ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

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

Submission date 1/3/2024 Date received (1st submission)

Re-submission date Date received (2nd submission)

Student name Nguyen Kim Ngan Student ID BH00987

Class Assessor name Ms Cong Bao Ngoc

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:

Ngan

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P1 P2 P3 P4 M1 M2 M3 D1

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Contents
I. Introduction...................................................................................................................................................... 5

II. Leadership Theories (P1).................................................................................................................................. 5

1. Favouribility of leadership situation – Fiedler...................................................................................................6

1.1. The content of theory............................................................................................................................ 6

1.2. Advantages and disadvantage............................................................................................................... 8

2. Path – goal theory – House and Dessler........................................................................................................9

2.1. The content of theory............................................................................................................................ 9

2.2. Advantages and disadvantages............................................................................................................10

III. Management Theories (P2).........................................................................................................................10

1. Fayol’s administrative management theory................................................................................................11

1.1. The content of theory.......................................................................................................................... 11

1.2. Advantages and disadvantages............................................................................................................13

2. Douglas McGregor’s theory X and theory Y manangement........................................................................13

2.1. The content of theory.......................................................................................................................... 13

2.2. Advantages and disadvantages............................................................................................................14

IV. Leadership & Management Styles (P3)....................................................................................................... 15

1. Autocratic leadership.................................................................................................................................. 15

1.1. The content.......................................................................................................................................... 15

1.2. Advantages and disadvantges..............................................................................................................16

2. Democratic leadership................................................................................................................................ 17

2.1. The content.......................................................................................................................................... 17

2.2. Advantages and disadvantages............................................................................................................18

3. Laissez – fair leadership...............................................................................................................................19

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 3.1. The content.......................................................................................................................................... 19

3.2. Advantages and disadvantages............................................................................................................20

V. The Organizational Culture (P4)......................................................................................................................21

1. The definition of organizational culture......................................................................................................21

2. The level of organizational culture..............................................................................................................21

3. The factors that influence the development of the culture in organizations..............................................22

VI. Conclusion................................................................................................................................................... 26

VII. Reference.................................................................................................................................................... 26

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I. Introduction
I was promoted to Director of a large company in Vietnam with more than 9,000 employees. The company
sent me to a short-term course to improve my leadership and management skills. In my first class on
Management, I was asked to do a report on basic management and leadership knowledge, which would lay a
good foundation for future subjects as well as my work as a director.
This assignment delves into important leadership and management theories, elucidating their content,
advantages, and disadvantages. Focus on Fiedler's Facilitation in Leadership Situations and the House and
Dessler's Path-Goal Theory in the field of leadership, and Fayol's Administrative Management Theory along with
Theory X and Theory Y Management by Douglas McGregor in the field of management theories, we will explore
the nuances of these theories. framework. Leadership, an integral aspect of organizational dynamics, goes
beyond theories to include diverse leadership styles. This assignment will explore the Autocratic, Democratic
and Liberal leadership styles, elucidate their content and evaluate the advantages and disadvantages associated
with each style. By exploring these leadership theories and styles, we aim to provide a comprehensive
understanding of the multifaceted nature of leadership in organizational contexts. Furthermore, organizational
culture, the force that shapes members' behavior and attitudes, will be scrutinized across three distinct levels:
artifacts and creativity, values and beliefs, and assumptions. basic determination. As an essential element,
organizational culture plays a key role in shaping an organization's identity and influencing the actions of its
members. Additionally, we will closely examine the factors that influence organizational culture, recognizing
their impact on the overall organizational climate.
II. Leadership Theories (P1)
Leadership is a process in which one person has a leading role, orienting individuals in the group to do the
right thing, building a cohesive group that works harmoniously to develop together and achieve common goals.
Leadership gives a title to the person performing professional work. In which capacity, qualifications and skills
need to be guaranteed. Demonstrated with guidance and division of work implementation within the overall
strategy. From there, it brings impacts to each individual performer. Besides, it also reflects their capacity
through achieved work results (An, 2023).
A leadership theory describes how and why certain individuals become leaders. The focus is on traits and
behaviors that people can adopt to enhance their leadership abilities. According to leaders, strong ethics and
high ethical standards are essential qualities of a good leader. Although there are many different theories of
leadership theory emerging, most can be divided into 6 most popular leadership theories: Traits approach,

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functional approach, contigency theories of leadership, transformational and transactional leadership,
inspirational leadership, serving leadership. The following is a more specific analysis of leadership theory:
contingency theories of leadership.
1. Favouribility of leadership situation – Fiedler
1.1. The content of theory
Fred Fiedler, a scientist who focuses on the psychology and traits of leaders, initially suggested the
situational leadership model idea in the middle of the 1960s. Fiedler proposed that Humans are born with the
capacity for leadership, which cannot be taught. In a word, Fiedler's perspective is that a leader's style never
changes.
There are two types of leadership styles: relationship-oriented and work-oriented. First, relationship-oriented
leadership style means that a relationship-oriented leader develops cohesion and relationships with team
members and other stakeholders. Relationship-oriented behavior leads to trust, friendship, and a supportive
atmosphere of the group. Next is work-oriented leadership style which means that a work-oriented leader is
concerned with getting work done, task performance, quality, output and non-human aspects. other. The task-
oriented leader places a second priority on relationships and people (Carl, 2022).
To help you determine your leadership style, Fiedler developed the Least-Preferred Co-Worker (LPC) scale.
The scale asks you to describe the coworker you least enjoy working with. The more positively you rate your
least-favored coworker on a variety of criteria, the more relationship-oriented you are. The less you evaluate
them on the same criteria, the more task-oriented you are. If you are a high LPC leader, you are a relationship-
oriented leader. If you are a low LPC leader, you are a task-oriented leader. Relationship-oriented leaders are
good at building relationships, facilitating team synergy, and managing interpersonal conflict. Task-oriented
leaders tend to be skilled at organizing projects and teams to complete tasks effectively and efficiently. Below is
a graphic representation of the Least-Preferred Co-Worker (LPC) scale (asana.com, 2022).

