introduction to management topic leadership and influence process vinamilk

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<b>TABLE OF CONTENTS</b>

<b>I. INTRODUCTION...</b>

<b>II. THEORETICAL BASIS OF LEADERSHIP FUNCTION...</b>

1. The Nature Of Leadership...

<b> 1.1. Leadership...</b>

1.2. Leaders...

2. Leadership and Power...

3. Generic Approaches to Leadership...

<b>III. LEADERSHIP FUNCTIONS AT VINAMILK COMPANY...</b>

1. Overview of Vinamilk company...

2. Leadership style of CEO Mai Kieu Lien...

<b>IV. RELATED APPROACHES TO LEADERSHIP OF VINAMILK...</b>

1. Substitutes for Leadership...

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Management is a process performed by one or more people to coordinate the activities ofothers to achieve results that cannot be achieved by one person acting alone. Acting as thefoundation of management are administrative functions. Administrators performadministrative functions to achieve organizational goals. Leadership is a basic function ofmanagement, all management functions will not be completed well if managers do notunderstand the human element in their activities and do not know how to lead people toachieve results.

In order to contribute to clarifying the important role of leaders, the group was assigned thetopic "Analyzing the leadership function of Vinamilk" as a discussion topic for theirManagement subject. Vinamilk is a company with a long history of operations, so itsleadership methods have been shaped. Therefore, choosing this company will help the essayhave a diverse perspective on leadership functions in management.

<b>II.THEORETICAL BASIS OF LEADERSHIP FUNCTION1.The Nature Of Leadership</b>

As a process, the use of noncoercive influence to shape the group’s or organization’s goals,motivate behavior toward the achievement of those goals, and help define group ororganizational culture; as a property, the set of characteristics attributed to individuals whoare perceived to be leaders.

People who can influence the behaviors of others without having to rely on force; thoseaccepted by others as leaders

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<b>2.Leadership and Power</b>

Ms. Mai Kieu Lien, General Director of Vinamilk, is considered one of the company's keypersonnel. With more than 46 years working at Vinamilk, including 3 decades as GeneralDirector, Ms. Mai Kieu Lien has helped the company develop and reach far. She is known forher spirit of innovation and not being afraid of change. Under the leadership of "femalegeneral" Mai Kieu Lien, the Vinamilk dairy brand has gone beyond the small scale of farmproduction to export to more than 50 countries around the world, affirming the position ofVietnamese milk in the market. friends from five continents.

In addition to Ms. Mai Kieu Lien, there are other personnel such as Mr. Nguyen Hanh Phuc(Chairman of the Board of Directors), Mr. Doan Quoc Khanh (Executive Director of RawMaterial Area Development) who also makes important contributions to the growth andVinamilk success.

<b>Bà. Mai Kiều Liên</b>

Tổng giám đốc

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<b>3.Generic Approaches to Leadership3.1.Leadership Traits</b>

The democratic leadership style at Vinamilk is demonstrated through decentralization ofmanagement and regulation of the level of authority for specific operations, including thoseunder the authority of the Board of Directors.

Vinamilk pays special attention to people, viewing each employee as an important link in thecompany's development. They are always respected, listened to and shared their opinions.Although it is a Vietnamese company, Vinamilk absorbs influences from many cultures, sousing work evaluation standards is a pressure to promote development. This shows flexibilityand diversity in the application of management standards and performance evaluation.

<b>3.2.Leadership Behaviors</b>

According to Vinacontrol CE (2023), there are 7 leadership behaviors that the board ofdirectors and all employees of the organization need to master in the following organizationalculture of Vinamilk:

● Work according to specific plans, clear reports and complete KPIs.● Leaders need to encourage, motivate and care for employees at the right time.● Observe and train well-qualified employees.

● Create a good, comfortable working environment and at the same time bringemployees of different departments together.

● Constantly change and come up with unique initiatives or creative ideas.● Have cultural and mature behavior in all jobs and situations.

● Leaders are both drivers and servants.

<b>4.Challenges4.1.LPC Theory </b>

LPC theory, developed by Fred Fiedler, argues that behavioral styles reflect the leader'spersonality and most personalities fall into one of the two categories: task-oriented (similar totask-centered and structured initiating behaviors) and relationship orientation (similar toemployee-centered and considerate behavior).

Fiedler measures leadership style using a controversial questionnaire called the LPC measure,asks leaders to describe who they might work with the least productive (least preferredcoworker, or LPC).

