CONTENTS
LIST OF FIGURES.......................................................................................... 5
LIST OF TABLES............................................................................................ 7
PREFACE ......................................................................................................... 8
ACKNOWLEDGEMENT .............................. Error! Bookmark not defined.
Chapter 1. INTRODUCTION TO ORGANIZATION AND MANAGEMENT..... 11
1.1. Introduction to organization .................................................................. 11
1.2. Introduction to management .................................................................. 13
1.2.1. Definitions..................................................................................... 13
1.2.2. Functions of management ............................................................. 19
1.2.3. Management styles........................................................................ 20
1.3. Practical trends in management ............................................................. 21
1.4. Management in private sector of Vietnam............................................. 23
1.5. Managers................................................................................................ 25
1.6. Chapter summary by lesson learning outcomes .................................... 31
1.7. Case applications .................................................................................. 31
CHAPTER 2. HISTORY OF MANAGEMENT ......................................... 34
2.1. Introduction to early management ......................................................... 35
2.2. Theories of classical approach ............................................................... 36
2.2.1. Scientific Management ................................................................. 36
2.2.2. General Administrative Theory .................................................... 37
2.2.3. How today’s managers apply General Administrative Theory
to their management ................................................................................ 39
2.3. Theories of behavioral approach ........................................................... 39
2.4. Theories of quantitative approach ......................................................... 41
2.5. Theories of contemporary approach ...................................................... 43
2.5.1. Systems approach.......................................................................... 43


2.5.2. The Contingency Approach .......................................................... 43
2.6. Chapter summary by lessom learning outcomes ................................... 44

2.7. Review and discussion questions........................................................... 46
CHAPTER 3. MANAGEMENT AND ORGANIZATION ENVIRONMENT .... 47
3.1. The manager: omnipotent or symbolic? ................................................ 48
3.2. The external environment ........................................................................ 49
3.2.1. What is “External environment”? ................................................. 50
3.2.2. The micro environment factors ..................................................... 52
3.2.3. The macro environment factors .................................................... 54
3.3. The important role of Organizational culture and current
organizational culture issues facing managers ............................................. 56
3.3.1. Organizational culture: Constraints and Challenges ..................... 56
3.3.2. Current organizational culture issues facing managers ................ 60
3.4. Chapter summary by lesson learning outcomes .................................... 67
3.5. Case Application .................................................................................... 68
3.6. Discussion Quesions .............................................................................. 69
3.6.1 Discussion Questions ..................................................................... 69
3.6.2 Teamwork ..................................................................................................... 69
CHAPTER 4. PLANNING ............................................................................ 71
4.1. Introduction to planning function of management ................................ 72
4.1.1. Planning definitions and types ...................................................... 72
4.1.2. Plan definitions and types ............................................................. 73
4.2. Why and How do managers plan? ......................................................... 75
4.2.1. Vision and mission ........................................................................ 76
4.2.2. Strategizing ................................................................................... 79
4.2.3. Goals and objectives ..................................................................... 80
4.3. Planning techniques ............................................................................... 83
4.3.1. Assessing the environment ........................................................... 83
2


4.3.2. Allocating resources...................................................................... 84

4.3.3. Contemporary Planning Techniques ............................................. 88
4.4. Chapter summary by lesson learning outcomes .................................... 89
4.5. Review and discussion questions........................................................... 89
CHAPTER 5. ORGANIZING ....................................................................... 91
5.1. What is organizing? ............................................................................... 92
5.2. Organizational design ............................................................................ 93
5.2.1. Designing organizational structure ............................................... 93
5.2.2. Designing complicated structures ............................................... 104
5.3. Organizing for collaboration ..................................................................... 106
5.4. Social networks .................................................................................... 109
5.4.1. What Is a Social Network? ......................................................... 110
5.4.2. How Managers Can Use Social Networks to Create Value? ...... 112
5.5. Chapter summary by lesson learning outcomes .................................. 115
5.6. Review and discussion questions......................................................... 115
CHAPTER 6. LEADING ............................................................................. 117
6.1. Who Is a Leader? Trait Approaches to Leadership ............................. 118
6.2. What Do Leaders Do? Behavioral Approaches to Leadership ............ 121
6.3. What Is the Role of the Context? Contingency Approaches to
Leadership................................................................................................... 123
6.4. Summary .............................................................................................. 126
6.5. Case Application.......................................................................................... 126
CHAPTER 7. CONTROLLING ................................................................. 130
7.1. Introduction to controlling and its importance ......................................... 130
7.2. The control process .............................................................................. 133
7.3. Controlling for organizational performance ........................................ 134
7.4. Tools for measuring organizational performance....................................... 135
7.5. Contemporary issues in control ........................................................... 138
3



