
Effective leaders those who can draw conclusions fast based on the facts available to them. Successful
decision takes time and practice. Effective decisiveness involves investigation, assessment, problem-
solving, and goal-setting, all of which must be completed quickly. Decision-makers ought to be able
to draw according to their own knowledge with comparable jobs to assess what could work much
better, make a decision, and be comfortable in accepting responsibility for the implementation.

Integrity
Many people associate integrity with truthfulness or honesty, but in many circumstances, it also
refers to holding and adhering to a set of strong principles. Integrity in the organization frequently
entails
being capable of making ethical decisions and assisting the organization in maintaining a great
image. Every company wants to recruit people who have a tremendous perspective of ethics.

Relationship building (or team building)

Leadership necessitates the capacity to assemble and sustain a cohesive team of individuals
operating toward a common objective. Team development necessitates additional leadership
qualities such as good communication and conflict resolution. Developing relationships is perhaps
one of the most critical abilities for a leader to have since it results of the increasing of duties,
obligations, and objectives.

Problem-solving
Good leaders are adept at resolving problems that develop on the job. Staying cool and establishing
a step-by-step approach are frequently required for effective issue resolution. Problem-solving
abilities may assist leaders in making rapid choices, resolving difficulties with their employees as
well as outside organizations, and ensuring projects are finished on schedule and according to
requirements.

• Skills for managers

Interpersonal skills
Management jobs are all about people, and being able to build successful relationships is integral.
Setting time aside to get to know team members on both a personal and professional level, through
social activities or team-building training, while still maintaining professional boundaries, will go a
long way to
earning their respect.

Technical Skills
Technical management skills are closely related to the technical or engineering dimension of
management. They give managers the knowledge and ability to use different techniques to achieve
what
they want to achieve. Technical skills are not related only to machines, production tools, or other
equipment. They are also skills required to increase sales, design different products, and services,
market the products and services, etc.

Conceptual Skills
Conceptual skills present the knowledge or ability of a manager for more abstract thinking. That
means he can easily see the whole through analysis and diagnosis of different states. In such a way,
they
can predict the future of the business or department as a whole.

• Competences for leaders

Self-discipline
Many of these qualities need the essential attribute of personality in leaders. Leaders behave not for
their personal benefit, but for the benefit of others (8 Key Leadership Competencies | Indeed.com,
2022). Instead of making impulsive judgments, leaders carefully evaluate the potential ramifications
of their actions. Controlling any natural urges to behave out of resentment, avarice, or ego is part of
self-discipline.

Communication
Effective leaders must have strong interpersonal abilities. Leaders are frequently judged based on
their impact on the productivity of their teams. Clear and open methods of communication are
frequently the key to increasing workplace efficiency (Zenger and Folkman, 2019). Leaders are open
to sharing their thoughts and objectives with their teams. Leaders who deliver knowledge succinctly
and properly provide value to any workplace. Employees are frequently unable to accomplish
assignments unless they obtain
precise and relevant insights. It is the job of a leader to effectively communicate directions and
requirements.

Trustworthiness
Trust is an essential component of every job. Most sectors are built on mutual trust among managers,
workers, and customers. To efficiently manage and lead, the leader must demonstrate your
trustworthiness to both the superiors and the teammates (Zenger and Folkman, 2019). The more
trustworthiness they demonstrate, the more prospects for success professionals will have.
Trustworthiness is earned over period and it can only be demonstrated through behavior. Being an
effective leader requires leader to establish trust
with everybody in the business.

Initiative
It should unsurprising that being able to be successful is an important aspect of being a competent
leader. Effective leaders recognize a requirement and take appropriate actions to satisfy it (8 Key
Leadership Competencies, 2022). Leaders will not always wait until they are asked to oversee or
participate to a project before committing to do so. Leaders concentrate their efforts on getting
critical initiatives off to a solid start. This may entail conducting research, recruiting a team, and
developing a plan of action. Skilled
leaders employ productivity and creativity to achieve useful outcomes.

