BTEC Level 4: Management Insights
BTEC Level 4: Management Insights
Submission date October 24th,2019 Date received (1st submission) October 24th,2019
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Student name: PHAN VU BAO TRAN
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Unit 4: Management and Operations (488) – TRAN THANH BICH TRA
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Description of activity undertaken
I.1. Definition
- Management .
-Leadership.
2.Leadership
- Trait theory
- Behaviour
- Partiapative
- Contigency
- Situational
Assessment & grading criteria
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Assessor name: TRAN THANH BICH TRA
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Table of Contents
Introduction ............................................................................................................................................4
1. Definition .....................................................................................................................................4
2. Differenciation between the role of a leader and the function of a manager. ................................4
1.Management. ...................................................................................................................................7
1.1 Historical theories. .....................................................................................................................8
1.2 Contenaporary theories ..............................................................................................................9
2.Leadership ...................................................................................................................................... 10
2.1 Trait theory ......................................................................................................................... 11
2.2 Behaviour ........................................................................................................................... 11
2.3 Partiapative ........................................................................................................................ 11
2.4 Contigency: ......................................................................................................................... 12
2.5. Situational .......................................................................................................................... 13
Conclusion ............................................................................................................................................. 20
References............................................................................................................................................. 22
Introduction
The growth of a business depends on many factors. Which has the decisive factor of leadership and
management. However, people often confuse leadership and management as the same thing but in
essence, they are very different. The main difference between the two is that the leaders have followers
who follow them, while managers have people who simply work for them. Especially in small businesses, to
a successful small business owner, they need to be a strong leader and manager to put their team on board
with effort towards successful vision. Leadership is for people to understand and believe in the vision you
set for the company and cooperate with you to achieve your goals, while management is about governance
and ensuring the daily activities are going on as they should do.
Leadership and management must go double together. They are not the same, but they necessarily
link and complement each other. Any attempt to isolate two people in an organization is likely to cause
more problems than it solves. In order for any company to succeed, it requires management to be able to
plan, organize, and coordinate its employees, while simultaneously inspiring and motivating them to
perform with the best capabilities. This essay we will go to learn about the differences of management and
leadership in the business environment.
“Management refers to the process of using organizational resources to achieve organizational objectives
through the functions of planning, organizing and staffing, leading and controlling.” (DuBrin, 2012)
“Leadership is the ability to inspire confidence and support among the people who are needed to achieve
organizational goals. (DuBrin, 2012)
“Leadership is the ability to positively influence people and systems to have a meaningful impact and
achieve results. (Yukl, 1998).
Fixed in the enterprise. Has its own There is no need for an important
Position
departments and functions. location in the organization.
_Assigning activities.
Functions _Dividing work into specific jobs and
tasks.
3.Leading (directing):
4.Controlling:
4.Controlling
Operations Manager are three jobs that 4.Trustworthiness and honesty: create
require the manager to have enough strengths of yourself, increase trust.
knowledge, responsibility, and spirit to
5.Good intellectual ability, knowledge,
Characteristics work.
and technical competence : this is the
4. A Continuous Process:
basic requirement of the leadero.
Different management activities can
6.Sense of humor : create fun,
not be performed once but it is a
entertaining for employees. As well as
continuous, sequential process.
everyone around.
5. A Group Activity: The organization's
activities must be performed by the 7.Emotional intelligence: the ability to
group rather than one's. identify and manage their own emotions,
1.Management.
1.1 Historical theories.
a. The classical approach
Classical management theory is based on the belief that workers only have physical and economic needs. It
does not take into account social needs or job satisfaction, but instead advocates a specialization of labor,
centralized leadership and decision-making, and profit maximization.
Designed solely to streamline operations, increase productivity and enhance the bottom line, this idea
arose in the late 19th century and gained prominence through the first half of the 20th century. While not
widely subscribed to in modern times, this theory offers some principles that remain valid, to an extent, in
small business settings in regards to manufacturing.
Appraisal of the classical approach:
Advantages: Disadvantages:
Demonstrated the importance of Did not appreciate the social context of work
compensation for performance and higherneeds of workers
Initiated the careful and systematic study of Did not acknowledge the variance among
tasks and jobs individuals
Demonstrated the importance of personal Tended to regard workers as uninformed
selection and training and ignored their ideas for suggestions
b.Behavioral
As management research continued in the 20th century, questions began to come up regarding the
interactions and motivations of the individual within organizations. Management principles developed
during the classical period were simply not useful in dealing with many management situations and could
not explain the behavior of individual employees. In short, classical theory ignored employee motivation
and behavior. As a result, the behavioral school was a natural outgrowth of this revolutionary management
experiment.