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 According to Fiedler, a leader's behavior is dependent upon the favorability of the leadership situation.
Three factors work together to determine how favorable a situation is to a leader. These are: Leader-member
relations; Task structure; Position power. First is Leader-member relations, the degree to which the leaders are
trusted and liked by the group members, and the willingness of the group members to follow the leader’s
guidance. The second is task structure, the degree to which the group's task has been described as structured or
unstructured, has been clearly defined and the extent to which it can be carried out by detailed instructions.
The third is position power, the power of the leader by virtue of the organizational position and the degree to
which the leader can exercise authority on group members in order to comply with and accept his direction and
leadership. With the help of these three variables, eight combinations of group-task situations were constructed
by Fiedler. These combinations were used to identify the style of the leader (managementstudyguide.com,
2020).

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 The leader’s effectiveness is determined by the interaction of the leader’s style of behavior and the
favorableness of the situational characteristics. The most favorable situation is when leader-member relations
are good, the task is highly structured, and the leader has a strong position power. Research on the contingency
model has shown that task-oriented leaders are more effective in highly favorable (1, 2, 3) and highly
unfavorable situation (7, 8), whereas relationship-oriented leaders are more effective in situations of
intermediate favorableness (4, 5, 6). Fiedler also suggested that leaders may act differently in different
situations. Relationship-oriented leaders generally display task-oriented behaviors under highly favorable
situations and display relationship-oriented behaviors under unfavorable intermediate favorable situations.
Similarly, task-oriented leaders frequently display task-oriented in unfavorable or intermediate favorable
situations but display relationship-oriented behaviors in favorable situations (managementstudyguide.com,
2020).
1.2. Advantages and disadvantage
Advantage terms. Fiedler's model first acknowledges the importance of situational factors in determining
leadership effectiveness. It emphasizes that there is no one-size-fits-all leadership style and that a leader's
effectiveness depends on the specific situation. Besides, this Model can be applied in real-world organizational
environments. It provides a framework for leaders to analyze their leadership style and adapt it to different
situations, contributing to improved decision making. Additionally, Fiedler's Contingency Model has practical
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implications for leadership training and development. It suggests that leaders can improve their effectiveness by
changing their leadership style or by changing situational variables.
On the disadvantage side. Critics argue that Fiedler's model tends to rigidly classify leaders as task-
oriented or relationship-oriented. This oversimplification may not capture the complexity of leadership
behavior, and some leaders may exhibit a combination of both styles depending on the situation. Besides, this
model assumes that a leader's style is fixed and difficult to change. This perspective fails to take into account the
fact that leaders can adapt and learn different leadership styles over time based on experience, feedback, and
training. Next, Fiedler's Model focuses on a limited set of situational factors, such as leader-member
relationships, task structure, and position power. Critics argue that it may not consider other important
contextual variables that can influence leadership effectiveness. Some people believe that the scale does not
reflect the full complexity of leadership styles and may not provide accurate assessments of leader effectiveness
in different situations.
2. Path – goal theory – House and Dessler
2.1. The content of theory
Path - Goal Theory was developed to explain how a leader's behavior affects the satisfaction and task
performance of subordinates. Path-goal theory is concerned with enhancing the motivation (increasing the level
of motivation) of followers and posits that effective leaders can enhance followers' motivation by: Making
subordinates are clearly aware of the goals of the work; Tie meaningful rewards to achieving goals; Explain
clearly how the goals and expected rewards can be achieved (vietnambiz.vn, 2019).
Followers of this theory view motivating employees as an effective path to leadership and believe that
leaders can motivate followers by providing clear goals and meaningful incentives (enough large) for reaching
the goal.
The characteristics of individual workers are different, the pressures of the working environment are
different and the needs of workers are also very different in different situations. Therefore, to be successful,
leaders must rely on appropriate styles. Followers of this theory also propose four main leadership styles
(Hourse, R.J, & Mitchell, T.R (1974) "Path –Goal Theory Of Leadership"), which are: Directive Leadership;
Supportive Leadership; Participative Leadership; Achievement-Oriented Leadership. The first is Directive
Leadership. If you apply this management style, you need to communicate goals and expectations. At the same
time, clearly assign small tasks to everyone. This style works best when tasks or projects are unstructured, or
when tasks are complex and team members are inexperienced. Next is Supportive leadership, this style focuses

