ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 4: Leadership and Management

Submission date Date received (1st submission)

Re-submission date Date received (2nd submission)

Student name Nguyen Thanh Dat Student ID BH00350

Class BA0601 Assessor name Hoang Van Dung

Student declaration

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:

Grading grid

P1 P2 P3 P4 M1 M2 M3 D1
 Summative Feedbacks:  Resubmission Feedbacks:

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

Signature & Date:

Contents
I. Introduction .................................................................................................................................................... 4
II. Discuss different theories of leadership in relation to the management activities in different organisations. ... 4
1. Trait Appoarchs ........................................................................................................................................... 4
1.1. Advantages .......................................................................................................................................... 5
1.2. Problems and limitations of the trait approach .................................................................................... 5
2. Fiedler Model .............................................................................................................................................. 6
III. Explore different theories of management in relation to the management and leadership activities in
different organisations.(Fayol's Administrative Theory and Peter Drucker's Management Theory) ........................ 13
1. Fayol's Administrative Theory .................................................................................................................... 13
2. Choose a large enterprise, analyze the impact of applying Fayol's administrative management theory on
organizational performance. ............................................................................................................................. 19
IV. Peter Drucker's Management Theory ........................................................................................................ 20
1. Concepts ................................................................................................................................................... 20
2. Choose a large enterprise, analyze the impact of applying Peter Drucker administrative management
theory on organizational performance. ............................................................................................................. 22
V. Evaluate different leadership and management styles ................................................................................... 23
1. Autorcratic leadership style ....................................................................................................................... 23
2. Example..................................................................................................................................................... 28
3. Democratic leadership style....................................................................................................................... 28
4. Example..................................................................................................................................................... 30
5. Laissez-faire leadership style ..................................................................................................................... 30
6. Example..................................................................................................................................................... 34
VI. Examine the factors that influence the development of culture in organizations. ...................................... 34
1. Concept of corporate culture ..................................................................................................................... 34
2. 3 levels of corporate culture. ..................................................................................................................... 35
2.1. Tangible structure in the business ...................................................................................................... 35
2.2. Level 2: Published, accepted values.................................................................................................... 38
2.3. Level 3 Corporate culture values are recognized as “self-evident” ...................................................... 39
3. 7 factors affecting the development of corporate culture. ......................................................................... 40
VII. Conclusion ................................................................................................................................................. 43
VIII. References ................................................................................................................................................ 43
 I. Introduction

I was promoted to the Director of a large company in Vietnam with more than 9,000 employees. Besides,
the company sent me to study a short course to improve my leadership skills and management skills. In
my first management class, I was asked to report basic leadership and management knowledge and that
would lay a good foundation for later courses and also for my own. The main content of this exercise is to
write a report on basic leadership and management knowledge. The purpose of the exercise is to help you
gain a basic knowledge base and gain a better understanding of concepts and theories related to
leadership and management. Exercises are required to follow a certain structure to ensure systematic and
easy to understand for readers.

II. Discuss different theories of leadership in relation to the management activities in different
organisations.

1. Trait Appoarchs

According to John W. Fleenor (2015), the trait approach to leadership was one of the earliest theories of
leadership. Although it is not a fully articulated theory with well-developed hypotheses, the trait approach
formed the basis of most early leadership research. This approach focuses on the personal attributes (or
traits) of leaders, such as physical and personality characteristics, competencies, and values. It views
leadership solely from the perspective of the individual leader. Implicit in this approach is the assumption
that traits produce patterns of behavior that are consistent across situations. That is, leadership traits are
considered to be enduring characteristics that people are born with and that remain relatively stable over
time. However, in the opinion of Zaccaro, Stephen J. American Psychologist, Vol 62(1), Jan 2007, 6-16 The
trait-based perspective of leadership has a long but checkered history. Trait approaches dominated the
initial decades of scientific leadership research. Later, they were disdained for their inability to offer clear
distinctions between leaders and non-leaders and for their failure to account for situational variance in
leadership behavior. Recently, driven by greater conceptual, methodological, and statistical sophistication,
such approaches have again risen to prominence. However, their contributions are likely to remain limited
unless leadership researchers who adopt this perspective address several fundamental issues. The author
argues that combinations of traits and attributes, integrated in conceptually meaningful ways, are more
likely to predict leadership than additive or independent contributions of several single traits.
Furthermore, a defining core of these dominant leader trait patterns reflects a stable tendency to lead in
different ways across disparate organizational domains. Finally, the author summarizes a multistage model
that specifies some leader traits as having more distal influences on leadership processes and
performance, whereas others have more proximal effects that are integrated with, and influenced by,
situational parameters.

1.1. Advantages

( Wang, 2023 )The trait approach, also known as the trait theory, is a psychological perspective that
emphasizes the identification and measurement of personality traits. Some of the advantages of this
approach include:

Objective measurement: The trait approach uses standardized assessments and objective measures to
identify and measure personality traits, which allows for more reliable and accurate assessment of
personality.

Predictive validity: The trait approach has demonstrated good predictive validity, meaning that personality
traits identified through this approach are able to predict behavior and outcomes in a range of contexts.

Universal application: The trait approach is applicable to a wide range of people and cultures, as it focuses
on identifying fundamental personality traits that are common across individuals and contexts.

Practical applications: The trait approach has practical applications in a range of fields, including personnel
selection, counseling, and leadership development.

Complementary to other approaches: The trait approach is complementary to other psychological

perspectives, such as the social-cognitive approach, and can be used in combination with other approaches
to gain a more comprehensive understanding of personality.

1.2. Problems and limitations of the trait approach

( Magazine 2007 )While the trait approach has several advantages, it is also subject to some problems and
limitations. These include:

Incomplete picture of personality: The trait approach focuses primarily on identifying and measuring
personality traits, but it may not provide a complete picture of an individual's personality. Other factors
such as situational factors and environmental influences can also affect behavior and outcomes.

Lack of theoretical framework: The trait approach lacks a comprehensive theoretical framework to explain
how personality traits develop and interact with each other. This limits its ability to account for individual
differences in personality.

Reliance on self-report measures: Many of the measures used to assess personality traits rely on self-
report, which may be subject to biases and inaccuracies. This can affect the reliability and validity of the
results obtained through the trait approach.

Limited scope of traits: The trait approach focuses on a limited set of traits, which may not fully capture
the complexity and diversity of human personality. There may be other important traits that are not
captured by existing measures.

Overemphasis on stability: The trait approach emphasizes stability in personality traits over time and
across situations, but research suggests that personality can also be subject to change and adaptation.

Insufficient attention to situational factors: The trait approach tends to focus more on stable personality
traits and less on situational factors that can influence behavior. This can limit its ability to account for the
role of context and situation in shaping personality and behavior.

2. Fiedler Model

According to Fiedler's Contingency Model of Leadership(1967), a leader's effectiveness is determined by

the current circumstance. Hersey and Blanchard's Situational Leadership Model, which also stresses the
significance of adapting leadership styles to the followers' maturity level, is similar to this model. Fiedler,
in contrast to Hersey and Blanchard, places a greater emphasis on situational factors when determining
the appropriate leadership style. He opines that individuals' inherent leadership styles are fixed and cannot
be easily altered. Either changing the situation to suit the leader or changing the leader based on certain
situational factors is the most effective way to handle a situation. Leader-Member Relations, Task
Structure, and Leader's Position Power were identified by Fiedler as three situational variables that, when
combined, either create a favorable, moderate, or unfavorable situation for leaders. He discovered that
relationship-oriented leadership is effective in moderate or unfavorable situations, while task-oriented
leadership is effective in favorable or highly favorable situations.

Origin

Fiedler’s Contingency Concept is based on a theory developed in the mid-1960s by Austrian psychologist
Professor Fred Fiedler after studying the personalities and characteristics of leaders.

He found that a leader’s readiness level came down to two things:

Natural leadership style

Situational favorableness

The Model

Like the behavioral approaches to

leadership, this model asserts that there is
no one best leadership style. Instead, a
leader’s success is contingent on (or
dependent on, as the case may be): the
situation (Contingency Theory). However, in
contrast to Hersey and Blanchard, Fiedler
looked more at the specifics of the situation
in order to determine the best leadership

Fiedler Contingency Model style.