The behavioral management theory is often called the human relations movement because it addresses
the human dimension of work. Behavioral theorists believed that a better understanding of human
behavior at work, such as motivation, conflict, expectations, and group dynamics, improved productivity.
Appraisal of the behavioral approach:
Advantages: Disadvantages:
Contributed an important awareness of the The approach tends to emphasize the
influence of HR factor at work and importance of work to workers without
organizational performance & the need to really addressing financial issues.
offer job satisfaction to employees. E.g. no proven link between job satisfaction
Most theories attempted to offer guidelines and motivation; or either of these and
to enable practicing managers to satisfy and productivity, or the achievement of
motivate employees organizational goal
Obtain improved productivity.
c.Quantitative
Advantages: Disadvantages:
Enable managers to solve complex problems The answers it produces are often less
that cannot be solved by common sense precise than they appear.
alone.
Although quantitative approaches use precise
E.g. management science techniques are
methods, much of data is based on human
used to make forecasts that take into
estimates (which can be unreliable)
account hundreds of factors simultaneously
a.System
The view of organizations as open social systems that must interact with their environments in order
to survive is known as the systems theory approach. Organizations depend on their environments for
several essential resources: customers who purchase the product or service,
suppliers who provide materials, employees who provide labor or management, shareholders who
invest, and governments that regulate. According to Cutlip, Center, and Broom, public relations’
essential role is to help organizations adjust and adapt to changes in an organization’s
environmentAppraisal of the Systems Perspective
Advantages: Disadvantages:
It facilitates the interaction between the Over-conceptual
organization and its environment It does not recognize the differences in
It guides managers to avoid analyzing systems
problems in isolation and to develop an Systems philosophy does not specify the
integrated approach nature of interactions and inter-
dependencies
Unpractical: It can not be easily and directly
applied to practical problems
b.Contigency
The contingency approach is a management theory that suggests the most appropriate style of
management is dependent on the context of the situation and that adopting a single, rigid style is
inefficient in the long term. Contingency managers typically pay attention to both the situation and their
own styles and make efforts to ensure both interact efficiently.
The contingency approach contrasts with other forms of leadership, such as trait-based management,
whereby personality and individual make-up predict patterns of management and responses to given
situations over time. Another management approach is style-based app.
Appraisal of the contingency approach
Advantages: Disadvantages:
Encouraging managers to examine individual Used as an excuse for not acquiring formal
and situational differences before deciding knowledge about management.
on a course of action
Encouraging responsiveness and flexibility to
change
c.IT – beyond
2.Leadership
2.1 Trait theory
Trait theory initiated by Ralph Stodgill (1904 – 1978) in 1974, discusses the characteristics of leaders. the
characteristics about capacity, achievements, responsibility, etc.
Advantages Disadvantages
It helps assess the characteristics and There are so many characteristics, the
leadership style of each individual. leader cannot be perfect.
It assesses the characteristics of the Too many characteristics will appear
leader to see which points need each person a different opinion.
modification to become more
professional.
2.2 Behaviour
Behavioral theory talks about the behaviors and actions of leaders. The professionalism of leadership
manifests itself in behaviors. It effective when others follow the conduct of the leader.
Developed by R. R. Blake (1918 – 2004) and J. S. Mouton (1930 – 1987), the Managerial Grid
Model helps Managers to analyze their own leadership styles through a technique known as grid training.
Managerial grid model based on 2-dimensional behavior:
Concern for people: Leaders consider the needs of team members, their interests and the personal
development field when deciding the best way to accomplish the task. ( Y-axis)
Concern for production: Leaders emphasize specific goals, organizational efficiency and high
productivity when deciding the best way to accomplish a task. (X-axis) ( Durin, 2012)
Advantages Disadvantages
Help change bad behaviors Behaviors that may be right and
Increased confidence appropriate at a time and cannot be
applied to every situation
It ignores the mental processes that
are involved in learning
2.3 Partiapative
Participative theory initiated by Kurt Lewin (1890 – 1947) and colleagues did leadership decision
experiments in 1939. It is an important method of contribution in the enterprise. This method allows
everyone to work together to accomplish a goal. It includes:
Democratic: Everyone is free to contribute and comment. Divided into 2 categories:
Consultative: The leader will give the employee a problem to discuss. Each people 1
vote but ultimately decide whether to implement or not will still be the leader.
Concencisions: Will be collected from the crowd, the leader can only 1 vote, the
results will be calculated based on the most voted votes.
Advantages Disadvantages
Free to comment It takes a lot of time, the leader can't
control it.
Autocratic: Leaders just want to do their own thing but not listen to anyone's opinion.