7.6. Chapter summary by lesson learning outcomes .................................. 139
7.7 Review and discussion questions ............................................................... 141
7.8 Case application ............................................................................................ 141
CHAPTER 8. STRATEGIC MANAGEMENT PROCESS ..................... 142
8.1. Introduction to strategic management and its importance ................... 143
8.2. The strategic management process ...................................................... 144
8.3. Three types of corporate strategies ...................................................... 146
8.4. Chapter summary by lesson learning outcomes .................................. 146
8.5. Review and discussion questions .............................................................. 147
8.6. Case application ................................................................................... 147
CHAPTER 9. FUNCTIONAL MANAGEMENT – MARKETING,
SUPPLY CHAIN, HUMAN RESOURCE, FINANCE ............................. 149
9.1. The purposes of functional areas ......................................................... 150
9.2. Marketing ............................................................................................. 150
9.3. Supply Chain ....................................................................................... 152
9.4. Human Resource .................................................................................. 154
9.5. Finance ................................................................................................. 156
9.6. Relationships between different functional areas ................................ 158
9.7 Case Application ........................................................................................... 159
REFERENCES ............................................................................................. 164

4


LIST OF FIGURES
Figure 1.1: Characteristics of organization .......................................................12
Figure 1.2: Effectiveness and efficiency of management .................................19
Figure 1.3: Functions of management ............................................................... 20
Figure 1.4: Actions of manager .........................................................................26
Figure 1.5: Levels of management ....................................................................27

Figure 1.6: The Changing Roles of Management and Managers .....................29
Figure 1.7: Skills needed at different management levels .................................30
Figure 2.1: Development of major management theories .................................35
Figure 3.1. External environment factors ..........................................................50
Figure 3.2: Levels of organizational culture .....................................................66
Figure 3.3: Maintaining culture .........................................................................67
Figure 4.1: Types of plan ..................................................................................73
Figure 4.2: Planning in the Hierarchy of Organizations ...................................74
Figure 4.3: The relationship between vision and mission .................................77
Figure 4.4: Components of missions .................................................................78
Figure 4.5: Strategizing in P-O-L-C ..................................................................79
Figure 4.6: Stated Goals of Large Global Companies.......................................80
Figure 4.7: The Downside of Traditional Goal Setting .....................................81
Figure 4.8.A Gantt Chart ...................................................................................85
Figure 4.9: A load chart .....................................................................................85
Figure 4.10: Events and Activities in Constructing an Office Building ...........87
Figure 4.11: A Visual PERT Network for Constructing an Office Building ....87
Figure 4.12:Production Data for Cinnamon-Scented Products .........................87
Figure 4.13: Graphical Solution to Linear Programming Problem ...................88
5


Figure 4.14: Project Planning Process ............................................................... 88
Figure 5.1: Functional departmentalization......................................................96
Figure 5.2: Divisional departmentalization .......................................................97
Figure 5.3: Geographical departmentalization ..................................................97
Figure 5.4: Process departmentalization ...........................................................98
Figure 5.5: Customer departmentalization ........................................................98
Figure 5.6: Contrasting spans of control ...........................................................99
Figure 5.7: Organization structure of Thai Nguyen University (Vietnam) .....101

Figure 5.8: Organization structure of The Open University (Israel) ...............102
Figure 5.9: Matrix organization.......................................................................105
Figure 5.10: Benefits and drawbacks of collaborative work ........................... 107
Figure 5.11: Example of a social network based on information ties .............110
Figure 6.1: Big Five Personality Traits ........................................................... 119
Figure 6.2: Key Traits Associated With Leadership .......................................120