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<b>4.2.Path-Goal Theory </b>

The path-goal theory of leadership states that the basic function of a leader is offer valuableor desirable rewards in the workplace and make them clear to subordinates the types ofbehaviors that will lead to goal accomplishment and valuable rewards Visionary leadership:VNM's leaders need to have vision and the ability to inspire and influence. They providestrategic direction to employees and colleagues to meet the needs of the business.

Caring for employees: VNM leaders encourage, motivate and care for employees at the righttime. They also observe and train qualified employees. Decent salary and benefits: Inaddition to competitive salaries, VNM demonstrates the importance of each employeethrough a performance evaluation program. attractive work and efficiency Reckless andcreative: Milk encourages personal responsibility and creativity. They suggest looking for atleast two solutions when faced with a problem.

<b>4.3.Vroom’s Decision Tree Approach </b>

- Vroom's decision tree approach assumes that the extent to which subordinates shouldbe encouraged to participate in decision-making depending on characteristics of thesituation. In other words, there is no one decision-making process best for everysituation

- Quickly and skillfully handle conflicts that arise at Vinamilk: there are many peoplewho often actively avoid conflicts at work to find peace for themselves. However, tobecome a leader, everyone needs to do the opposite, every chance they get solve aproblem, find a reason to be able to solve the problem from a young age to seriousissues affecting businesses.

- Decision: Vinamilk's managers or senior managers make decisions themselves andthen notify or notify employees in the company. Advise members or pass it on tosubordinates and the Manager presents this new project to the team then eachmember, absorbs their opinions and then makes a decision

- Facilitate: The manager presents the new problem of Vinamilk products to the teamat the meeting, defines the problem and its boundaries, then the leaders facilitatediscussion among team members as they make decisions. determined to contributenew content to leaders.

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<b>4.4.The LMX Approach</b>

- The LMX model emphasizes the fact that leaders have different relationships withdifferent subordinates. The people close to the manager are the team members, therecipients treat out-group members better

<b>III.LEADERSHIP FUNCTIONS AT VINAMILK COMPANY1. Overview of Vinamilk company</b>

- Company name: Vietnam Dairy Products Joint Stock Company- English name: Vietnam Dairy Products Joint-Stock Company- Abbreviated name: Vinamilk

- Address: 10 Tan Trao, Tan Phu, District 7, Ho Chi Minh City- Phone: (028) 54 155 555

- Website: www.vinamilk.com.vn- Listing code: VNM

- Listing date: January 19, 2006

<b>Figure 2.1.1 Vinamilk Company</b>

(Source: compiled by author)

Calculated by sales and output, Vinamilk is the leading milk producer in Vietnam. Vinamilk'sproduct portfolio includes: main products are liquid milk and powdered milk; products withadded value such as condensed milk, edible yogurt and drinking yogurt, ice cream andcheese. Vinamilk provides the market with the widest selection of products, flavors and

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packaging specifications. According to Euromonitor, Vinamilk was the leading milk producerin Vietnam for the 3 years ending December 31, 2007. Since starting operations in 1976, theCompany has built the widest distribution system in Vietnam and has leveraged to introducenew products such as juice, soy milk, bottled water and coffee to the market.

Most of the Company's products are supplied to the market under the brand "Vinamilk", thisbrand was voted as a "Famous Brand" and one of the group of 100 strongest brands voted bythe Ministry of Industry and Trade last year. 2006. Vinamilk was also voted in the group"Top 10 High Quality Vietnamese Products" from 1995 to 2007. Currently, the Companyfocuses its business activities on the rapidly growing market in Vietnam, which according toEuromonitor has an average growth of 7.85% from 1997 to 2007. Most products areproduced at nine factories. machine with a total capacity of approx 570,406 tons of milk peryear. The company owns a large distribution network across the country, which is a favorablecondition for us to bring products to a large number of consumers. The Company's productsare mainly consumed in the Vietnamese market and also exported to foreign markets such asAustralia, Cambodia, Iraq, the Philippines and the US.

<b>Figure 2.1.2. Factory</b>

(Source: compiled by author)

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<b>2. Leadership style of CEO Mai Kieu Lien</b>

Ms. Mai Kieu Lien - General Director of Vietnam Dairy Products Joint Stock Company(Vinamilk).

According to Tuoi tre thu do (2021), Ms. Lien maintains three main leadership styles:Assertiveness - Democracy - Compliance. These 3 leadership styles have helped Vinamilkbecome Vietnam's number one dairy company in terms of both revenue and profit and aim tobe in the Top 30 largest dairy enterprises in the world.