In addition, Fiedler was of the opinion that individuals’ inherent leadership styles are fixed and cannot be
altered. Either changing the situation to suit the leader or changing the leader themselves is the most
effective way to handle the situation.
 Fiedler identified two different styles of leadership behaviour
based on a test called the Least Preferred Coworker (LPC) scale.

Leaders consider the person with whom they would prefer to

work least. Then, they rank their least preferred coworker on a
scale of 1 to 8 based on a variety of factors.

The rationale behind these two leadership styles is pretty

straightforward:

Rating your least preferred coworker favorably means that you

see the best in people—even those who you wouldn’t
necessarily choose to work with

Rating your least preferred coworker unfavorably suggests that

you struggle to see their contributions, since you value efficiency
and effectiveness over other attributes
Situational Variables
There isn’t one right way to lead. While task-orientation may be
Fiedler identified three situational variables that were favorable, moderate, or unfavorable situation for
preferable to the organization at large, teammates themselves tend to
leaders. These are the variables:
prefer relationship-orientation.

Leader-Member Relations

Task Structure

Leader’s Position Power

Leader-Member Relations

This is the trust and confidence level a team has in its leader. A leader who is trusted and has more
influence within the group is in a more favourable situation than a leader who is not trusted. Fiedler
identifies leader-member relations as either good or poor.

Task Structure
This refers to the type of tasks the followers are expected to conduct. Tasks can be clear and well-
structured or vague and unstructured. There is an unfavorouble situation if tasks are unstructured or if the
team and the leader have little knowledge how to achieve certain tasks. Fiedler identifies task structure
as either high or low.

Leader’s Position Power

This is the power a leader has to direct the group and provide reward or punishment. The more power a leader
has, the more favourable the situation. According to French and Raven’s Bases Of Power, there are several
sources of power such as coercive, expert or referent power. Fiedler identifies a leader’s position power as
either strong or weak.

Match Leadership Styles To Situations

By combining the aforementioned situational variables, you can create a variety of leadership situations
ranging from highly favourable to highly unfavourable (Figure 1). A favourable situation would typically be one
where the leader-member relations are good, the tasks are clear and well-structured, and the leader has a
strong power position. While examining the relationship between different situations and leadership styles,
Fiedler found a certain pattern. The two leadership styles that Fiedler looked at are similar to those used by
Blake and Mouton and are:

Task Orientation

These leaders direct followers towards goals, give instructions, spend time planning, emphasize deadlines and
provide explicit schedules of work acitivities. They simply want to get the job done.

Fiedler discovered that the task-oriented leader performs best in a favourable situation. This is because
everyone in the team gets along, the task is clear and structured, and the leader has sufficient power over
followers. In such a situation, the team simply needs a leader that can provide direction.

Similarly, if the situation is highly unfavourable, the same leadership style is considered more effective than a
relationship-oriented leader. This is because an unfavourable situation requires a leader that can offer a great
deal of structure and direction due to the low presence of task structure.
Furthermore, since leader-members relations are poor anyway, a friendly relationship-oriented leader will
make no difference in the leader’s popularity.

Examples of task-oriented leaders include:

Project managers, who are responsible for leading teams to complete specific projects on time and within
budget.

Military commanders, who lead troops in battle and must make quick decisions under intense pressure.

CEOs, who are responsible for leading companies to success through effective strategic planning and decision-
making.

Engineers, who lead product development teams, and focus on delivering the project on-time and on-budget

Supervisors in production environments, who lead teams to achieve production goals, and maintain the quality
and safety standards

Science lab leaders, who lead teams of researchers in conducting experiments and achieving research goals

Head coaches in sports teams, who lead teams to win games and competitions by developing and
implementing effective strategies.

These leaders are typically well-organized, detail-oriented, and able to effectively plan and direct the efforts of
their team to achieve specific objectives.

Relationship Orientation

These leaders are mindful of followers, respect their ideas and feelings, establish mutual trust, are friendly,
provide open communication, develop teamwork, and are oriented toward their followers’ welfare. The
relationship-oriented leader performs better in situations of moderate favourability.
In these situations, the leader may be moderately liked by the group, has some position power, and has to
supervize tasks that are somewhat structured. Here, people skills are important in order to achieve group
performance.

According to Fiedler, a leader with good interpersonal skills can create a positive group atmosphere that will
improve leader-member relations, clarify tasks and create more structure, and establish a stronger position
power.

Examples of relationship-oriented leaders include:

Human resource managers, who focus on building and maintaining positive relationships with employees

Mentors, who guide and support others in their professional and personal development

Team leaders in collaborative environments, who focus on fostering a positive team dynamic and building trust
among team members

Community leaders, who work to bring people together and build strong relationships within a community

Social workers, who help individuals and families navigate complex social issues and build positive relationships

Priests, imams, or other religious leaders, who provide spiritual guidance and support to congregants

Therapists, counselors, or coaches, who work to understand clients’ needs and build positive, supportive
relationships to help them achieve their goals

Non-profit leaders, who work to build relationships with donors and volunteers to support their causes

These leaders typically prioritize the well-being of their team members and create a positive and supportive
work environment, encouraging collaboration and open communication.

Advantages
The Fiedler’s Contingency Model(1967) is a straightforward guideline that will assist you in managing your own
situational leadership. This not only helps you organize your lower-level managers and supervisors but also
ensures that you are in the right place. 42% of leaders say they want a better way to assess strengths in
leadership. You can assign leadership roles based on the current situation using this contingency model. Do
you have a supervisor who is good at completing tasks but less personable? Put them in a bad situation and
watch as they do well.

The adaptability of this contingency theory is the second advantage. In the past, everyone knew there was only
one way to manage. Based on the various circumstances, you are able to delegate leadership responsibilities
to your supervisors using this theory. In addition, it lets you figure out where your leadership style fits best,
allowing you to have the most positive impact on your team.

Furthermore, as a situational leadership theory, it encourages you to recognize how the circumstances affect
your ability to lead well. You can either work on your interpersonal relationship with your team or change the
circumstances if your situational leadership is off. You could, for instance, include more mechanisms for two-
way feedback or strengthen the task structure.

Most importantly, Fiedler’s theory suggests that a leader’s personality does not determine their effectiveness.
This situational theory, on the other hand, proposes that individuals become supportive leaders when they are
in an environment that is compatible with their various leadership styles.

Disadvantages

This theory is not without its flaws.

The self-assessment’s inaccuracy is the first problem. Sadly, it’s easy to make inaccurate assessments of
oneself. In a similar vein, you might give situational favorableness an incorrect ranking. Therefore, it is essential
to involve your team.

The second issue is that it is unclear what to do if your style is somewhere in the middle. Even though Fiedler
advises choosing a style based on the situation, this might not be your natural tendency.
Finally, if your leadership style doesn’t fit the situation and you can’t change it, this theory won’t help. It’s
possible that you won’t be able to hire supervisors to help you and that you won’t be able to change the favor.

Summary

Before choosing whether to lead in a task-oriented or relationship-oriented manner, Fiedler recommends that
leaders consider a variety of environmental or situational factors. If leaders are unable to "match" their
personal leadership style to the demands of the situation, it is highly unlikely that they will succeed. Therefore,
either changing the situation to suit the leader or changing the leader themselves based on the situational
factors (leader-member relations, task structure, and the leader's position power) is the most effective way to
handle the situation. Using Fiedler's Contingency Model, you can determine the best leadership style.