6


LIST OF TABLES
Table 1.1: Difference between administration and management ......................14
Table 3.1. The comparison between the strong and the weak culture in
organization .......................................................................................................57
Table 3.2. Examples of managerial decisions affected by culture ....................60
Table 3.3. Creating a customer-responsive culture ...........................................62
Table 6.1. Situational Leadership Theory helps leaders match their style to
follower readiness levels .................................................................................124

7


PREFACE
Principles of Management (POM) is one of compulsory courses at
business schools. It provides basic knowledge and skills about organization
management. This textbook is written to systemize issues related to four main
functions of management such as Planning, Organizing, Leading, Controlling,
strategic management and functional management. Vietnamese case studies are
also included to help students deelply understand realities and managerial
applications for organizational performance.

The book aims to provide organization management activites in Vietnam
for Vietnamese students of advance programs in English or international
students who want to do research about Vietnam.
On the completion of this book, the students are able to:
* Knowledge
(1) Understand what management is and why it is important for the
organizations (Course learning outcome 1 – CLO1);
(2) Apply the principles of effective leadership to analyze case studies
of organizations (Course learning outcome 2 – CLO2);
(3) Evaluate the changes in theories about how managers should behave
to motivate and control employees (Course learning outcome 3 – CLO3);
* Skills
(4) Develop skills about how to systematically approach problem solving
(Course learning outcome 4 – CLO4);
* Attitudes
(5) Apply the knowledge learned in practice to well perform the process
of management (Course learning outcome 5 – CLO5).
Brief contents of this book consist of nine following chapters:
8


Chapter 1: Introduction to organization and management
The chapter 1 describes overview of organization, management and
managers. Students will learn, discuss and present about characteristics of
organization, changing organization, organization structure, meanings and roles
of management, approaches to management, and skills of managers.
Chapter 2: History of management
This chapter presents basic contents about early management, theories in
the classical approach, behavioral approach, quantitative approach and
contemporary approach.

Chapter 3: Management and organization environment
The chapter 3 will present the culture and other essential aspects of
management’s context. Firstly, two perspectives including omnipotent and
symbolic concerning the role that managers play in an organization’s success
or failure have been proposed. Secondly, the organization is considered as an
open system that suffers from many factors. Therefore, this chapter will
continue in discussing the challenges in the external environment affecting the
managers and decision making. In addition, organizational culture has played
an important role in the organization. From that point, the characteristics and
the impact of organizational culture have been presented in this chapter. At the
last of the chapter, four current issues of organizational culture will be
discussed.
Chapter 4 : Planning
The chapter 4 provides dimensions of planning, plans, vision, mission,
strategizing, goals and objectives. Students also study to use planning
techniques such as Assessing the environment, Allocating resources,
Contemporary Planning Techniques.
Chapter 5: Organizing
This chapter analyzes how an organization organizes its employees to
work effectively, focusing on contemporary organizational structure,
collaborations, organizational culture and social networks.
9


Chapter 6: Leading
This chapter provides basic concepts of leadership and outline traits of
effective leaders. Moreover, the chapter characterizes numerous leadership
styles and describes contexts that the leadership styles are effective. Finally,
this chapter provides strategies to develop leadership styles.
Chapter 7: Controlling

This chapter presents an indication of controlling, controlling process and
its importance. Students will learn, discuss and present about importance of
control, steps in the control process, tools for measuring organizational
performance and contemporary issues in control.
Chapter 8: Strategic management process
This chapter illustrates an overview of strategic management, steps of the
strategic management process, types of corporate strategies and current
strategic management issues. Students will learn, discuss and present about
importance of strategic management and what managers do for managing
strategies.
Chapter 9: Functional management – Marketing, Supply chain, Human
resource, Finance
This chapter provides fundamentals of principle functions within a
business and their relationships across the functions.