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on relationships. You put the interests and needs of team members first. For stressful or repetitive tasks, this
type of leadership will be most appropriate. Next is Participative leadership. This type of leadership focuses on
the participation of both parties. You consult with your team and consider their ideas and expertise before
making a decision. This approach works best when your team members are experienced, the tasks are complex
and challenging, and when they want to give you input. And finally, Achievement-oriented leadership, where
you set challenging goals for your team. You trust the team's abilities, so you expect the team to perform well
and maintain high standards for everyone. This method works best when team members are demotivated or
unchallenged in their work (Hasley, 2022).
2.2. Advantages and disadvantages
In terms of advantages, One of the main advantages of Path-Goal Theory is its flexibility. It allows leaders
to adjust their leadership style based on the needs of their followers and the characteristics of the task or
environment. Next, the theory emphasizes the importance of clarifying expectations and goals, which can
enhance communication and reduce ambiguity within the organization. This clarity can improve overall
performance. Additionally, by providing support and guidance, leaders using Path-Goal Theory can increase the
motivation of their followers. Leaders who tailor their approach to individual needs can inspire their team
members to strive to achieve their goals. Additionally, when leaders support their followers in achieving their
goals and chart a clearer path, it can lead to increased job satisfaction. Employees can feel more supported and
appreciated in their roles.
On the other hand, this theory also has certain disadvantages. First, Path-Goal theory can be complex and
difficult to implement successfully. Determining the appropriate leadership style for a specific situation and
understanding individual needs requires a deep understanding of both the team and the organization. Next, the
theory holds that leaders can accurately predict the needs of their subordinates and the demands of a given
situation. In practice, predicting human behavior and reactions can be difficult. Besides, this theory may not be
universally applicable in different cultures. Leadership styles and expectations can vary widely, and what works
in one cultural context may not work in another. Some critics argue that Path-Goal Theory can create
dependence on the leader. Followers may become too dependent on the leader's guidance, hindering their
ability to develop independent problem-solving skills.
III. Management Theories (P2)
Management is the coordination and direction of tasks to achieve goals. Such administrative activities
include establishing the organization's strategy and coordinating the efforts of employees to accomplish these

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goals through the application of available resources. Management can also refer to the seniority structure of
employees within an organization (Jennifer, 2023).
Management theory is a set of ideas that propose general rules on how to manage an organization or
business. They address how supervisors implement strategies to accomplish organizational goals and how they
motivate employees to perform at their highest ability. Typically, leaders apply the concepts from different
management theories that best suit employees and their company culture. Although many management
theories were created centuries ago, they still provide frameworks that benefit leading teams in the workplace
and running businesses today (Jamie, 2023).
1. Fayol’s administrative management theory
1.1. The content of theory
Fayol calls management skills "administrative functions". In his 1916 book, "Administration Industrielle et
Générale," he shared his experiences managing the workforce. Fayol's book - and his 14 principles of
management - helped form what became known as Administrative Theory. It looks at the organization from the
top down and sets out steps for managers to get the best from employees and run the business effectively
(mindtools.com, 2020). Fayol's 14 principles of management provide essential guidelines, including division of
labor, authority and responsibility, unity of command, etc., to ensure effective management practices.
 Division of Work: Assign each employee a task that they can become proficient at. Productivity increases
as employees become more skilled, assured and efficient. Today, experts still warn against multi-tasking.
 Authority: Managers must possess the authority to give orders, and recognize that with authority comes
responsibility. As well as rank, Fayol argues that a manager's intelligence, experience and values should
command respect.
 Discipline: Everyone should follow the rules. To help, you can make agreements between the organization
and employees clear for all to see.
 Unity of Command: Fayol wrote that "an employee should receive orders from one supervisor only."
Otherwise, authority, discipline, order, and stability are threatened.
 Unity of Direction: Teams with the same objective should be working under the direction of one manager,
using one plan. That, Fayol wrote, "is the essential condition to unity of action, coordination of strength
and focusing of effort."
 Collective Interest Over Individual Interest: Individuals should pursue team interests over personal ones –
including managers.

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  Remuneration: Employee satisfaction depends on fair remuneration for everyone – financial and non-
financial. Fayol said pay should be fair and reward "well-directed effort."
 Centralization: Balancing centralized decision making (from the top) with letting employees make
decisions. Or as Fayol wrote, "A place for everyone and everyone in his place."
 Scalar Chain: Employees should know where they stand in the organization's hierarchy and who to speak
to within a chain of command. Fayol suggested the now-familiar organization chart as a way for
employees to see this structure clearly.
 Order: Fayol wrote that, "The right man in the right place" forms an effective social order. He applied the
same maxim to materials: right one, right place. Academics note that this principle pre-empts the Just in
Time (JIT) strategy for efficient production.
 Equity: Managers should be fair to all employees through a "combination of kindness and justice." Only
then will the team "carry out its duties with... devotion and loyalty."
 Stability of Tenure of Personnel: Organizations should minimize staff turnover and role changes to
maximize efficiency. If people are secure and good at their jobs, they are happier and more productive.
 Initiative: Employees should be encouraged to develop and carry out plans for improvement. As Fayol
wrote, "At all levels of the organizational ladder, zeal and energy on the part of employees are augmented
by initiative."
 Esprit de Corps: Organizations should strive to promote team spirit, unity, and morale.
While Fayol's 14 Principles look at the details of day-to-day management, his Five Functions of
Management provide the big picture of how managers should spend their time. They are: Planning; Organizing;
Commanding; Coordinating; Controlling (Sujan, 2023).
 Planning: It involves setting objectives and outlining the steps to achieve them. Managers analyze the
future, make forecasts, and develop strategies to steer the organization in the desired direction.
 Organizing: This function focuses on arranging resources, both human and non-human, to optimize
efficiency. Managers divide tasks, delegate responsibilities, and create a structured framework for smooth
operations.
 Commanding: Managers lead and direct their subordinates, giving clear instructions and guidance. They
foster a positive work environment and motivate employees to work towards shared goals.