Advantages Disadvantages
There are quick results Unhappy staff
2.4 Contigency:
The fallback theory of leadership was developed by Fred Fiedler in 1958 during his study of the
effectiveness of leaders in group situations. Contigency theory states that effective leadership will
depend on the way you work and your style of leadership. Contigency theory states that no one has the
best leadership style. Effective leaders are their leadership style that fits the situation. There are three
factors that the prophylactic leader needs:
Task Structure: How will the leader set that task?
Positional Power: The ability of leaders to control employees
Leader-Member Relation: The interaction between leaders and employees makes them accept
and support.
Advantages Disadvantages
Employee opinions matter Doesn't explain what to do when there
Flexible is a mismatch between style and
situation
It will not be helpful if the context, the
advantage changes more often than
the leadership
2.5. Situational
Situational leadership is a management style developed by Paul Hersey (1931 – 2012) and Ken
Blanchard (1939 – 2019) in 1969 and improved and perfected in the decades since. Leaders who use
methods to apply to employees to help them grow and keep pace with the organization. There are 4
leadership styles:
Direct: Low relationship, high duty. Leaders will give directions and force employees to follow suit
and then together make decisions.
Coach: High relationship, high duty. Leaders will guide employees, make decisions so that
employees can complete the mission successfully.
Support: High relationship, low duty. This method is applicable to employees who already know the
job but lack confidence or have little difficulty at work.
Deligate: Low relationship, low duty.This method applies to hardened employees who have the
skills and confidence to take on the work and solve it on their own.
Advantages Disadvantages
Leaders can change methods based on These methods are not applicable in all
skills or situations with employees situations and last long.
These methods make it easy to build It creates a company's dependence on
relationships with employees, leadership
understand them better.
III.Leadership in practive
• Advantages: • Advantages:
• Disadvantages: • Disadvantages:
_Lacks conceptual clarity – difficult _This type of leadership is flawed
to define parameters. since it motivates people only on
_ A scale that does not clearly the base level
distinguish between factors (e.g. _Creativity is limited since the goals
idealized stimulation, motivation and objectives are clearly set
for inspiration, intellectual
_Ego states are difficult to define
stimulation & personal
consideration are the same). _Does not reward personal
initiative
_It can be seen as a personality
trait or personal disposition rather
than a behavior in which people
can be instructed.
This model explains the dependence of the elements together. The manager must balance the three
elements, not being overset too much of a factor as it will cause systemic disturbances. A proven example
for this. A team is working effectively, everyone tries to accomplish a goal, but an individual does not
complete the assigned work that the reason he lacks motivation and lacks time, the team spirit goes down ,
depressed, did not complete the assigned work.
All circles as the same size, this does not mean that the leaders must always divide their efforts
on these equal fields. Instead, the most appropriate balance changes depending on the situation, and over
time.
3.Chaos theories
Chaos is the science of surprises, of the nonlinear and the unpredictable. It teaches us to expect the
unexpected. While most traditional science deals with supposedly predictable phenomena like gravity,
electricity, or chemical reactions, Chaos Theory deals with nonlinear things that are effectively impossible
to predict or control, like turbulence, weather, the stock market, our brain states, and so on. These
phenomena are often described by fractal mathematics, which captures the infinite complexity of nature.
Many natural objects exhibit fractal properties, including landscapes, clouds, trees, organs, rivers etc, and
many of the systems in which we live exhibit complex, chaotic behavior. Recognizing the chaotic, fractal
nature of our world can give us new insight, power, and wisdom. For example, by understanding the
complex, chaotic dynamics of the atmosphere, a balloon pilot can “steer” a balloon to a desired location.
By understanding that our ecosystems, our social systems, and our economic systems are interconnected,
we can hope to avoid actions which may end up being detrimental to our long-term well-being.
4.Management in crisis
Crisis management is defined as a series of steps performed by an organization to deal with a catastrophic
event. A crisis disrupts business operations, threatens to harm people, damages your reputation, and
negatively impacts your finances.
To effectively manage any crisis, you’ll need a comprehensive process that not all public relations firms are
fully equipped to handle. Many crisis management companies are communication experts with
backgrounds in public relations, social media, and reputation marketing.
While those strategies alone may have worked in the past, they won’t be enough in 2019 and beyond.
Firms must also have an extensive understanding of search engine reputation management principals to
manage a crisis and reduce its impact on your reputation.
In addition to the different types of power, leaders use different tactics to get things done.
Choosing a reasonable tactic will create many advantages such as the benefit brought about. Some
common tactics are:
Leading by example: Plays an important role, is the influence on the members to motivate them,
make them think positively by putting themselves in the form of a model for people to follow,
said to be done.
