Management Operation

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Table of Contents

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Chapter 1: Introduction
1. Introduce the Vietnam Dairy Products Joint Stock company (Vinamilk).
Vinamilk is Vietnam's biggest brand of fresh milk, yogurt, ice cream, cheese, and a variety of other items.
Vinamilk was founded in 1976 after the acquisition of three abandoned dairy factories. Vinamilk's productivity
recovery over the last 45 years has been the key for the success and sacrifices of all members of the company,
driven by and wisely led by staff members—people who are inventive, dedicated, and always do their best for
Vinamilk's common cause. Vinamilk has top 50 most valuable brands in Vietnam in 2016, national brand
from 2012 and many other rewards. Nowaday, Vinamilk is an international nutrition company which operates
in over 50 countries. Vinamilk has nearly 40 internal and international divisions, including branches,
distributors, dairy farms, and other companies. Vinamilk produces approximately 18 million items a day.
Vinamilk places a premium on the quality of its products in order to gain customer confidence. The company
and dairy farms have total assets of 46074 billion VND, earnings of 14153 billion VND and profit after tax
of 2776 billion VND, with 9803 employees in 2019. Vinamilk's organizational structure often divides
divisions by functions. It assists company in fully exploiting the advantages of specialized industry, according
to the functions of each unit. It preserves the key functions of power and reputation, promotes instruction, and
facilitates the most stringent review possible. (Vinamilk, 2020).

Figure 1: The Vinamilk organization structure
Source: (Vinamilk, 2020)
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The financial status of Vinamilk is stable at all times. In particular, 2019 is a year of change for growth, as the
5-year plan (2017-2021) comes to an end. Vinamilk now has a market capitalization of VND 564 trillion,
making it the most valuable brand in Vietnam at $2.2 billion. It also increased its market share to 0.2%,
enabling it to increase its current equity to VND 202907 billion. (Vinamilk report, 2020).
Chapter 2: Theoritical of Management and Leadership
2. Introduce the Management & Leadership.
2.1. Definitions of Management & Leadership
a) Management.
The planning and administration of activities to accomplish a goal is referred to as management.
Setting the organization's strategy and organizing team actions to achieve these goals through the use
of appropriate capital are examples of administration tasks. The seniority hierarchy of employees
within a company is often referred to as management. (Jones and George, n.d.)
b) Leadership.
In industry, leadership is described as a company's management's ability to set and accomplish
ambitious targets, take quick and decisive action when necessary, outperform the market, and
encourage others to perform at their best. (Twin, 2020)

2.2. Approaches to Management
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Classical Approach.
The classical management approach professes a system of management thinking focused on the
assumption that workers have only economic and physical needs, and that psychological needs and
work fulfillment are either non-existent or unimportant. As a result, it encourages high labor
specialization, concentrated decision-making and profit maximization. (Capuno, 2021)

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Figure 2: Strenths and Weaknesses of Classical Approach
Source: (Muhal, 2015)
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Behavioural Approach.
Behavioural management theory is concerned with identifying worker motivation, including goals,
needs and preferences, and group dynamics, in order to manage productivity. Because of the emphasis
on the human aspect of work, behavioural management theory is often referred to as the human
relations revolution. (Cliff, 2021)

Figure 3: Strengths and Weaknesses of Behavioural Approach
Source: (Beccawitt, 2021)
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Contingency Approach:
The contingency management approach is based on the premise that there is no one-size-fits-all
approach to management. The term "contingency" refers to the current state of affairs. Planning,
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coordinating, directing, and guiding of effective organisations must be tailored to their specific
circumstances. In other cases, as part of a full management environment, managers should define the
circumstances of a task, the specifications of the management work, and the personnel involved. The
leaders would then strive to combine all of these components into a solution that is ideally tailored to
the problem. (Cengage, 2021)

Figure 4: Advantages and Disadvantages of Contingency Approach
Source: (ErTarunkashni, 2021)
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MBO Approach:
Management by objectives (MBO) is a strategic management model that seeks to enhance an
organization's success by explicitly identifying objectives that both management and staff agree on.
Having a voice in goal-setting and action planning, according to the theory, promotes staff engagement
and involvement, as well as aligning goals around the organisation. (Hayes, 2020)

Figure 5: Strengths and Weaknesses of MBO Approach
(Source:(Hayes, 2020))

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2.3. Leadership Style.
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Autocratic Style:
Autocratic leadership, also known as totalitarian leadership, is marked by individual authority of all
decisions and no participation from members of the party. Autocratic leaders seldom consider guidance
from supporters and make decisions based on their own thoughts and judgments. Total, centralized
dominance of a party is the hallmark of autocratic leadership. (Susman, 2020)

Figure 6: Benefits and Drawbacks of Autocratic Style in Leadership
(Source: (Susman, 2020))
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Democratic Style:

Democratic leadership, also known as participative leadership or shared leadership, is a form of
leadership in which party members participate more actively in decision-making. This style of
leadership can be seen in a number of environments, including private enterprises, colleges, and
government. (Cherry, 2020)