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  Coordinating: Coordinating ensures all elements of the organization work harmoniously together.
Managers synchronize activities, align efforts, and promote collaboration to avoid conflicts and improve
productivity.
 Controlling: Involves monitoring performance against established standards and taking corrective actions
when necessary. Managers assess outcomes, compare them to plans, and make adjustments to ensure
progress (Sujan, 2023).
1.2. Advantages and disadvantages
On the upside, first of all, Fayol's principles are considered universal and applicable to all types of
organizations, regardless of their size, nature or industry. This universality makes his theory versatile and widely
accepted. Second, Fayol's Theory provides a comprehensive framework for managing organizations. It covers
various aspects such as planning, organizing, commanding, coordinating and controlling, providing a
comprehensive view of management functions. Besides, Fayol's principles are clear and simple, making them
easy to understand and apply. This simplicity facilitates practical implementation in real management situations.
In addition, Fayol's theory emphasizes the functions of management, providing a roadmap for managers to
perform their roles effectively. The focus on these functions has been valuable in guiding management practice.
On the other hand, as for the disadvantages. One of the criticisms of Fayol's theory is the overemphasis on
organizational structure and hierarchy. In modern dynamic organizations, this rigid structure can hinder the
ability to adapt and respond to change. This theory further promotes a top-down approach to management, in
which decisions are passed from the top level of management to the lower levels. In modern organizations that
encourage employee participation and collaboration, this hierarchical approach may be considered outdated.
Fayol's principles were developed in an era of relatively stable environments. In today's dynamic and fast-paced
business environment, rigid application of these principles may not be appropriate for organizations that
require flexibility and rapid adaptation.
2. Douglas McGregor’s theory X and theory Y manangement
2.1. The content of theory
Theory X and Theory Y refer to human work management theory and motivation theory propose two
aspects of employee behavior. While Theory X is a negative theory focusing on monitoring, Theory Y is a positive
theory focusing on rewards and recognition. Managers across different companies use both theories to
motivate employees to perform better (Rutan Bhattacharyya, 2015).

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 In the case of theory X, managers adopt an authoritarian approach to motivate the employees of the
organization. It involves having a pessimistic opinion of team members and using a carrot and stick approach.
This technique involves persuading employees to complete their work by offering incentives and punishing
them if they cannot. In theory, managers believe that employees do not enjoy work and are unmotivated.
Therefore, the management of an organization must intervene strongly to ensure employees perform their jobs.
In other words, managers must motivate subordinates through certain directives and monitor their efforts
(Rutan Bhattacharyya, 2015).
In contrast to Theory X, Theory Y involves managers of an organization using a participative management
style to motivate their team members. In this case, managers have an optimistic view of employees. They argue
that addressing employee demotivation is possible through a decentralized technique in which team
relationships, collaboration and trust can be improved. Unlike theory X, this theory explains that managers must
fulfill self-, self-esteem, and social demands to motivate their team members. It assumes that subordinates in a
company enjoy their work and seek responsibility. Furthermore, they can be self-directed and creative (Rutan
Bhattacharyya, 2015).
2.2. Advantages and disadvantages

In the term of the advantages, a hard approach can work well for Theory X managers faced with extreme
laziness or hostility. Sometimes such feelings arise in employees due to a brutal work environment. It is hard to
be self-motivated when it comes to certain physically taxing jobs, so a micromanagement style may be best to
get work out of your employees. The soft approach may benefit newer workforce employees who almost fit into
the Theory Y category but require some coaching from savvy managers to get there.

In the term of the disadvantages, whether hard or soft, Theory X management presumes negative
characteristics in employees: laziness, apathy, and a lack of education. Theory X management can also lead to
workplace inequity. This inequity results in attrition, loss of productivity, and the development of toxic
workplace culture, in an era when workplace culture is prized by job seekers.

In the term of the advantages, theory Y is that it gives freedom to employees because humans are not
machines that can be strictly controlled and hence the company should treat humans like humans and not
machines which is exactly what theory Y does. Theem into it, the work environment is positive. The fact that the
company provides a comfortable working environment for its employees by giving them freedom and
opportunities for career development leads to an overall positive work environment within the company, which
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will not only bring positive benefits to employees but also to the company. working environment leads to an
increase in the efficiency and productivity of employees, which in turn benefits the company as a whole.

In the term of the disadvantages, Theory Y managers can sometimes overlook employees who are closet
Theory X types who require supervision and external motivation. This can hamper workflow and morale.
Furthermore, if a manager presumes that Theory Y-type workers’ agreeability indicates competence, they can
overlook systemic errors and misunderstandings, leading to the loss of productivity and morale.

IV. Leadership & Management Styles (P3)

1. Autocratic leadership
1.1. The content
Autocratic leadership, also known as authoritarian leadership, is a leadership style characterized by
individual control over all decisions and little input from group members. Autocratic leaders typically make
choices based on their ideas and judgments and rarely accept advice from followers. Autocratic leadership
involves absolute, authoritarian control over a group (Kendra Cherry, 2023).
There are three primary traits of autoritarian leadership. First, in an autocratic system, the leader makes
all decisions alone, without consulting or input from subordinates. Lower-level staff members are required to
adhere to the framework; the leader has all decision-making authority. Although this is not especially style-
specific, leaders may include subordinates in consultation positions based on their preferred management style.
The premise of the authoritarian approach is that subordinates don't. decision-making, when the boss has the
authority to decide for himself. The leader's control over the rules and regulations is the second important
characteristic of authoritarian leadership. Because the leader sets the rules in addition to making decisions, this
approach is closely tied to micromanagement. In general, frameworks don't provide subordinates much leeway
in determining how to achieve objectives. Rather, the leader sets forth many procedures and guidelines that
each subordinate is expected to adhere to. As a result, the leader's job becomes supervisor and subordinates
have a clear framework within which to operate. The leader's direct control and guidance over subordinates is
the final and most important characteristic of autocratic leadership. As evaded above, the role of the leader is to
ensure that followers follow instructions effectively. Unlike some other leadership styles, the leader does not
walk away and come back later. when the process is completed, but still actively participate in the tasks.
Monitoring ensures that the leader can use the reward and punishment structure effectively, as well as to
ensure the team doesn't slip too far from sight.