III. Explore different theories of management in relation to the management and leadership
activities in different organisations.(Fayol's Administrative Theory and Peter Drucker's
Management Theory)

1. Fayol's Administrative Theory

According to Henry Fayol(1900),

a. Introduction

Fayol was a classical management theorist, widely regarded as the father of modern
operational-managementtheory. His ideas are a fundamental part of modern management concepts.
While scientific development emphasizedprinciples to improve worker effectiveness, another branch
within the classical school arose, administrative management, with its main contributor being French
industrialist Henri Fayol. He is regarded as the father of administrative management as he proposed
fourteen principles of management intended to assist managers in determining what to do to manage
an organizationmore effectively (Rodrigues, 2001). Fayol's ideas are still valid in today's organizationsand
his definitions of management are widely used in this field of study.

b. Henry Fayol’s Principle of Management

Following are the fourteen principles of management developed by the Henry Fayol

a. Division of Work

According to Henry Fayol under division of work, “The worker always on the same post, the manager
always concerned with the same matters, acquire an ability, sureness and accuracy which increases
their output. In other words, division of work means specialization. According to this principle, a
person is not capable of doing all types of work. Each job and work should be assigned to the
specialist of his job. Division of work promotes efficiency because it permits an organizational member
to work in a limited area reducing the scope of his responsibility. Fayol wanted the division of work
not only at factory but at management levels also.

b. Authority and Responsibility

Authority and responsibility go together or co-existing. Both authority and responsible are the two sides
of a coin. In this way, if anybody is made responsible for anyjob, he should also have the concerned
authority. Fayol’s principle of management in this regard is that an efficient manager makes best possible
use of his authority and does not escape from the responsibility. In other awards when the authority
is exercised the responsibility. In other awards when the authority is exercised the responsibility is
automatically generated.

c. Discipline

According to Henry Fayol discipline means sincerity about the work and enterprise, carrying out orders
and instructions of superiors and to have faith in the policies and programmes of the business enterprise,
in other sense, discipline in terms of obedience, application, energy and respect to superior. However,
Fayol does not advocate warming, fines, suspension and dismissals of worker for maintaining discipline.
These punishments are rarely awarded. A well-disciplined working force is essential for improving the
quality and quantity of the production.

d. Unity of Command
A subordinate should take order from only one bossand he should be responsible and accountable
to him. Further he claimed that if the unit of command is violated, authority is undermined,
disciplined in danger, order disturbed and stability threatened. The violation of this principle will face
some serious consequences. In this way, the principle of unity of command provides the enterprise
disciplined, stable and orderly existence. It creates harmonious relationship between officers and
subordinates, congenial atmosphere of work. It is one of the Fayol’s important essential principle of
management.

e. Unity of direction

Fayol advocates “One head and one plan” which means that group efforts on a particular plan be led and
directed by a single person. This enables effective co-ordination of individual efforts and energy. This fulfils
the principles of unity of command and brings uniformity in the work of same nature. In this way,
the principle of direction create dedication to purpose and loyalty. It emphasizes the attainment of
common goal under one head.

f. Subordination of individual interests to general interests

The interest of the business enterprise ought to come before the interests of the praise individual workers.
In other words, principle of management state that employees should surrender their personnel
interest before the general interest of the enterprise. Sometimes the employees’ due to this ignorance,
selfishness, laziness, carelessness and emotional pleasure overlook the interest of the organisation. This
attitude proves to be very harmfulto the enterprise.

g. Fair Remuneration to employees

According to Fayol wage-rates and method of their payment should be fair, proper and satisfactory.
Both employees and ex-employers should agree to it. Logical and appropriate wage-rate and methods
of their payment reduces tension and differences between workers and management, create harmonious
relationship and a pleasing atmosphere of work. Further Fayol recommends that residential facilities
be provided including arrangement of electricity, water andfacilities.
 h. Centralizationand Decentralization

There should be one central point in the organizationwhich exercises overall direction and control of all
the parts. But the degree of centralization of authority should vary according to the needs of situation.
According to Fayol there should be centralization in small units and proper decentralization in big
organization. Further, Fayol does not favor centralization or decentralization of authorities but suggests
that these should be proper and effective adjustment between centralization and decentralization in order
to achieve maximum objectives of the business. The choice between centralization and
decentralization be made after taking into consideration the nature of work and the efficiency,
experience and decision-making capacity of the executives.

i. Scalarchain

The scalar chain is a chain of supervisors from the highest to the lowest rank. It should be short-circuited.
An employee should feel the necessity to contact his superior through the scalar chain. The authority
and responsibility arecommunicated through this scalar chain. Fayol defines scalar chain as “the
chain of superiors ranging from the ultimate authority to the lowest rank.” The flow of information
between management and workers is a must. Business opportunities must be immediately avoided
of. so, we must make direct contact with the concerned employee. Business problems need immediate
solution, so we cannot always depend on the established scalar chain. It requires that direct contact should
be established.

j. Order

According to Fayol there should be proper, systematic and orderly arrangement of physical and
social factors, such as land, raw materials, tools and equipment and employees respectively. As per
view, there should be safe, appropriate and specific place for every article and every place to be
used effectively for a particular activity and commodity. In other words, principles that every piece
of land and every article should be used properly, economically and in the best possible way. Selection
and appointment of the most suitable person to every job. There should be specific place for every one
and every one should have specific place. This principle also stresses scientific selection and appointment
of employees on every job.

k. Equity

The principle of equality should be followed and applicable at every level of management. There should
not be any discrimination as regards caste, sex and religion. An effective management always
accords sympathetic and human treatment.The management should be kind, honest and impartial
with the employees. In other words, kindness and justice should be exercised by management in
dealing with their subordinates. This will create loyalty and devotion among the employees. Thus, workers
should be treated at par at every level.

l. Stability of use of personnel

Principle of stability is linked with long tenure of personnel in the organization. This means production
being a team work, an efficient management always builds a team of good workers. If the members of the
team go on changing the entire process of production will be disturbed. It is always in the interest
of the enterprise that its trusted, experienced and trained employees do not leave the organization.
Stability of job creates a sense of belongingness among workers who with this feeling are encouraged
to improve the quality and quantity of work.

m. Initiative

Under this principle, the successful management provides an opportunity to its employees to
suggest their new ideas, experiences and more convenient methods of work. The employees, who has
been working on the specific job since long discover now, better alternative approach and technique
of work. It will be more useful, if initiative to do so is provided to employees. In simple, to ensure
success, plans should be well formulated before they are implemented.

n. Spirit of Co-operation(Spiritdecrops)
In order to achieve the best possible results, individual and group effort are to be effectively integrated
and coordinated. Production is a team work for which the whole-hearted support and co-operation
of the members at all levels is required. Everyone should sacrifice his personal interest and
contribute his best energies to achieve the best results. it refers to the spiritof loyalty, faithfulness on the
part of the members of the group which can be achieved by strong motivating recognition and importance
of the members for their valuable contribution, effective coordination, informal mutual social
relationship between members of the group and positive and constructive approach of the management
towards workers’ welfare.

Fayol's administrative management theory has been criticized for being too prescriptive and for not taking
into account the social and cultural factors that can influence organizational behavior. However, his
principles have been influential in shaping modern management practices and are still taught and used in
some form in many organizations today.

Some modern managers have modified and re-applied Fayol's principles to fit the realities of modern
organizations. For example, managers today believe that decision-making should not be too centralized at
the highest level of the organization but should be distributed more widely throughout the entire
organization. However, Fayol's principles still remain an important part of the history of management and
are still used in management education and training.

In addition, Fayol also identified five primary functions of management, including:

a. Planning: preparing plans for the future and identifying the activities needed to achieve goals.
b. Organizing: constructing appropriate organizational structures, allocating tasks and resources, and
creating an effective work environment.
c. Commanding: issuing orders, supervising employees, and addressing business-related issues.
d. Coordinating: combining the activities and tasks of different departments to achieve the
organization's goals.
e. Controlling: monitoring activities to ensure that everything is proceeding according to plan and
making corrective measures as necessary.
In summary, Fayol's administrative management theory is one of the most important management
foundations in the history of management. His principles have contributed to understanding and
developing modern management methods and are still applied in many organizations today.

2. Choose a large enterprise, analyze the impact of applying Fayol's administrative management
theory on organizational performance.

I will choose Coca-Cola company to analyze the impact of applying Fayol's theory of administrative
management on organizational performance.