10


Chapter 1
INTRODUCTION TO ORGANIZATION AND MANAGEMENT
Abstract
The chapter 1 provides overview of organization, management and
managers. Students will learn, discuss and present about characteristics of
organization, changing organization, organization structure, meanings and roles
of management, approaches to management, and skills of managers.
There are 3 lesson learning outcomes (LLOs) including LLO 1.1, LLO
1.2 and LLO1.3 that reflect CLO1 - Understanding what management is and
why it is important for the organisations.
Lesson learning outcomes (LLOs)


LLO 1.1
Describe three
characteristics of
organization

LLO 1.2
Discuss
dimensions of
management

1.1. Introduction to organization
Organization is defined as to seriously and carefully
arrange employees to complete detailed tasks.
Organization has three main characteristics including
distinct purpose, deliberate structure and people
(Robbins et al., 2018).
Firstly, every organization has its own different aims.
This intention is clearly stated by goals which the
organization expects to achieve.

LLO 1.3
State who
managers are,
what they do,
which skills they
need to develop

LLO 1.1:
Describe three
characteristics of

organization

Purporses of organization:
• Works are divided into specific jobs and departments.
11


• Responsibilities or tasks are associated with individual jobs.
• Diverse organizational tasks are connected.
• Jobs are clustered into units.
• Relationships among individuals, groups, and departments are established.
• Formal lines of authority are created.
• Organizational resources are allocated and deployed.
Secondly, each organization is composed of people. It takes people to
perform the work that’s necessary for the organization to achieve its goals.
Thirdly, any organization has to pay attention to purposive structure in
order to manage employees’ work. In some cases the structure should be strict,
but in others it can be very open or dynamic.

People

Distinct
Purpose

Deliberate
Structure

Figure 1. 1: Characteristics of organization
(Source: Robbins et al., 2018)
Enterprise is an organization, especially a business or a difficult and

important plan that will earn profit, is also the willingness and energy to do
something new that takes a lot of effort. An enterprise is considered to be any
entity engaged in an economic activity, irrespective of its legal form. This
includes, in particular, self-employed persons and family businesses engaged in
12


craft or other activities, and partnerships or associations regularly engaged in
an economic activity.
The changing organization
The organization is changing because of impacts from internal and
external factors such as industrial environment (suppliers, competitors,
customers) and macro one (economy, society, law, etc). Organization can be
differentiated into traditional and contemporary. In terms of traditional
organization, it is stable, inflexible, job – focused, and individual – oriented.
Traditional organization is consistent to relatively homogeneous workforce and
hierarchical relationships. Contemporary organization is more dynamic,
flexible, and skill – focused. The contemporary organization is appropriate to
diverse workforce, customer and team – oriented, especially lateral and
networked relationships.
1.2. Introduction to management
1.2.1. Definitions

LLO 1.2:
Discuss

There are many definitions about management. Each dimensions of
management
definition reflects single approach and specific aspect.
Management is defined as the process of designing and maintaining an

environment in which individual working together in groups efficiently
accomplish the selected arm.
Otherwise, management is the art of getting things done by a group of
people with the effective utilization of available resources. Management is the
art of knowing what you want to do and then seeing that it is done in the best
and cheapest way. Management is also considered as an organ; organs can be
described and defined only through their functions. In other words,
management is to forecast and plan, to organize, to compound, to coordinate
and to control.
Management is the creation and maintenance of an internal environment
in an enterprise where individuals, working in groups, can perform efficiently

13


and effectively towards the attainment of group goals. It is the art of getting the
work done through and with people in formally organized groups.
Management is a science
Science aspect of management is illustrated in terms of the existence of a
systematic body of knowledge with array of principles, scientific enquiry,
verifiable principles, and reliable basis for predicting future events.
The application of these principles helps any practicing manager to
achieve the desired goals. Management is a dynamic subject in that it has
heavily from economic, psychology, sociology, mathematics and engineering.
Management is multi-disciplinary in nature. Management science is
classified in to two types. There are exact science and inexact science. Exact
science presents the accurate results. Management is inexact science because
human resources are different attitudes, aspirations and perceptions, leading to
unattained solutions and standards. Besides, the external environment is so
complicated as well as unexpected changes that resulting in complex and

unpredictable management.
Management is an art
Art means application of skills in finding a desired result. Art is the way
of doing things skillfully. Management is an art because of the following facts.
Management process involves the use of practical knowledge and
personal skills. Management is creative. Application of practical knowledge
and certain skills helps to achieve concrete results.
Management is both – science and an art
Management is a science because it contains general principles. It is also
and art because it requires certain personal skills to achieve desired results.
Differentiate management and administration
The two terms Management and Administration are used
interchangeably. There is a lot of controversy on the use of these two terms.
Table 1. 1: Difference between administration and management