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 Steve Jobs is a typical example of autocratic leadership style. The saying “Democracy does not create great
products. To do that, you need a wise dictator” speaks volumes about his leadership style. He always worked
according to his principles and showed a harsh attitude towards the ideas of experts. Steve Jobs always
promoted his autocratic power to achieve special achievements. He is always domineering and strong in his
decisions. With his plans, he ignored everyone's objections or criticism, he just did what he thought was right. A
typical example is when he just returned to Apple, the price continued to slide without stopping. It was Apple's
darkest period. To solve the problem, he first decided to lower the price of preferred shares. He decided to do it
and had to do it immediately, ignoring the objections of the finance department. And Steve Jobs achieved
success when the stock price in one month increased from 13 to 20 dollars (truesuccess.asia, 2022).
1.2. Advantages and disadvantges
1.2.1.Advantages
Quick, decisive decisions: If democratic leadership style can cause delays in decision making, authoritarian
leaders can easily react and act flexibly to respond promptly. Every situation. Authoritarian leaders can make
decisions quickly and begin implementation without having to discuss or wait for feedback from members.
Therefore, in emergency situations that require quick decisions, this style is very suitable.
Clear chain of command: Authoritarian leaders often establish strict structures and clear rules to
streamline communication. This helps employees know what to do and how to do it, thereby improving
organizational performance and increasing members' responsibility at work.
Crisis management: An authoritarian leader can issue orders, make quick decisions, and adjust approaches
without having to consider or depend on anyone else's opinions. This is especially flexible in crisis situations or
high-pressure decisions. The autocratic leader also takes responsibility for all results, focuses on problem
solving, faces all challenges, and can navigate hierarchies when necessary.
Compensate for members' lack of experience or skill gaps: If the democratic leadership style needs
members with enough skills and experience to make quality contributions, then the democratic leadership style
Authoritarianism can help an inexperienced group achieve goals they could not achieve alone. By providing
clear instructions, supervision, and direction, an autocratic leader can speed up completion times without
making mistakes from inexperienced members (pace.edu.vn , 2019).
1.2.2.Disadvatanges

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 Reduced team spirit: Authoritarian leadership style often ignores the opinions of team members. This
causes them to lose interest, team spirit decreases, and complacency sets in. In particular, leaders who are too
authoritarian may create resentment in employees, greater worry about failure, and lack of motivation.
Limited ideas: If a team relies solely on the leader's perspective, they may miss out on creative ideas or
better opportunities. By dominating all decision making within a group, an authoritarian leader can often hold
their organization back.
Stifling employee development: Each group can promote each member's unique strengths and use them
in different situations. However, with the autocratic leadership style, they do not encourage employees'
creativity or problem-solving solutions. This prevents people from developing new skills, holding them back
from discovering more about their abilities.
2. Democratic leadership
2.1. The content
Democratic leadership style is a form of leadership in which group members are involved in the decision-
making process. This method can be applied to all organizations and businesses, from private individuals to
schools and government agencies. The democratic style not only creates conditions for all individuals to freely
discuss and share ideas, but also helps everyone be equal when it comes to collective work. However, the leader
is still primarily responsible for providing guidance and choosing the final decision.
A democratic leader is someone who always finds ways to get many different views and opinions. They
often have the communication ability and openness to encourage team members to participate in the decision-
making process. People with a democratic leadership style believe that collective goal setting and problem
solving are essential to achieving success. They try to create an environment where everyone can contribute
ideas and work together to find solutions to problems. Democratic leadership style often focuses on results,
leaders always seek to improve performance, meet goals, and always take responsibility for team results.
Therefore, a democratic leader can establish specific goals and certain requirements to ensure everyone stays
on track. With a democratic leadership style, leaders are often very flexible and adaptable, they are always
ready to change direction if it brings better results. They are open to new ideas, different perspectives, they
know that no leadership method is suitable in all different situations (pace.edu.vn, 2018).
Henry Ford was one of the most successful and creative practitioners of the democratic leadership style.
With his philosophies, he almost completely changed the leadership concept of the capitalist world in the 20-
30s of the twentieth century. For him, the highest goal is not profit, but the level of satisfaction of each person.

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The development of each member of the company is as important as the numbers recorded on the statement.
In general, he pays special attention to building good relationships with customers. Along with that, he also
cares about his employees' lives. At work, when discussing with employees, he always puts himself in a middle
position, encouraging employees to give opinions and debate. Everyone has the opportunity to speak, analyze
and be themselves (amis.misa.vn, 2022).
2.2. Advantages and disadvantages
2.2.1.Advantages
Job satisfaction and commitment: When employees feel included in the decision-making process, they
often feel more valued by their employer. This sense of importance can lead to higher productivity and loyalty
to the company, which, in turn, can lower job turnover for the company.
Greater innovation: Open discussion encourages creativity and innovation. The more people share new
ideas, the more existing processes can be improved and updated.
Multiple solutions generated: When the decision-making process requires collaboration and multiple
opinions, the discussion covers more possible solutions. The group can analyze more aspects of a particular
project and find solutions that better address the organization's needs.
Less absenteeism: Employees who find more satisfaction in their jobs are more likely to be absent from
work. When employees feel valued, they are more likely to commit to deadlines and even overtime, to
complete projects and help their team and company succeed.
Team cohesion: Involving people in the decision-making process can help strengthen the company's
vision. Everybody is part of the group's decision and understands the motivations behind this decision. They
know they are working towards a common goal. It promotes greater cohesion within the group.
Trust between group members: When employees and management have equal decision-making power
and access to the same information, it increases the feeling of trust among them. Each group member knows
the motives behind their leader's decisions and doesn't need to question them (indeed.com, 2023).
2.2.2.Disadvantages
Decision-making slows down: It might be more challenging to make fast decisions when the decision-
making process requires the input of everyone. The time needed to organize meetings and discussions can be
detrimental to business when it requires quick decisions or involves deadlines.
Performance may falter: Some employees are less able to perform under democratic leadership because
they don't like making decisions. They might also have the impression that they work harder than the leader.