According to Fayol's theory of administrative management, there are 14 basic management principles
including: skills principles, organizational principles, public relations management principles, business
principles, and asset management principles. , the principle of communication and information, the
principle of power management, the principle of initiation, the principle of coordination management, the
principle of protection, the principle of progressive management, the principle of fairness and credibility,
the principle of principles of association, principles of responsibility.

Coca-Cola applies Fayol's administrative management theory to its business activities to increase
organizational efficiency as follows:

Organize work: Coca-Cola applies Fayol's organizational principles to organize their business activities,
helping departments and employees work more efficiently.

Ratio Management: The Coca-Cola Company uses Fayol's wealth management principles to ensure that its
assets are effectively managed, and uses business principles to help make decisions and correct business
strategy.

Communication: Coca-Cola applies Fayol's principles of communication and information to ensure that
information is communicated properly and to the right people.
Power Management: The Coca-Cola Company uses Fayol's principles of power management to coordinate,
align, and allocate their resources, while enhancing employee performance and productivity.

Coordination: Coca-Cola uses Fayol's principle of coordination to enhance coordination among employees
and departments within the company, and create consensus and understanding among partners and
customers. and supplier.

In conclusion, the application of Fayol's administrative management theory to Coca -Cola's business
activities has helped enhance the company's organizational efficiency, from how to organize work, manage
assets, communicate information. trust, power management, and coordination. All of these principles help
create a productive work environment that contributes to the company's growth and success in the global
market.

IV. Peter Drucker's Management Theory

1. Concepts

According to Fei Gao, Meng Li, Steve Clarke (2008) Peter Drucker is an influential Austrian-American
author, mentor and consultant who is considered the father of modern business management. His
innovative thinking has revolutionized today’s theory of business and transformed it into an actionable
and ethical discipline used by progressive business leaders worldwide. At the core of his approach to
management lies the idea that, to succeed, businesses need to put the development and well-being of
their people (rather than just the bottom line) first. By implementing Drucker’s people-centered
management theory, business owners and managers can build a sustainable and nourishing work
environment that benefits the company’s long-term development, goals and growth. This article will give
you the practical tools to implement his management theory. Drucker encouraged creative rather than
bureaucratic management and insisted that managers should, above all else, be leaders. Rather than
setting strict hours and discouraging innovation, he opted for a more flexible, collaborative approach. At
the core of Drucker’s management theory lie the concepts of decentralization, knowledge work (in fact,
he coined the term “knowledge worker”), management by objectives (MBO), and the SMART goal method.
Decentralization means that managers should empower employees by delegating tasks. MBO involves
superiors and their subordinates working together to set common goals, identify employees’ areas of
expertise and define measurable expected results. The SMART method means that those goals need to be
specific, measurable, achievable, relevant, time-specific and recorded.
Applying the Drucker theory of management:
Delegate power equitably:
While it might be tempting to take on all the “important” tasks as a manager, knowing how to delegate
responsibility can empower your team and awaken their own sense of responsibility. To achieve the best
results, your employees need to feel valued and know that their opinions matter. When workers are
treated as equals, they’re more confident and motivated in their work, which benefits the company as
much as it benefits them. Talk to each employee as though their role is as necessary as yours (because it
is), and remind them that they have a say in the organization.

Encourage collaboration:
Rather than pitting employees against each other or fostering an environment where employees keep to
themselves, urge them to work together by sharing ideas, tips and guidance. This doesn’t mean your
employees shouldn’t work individually, but they shouldn’t feel like they can’t ask for help or inspiration
from others. Your staff should feel like a team, and you should serve as their coach. You can use these
tools for small business collaboration to get started.

Increase efficiency:
To ensure you’re continuing to prioritize productivity, utilize the concept of MBO, a management
approach that requires a balance between the objectives of employees and the objectives of your
company. For MBO to succeed, make sure that:
- Your meetings result in defined objectives.
- You monitor the progress of your set goals.
- Your team members receive daily feedback on their performance.
- You reward high achievers.
- Your key business drivers are growth and development.
Make sure that your set goals follow the SMART structure, and discuss them with your team to ensure
everyone is on the same page and understands their part in the organization’s overall objectives. Better
yet, involve your employees in setting the goals.
Boost innovation:
Innovation is essential to business success. You want your workers to be confident and willing to take
risks. Create an innovative atmosphere and lead by example, showing your employees that mistakes are
not shortcomings. If your team sees that you’re human, that effort does not always lead to success, they’ll
feel more comfortable risking failure. Be transparent with them, support their ideas and never punish
creativity.
2. Choose a large enterprise, analyze the impact of applying Peter Drucker administrative
management theory on organizational performance.

I chose the large enterprise Amazon to analyze the impact of the application of Peter Drucker's
administrative theory on organizational performance.
Peter Drucker is one of the most famous managers of the 20th century, and there are many management
theories that have contributed to the development of modern companies. Drucker's management
principles are the basis of effective management at many companies, including Amazon. Some of Drucker's
principles include: management of goals, management of information, management of cost effectiveness,
management of customers, management of employee development, and management of departmental
interactions within company.
Applying Drucker's management theory has helped Amazon achieve remarkable successes, including:
Develop clear goals: Amazon uses goal management principles to define and achieve goals. Clear goals
help to focus company activities, increase efficiency and achieve higher results.
Effective Information Management: Amazon uses Drucker's principles of information management to
efficiently collect, process, and analyze information. This helps Amazon capture market trends and use
that information to respond and make better decisions.
Cost-effective management: Amazon uses Drucker's principles of cost-effectiveness management to
optimize costs and increase profits. Amazon has automated some of the work to cut costs and increase
productivity.
Customer interaction management: Amazon uses Drucker's customer management principles to ensure
customer satisfaction. Creating promotions, good customer service helps Amazon increase the number of
customers and retain them.
Managing employee development: Amazon uses Drucker's principles of employee development
management to create a good work environment and provide opportunities for employees to develop and
strengthen their skills mine.
In conclusion, applying Drucker's management theory has helped Amazon grow effectively with the
principles of managing goals, information, cost effectiveness, customers, and employee development. This
helps Amazon improve performance, increase competition, and create value for customers.

V. Evaluate different leadership and management styles

1. Autorcratic leadership style

According to Ardichvili and Kuchenke (2010) and Egwunyenga (2010), an autocratic leader never allows
staff decisions, and the leader is usually very far from staff. It is a leadership that is imposed on an
organization and it is sometimes referred to as coercive leadership (Baughman,2008). Decision making is
done by autocratic leaders; however, inputs from staff may be sought in the process, but hardly taken into
consideration. This is because they are benevolent autocrats.

Autocratic leadership style opined Maqsood, Bilal and Baig (2013) is known for individual control over all
decisions and little input from staff. Typically autocratic leaderships make choices based on their own ideas
and judgments and rarely accept advice from followers.

Autocratic leadership employs absolute, authoritarian control over staff. Some features of autocratic
leadership as observed by Leadership Styles (2015) include little or no input from group members; leaders
make the decisions; group leaders dictate all the work methods; group members are rarely trusted with
decisions or important tasks.

Autocratic leadership could be beneficial in some instances, such as when decisions need to be made
quickly without consulting with a large group of people. Nothing meaningful can be effectively achieved
when a certain type of leadership style is used. However, Maqsood, Bilal and Baig (2013) argued that
during military conflicts, group members may actually prefer an autocratic style. This style allows staff to
focus on performing specific tasks without worrying about making complex decisions and to become highly
skilled at performing certain duties, which can be beneficial to the organization.