• Competences for managers

Some of the competences that managers should have include:

- Supervising others since the manager is the one who responsible for the end result and
everyone performance so they should keep track of everyone’s processes
- Conflict resolution: since conflict in a group is unavoidable, it is the job of manager to resolve
them to ensure the operation keep going
- Interviewing new employees since they are in charge of building their own team with the help
of other department like HR
- Coaching since they needs to help other employees to do their job at best by transferring
knowledge to them

d. Differentiate leadership and management

It can be seen that while management skills are more about manage current resources to deliver
existing tasks, product or services.., leadership concerns more about engaging people, motivate them
and persuading them to follow certain vision, objective and goal (Cohen, 2009).
In fact, it is being said that while manager often think in a shorter term counting by months and
years, a leader may have a longer vision for years and decades especially for big firms. In addition,
while manager will be more data-driven and concern about the tactics to do think, leader on the
other hand think about the strategy in a broader viewpoint. Nevertheless, since the manage is
responsible for the performance of a group, they would care more about day-to-day business and
operation while leader and leadership care about the broader problem like customers, suppliers,
stakeholders, etc. to deal with. Base on this activities, it can be said manager will manage and
supervise employees while leader job is to influence and motivate them. Thus, the way they have
power toward other is different: while manager gain power from their position and set authority,
leader gains their power from their mindset, behaviour and influences.

3. Leadership and management theories in relation to organizational

effectiveness
a. Leadership
i. Contingency theory
The contingency theory of leadership supposes that a leader’s effectiveness is contingent on whether
or not their leadership style suits a particular situation (Kerr, 1974). According to this theory, an
individual can be an effective leader in one circumstance and an ineffective leader in another one. To
maximize your likelihood of being a productive leader, this theory posits that you should be able to
examine each situation and decide if your leadership style is going to be effective or not. In most
cases, this requires you to be self-aware, objective and adaptable.
For example, in the case of Haidilao that the company really cares about its employees that everyone
including servers will have a clear carrer roadmap at Haidilao, family benefits and fair compesations
that leads to strong leader-member relations, high task structure and high leader position power
(Director, 2021).

ii. Situational theory

Situational Leadership is flexible. It adapts to the existing work environment and the needs of the
organization. Situational Leadership is not based on a specific skill of the leader; instead, he or she
modifies the style of management to suit the requirements of the organization (Yun., 2009).

One of the keys to Situational Leadership is adaptability. Leaders must be able to move from one
leadership style to another to meet the changing needs of an organization and its employees. These
leaders must have the insight to understand when to change their management style and what
leadership strategy fits each new paradigm.

For example, at Haidilao, the coaching kind of leadership style is applied since employees are
empowered with their own power in creativity and actions of kindness to customers, but need to
carefully organized, observed and controlled based on the characteristic of F&B businesses that a
small mistake can terribly damage the brand image (BARISO, 2021).

iii. Transformational leadership

Transformational leadership is defined as a leadership approach that causes change in individuals
and social systems. In its ideal form, it creates valuable and positive change in the followers with the
end goal of developing followers into leaders. Enacted in its authentic form, transformational
leadership enhances the motivation, morale and performance of followers through a variety of
mechanisms. These include connecting the follower's sense of identity and self to the mission and
the collective identity of the organization; being a role model for followers that inspires them;
challenging followers to take greater ownership for their work, and understanding the strengths and
weaknesses of followers, so the leader can align followers with tasks that optimize their
performance....

For example, at Haidilao, there is annual competition called “Best Employee of the year” in which the
employee is competiting with thousands of other employees nationwide thus insipre them and
motivate them to do their work and go extra miles (VnExpress, 2022).

iv. Transactional leadership

Transactional leadership, also known as managerial leadership, is a leadership style where the
executive relies on rewards and punishments to achieve optimal job performance from his or her
subordinates.
As such, transactional leadership is based on an exchange, or transaction: The leader rewards
workers who perform their tasks to the specified levels and punishes workers who do not perform
to those set standards.
This relationship between leader and subordinates is based on theories that assume individuals are
not self-motivated to do their tasks and need structure, instruction and supervision to accomplish
their jobs. The theory also postulates that workers will perform their tasks as the transactional
leader wants them to do in exchange for the leader's offering something that the workers want, such
as pay.