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 Leaders can feel overwhelmed: Leaders can find it this style of leadership takes more time and effort when
a team consensus is needed. This extra work may contribute to missed deadlines and potential leader burnout
(indeed.com, 2023).
3. Laissez – fair leadership
3.1. The content

Laissez-faire leadership takes a hands-off approach to leadership and gives others the freedom to make
decisions. While leaders still provide their teams with the resources and tools they need to succeed, they
remain largely uninvolved in the day-to-day work. This is a leadership style you'll commonly find in creative
settings, such as advertising agencies or startups, due to its encouragement of independent thinking (Sophia,
2023).

A hands-off approach is perhaps the fundamental characteristic of laissez-faire leadership, as the “laissez-
faire leadership style is also known as the “hands-off” style” (Sharma & Singh, 2013). In this leadership style, the
leader of the group is absent from many of the group's functions and leaves things in the hands of the group
members.This may be beneficial for people who function best with little direction, but, on the other hand, it
may pose problems for people who require more direction to complete tasks effectively and efficiently. In order
for group members to make effective and well-informed decisions on the group's behalf, training and support
from the leader of the group is extremely useful. As the leader of a laissez-faire group is not very involved with
the group's decision-making process, they must make sure that the people who are in charge (the group
members) are sufficiently prepared for their responsibilities. A variety of training is likely needed before group
members can assume the large responsibilities that this leadership style gives them. Additionally, it is important
for laissez-faire leaders to set up support for their group members if they need it along the decision-making
process. Part of group members’ responsibilities in the laissez-faire leadership style is making decisions (Sharma
& Singh, 2013). In this leadership style, employees must come together to make the best decisions for the
group's future development. It is important for this process to be collaborative, with all group members
participating in some way. It may be more efficient to divide responsibilities among group members, but how
responsibilities are split up will be different from group to group (Eleanor Myers, 2024).
Berkshire Hathaway CEO Warren Buffett has expanded his business across several industries by delegating
leadership to individuals and encouraging a laissez-faire company culture for all employees. Buffet has a strong
reputation as a savvy businessperson who uses his flexible leadership methods to identify profitable investment

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opportunities. By eliminating capitalism at his business, Buffet was able to identify employees who thrived when
given dedicated autonomy and freedom. He ultimately built a powerful work environment based on trust,
humility and individual recognition (indeed.com, 2020).

3.2. Advantages and disadvantages

3.2.1.Advantages
Encourages Personal Growth: One advantage of laissez-faire leadership is that, by providing group
members with more responsibility within the group, it encourages their own personal growth. Being trusted
with more tasks and completing these tasks can boost anyone’s confidence in themselves and their skills. This
highlights a positive cycle within a laissez-faire-led group as if people are more confident in their abilities, they
are likely to do a better job, and doing a good job further raises their confidence in themselves.
Encourages Creativity: Because the laissez-faire leadership style includes so many people in the decision-
making process and in other important group functions, it encourages creativity through all the different
perspectives and ideas that many people can bring (Malec, 2021). Important, “such a focus on personal growth
and a general trust in the capabilities of individuals creates room for innovation and to be creative without the
fear of failure, or rather the fear of the consequences of failure.”
Learning and Development: Another advantage of laissez-faire leadership is that “it facilitates learning and
development opportunities…because of its hands-off approach, employees have the opportunity to learn on
their own” (Pathak, 2022). Many people learn better with direct experience than being shown exactly how to do
something, and a laissez-faire leadership style provides this opportunity.
3.2.2.Disadvantages
Lack of Role Clarity: On the other hand, one disadvantage of laissez-faire leadership is that, without a
leader being involved in the decision-making process, there may be a lack of role clarity among group members.
Without a proper assignment of tasks to group members, it may be unclear to members exactly what they are
responsible for. Additionally, without a leader being involved along the way, there is no one available to clarify
group members' responsibilities if they become unclear.
Low Accountability: Without a clear authority figure or hierarchy among the group, group members in a
laissez-faire led group are not truly held accountable by anything or anyone other than the success of the group
itself. And, if group members are not invested in the group's success, then they truly have no accountability.

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 Avoids True Leadership: With the low involvement of the leader in a laissez-faire leadership style, there is
a lack of any true leadership, which can be a disadvantage for many groups. Leadership can be a strong factor in
productivity and in making a group move forward and progress. With all group members at the same leadership
level and with no leader in charge, accountability may be low, and therefore little or no progress may be made
within the group (Eleanor Myers, 2024).
V. The Organizational Culture (P4)
1. The definition of organizational culture
Organizational culture is a complex concept that encompasses shared values, beliefs, and behaviors within
an organization (Morelli, 2020; Kumar, 1999). It serves as a guide for members, shaping their actions and
decisions (Morelli, 2020). This culture is often compared to the personality of the organization, influencing its
functioning and success (Balling, 2005). Understanding and managing organizational culture is crucial for
effective adaptation and integration (Kumar, 1999). It is also a key factor in successful change management,
with a strong culture facilitating smoother transitions (Curran, 2005).
2. The level of organizational culture
The first level of corporate culture is artefacts and creations. Tangible corporate structure is a level of
corporate culture that people can see directly when coming into contact with any business. This is shown by the
following factors: How to build architecture and arrange furniture; Business diagram and organizational
structure of departments; Documents, records, and policies issued; Company annual festival; Images, symbols,
apparel, logos and promotional materials; Employee conduct; Product design, packaging, packaging method;
Stories about brands and businesses. This level of corporate culture is greatly influenced and influenced by the
leader's perspective and vision and the business nature of the organization. This level is easy to change and does
not clearly represent the core values of the business. To visualize the cultural level of the visible structure of a
business, let's look at the Starbucks brand. This is one of the famous coffee brands that has created a brand
difference when designing and creating a common image for all stores, employee uniforms and product
packaging. Customers always think that this coffee company always updates new unique ideas and is one step
ahead of competitors in the same field (employers.glints.com, 2018).
The second level of corporate culture is values and beliefs. At the level of tangible corporate culture,
people can clearly see it when they hear, see or come into contact with the organization. At the second level of
corporate culture - Recognized Values, everyone People are perceived through the declared values and external
manifestations of the organization. In there:

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  Declared values are all core business values, strategies, regulations or rules that guide the long-term
development of an organization. These contents will often be widely announced by the business to the
outside world.
 Values expressed on the outside: At this level, to clearly understand corporate culture, people will feel it
through written systems, expressions or expressed employee attitudes. company. With these values,
employees in the company can handle specific situations, deal with a number of cases, and train new
employees' behavioral skills in the company environment.
The characteristics of the recognized value level of corporate culture compared to the first level lie in the
ability to be flexible, easy to change, and at the same time, effectively express some of the internal values of the
business. For example, level 2, in an interview with Lee Cockerell - Former Executive Vice President of Disney
Parks and Entertainment, said that "Attention to even the smallest detail is a religion we practice". This is like an
affirmation to customers that providing customer experience, even in the smallest details, is done by Disney,
thereby promoting customer brand support as well as improving revenue. effective sales.
The third level of corporate culture is basic assumptions. In any corporate culture, common concepts
about culture, religion, and customs are always intertwined and deeply ingrained in the minds of all members of
the culture. there. Gradually, these concepts will invisibly become habits and dominate everyone's thoughts,
actions, and perspectives. The values recognized as "self-evident" are akin to the traditions, customs and
practices of our people. They are considered invisible things that everyone must obey. This is also true for
corporate culture. They also have common characteristics and common styles because they have been formed
for a long time and are difficult to change. Of the three cultural levels that managers need to know, this third
level is difficult to change corporate cultural values because it has a long history. They gradually become habits
in the thinking of members, and it governs everyone's actions and behavior. These shared perspectives
represent the highest value of the business and are considered the "assets" of the business. A good example for
this level is Vinamilk. This is the deepest layer of culture, it determines and governs the entire Vinamilk
corporate culture. These implicit assumptions will determine whether the values and believes discussed above
become culture or just a middle layer. Many businesses offer agreed values and beliefs (vision, mission, core
values, business philosophy, ...) and propagate, cultural expectations are formed is impossible. . That is why
culture cannot form. These six implicit assumptions are called the 06 ultimate cultural principles by Vinamilk,
and from the gatekeeper to the General Director of Vinamilk, all must respect and use it in problem solving,
behavior and decision-making. The first is when things happen, the first cause is me. Next, adults don't need

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adult supervision. The third is that my words are me. After that, let's talk to each other with quantity. chemical.
chemical. Next is don't say no always look for 2 solutions. And finally "I am an international standard expert in
my field" (Bao, 2022).
3. The factors that influence the development of the culture in organizations

In the process of building its own corporate culture that is suitable for its business activities, businesses
will have to consider influencing factors. To avoid unnecessary errors in the future, every business needs to pay
attention to these 7 influencing factors: history, primary function and technology, strategy, size, location,
leadership and management, and environment. Below is a detailed analysis of how these factors affect
corporate culture.

First is the historical factor. This section presents the history, philosophy, story of formation and
development of the organization as well as the reasons and methods of establishing the organization. Corporate
culture is greatly influenced by the values of senior management and initial owners, as well as how they provide
the foundation for the organization's growth. Cultural development is considered a more stable bottom line,
creating ideal conditions for the development process, if the company has a strong, long-term history and
communication. The spirit of preserving the traditional cultural core of an enterprise must be the foundation for
the development and promotion of cultural features. The basic principles of corporate culture are formed from
the behavior, actions, determination, spirit and work ethics of leaders. The Board of Directors invests, builds and
develops it. More precisely, a major merger or restructuring or a new generation of senior management can
lead to a change in culture. On the other hand, cultural clashes and the inability to integrate cultures can lead to
failed mergers and acquisitions.
The next factor affecting corporate culture is primary function and technology. The nature of a 'business'
organization and its primary functions 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 customer. Business lines
and production technology play the most important role in business development. . Each business industry has
its own business culture, so each business needs to build a culture suitable for its business industry to ensure
unique features. Each business's corresponding organizational model will also stipulate a unique characteristic
in the development of the business. Therefore, building and developing corporate cultural values always
depends on the elements of the employee's organizational model and business industry. For example, your
business is a business that sells toys and play spaces for children, and its customers are children of all ages. This