Autocratic leadership could be good at times, but there may be many occasions where this leadership style
could be a reason for inaction and this is why leaders who abuse the use of autocratic leadership style are
often viewed as dictatorial. Innovative ideas may elude organizations as a result of the use of autocratic
style and this stems from the inability of staff to contribute because they are not consulted (Northouse,
2015). Some researchers have reported inadequate creative solution to problems in an autocratic
environment. Autocratic leadership style is sometimes termed the classical style. It is a situation where
the leader has all the power in terms of decision making and exercise of authority. The leader does not
consult staff, nor are they allowed to give any input, but are expected to obey orders and instructions
without receiving any explanations. This is due to the fact that motivation environment is produced by
creating a structured set of rewards and punishments (Cherry, 2018). Autocratic leadership style has been
greatly criticized during the past years and some studies informed that organizations with many autocratic
leaders have higher turnover and absenteeism than other organizations (Cherry, 2015). In the literature,
there are reported cases that autocratic leaders rely on threats and punishment to influence staff; do not
trust staff or allow for their input in decision making.
The autocratic style of leadership according to Gosnos and Gallo (2013) is characterized by staff not
participating in decision-making process; all decisions are made without the agreement of the staff and
they as well control “with iron hand’’. In addition, they are uncompromising and most times refuse to
explain their behavior. Leaders often disregard previous agreement with staff. They define tasks and
methods and do not care about staff’s decisions and initiative. This informed Ovarhe’s (2016) assertion
that leadership position is supposed to be a shared responsibility which no one should lay claim to within
an organization. The autocratic style is also characterized by implementing the will of a leader, without
taking into consideration the opinion of staff. Autocratic leaders decide alone, give orders to staff and
expect them to carry them out, based on unilateral, top-down communication. In order to motivate,
leaders use their position to decide on the appropriate remuneration.
The, what, when and how a task should be done are most times clearly stated by autocratic leadership.
Leader and staff relationship are also clearly defined. Staff inputs are often not sought in decision making.
Researchers have found that decision-making was less creative under autocratic leadership, hence Cherry
(2015) indicated that it is more difficult to move from autocratic style to democratic style than vice versa.
One of the management principles that is always put to use by an autocratic leader is control.
Autocratic leadership is an exchange process, so it is a matter of contingent reinforcement of staff based
on performances. It motivates staff by appealing to their personal desires and on instrumental economic
transactions. Autocratic leaders generally could use organizational bureaucracy, policy, power, and
authority to maintain control. Previous leadership scholars according to Delong (2009) have identified
providing contingent rewards on the fulfillment of contractual obligations as a reason for staff
performance. This principal behavior represents autocratic leadership because it captures the exchange
notion deep-seated in autocratic leader conduct. The transactions or relations included in contingent
reward may include tangible (e.g., pay increases) or intangible (e.g., recognition) commodities.
Autocratic leaders’ noted Cherry (2015) employs coercive tactics to enforce rules and to manipulate
people and decision making, and reward loyalty over merit. Douglas McGregor's Theory X becomes the
standard, believing that people must be forced to work, closely supervised, and rewarded or punished
based on individual productivity. Autocratic leadership’s concern is strict compliance with organizational
chart and clear definition of processes. Fred Fiedler found that authoritarian leaders can be viewed as
successful in certain task situationsallowing for the extremes of consideration and ruthlessness, depending
on the situation (Leonard, 2018; Men, 2010).
The autocratic leadership style is determined by the leader’s power due to the fact that the leader has
absolute power in a group or organization. The leader alone makes decisions and takes responsibility for
the conduct, results and achievement of the organization. From co-workers he requires them to exclusively
follow his instructions and directives, to respect and implement his decisions and orders and
communicates formally and in written form. This leadership style can be applied for tasks that need to be
urgently completed, with dependent associates in unstable working groups. In the beginning, this
leadership style is effective and gives good results. However, argued Cherry (2015) if this type of leader
behavior is applied long-term, without considering the level of human resources and the need for
independence of associates, it becomes a limiting factor in the development of the organization. This style
of leadership, characterized by one way communication channels, confirms that autocratic leaders are
mostly not interested in feedback and staff do not have influence and control over the decision making
process. Hence, Hoyle (2012) opined that autocratic leadership style can be illustrated in the structure of
a pyramid, whereby on the top of the hierarchy stands the leader, while staff are below.
When faced with the need to provide a decision, an autocratic leader is one who would come up with a
solution for the entire group on their own. The autocratic leader would generally solve an issue and make
decisions for the group using observations and what they feel is needed or most important for the majority
of the group members to benefit at that time (Val & Kemp, 2015).These are the leaders that would decide
for the group when they would wake up and depart, and exactly how far they should go for that day. If the
group came across any conflicts or barriers within the expedition, these leaders would also make the
decisions on their own, inquiring feedback from the three hired instructors to ensure that their decisions
were okay. Also, Hernon and Rositer (2007) noted that autocratic leaderships alone determine policy
guidelines as well as share out work to library staff without consulting them.

Some people tend to think of this style as a sort of command and control thing, using demeaning language,
leading by threats and abusing their influence or authority. This is not the authoritarian style, rather it is
an abusive, unprofessional style called “bossing people around Clark (2015).” It has no place in a leader's
repertoire. The authoritarian style should normally only be used on rare occasions. Eze (2011) and
Maqsood, Bilal and Baig (2013) indicated that if you do not want to gain more commitment and motivation
from your staff, then you should use autocratic style. Not a single leader wants it that way!
Authoritarian leadership is best applied to situations where there is little time for group decisionmaking
or where the leader is the most knowledgeable member of the group. An autocratic leader dictates tasks
and timelines to staff and imparts a strong focus on an objective hence Leadership for Communities (2015)
acknowledged that the style could be especially functional for a team with inexperienced and/or unskilled
members.
A satisfied worker shows positive work attitude and an unsatisfied worker arising from the use of
autocratic leadership style is an unnecessary addition to his or her institution’s problems (Allner, 2008;
Azuh, 2015, Egwenyenga, 2010; Long, 2008). Egwenyenga and Long asserted that although autocratic
leaders’ emphasis is on high productivity, it often breeds counter-forces of antagonism and restriction of
output. Frequently, it could result in hostile attitudes, a suppression of conflict, distorted and guarded
communications, high labour turnover and absenteeism, low productivity and w ork quality. This
leadership tends to produce dependent and uncreative staff that are afraid to seek responsibility. The
reverse is the case when a leader concern and do the accepted thing with respect to staff priority, they
completely win staff over. When that happens, according to Godfrey and Uwaje (2016), there is no limit
to what the staff can do to ensure the leader’s success.
In certain situation, autocratic style could be the best approach but Leadership Styles (2015) asserted that
autocratic leadership style should not be used when staff becomes tense, fearful, or resentful; expect to
have their opinions heard; there is low staff morale, high turnover and absenteeism and work stoppage.
Also, some of the appropriate conditions to use it are when you have all the information to solve the
problem, you are short on time, and your staff are well motivated. The situations upon which the style
could be used opined Cherry (2018) could include new, untrained staff who don’t know which tasks to
perform or which procedures to follow and effective supervision can be provided only through detailed
instructions. Others are when staff do not respond to any other leadership style, there are high-volume
production needs on a daily basis and there is limited time in which to make a decision.

The strengths of autocratic leadership style are:

Quick decision-making: Leaders can make decisions quickly without having to consult with others.

Goal-oriented: Autocratic leadership style usually focuses on goals and results, and can achieve high results
with this focus.

Control: Leaders have full control over the process and ensure that the work is done correctly and achieves
the goals.

However, the autocratic leadership style also has the following weaknesses:

Lack of motivation: Employees may not feel encouraged, empowered, and may be dissatisfied with their
efforts.

Lack of creativity: This may lead to employees not feeling encouraged to come up with innovative ideas
and not being encouraged to think independently.
Lack of trust: Autocratic leaders often do not trust their employees' abilities and do not allow them to
contribute their opinions, leading to a lack of trust and dissatisfaction from employees.

2. Example

Steve Jobs is a famous example of an authoritarian leadership style. He has made many important
decisions and developed groundbreaking products that have changed the technology industry
dramatically.

Jobs used an autocratic leadership style by solving all major problems related to Apple products and
business. He often did not listen to the opinions of employees or partners and was quite famous for his
fastidiousness and slot robbery. The job can be seen as a leader with a clear vision, he has set clear goals
and laid out plans and tools to achieve them.