At Texas Chicken, in addition to a satisfactory level of income through salary; reward business and
work efficiency, Texas Chicken applies many welfare regimes showing great concern for employees
(Anh, 2019). This is a form of contingent award in transactional theory.
In addition to the welfare regimes commonly found in companies such as bonuses for holidays, New
Year's Day, birthday celebrations, visits, and filial piety, Texas Chicken employees in Vietnam are also
concerned about their spiritual life and health. The Group participates in advanced health insurance
for employees and allows relatives to participate. Enterprises also encourage and support employees
to join clubs, gyms, spas... or lend money when buying houses, cars, jewelry.... In addition, employees'
children also receive gifts, rewards, congratulatory money for International Children's Day, Mid-
Autumn Festival or have high achievements in study, culture, sports... Relatives of employees
Employees are also encouraged and visited when they are sick. (Anh, 2019)

v. Inspirational leadership
An inspirational leader may well adopt various styles of leadership depending on what the situation
calls for, without ever sacrificing the inspirational aspect of their approach (Bass, 1988). It is about
using the right methods at the right time, and taking into account the needs and motivations of those
you are leading.
In some cases, the highly directive approach will be precisely what is required, and will be what
inspires your reports. Other situations will require a less directive approach, where employees are
encouraged to take the lead and push for change themselves.
Inspirational leadership, at its core, is about finding ways to enhance the potential of those you lead
in a way that works for them, and inspiring others to push themselves, achieve more and reach that
potential. The methods by which this is done will vary from person to person, and business to
business, but the outcome is always the same – people developing a greater confidence in what they
can do, and applying this confidence in a way that benefits the organisation they work for. (Bass,
1988)

For example, at Haidilao, employees will have chance to be trained by their leaders and managers
about softskills and metrics such as OKR and KPI thus inspire employees to unlock their capabilities
and meet the KPI and OKR (Haidilao, 2022).

vi. Emotional leadership

Emotional leadership is the ability to understand and manage one’s own emotions, and to recognize
and influence others’ emotions, is a critical leadership skill. It can make the difference between
marginal accomplishment of a goal, and engaging the hearts and minds of team members to uncover
innovative and game-changing solutions that exceed expectations.
There are six main types of emotional leadership including: visionary, commanding, affiliative,
democratic, pacesetting and coaching.

b. Management
i. Classical approach

The classical management theory is a style of management that emphasizes hierarchy, specialized
roles and single leadership for optimized efficiency in the workplace.
The classical management theory is based on the following principles:
- Scientific management should be used to determine the most efficient way to do a job.
- Employees are selected to perform tasks based on their skills and specializations.
- Operations should be streamlined as much as possible.
- Decisions are made by a single person or by a select few authority figures.
- Productivity is the primary goal.
- Increased profit is given priority.

ii. Human relations approach

Human Relations management theory is a premise of organizational psychology from the early
twentieth century, which suggests that employee productivity and motivation can be increased
through positive social bonds in the workplace and acknowledgement of the worker as a unique
individual (Arpankumar, 2013). It holds that improved working conditions (empowerment,
participation, positive treatment) lead to increased productivity.

For example, in order to create a close bond between leaders, managers and employees, Texas
Chicken has frequently operate monthly and yearly team building activities for their employees so
leaders and managers can have chance to build close bonds with their workers (Chi, 2019).

Texas Chicken team building activities (Chi, 2019)

4. Leadership and management styles and organizational culture

a. Leadership and management styles

i. Likert’s systems 1-4

The Likert Management System is a theory about the various management styles a manager can
adopt within an organization (Farris, 1974). In the ’60s, Rensis Likert developed four management
styles, intended to describe the relationship, roles and involvement of managers and subordinates
in industrial environments. It includes: exploitative authoritative, benevolent authoritative,
consultative and participative.