14


Sr.
No.
1

Basis of distinction

Policy and objectives

Administration

Management


Determines policy Implements
the
to be followed and policy and achieve
decide
the the objectives
objectives to be
achieved

2

Directing
efforts

of

human Not
directly
involves in the
execution of plan
and achievement of
objectives

Directly involves in
the execution of plan
and
achieving
objectives

3


Main functions

Planning, organizing Direction, motivation
and staffing
and control

4

Levels of executive

Top level executives Lower
level
(Owners or Board of executives (Manager,
Directors
supervisor
and
workers)

5

Position

Acts as a principal

Acts as an agency

6

Knowledge


Requires
administrative

Requires
technical
ability more than

ability more than administrative ability
technical ability

Administration and Management is different from some points of view
such as policy and objectives, directing of human efforts, main functions,
levels of executive, position and knowledge.

Different approaches to the analysis of management
15


Approaches to the analysis of management are empirical or case,
interpersonal behavior, group behavior, cooperative social systems, sociotechnical systems, decision theory, system approach, mathematical or
“management science”, contingency or situational approach, Mintzberg’s
managerial roles, McKinsey’s 7-S framework, operational approach and
contingency approach.
Empirical or case approach studies experience through cases identifying
successes and failures.

Interpersonal behavior approach focuses on

interpersonal behavior, human relations, leadership, and motivation based on
individual psychology.

Group behavior approach emphasizes on behavior of people in groups based
on sociology and social psychology often called “Organization behavior”.
Cooperative

social

systems

approach

is

concerned

with

both

interpersonal and group behavioral aspects leading to a system of cooperation.
Socio-technical systems approach illustrates that technical system has
great effect on social system (Personal attitudes, group behavior), focusing on
production, office operations, and other

areas with close

relationships

between the technical system and people.
Decision theory approach focuses on the making of decisions, persons or
groups making decisions, and the decision making process.

In the systems approach, systems concepts have broad

applicability.

Systems have boundaries, but they also interact with the external environment;
i.e., organizations are open system, recognizing importance of studying
interrelatedness of planning. Organizing, and controlling in an organization as
well as the many subsystems.
According to mathematical or “management science” approach,
managing is seen as mathematical processes, concepts, symbols, and models,
looking at management

as a purely

mathematical symbols and relationships.

16

logical process, expressed in


Contingency or situational approach means that managerial
depends

practice

on circumstances (i.e., a contingency or a situation), recognizing

the influence of given solutions on organizational behavior patterns.
From perspectives of Mintzberg’s managerial roles approach, original

study consisted of observations of five chief executives. On the basis of this
study, ten

managerial

roles

were identified and grouped

into (1)

interpersonal, (2) informational, and (3) decision roles.
In McKinsey’s opinions, 7-S framework approach contains seven S’s
such as (1) strategy, (2) structure, (3) systems, (4) style, (5) staff, (6) shared
values, and (7) skills.
Operational approach draws together concepts, principles, techniques,
and knowledge from other fields and managerial approaches. The attempt is to
develop science and theory with practical application in order to develop
classification system built around the managerial

functions of planning,

organizing, staffing, leading, and controlling.
The contingency approach is also called as situational approach. It is
developed manager consultant and researchers who tried to apply for real life
situation. Some management concepts are very effectively in one situation. The
same management concept is failed in other situation. Results or solutions
differ. In contingency approach theory managers identify which is suitable
technique for a particular person, particular environment of the organization at
a specific time. The contingency approach theory is more favors to the modern