A clear example of Jobs' authoritarian leadership style was when he made the decision to partner with his
partner Adobe on the development of Flash applications for Apple products. This decision was made by
Jobs alone without even listening to the research opinions of other employees, however this decision was
later proven correct when Apple products continued to be successful without Flash.

However, it's also important to note that Jobs' authoritarian leadership style has also sparked some
controversy and disapproval from his employees and partners.

3. Democratic leadership style

Anderson (1959) defined the democratic leader as one who shares decision making with the other
members. He asserted that democratic leadership is associated with higher morale in most situations. He
denied that democratic leadership is associated with low productivity and high morale and that
authoritarian leadership is associated with high productivity and low morale. Hackman and Johnson (1996)
supported Anderson’s explanation of the relationship between democratic leadership and productivity.

Democratic leadership is associated with increased follower productivity, satisfaction, involvement, and
commitment (Hackman & Johnson, 1996). Member satisfaction and nominations for leadership are
greater under democratic leadership (Bass, 1990; Stogdill, 1974). Although the significant drawbacks to
democratic leadership are time consuming activities and lengthy debate over policy, participation plays a
key role for increasing the productivity of leadership (Denhardt & Denhardt, 2003; Hackman & Johnson).

As noted earlier, participation is a core characteristic of democratic leadership; and the ideal of democratic
leadership is friendly, helpful, and encouraging participation (Luthar, 1996). Furthermore; Wilson, George,
Wellins, and Byham (1994) categorized autocratic leadership, participative leadership, and high
involvement leadership by the level of participation encouraged by the leader. Chemers (1984) also
defined democratic leadership as emphasizing group participation. Thus, participation is the major
characteristic of democratic leadership (Bass, 1990).

On the other hand, Kuczmarski and Kuczmarski (1995) cited the characteristics of a democratic leader as
knowledgeable, influential, stimulating, a winner of cooperation, a provider of logical consequences,
encouraging, permitting of self-determination, guiding, a good listener and respecting, and situation-
centered. Gastil (1994) defined the characteristics of democratic leadership as distributing responsibil ity
among the membership, empowering group members, and aiding the group’s decision-making process.

The varied characteristics of democratic leadership contribute to the fact that there has been no clear
definition of democratic leadership. Gastil (1994) argued that “the absence of a clear definition may have
also contributed to the decreased amount of research on democratic leadership” (p. 956).

Strengths:

Collaboration and teamwork: Democratic leadership fosters a sense of collaboration and teamwork
amongst team members, as everyone has an opportunity to participate in decision-making.

Diverse perspectives: This leadership style allows for a diversity of perspectives to be considered in
decision-making, as team members are encouraged to contribute their ideas and opinions.

High morale and motivation: Team members are likely to feel a sense of ownership and responsibility for
the decisions made, leading to higher morale and motivation.

Better decision-making: Since multiple perspectives and ideas are taken into account, decisions made
through democratic leadership are often more informed and well-rounded.
Weaknesses:

Time-consuming: The process of involving team members in decision-making can be time-consuming and
slow down the decision-making process.

Lack of direction: Democratic leadership can result in a lack of clear direction, as team members may have
differing opinions and may not always agree on the best course of action.

Inefficiency: Democratic leadership can result in inefficiencies, as team members may spend too much
time discussing ideas and reaching a consensus.

Difficulty in managing conflicts: Conflict resolution can be difficult with this leadership style, as team
members may have strong opinions and conflicting perspectives.

4. Example

John Mackey, the CEO of Whole Foods Market, is said to have used a democratic leadership style in his
work. He created an open working environment where employees are encouraged to contribute ideas and
participate in the company's decision-making process.

One of the prime examples of John Mackey's democratic leadership style is when he used an open
discussion method to manage major changes in the company. He came up with his ideas and asked for the
input of his employees to make the best decisions for the company together.

In addition, he regularly empowers his employees to make decisions and create creativity in their work.
He also strives to create a comfortable working environment where employees are encouraged and
valued.

5. Laissez-faire leadership style

Robbins (2007) explained the laissez-fair style as “Abdicates responsibilities avoid making decisions”
(p.475).Similar Luthans (2005), defined laissez- fair style as “Abdicates responsibilities avoids making
decisions”(p.562).Laissez- Fair is uninvolved in the work of the unit. It‟s difficult to defend this leadership
style unless the leader‟s subordinates are expert and well-motivated specialists, such as Scientists.
“Leaders let group members make all decision”(Mondy&Premeaux, 1995, p.347) “Behavioral style of
leaders who generally five the group complete freedom, Provide necessary materials, participate only to
answer questions, and avoided giving feedback” (Bartol&Martin, 1994, p.412).The concept of laissez was
also given by Osborn as “Abdicates responsibilities and avoiding decisions” (Osborn, 2008, p.258). Above
All the Authors defines the Laissez – Fair Leadership with their own words according to their given
definitions the idea of this type of leadership is same. Authors defines that in this style the Lead ers
normally don‟t want their interference in decision making process. They normally allowed to their
subordinates that they have power to get their personal decisions about the work. They are free to do
work in their own way and they are also responsible for their decision. Normally Leaders avoids to making
decision and don‟t involve in working units because the leaders gives to subordinates to completely
freedom to do decisions. Sometimes the leaders provide them to important material and they just involve
the answer &question but avoiding feedback.

Motivation

“The process of that account for an individual‟s intensity, direction, and persistence of effort toward
attaining a goal” (Robbins et al., 2007, p.215).“Desires want wishes aims goals needs drives m otives and
incentives” (Luthans, 2005, p.229-230).“The forces that energizes behavior, gives direction to behavior,
and underlies the tendency to persist” (Bartol&Martin, 1994, p.377).“Motivation is desires to put forth
efforts in pursuit of organizational goals mangers can always improve their understanding of the forces
that energize employees. There is enormous energy within every person and manger certainly should not
prevent its release” (Mondy & Premeaux, 1995, p.308).

“The set of forces that initiates, directs, and make people persists in their efforts to accomplish a goal”
(Williams, 2009, p.578).“Refers to forces within an individual that account for the level, direction, and
persistence of effort expended at work”( Osborn, 2008, p.110).

“The psychological forces that determine the direction of a person‟s behavior in an organization, a
person‟s level of effort, and a person‟s level of persistence”( George & Jones, 2008, p.179).

“The set of processes that arouse direct, and maintain human behavior toward attaining some goals”
(Greenberg & Baron, 2009, p.254).
Technically word motivation traced Latin word “mover” which means “to move”. Motivation is a
subroutine which begins with a physiological or psychological defect or wants that start a manner of acting
that is plan to accomplish a goal or objective. Born whenever there are some physiological or psychological
implance called Need. Physiological and psychological drives are movement directed and accessibility of
power push toward reaching an incentive. Inducement or Incentive means the things which will alleviate
a wants and which decrease a drive.

Above all the Authors gave their own theories about the Motivation. It has some micro conception of some
words; there are four things common in every definition like Efforts element which describes the density
or drive. Normally motivated peoples wants to hard work but high level of efforts or unluckily to level to
helpful job performance unless the attempt jump the in direction that useful of the company.
Organizational Goal means the kind of attempt that we should be getting finally; we will relate to
motivation as need satisfying process.

Imitation of efforts is concerned with the wishes aims or wants that persons make about how much tries
again and again to put their job. Direction of effort concerned with the wants that persons making the
deciding where atom put forth effort in their job. Persistence efforts deals with the needs that persons
make about how much they put forth efforts in their jobs before decreasing these efforts. Level describes
that how many efforts people put forth.

Judge and Piccolo (2004) collected the data through Literature Search (chapters, dissertation, articles,
books, and unpublished reports; published from 1887 to 2003) used the Meta Analytic Procedures, and
divided studies Moderator Analyses and at the end they use Regression Analyses and got result through
meta-analytic. They found a positive relationship between contingent reward and follower motivation,
however negative relationship was found between Management by exception (passive) with follower
motivation. And also shows the negative relationship between laissez-faire leadership with follower
motivation.