Figure 7: Pros and Cons of Democratic Leadership
(Source: (Cherry, 2020))
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Transactional Style:
Transactional Leadership focuses on performance, follows an organization's existing process, and
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calculates progress using the organization's incentive and penalty scheme. In an organisation,
transactional leaders have formal power and responsibilities. This style of leader is in charge of
keeping everything on track by overseeing individual success and promoting group performance.
(Nurs, 2014)

Figure 8: Pros and Cons of Transactional Leadership Style
Source: (Nurs, 2014)
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Transformational Style:
Transformational leadership is a management style that encourages, inspires, and motivates people to
evolve and drive progress in order to make the business succeed and influence the potential
performance. (White, 2021)

Figure 9: Strengths and Weaknesses of Tranformational Style
Source: (Thompson, 2019)

2.4. Comparison between Management and Leadership.

2.4.1. The common features
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Function:
Managers and leaders have the same function as follows:
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- Communication with workers will inspire them to work better and will make it easier for them to
express their personal opinions with management and executives in order to help the business succeed.
- Make decision about the jobs they control
- Resolving the company's issues
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Action:
Managers and leaders are both accountable for completing the company's responsibilities,
communicate the vision to staff so that they realize what they must do during the workday to complete
the assignments delegated by their supervisors and mobilize resources in their departments to handle
and lead in a scalable way in order to optimize productivity and complete assignments flawlessly.

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Role:
Managers and leaders must work together to create an atmosphere where workers can thrive. They
must devise tactics for enhancing and maintaining a company's strategic edge over its competitors.
They must also use their experiences, thoughts, and expectations to guide the members of their team.

2.4.2. The different features

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Function:
Management
Leadership
Management is responsible for various functions Leadership is the ability to influence, motivate,
such as

planning, organizing, leading and create and mentor the group in achieving the goals

controlling, which are related to the tool set by the management
organization
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Action:
Management
Leadership
Managers are concentrating on the tasks that Leaders are still focused on the corporate goals.
have been delegated to them, and they can guide They do stuff that could break company rules,
staff to complete them. They still obey all and they take every risk in order to improve their
corporate guidelines to reduce risk as much as work and hit deadlines sooner. They do something
possible, allowing them to "go with the flow" in "against the grain", ignoring the fact that it is
their work.

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immoral and incredibly dangerous.

Role:
Leader

Management
The leader is the one who assists the team in The manager's role is stable and formal because
dealing with transition. The leader's roles are they are managing employees, work in their
often exchanging and unofficial

respective fields and it is difficult to change.

Whether they are managers or leaders, they all hold a certain role, guiding their team members meticulously to
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complete the tasks and goals in the company to develop the company. And help the company achieve more
revenue, profit and create a competitive advantage with other businesses
Chapter 3: Management and Leadership in Vinamilk
3.1. Current situation of management and leadership in Vinamilk
The company's growth and success over the last 40 years has been the result of the efforts and commitment of
all employees, guided by the wise management and leadership of key personnel - the people are talented,
brave, and always do their best for Vinamilk's common good. Currently, the highest leader in leadership
position is Ms. Mai Kieu Lien, general director of Vinamilk and then are directors of departments.
According to Forbes Vietnam: “With a history of leading Vinamilk for more than 43 years, mostly in the
highest leadership position, Ms. Mai Kieu Lien is already the soul of the largest dairy company in Vietnam.
She is the first woman to be honored by Forbes Vietnam as the "Lifetime Achievement" award. On the
personal aspect, her hallmark at Vinamilk is her innovative thought, the ability to properly plan strategies,
build corporate culture and connect employees to contribute to the common goal of giving development
company. " (Yen, 2019)
Vinamilk values and acknowledges the contributions and views of its workers. As a result, the employees of
Vinamilk are always appreciated, listened to, and shared. Vinamilk's leadership style not impose or compel its
staff to obey a set of instructions. Employees are free to take action and contribute to the company's overall
success. Vinamilk wishes to aim for the best true values: Integrity - Respect - Justice - Ethics - Compliance.
(Misa, 2020)

3.2. Roles and functions of Managers in Vinamilk
Vinamilk's head of Human Resources, Administration, and External Affairs is Ms. Bui Thi Huong. Ms. Huong
employs a behavioral approach to management as a manager. Ms. Bui Thi Huong expressed her expectation
that companies in Vietnam will cooperate to create an edge-to-edge market climate by employing innovative
management strategies from around the world, equal and balanced rivalry, which aids the enterprise's
long-term growth. Then, to recruit and maintain talent, provide the best working atmosphere for them so that
they can really contribute to the market. (Chi, 2021)
Ms. Huong was still concerned about her staff, so she adopted strategies such as unskilled employees at
Vinamilk will be paid a fixed wage ranging from VND 6 million to VND 8 million, with bonuses based on
individual capacity. Employees will be able to rest and unwind after work by building a yoga area, a
swimming pool, and a football field. Employees are also provided with personal protection devices. Vinamilk,
in particular, organizes internal preparation to improve workforce skills and provide workers the opportunity
to try out new jobs and other more policies....
Thanks to using behavioral approach in management of Ms. Huong, Vinamilk is now this dairy company that
pays close attention to the working environment and human issues and holds the No. 1 position as the best
workplace in Vietnam. In addition, Vinamilk also set up a "hat-trick" when it took the lead in ranking,
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namely "Top 50 Vietnamese Enterprises with attractive employer brands". This helps Vinamilk to attract
more talented employees and a loyal source of employees to the organization, thereby helping the company
increase productivity and profit.(Chi, 2021)
3.3. Roles and functions of Leaders in Vinamilk
Ms. Mai Kieu Lien is the General Director of Vinamilk who holds and make it became a highly profitable
business today, Ms. Lien adopts a democratic leadership style. Her leadership style, Ms. Lien shared that is:
Assertive - Democratic - Compliance. Ms. Lien, who has been the general director of Vinamilk for over 40
years, is an outstanding example.
She reveals her business secret: "Below me, there are 5 - 6 Board members appointed by me who are
accountable before me. Centered on corporate governance rules that meet international norms, we form a
unified, sharing, and approved block to jointly enforce the set strategies. We are very democratic at work and