● Decisiveness is not arbitrary, nor is it "reckless" but rather bravery, the confidence ofthe leader when making decisions on the basis of consideration, grasping the nature ofthe problem, predicting trends. direction of development... to protect your point ofview, not to be influenced by anything else.

● Democracy is a leader who does not use his position, position, or power to influencehis subordinates.

● Compliance: Always comply with state regulations, laws, and collective regulations.

Ms. Lien received the 2022 Outstanding Entrepreneur award

According to Acex (2024), Ms. Mai Kieu Lien was unique in offering "golden" secrets in herleadership style to bring Vinamilk to world-class standards:

Decisive but not domineering

During all those years of work and leadership, businesswoman Mai Kieu Lien has mademany great contributions to help Vinamilk become one of the leading brands in the country

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and have a position in the international market. At the same time, Vinamilk is also a pioneerin meeting the milk needs of Vietnamese people and developing raw material sources for theVietnamese dairy industry.

That's why the prestigious Forbes Magazine once highlighted: "Entrepreneur Mai Kieu Lienhas not only built Vinamilk into one of the most profitable Vietnamese brands but is alsorespected throughout Asia." ”.

Mai Kieu Lien, with extensive experience in the dairy, food and beverage industries, hasdemonstrated an exceptional leadership style. She not only knows how to decisively facecompetitive challenges but also focuses on creativity and innovation in management. Underher leadership, Vinamilk impressively overcame the global economic crisis in 2012,maintaining its strength while many other competitors struggled in the market.

Besides being decisive, Mai Kieu Lien also demonstrates democracy in leadership. Bylistening to diverse opinions from hundreds of thousands of employees and branch managers,she always finds the best solutions to develop the company. Flexibility and trust in the teamare important factors, helping Vinamilk compete strongly with the world's leading dairybrands in the Vietnamese market.

Currently, Vinamilk ranks first among businesses paying the highest cash dividends on thestock exchange, with a total payment value from 2004 to 2022 of more than 76,700 billionVND. This unit maintains the No. 1 position in market share in the domestic dairy industry.These achievements are testament to the effectiveness of the production and business model,as well as Mai Kieu Lien's management capacity and leadership vision throughout the stages.Transparent and honest

Vinamilk is not only a familiar name in the Vietnamese business community but was alsorecognized by Forbes Asia magazine as one of the top 200 businesses in Asia in 2010. In2023, Vinamilk continues to receive the honor of being recognized by Forbes Asia as one ofthe top 200 businesses in Asia in 2010. recognized as an Enterprise meeting business culturestandards in Vietnam in the annual national forum on Culture and Business. This success notonly comes from product quality but is also the result of Ms. Mai Kieu Lien's talentedleadership and the company's basic principles: transparency and honesty.

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As a leader, Ms. Mai Kieu Lien always adheres to working principles to build trust from bothconsumers and employees in the company. She does not hesitate to publicize all activities andalways accepts diverse opinions, even information sent anonymously. To ensure authenticityand transparency, she regularly checks and verifies all information before publicly processingit. From raw materials to production lines and product packaging, every detail is disclosed byher to ensure honesty in the production process.

She also encourages employees to manage their own areas, while promoting autonomy andpersonal responsibility. The control system in the company is seriously maintained, ensuringthat no employee or activity is beyond the company's control. This not only helps Vinamilkmaintain its reputation but also creates a positive and transparent working environment.Competition is based on quality

Quality standards are one of the outstanding and typical features of Mai Kieu Lien'sleadership style. Built and maintained throughout 35 years of operation, this standard is themain driving force behind Vinamilk's success. Ms. Lien not only focuses on meetingconsumer needs but also pays special attention to maintaining product quality, which allconsumers can verify.

In cases related to milk quality, such as protein poverty or melamine use, Vinamilk has neverbeen implicated. This proves the company's concern and commitment to product quality, afactor that every Vinamilk employee clearly understands. In both life and business, Ms. Lienpursues the motto "distrust once, distrust ten thousand times", emphasizing the importance ofhonesty and ethics in building corporate reputation. This is also the basis for fulfilling the"brand promise" to customers and maintaining the company's strategic vision.

For consumers, quality is more important than price. Vinamilk not only focuses ondemonstrating honesty and quality assurance, but also understands that customer support isan important key to maintaining and developing the brand. Mai Kieu Lien puts trust, fairnessand standards first to build trust with all stakeholders, including customers, employees,shareholders and partners. She recognizes that loss of internal trust affects external trust, andher mission is to build this trust within each employee, ensuring that each person is motivated

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