Barbuto (2005) “Worked on Motivation and Transactional, Charismatic, and Transformational Leadership”.
He receives data from 186 leaders and their seven hundred fifty nine raters. Results were obtained using
the SPSS. Examination of the MLQ of both rater‟s reports and managers self-reports start by estimate
subscales of the full range leadership behaviors. Transactional leadership (contingent reward,
Management by exception (active) and management by exception (passive) have significant and positive
relationship with intrinsic motivation. Laissez Fair leadership has also positive and significant relationship
with intrinsic motivation. And relationship of Transactional leadership and its components like (contingent
reward, Management by exception active and management by exception passive) have significant and
positive relationship with Extrinsic motivation. Laissez Fair leadership has also positive and significant
relationship with extrinsic motivation.

Webb (2003) “Conducted a study on Presidents‟ Leadership Behaviors Associated with Followers‟ Job
Satisfaction, Motivation toward extra effort, and Presidentia”l. He receive the data through sample
(MLQ)of 315 chief student affairs officers, chief academic, and financial were chosen from the town of 105
member organization in the Council for Christian Universities and colleges. 223 participants (70.8%)
returned questionnaires. Results were receive with the help of Descriptive statistics were utilized to
describe the sample Means and SD. They found that Contingent reward has positive and significant
relationship with Motivation while Management by exception active and passive have significant and
negative relationship with Motivation. Laissez fair leadership has significant and negative relationship with
motivation toward extra effort.

Strengths:

Encourages creativity: By giving employees the freedom to make decisions and take ownership of their
work, they are more likely to come up with innovative solutions and ideas.

Increases job satisfaction: Laissez-faire leadership can increase job satisfaction as employees feel trusted
and empowered, which can lead to higher levels of motivation and engagement.

Fosters a culture of self-reliance: When employees are encouraged to make their own decisions, they
become more self-reliant and independent. This can lead to a more capable and self-sufficient workforce.

Weaknesses:

Lack of direction: Without clear direction from their leader, employees may become confused about their
roles and responsibilities, which can lead to a lack of focus and productivity.
Lack of accountability: Laissez-faire leadership can lead to a lack of accountability as employees are given
a lot of autonomy. This can result in a lack of follow-through on tasks or missed deadlines.

Lack of structure: Without a clear structure, employees may struggle to prioritize tasks and manage their
time effectively. This can lead to inefficiencies and missed opportunities.

6. Example

Thomas Jefferson, the third President of the United States, is said to have used the passport style of
leadership while working in his government. He often allows his government's senior officials to manage
and hold themselves accountable for their decisions, rather than being able to meddle in every little
decision.

This is shown through his actions in government, for example while serving as Secretary of State and
President, he frequently entrusts his officials with specific duties and to they decide for themselves how
to do it.

In addition, in his economic policy, he advocated economic liberalism and respected the power of private
enterprises. He also encouraged the independence of the states in the United States, allowing the states
to decide and implement their policies without interference from the federal government.

With his passport leadership style, Thomas Jefferson is considered one of the important contributors to
the development of the US government and is also considered to have created a platform to encourage
creativity. and independent in many different fields.

VI. Examine the factors that influence the development of culture in organizations.

1. Concept of corporate culture

Corporate culture concept?

Cultural factors are always formed in parallel with the

development process of enterprises. Corporate culture is
the culture of an organization, so it is not simply
communication culture or business culture, nor is it the
slogans of the leadership that are hung in front of the gate
Corporate culture is all aspects built during the existence and development of that business, becoming a
concept, rule and that governs the behavior of personnel in the enterprise. Simply put, it is the spiritual
life of a business.

Corporate culture consists of 4 main components, namely: vision, mission, core values and business
philosophy. Corporate culture is expressed in two states:

• Tangible: are values that are clearly and directly expressed to the outside, which can be considered as
the face of the business: uniforms, slogans, activities, events, regulations, etc.

• Invisible: expressed in more abstract aspects such as thinking, attitude, lifestyle, habits, etc.

Factors affecting corporate culture

In the process of building its own corporate culture and suitable for its business activities, enterprises will
have to consider influencing factors.

The factors affecting corporate culture are divided into two sides: objective and subjective. To avoid
unnecessary mistakes in the future, every business needs to pay attention to these influencing factors:

2. 3 levels of corporate culture.

2.1. Tangible structure in the business

 The tangible structure of a business is a level of corporate
culture that people can come into contact with on the first
visit. This is shown through events and phenomena related
to businesses such as:

- Architecture, infrastructure, decoration of the company

- Organizational structure and departments of the company

- Stories about the history, process of formation and

Characteristic: development of the company

This level is heavily influenced by the industry and - Documents that set out the company's operating principles

field in which the business operates. At the same - Packaging, product design
time, it is subject to great influence from the
- Company communication publications such as logos,
leader's point of view. The tangible structure of
slogans
the business is very changeable and does not
clearly represent the core values of the business. - Communication culture between employees and
customers, between employees and management levels

- Rituals, costumes in events

For example:

To better understand Level 1 – the tangible structure of the business, the Starbucks brand is the most
obvious example. This is one of the famous coffee brands for its success in building its brand image.
Image logo and store decoration design are always factors that make Starbucks different from other
brands. For this reason, customers always think that Starbucks is always at the forefront of updating and
creating new and unique ideas, different from competitors.

The meticulousness in designing the logo image, creating the corporate brand image to the uniformity
from the staff's uniforms and the product's packaging design has made a strong impression on customers,
creating a strong impression on customers. a distinctive mark for himself.

In order for customers to clearly distinguish Starbucks from other brands, Starbucks always invests a large
amount of budget in designing products and stores, pioneering unique ideas. Therefore, the requirements
for the physical structure of Starbucks are extremely high

Another example of this level is Amazon. When it comes to Amazon's headquarters, it's easy to see the
magnificence of this tech giant. In front of this skyscraper, it is a harmonious combination of three giant
glass spheres. The interior space of the three spheres is designed like a small tropical forest. Not only
providing a green space for all employees, Amazon also built a shopping mall, cafe, pet care area, etc.

Amazon's logo and slogan "Hello World" is attached to the top of the building. The nam e of the Amazon
headquarters building is inspired by a famous business philosophy "Day 1". Amazon wants to make every
day a start for its employees, so they need to innovate, test constantly, and bring more and more new
products to customers. The special design of the Amazon headquarters has made a strong impression on
many people and it has become a distinctive mark of the business.

2.2. Level 2: Published, accepted values

At Level 2, the declared values are accepted as

the company's regulations, core values,
strategy and goals. They are seen as guidelines
for all employees to follow. The contents of the
regulations are made publicly available to all
employees. Accepted published values can be
expressed in many different forms such as
commitments, declarations, corporate rules,
etc.
 For example:

The saying: "Customer is God" is considered as the business philosophy of most businesses. With a
customer-centric policy, businesses need to show respect and reverence, considering customer service as
important.

They need to meet the needs of customers, increasingly improve the quality of the company's products
and services. In order for all employees to know this, it is necessary to propagate and manage all
employees. The rules and regulations of the business are set out to ensure the implementation of that
business philosophy.

If an employee of a business or organization is disrespectful, does not serve customers attentively, the
image of that company or business will also be adversely affected. That employee will also be fired,
disciplined depending on the severity of their violations.

If businesses handle violations appropriately, customer service will be increasingly improved. At the same
time, the trust and loyalty of customers to the business will also increase. These values, which are
simultaneously implemented by the company and employees, will be the first step to success in the
corporate culture.

2.3. Level 3 Corporate culture values are recognized as “self-evident”

The recognized values are "obvious" almost

like the traditions, customs and practices of
our people. They are seen as invisible things
that everyone must obey. The same is true of
corporate culture. They also have common
characteristics, common style because it has
been formed for a long time, difficult to
change.
Characteristic:

Of the three cultural levels that managers need to know, this third level is difficult to change the corporate cultural
values because it has a long history. They gradually become habits in the members' thoughts, and it governs everyone's
actions and behavior. These shared views represent the highest value of the business and are considered as the "assets"
of the business.