we debate and listen to each other's views." (Thuy, 2013)
"I think leadership is not arbitrary, but instead is assertive, avoiding wavering after making decisions.
Vinamilk's culture is the willingness to listen to from all employees" she added. (Thuy, 2013)
Ms. Lien also expressed her views on leadership style, noting that the necessary qualities are "sincere,
outstanding, and competent, worthy of leading the team to success." Ms. Lien noted that the management
board often encourages workers to share their thoughts, listen to, appreciate and respond to all employees'
questions and complaints by email in a timely manner, and to hold meetings to a minimum. (Haymora, 2021)
Thanks to Ms. Lien's leadership style, Vinamilk becomes the largest dairy company in Vietnam. Products from
Vinamilk brand are distributed evenly across 63 provinces with 220,000 points of sale. Besides, Vinamilk
Vietnam is also exported to 43 countries around the world with a wide range of products from children's
products to adult products. And helping Vinamilk regularly register its name in the prestigious domestic
rankings (top 50 listed companies) and abroad such as Asia300 - List of excellent listed companies in Asia;
List of 200 best listed companies with revenue over 1 billion USD announced by Forbes Asia; in the world's
top 50 largest dairy companies in terms of sales and very close to the top 30. (Vi, 2020).
3.4. Evaluation of the approaches of Vinamilk to leadership and management

Positive

Management
Leadership
With Ms. Huong's behavioral approach With the democratic and equal leadership of Ms.
management, she always cares about her Mai Kieu Lien, it has helped Vinamilk become
employees and meets the needs of the staff. the number 1 dairy company in Vietnam in terms
Thanks to that, Vinamilk is highly appreciated of revenue and profit after tax, towards the Top
in

creating

the

material

and

spiritual 30 largest dairy enterprises in the world. With

conditions to help employees to create, such a leadership, all employees feel respected
maximize their capacity, help the company because they always have the right to express
increase productivity and profit and many their opinion with everyone in the company. This
other achievements. Currently, Vinamilk is makes employees feel motivated and hard to
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rated as the best workplace in Vietnam work with. Everyone comments together, works
announced by Anphabe and the market closely to come up with ideas to develop a
Negative

research company Intage.
stronger Vinamilk brand.
Besides, Ms. Huong's management approach Minority viewpoints are always overshadowed.
makes it difficult to predict the behavior of all Furthermore, many workers believe that the
employees and not be able to meet all of corporation upholds democratic rights, so they
them. That causes a group of employees who work inefficiently, relying on the opinions of
are not satisfied with the need for their others. In the case of quick decision making, it is
behavior to work ineffectively, causing the not appropriate because in the democratic style,
performance to deteriorate, affecting the everyone can give their opinion and then make a
company. In addition, it also makes the labor final decision. And it causes time to discuss,
discipline is not guaranteed, leading to the affects other activities in the company.
work efficiency is not high when the
employees who violate the regulations are not

handled in time.

3.5. Recommendation for Vinamilk
After introducing leadership, management and analysis of how these two positions operate at Vinamilk, we
can provide a number of solutions to improve employee productivity, management and leadership more
quality.
In addition to using behavioral management methods, Ms. Huong should use a combination of MBO
management methods. This helps the company to better grasp the behavior of employees, increase employee
cohesion, develop together so that they can fulfill the organizational goals set out and improve high success for
organizations.
On the other hand, besides using democratic leadership method, Ms. Lien can use a combination of
transactional leadership method. Since then, the democracy in the organization is also shown more clearly
when employees are encouraged to contribute their opinions, stating their own wishes for the company to
increase the working progress of the company. At the same time, the leader is also involved in monitoring the
work progress and penalties for the employees who violate the company rules. This helps the company to
understand employees' desires, at the same time to have more product development ideas, ensure fairness
among employees and increase productivity from employee contributions, helping the company increase
profit, work efficiency is improved.
To sum up, with the above information, it clarified the leadership and management style and at the same time
clarified the two specific positions at Vinamilk dairy group. From there, we can see that management and
leadership are two indispensable positions in any business, as it is always the part that leads employees to
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work to achieve productivity and profitability for the company.

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Slide of Management Operations

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