Leading by values: Means that leaders influence people by showing people their self-worth and
showing value to them to stimulate creativity friendly, creative, etc.
Joking and kidding: Widely used in most situations. When there is a serious problem, sometimes
joking will help it be solved more comfortably.
Assertiveness: Refers to deciding something definitely without hesitation, timidly. Know how to
protect your thinking, your position properly but not neglect the rights of others.
Rationality: Means showing them facts that are logical and realistic to persuade them to do
something to accomplish the set goal.
Exchange: As a method of trading, what do you do for them? and what will they do for you?
Coalition: Is a special method, whether the individual or a group, gather together the strength
to achieve a certain goal quickly and effectively.
Ingratiation: Is to use good words to praise someone before asking them to do something or to
achieve a goal. This method is often used in politics.
Here are a few practical examples of each management style as well as leadership.
1. Vision Management Style
Nelson Rolihlahla Mandela (1918 – 2013) was President of South Africa from 1994 to 1999. In 1962 he was
arrested and accused of sabotage of politics and other crimes that were sentenced to life imprisonment.
He was paid free on Feb. 11, 1990, who was the leader of the apartheid movement rapidly. By the
determination and power of the mind, Mandela liberated the South African nation. The fire and vision of
him motivated employees to work towards goals and common solutions for the entire country and nation.
This management style has a drawback that lack of general practice in the process will lead to problems.
Especially with new, inexperienced members.
2. Unique management style
Bill Gates is a typical example. He had a clear plan for his company. A plan that is difficult or impossible for
many others to grasp until it becomes a reality and Microsoft is a typical example of becoming a familiar
name. This style of leadership directly affects the performance of employees. China and some Asian
countries are a typical example. However, it will also lead to a negative workspace, limiting employee
creativity (loss of staff).
3. Charismatic leadership
BILL CLINTON (42th president of the united nations) is a prime example. He used his charm to gain the
admiration of their followers, his interest in the people and the care of his people was a factor that helped
him to be followed by many people. nice and friendly for people to follow him by listening and making his
followers feel heard and trusted by him. He played a very important role in expanding the peacetime of the
United States.
4. Leaders to participate
Donald Trump (real estate tycoon and billionaire) is a prime example of this leadership style. He is the
coordinator of ideas, sharing information with people about the goal and making the final decision. This
style of leadership guides people to do so. Promote teamwork rather than domineering.
Leadership and management are two indispensable factors in the enterprise, they work to accomplish
the ultimate goal of the organization whether the goals are long term or short term. With leadership they
are visionary people, capable of supervising the process of management and evaluation of the results of
the implementation process. In contrast, for managers, they are capable, professional, creative, to
organize, develop plans, steer and control operational processes. Despite the different functions of
leadership and management, it has tight, intertwined links but does not hinder each other. In particular,
when a leader makes ideas or plans for the future, the management will be responsible for
showing ideas and they will distribute reasonable plans.
Source: Chugg, 2015
A typical example is President of FPT group Mr. Truong Gia Binh Chairman of the Board, General Director of
FPT Corporation. According to the website tinnhanhchungkhoan.vn, Mr. Truong Gia Binh in management
style is very different from everyone. He built his reputation as a mirror and influenced the staff of the FPT
group. He built the way staff control at FPT was to create comfort and empowerment with parallel and
flexible control. At FPT lenterprise, we have to identify what skills you are doing and find a complementary
element to create your business growth. It can be seen that not only links between management and
management departments at the company, but at FPT, this link extends to each employee. Under his
leadership, FPT has become one of the leading informations TECHNOLOGY companies in Vietnam and FPT
is also working to become an international company. So it is necessary to closely link between ranks,
departments. Managers and leaders must always learn to collect and support each other to grow stronger.
Conclusion
Leadership and management are inseparable in essence, if there is management, then there is leadership.
In fact, the qualities of a manager require leadership skills to inspire his or her lower level. In an
organization, you can see both management and leadership. There is a manager in a department and some
leaders work with their groups in assisting the Organization to implement their goals. Many times the
managers also played the role of a leader, at the request of the Organization. So, the two go together as an
addition to each other. An organization needs both for its growth and its existence. Managers and leaders
are all important people to grow for your business. The manager will help you control everything from staff
to plans. The leader helps your business to add a sense of mind and inspire members of the organization.
And when you find both qualities in the same person, it's like hitting the jackpot number.
Management theories, also known as transactional theories, focus on the role of supervision,
organization and group performance. These theories base leadership on a system of rewards and
punishments. Managerial theories are often used in business; when employees are successful, they
are rewarded; when they fail, they are reprimanded or punished.
References
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