For example:

In businesses in Europe or the US, employees will be paid based on their ability to work because groups of
countries like the US appreciate their self-worth. But in Asian countries that promote community values,
employees will be paid according to their capacity and time working for businesses and organizations. New
graduates will hardly receive a high salary right from the start.

Conclusion

Understanding the 3 levels of corporate culture will help businesses know the strengths and weaknesses
of each level. Thereby, leaders will come up with appropriate strategies for each different time period to
improve efficiency and bring many benefits to the business.

3. 7 factors affecting the development of corporate culture.

According to Laurie J. Mullin’s(1985),

History: The reason and manner in which the organisation was originally formed, its age and the
philosophy and values of its owners and first senior managers will aff ect culture. A key event in the
organisation’s history such as a merger or major reorganisation, or a new generation of top management,
may bring about a change in culture. Corporate history can be an effective induction tool to assist a growth
programme, and to help integrate acquisitions and new employees by infusion with the organisation’s
culture and identity. Failure in mergers and acquisitions can arise from cultural clashes and failure to
integrate different cultures.
Primary function and technology: The nature of the organisation’s ‘business’ and its primary function have
an important influence on its culture. 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
organisation will determine the nature of the technological processes and methods of undertaking work,
which in turn also affect structure and culture

Strategy: Although a business organisation may pursue profitability, this is not by itself very clear or a
sufficient criterion for its effective management. For example, to what extent is emphasis placed on long-
term survival or growth and development? How much attention is given to avoiding risks and
uncertainties? Or how much concern is shown for broader social responsibilities? The organisation must
give attention to objectives in all key areas of its operations. The combination of objectives and resultant
strategies will influence culture, and may itself be influenced by changes in culture. (See also Chapter14.)

Size: Usually larger organisations have more formalised structures and cultures. Increased size is likely to
result in separate departments and possibly split-site operations. This may cause difficulties in
communication and interdepartmental rivalries, with the need for effective coordination. A rapid
expansion, or decline, in size and rate of growth, and resultant changes in staffing, will influence structure
and culture.

Location: Geographical location and physical characteristics can have a major influence on culture for
example, whether an organisation is located in a quiet rural location or a busy city centre can influence
the types of customers and the staff employed. An example could be a hotel or restaurant. Location can
also affect the nature of services provided, the sense of ‘boundary’ and distinctive identity, and
opportunities for development.

Management and leadership: Top executives can have considerable influence on the nature of corporate
culture. Examples are the key roles played by Sir Richard Branson, Anita Rod-dick, founder of The Body
Shop, and Marjorie Scardino and her change of style when she took over as the new chief executive of
Pearson: Critical review and reflection attempting to analyse culture in terms of different levels or generic
typologies is too simplistic and prescriptive. It serves no useful purpose in evaluating applications of
management and organisational behaviour.

The environment: In order to be effective, the organisation must be responsive to external environmental
influences. For example, if the organisation operates within a dynamic environment it requires a structure
and culture that are sensitive and readily adaptable to change. An organic structure is more likely to
respond effectively to new opportunities and challenges, and risks and limitations presented by the
external environment. (Recall the discussion on mechanistic and organic systems in Chapter 11.)

Based on your discussion, evaluate the importance of organisational culture on the performance of
different organisations.

Organizational culture is an important factor affecting the performance of organizations, including

businesses. Organizational culture plays an important role in building values, principles and goals for the
organization, creating a positive working environment, helping to promote the development and improve
the productivity of the organization.

Corporate culture can affect many aspects of a business, including:

a. Create a positive, motivating working environment that encourages creativity and innovation.
b. Define values and ethical standards for the organization's employees and operations.
c. Create consistency and consistency in the implementation of the organization's strategies and
goals.
d. Influence employee behavior within the organization, including decisions and day-to-day actions.
e. Impact on relationships within the organization, including relationships between departments,
groups and individuals.

An example of the importance of organizational culture to business is the Google corporation. Google has
created a distinctive corporate culture, with values such as creativity, innovation, and ethical
responsibility. This culture has helped Google attract and retain talented employees, foster innovation and
product development, and contribute to the company's success in creating new products and services,
such as search engine, Gmail and Google Maps.
 VII. Conclusion

My report has talked about the contents of the appoarch trait and the Fiedler Model, thereby pointing out
the strengths and weaknesses of the two leadership theories, giving examples,...following the report. I
have pointed out two theories, Fayol's administrative management theory and Peter Drucker's Theory of
Management, thereby clarifying the difference between the two theories and giving examples that are
consistent with the theories mentioned above to see clearly the advantages. The disadvantages of each
method followed by my report have raised three basic leadership styles: Autorcratic leadership style,
Democratic leadership style, Laissez-fair style... From there, clarify the leadership styles and analyze the
factors affecting the development of culture in the organization. Concept of corporate culture. 3 levels of
corporate culture and 7 factors affecting the development of corporate culture.

VIII. References

1. (PDF) trait approach to leadership - researchgate (no date). Available at:

https://www.researchgate.net/publication/272491910_TRAIT_APPROACH_TO_LEADERSHIP
(Accessed: March 14, 2023).

2. Apa PsycNet (no date) American Psychological Association. American Psychological Association.
Available at: https://psycnet.apa.org/record/2017-45289-002 (Accessed: March 14, 2023).
3. Apa PsycNet (no date) American Psychological Association. American Psychological Association.
Available at: https://psycnet.apa.org/journals/amp/62/1/6/ (Accessed: March 14, 2023).
4. Sridharan, M., About the Author: Mithun Sridharan I am Mithun Sridharan and Sridharan, I.am M.
(2023) Fiedler's contingency model of leadership, Think Insights. Available at:
https://thinkinsights.net/leadership/fiedlers-contingency-model/ (Accessed: March 14, 2023).
5. Leadership skills (no date) TechnoFunc. Available at:
https://www.technofunc.com/index.php/leadership-skills (Accessed: March 14, 2023).
6. Leadership theories (no date) TechnoFunc. Available at:
https://www.technofunc.com/index.php/leadership-skills/leadership-theories (Accessed: March
14, 2023).
7. Advantages of trait theory of leadership (no date) Cram. Available at:
https://www.cram.com/essay/Advantages-Of-Trait-Theory-Of-Leadership/FKM29Q9GREE5
(Accessed: March 14, 2023).
8. The trait theory of leadership explained with examples, Pros, and cons (no date) Leadership Ahoy.
Available at: https://www.leadershipahoy.com/the-trait-theory-of-leadership-explained-with-
examples-pros-and-cons/ (Accessed: March 14, 2023).
9. "advantages and disadvantages of Trait Leadership Theory" Essays and Research Papers (no date)
Studymode. Available at: https://www.studymode.com/subjects/advantages-and-disadvantages-
of-trait-leadership-theory-page1.html (Accessed: March 14, 2023).
10. Asana (no date) Fiedler's contingency theory: Why leadership isn't uniform [2023] • asana, Asana.
Available at: https://asana.com/resources/fiedlers-contingency-theory (Accessed: March 14,
2023).
11. Sridharan, M., About the Author: Mithun Sridharan I am Mithun Sridharan and Sridharan, I.am M.
(2023) Fiedler's contingency model of leadership, Think Insights. Available at:
https://thinkinsights.net/leadership/fiedlers-contingency-model/ (Accessed: March 14, 2023).
12. Home (no date) MindTools. Available at: https://www.mindtools.com/ayfk2dg/fiedlers-
contingency-model (Accessed: March 14, 2023).
13. Autocratic leadership style: Obstacle to success in academic libraries (no date). Available at:
https://www.proquest.com/openview/f272f7718d86e58e22f7098301599444/1?pq-
origsite=gscholar&cbl=54903 (Accessed: March 14, 2023).
14. Webster Jr., F.E. (2008) Marketing is management: The wisdom of Peter Drucker - Journal of the
Academy of Marketing Science, SpringerLink. Springer US. Available at:
https://link.springer.com/article/10.1007/s11747-008-0102-4?v=1661472000065 (Accessed:
March 14, 2023).
15.