At Texas Chickens, the leadership style is more of the benevolent authoritative since the system uses
less control over employees than the exploitative authoritative system. Texas Chicken in fact
empower employees to make their own decisions and innovations in some extent under the
company’s will (Chi, 2019). However, this system as Texas Chicken motivates employees through
potential punishment and rewards as yearly bonus and KPI bonus of Texas Chicken as proposed
above. Lower-level employees are more involved in the decision making processes, such as the store
managers to make their own decision at each store of Texas Chichken (Texas Chicken, 2022). This
leads to some form of innovation at Texas Chicken such as Texas Chicken Smart, online platform
innovated by Texas Chicken employee (Texas Chicken, 2022).

ii. McGregor’s theory X & Y

 The idea that a manager’s attitude has an impact on employee motivation was originally proposed
by Douglas McGregor, a management professor at the Massachusetts Institute of Technology during
the 1950s and 1960s (Farris, 1974). In his 1960 book, The Human Side of Enterprise, McGregor
proposed two theories by which managers perceive and address employee motivation. He referred
to these opposing motivational methods as Theory X and Theory Y management. Each assumes that
the manager’s role is to organize resources, including people, to best benefit the company. However,
beyond this commonality, the attitudes and assumptions they embody are quite different: one of
which is negative, called as Theory X ; the other is positive, so called as Theory Y (Farris, 1974).

For example, at Haidilao, the theory Y is implemented since it gives employee the freedom to speak
and raise their voice along with managers to do the task at best. Empowering and giving
responsibilities is witnessed in the firm and the innovation often occur from bottom-up (He, 2022).

b. Cultures of organizations
i. Different types of organizational cultures
• Charles Handy’s 4 types
 Based on two dimensions, Charles Handy and Roger Harrison followed various organisations and
examined how power was distributed and the specific levels of cooperation. In a grid view, the power
distribution from low to high is placed on the y-axis, and the level of cooperation from low to high is
placed on the x-axis. The various combinations then result in four different organisational cultures.
(Handy, 2007)

With the huge size company like Texas Chicken, it is implementing task organizational culture
since the power is clearly divided base on organizational chart and authorities are clearly defined
(Texas Chicken , 2022). With this task culture, teams are formed to obtain business goal. The teams
at Texas Chicken can be named are marketing teams, different sales teams at different stores,
production teams, quality control teams, delivery team, IT team, etc. (Texas Chicken , 2022). This will
specialize the field of profession of employee and help them to work more efficiently with other
people in the same professions likewise. If a team is built include different professions at one, it is
harder for the manager and leader to control the performance and have the detailed results of
employee than the task culture.

ii.Factors influencing the development of organizational culture.

There are several factors affecting the development of organizational culture including (Khoshtinat,
2016):
• History: The reason/ mission, and manner in which, the organization was originally formed, its
age, and the philosophy, vision and values of its owners and first senior managers will affect culture.
For example, the long-lasting history of Texas Chicken since 1994 makes it more valued than others.
However, as an F&B business, it is also innovative and adaptive with changes.
• Nature of business & its primary function: This includes the range and quality of products and
services provided, the importance of reputation and the type of customers. The primary function of
the organization will determine the nature of the technological processes and methods of
undertaking work, which in turn also affect structure and culture.
The type of production which is F&B make the business culture tend to be more innovative than
other type of products since the F&B market changes day by day
• Strategy: The combination of objectives and resultant strategies will influence culture, and may
itself be influenced by changes in culture.
• Size: Usually larger organizations have more formalized structures and cultures. Increased size
is likely to result in separate departments and possibly split-site operations. Texas Chicken has a
relatively large size with 20.000 restaurants worldwide and and over 800.000 employee worldwide
make it very structured.
• Location: Geographical location and physical characteristics can have a major influence on
culture. E.g. whether an organization is located in a quiet rural location or a busy city center can
influence the types of customers and the staff employed.
• The environment: In order to be effective, the organization must be responsive to external
environmental influences. For example, if the organization operates within a dynamic environment
it requires a structure and culture that are sensitive and readily adaptable to change.
• Management and leadership: the management and leadership styles can affects how employees
are satisfied and do their job, thus affect the organizational culture.
• Digital technologies: the digital technologies will affect directly to people jobs and shape how
they work and the organizational culture.

5. Conclusion
This report has well define leader, manager, leadership and management, as well as provide basic
information about the leadership and managment theories as well as the practical examples for
them. The organizational cultures and factors affecting organizational culture have been also
addessed, along with real life examples from different companies especially the chosen company
Texas Chicken and Haidilao.

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