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will lead to corporate culture that will have to match this business goal, with eye-catching decorations to attract
children, spacious and safe space... Also in this factor. The issue of corporate reputation also greatly affects
corporate culture. For a business to be highly influential, it means that the business has been around for a long
time and therefore the corporate culture has been drawn upon and formed over the years. Because it has been
formed for a long time, the corporate culture in the organization has been deeply imprinted in the subconscious
of all employees in the company, this also helps stabilize the corporate culture, and also helps the business
achieve its goals.
The next factor that affects corporate culture is strategy. Strategy plays a pivotal role in shaping the
organizational culture of a business. It serves as a blueprint that guides the collective behaviors, practices, and
values within the company. A well-defined strategy aligns the organization's goals with its culture, ensuring that
every action and decision supports the overarching objectives. It influences how employees interact, make
decisions, and solve problems, fostering an environment that can either be collaborative or competitive. The
implementation of strategy can reinforce a culture of innovation, accountability, and excellence, or it can lead to
a rigid and hierarchical culture if not managed carefully. Ultimately, strategy affects not only the direction in
which a business grows but also the ethos that permeates its daily operations.
The next factor that affects corporate culture is size. The size of a business can significantly influence the
formation and development of its organizational culture in many different ways. In small businesses, the
organizational culture tends to be more cohesive and unified due to the close-knit nature of the workforce.
Employees often wear multiple hats, leading to a greater understanding of different roles and a shared sense of
purpose. The founder's values and vision are usually deeply ingrained in the culture, creating a strong identity
that guides decision-making and behavior (Schein, 2010). As businesses grow, maintaining this level of cohesion
becomes more challenging. Larger organizations often have more complex structures, with multiple layers of
management and specialized departments. This can lead to subcultures within the organization, where different
teams or divisions develop their own norms and practices. While this specialization can drive efficiency and
innovation, it can also create silos that hinder communication and collaboration (Kotter & Heskett, 1992).
Moreover, larger businesses may experience a dilution of the original culture as new employees join who may
not share the same connection to the founding principles. To address this, it's crucial for leadership to actively
manage the culture by reinforcing core values, facilitating communication across departments, and ensuring
that all employees feel connected to the organization's mission (Collins & Porras, 1994).

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 The next factor that affects corporate culture is location. Location can significantly influence the formation
of organizational culture in many ways. First, the geographic context of a business can shape its cultural norms
and practices. For example, a company located in a bustling urban center may adopt a fast-paced, competitive
culture, while a company in a rural area may foster a cohesive, forward-looking environment. community.
Second, location affects an organization's available talent pool. Urban centers, often educational and economic
hubs, attract diverse talent with diverse skills and cultural backgrounds. This diversity can enrich an
organization's culture, bringing fresh perspectives and innovative ideas. Third, local regulations and social norms
can impose constraints. Certain constraints or freedoms shape organizational culture. For example, businesses
in areas with strict labor laws can develop cultures that prioritize employee well-being and work-life balance.
The sixth factor affecting corporate culture is leadership and management. Leadership is one of the
factors that create the foundation of a positive and successful corporate culture in an organization. Positive
leadership, regardless of level in an organization or company, influences a positive culture. Conversely, poor
leadership leads to weak corporate culture. Management must be strong, visionary, passionate, disciplined and
supportive in efforts to spread a positive culture within the company. A company's leadership is a reflection of
how the company should be. Additionally, leadership is a reflection of what is expected of all other participants
in a given organization. Management should be more concerned with leading the conversation than playing a
supervisory role. This aspect will ensure that other participants learn from watching, not from listening.
Visionary leaders lead by example, and thus they influence the culture of an organization. Leaders and
managers are the bearers of the organization's vision and mission and, as such, they establish the basics of
workplace culture. Mostly, the owner sets the basic principles that need to be followed within the organization,
ultimately shaping the corporate culture (Cheng, 2020).
The external environment plays a pivotal role in shaping the organizational culture of a business. It
encompasses a variety of factors including economic trends, social dynamics, technological advancements,
regulatory frameworks, and competitive forces. These elements collectively influence the values, behaviors, and
practices that emerge within an organization. Economic trends can dictate the strategic decisions a business
makes, impacting its culture. For instance, during an economic downturn, a company might adopt a cost-saving
culture that emphasizes efficiency and frugality. Social dynamics, such as societal values and norms, can also
permeate an organization's culture. A society that values innovation may encourage businesses within it to
foster a culture of creativity and continuous improvement. Technological advancements can lead to a culture
that prioritizes staying ahead of the curve through innovation and adaptation. Companies in tech-driven

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industries often have cultures that are agile and open to change. Regulatory frameworks set by governments
can shape organizational culture by enforcing standards that businesses must integrate into their daily
operations. Compliance with these regulations often requires a culture of diligence and accountability. Lastly,
competitive forces can drive businesses to develop a competitive edge through their organizational culture. A
company in a highly competitive market might cultivate a performance-driven culture that focuses on achieving
results. In conclusion, the external environment significantly affects the formation of organizational culture in a
business by influencing its strategic choices, operational practices, and overall ethos.

VI. Conclusion
Above is my report. This assignment delves into important leadership and management theories,
elucidating their content, advantages, and disadvantages. Focuses on Fiedler's Facilitation in leadership
situations and House and Dessler's Path-Goal Theory in the area of leadership, and Fayol's Administrative
Management Theory along with Theory Y on Management by Douglas McGregor in the field of management
theory, we will explore the nuances of these theories. framework. Leadership, an integral aspect of
organizational dynamics, goes beyond theories to include diverse leadership styles. This assignment explored
the Autocratic, Democratic and Liberal leadership styles, elucidated their content and assessed the advantages
and disadvantages associated with each style. By exploring these leadership theories and styles, we aim to
provide a comprehensive understanding of the multifaceted nature of leadership in organizational contexts.
Furthermore, organizational culture, the force that shapes members' behavior and attitudes, has been
scrutinized across three distinct levels: artifacts and creations, values and beliefs, and assumptions . basic
determination. As an essential element, organizational culture plays an important role in shaping the
organization's identity and influencing the actions of its members. Additionally, I closely examined the factors
that influence organizational culture, recognizing their impact on the overall environment of the organization. In
summary, the exploration of leadership and management theories, leadership styles, and organizational culture
provides a comprehensive view of the complex dynamics that govern organizational behavior.
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