management theory.
Management concerned
Managers concern Productivity, Effectiveness, and Efficiency. Efficiency
is “Doing things right” and getting the most output for the least inputs.
Effectiveness means “Doing the right things” and attaining organizational goals.
Management involves coordinating and overseeing the work activities of
others so that their activities are completed efficiently and effectively. We
17


already know that coordinating and overseeing the work of others is what
distinguishes a managerial position from a nonmanagerial one. However, this
doesn’t mean that managers can do what they want anytime, anywhere, or in
any way. Instead, management involves ensuring that work activities are
completed efficiently and effectively by the people responsible for doing them,
or at least that’s what managers aspire to do.
Efficiency refers to getting the most output from the least amount of
inputs. Because managers deal with scarce inputs including resources such as
people, money, and equipment they’re concerned with the efficient use of those
resources. It’s often referred to as “doing things right” that is, not wasting
resources. For instance, at the HON Company plant in Cedartown, Georgia,
where employees make and assemble office furniture, efficient manufacturing
techniques were implemented by doing things such as cutting inventory levels,
decreasing the amount of time to manufacture products, and lowering product
reject rates. These efficient work practices paid off as the plant reduced costs
by more than $7 million in one year.
It’s not enough, however, just to be efficient. Management is also
concerned with being effective, completing activities so that organizational
goals are attained.
Effectiveness is often described as “doing the right things” that is, doing

those work activities that will help the organization reach its goals. For
instance, at the HON factory, goals included meeting customers’ rigorous
demands, executing world-class manufacturing strategies, and making
employee jobs easier and safer. Through various work initiatives, these goals
were pursued and achieved. Whereas efficiency is concerned with the means of
getting things done, effectiveness is concerned with the ends, or attainment of
organizational goals. In successful organizations, high efficiency and high
effectiveness typically go hand in hand. Poor management (which leads to poor
performance) usually involves being inefficient and ineffective or being
effective, but inefficient.
18


Effectiveness (Ends)

Efficiency (Means)

Goal Attainment

Resource Usage
Low Waste

High Attainment

Management Strives for:
Resource Waste (high efficiency)
High Goal Attainment (high effectiveness)
Figure 1. 2: Effectiveness and efficiency of management
(Source: Robbins et al., 2018)
1.2.2. Functions of management

According to the functions approach, managers perform certain activities
or functions as they efficiently and effectively coordinate the work of others.
What are these functions? Henri Fayol, a French businessman, first proposed in
the early part of the twentieth century that all managers perform five functions:
planning, organizing, commanding, coordinating, and controlling.
Today, these functions have been condensed to four: planning,
organizing, leading, and controlling. As managers engage in planning, they set
goals, establish strategies for achieving those goals, and develop plans to
integrate and coordinate activities.
Managers are also responsible for arranging and structuring work to
accomplish the organization’s goals. We call this function organizing. When
managers organize, they determine what tasks are to be done, who is to do
them, how the tasks are to be grouped, who reports to whom, and where
decisions are to be made.
Every organization has people, and a manager’s job is to work with and
through people to accomplish goals. This is the leading function. When
19


managers motivate subordinates, help resolve work group conflicts, influence
individuals or teams as they work, select the most effective communication
channel, or deal in any way with employee behavior issues, they’re leading.
The final management function is controlling. After goals and plans are set
(planning), tasks and structural arrangements put in place (organizing), and people
hired, trained, and motivated (leading), there has to be some evaluation of whether
things are going as planned. To ensure that goals are being met and that work is
being done as it should be, managers must monitor and evaluate performance.
Actual performance must be compared with the set goals. If those goals aren’t
being achieved, it’s the manager’s job to get work back on track. This process of
monitoring, comparing, and correcting is the controlling function.

Planning

Organizing

1. Vision &
Mission

1. Organization
Design

2. Strategizing

2. Culture

3. Goals &
Objectives

3. Social
Networks

Leading
1. Leadership

Controlling
1. Systems/Processes

2. Decision Making 2. Strategic Human
3. Communications Resources
4. Groups/Teams
5. Motivation


Figure 1. 3: Functions of management
1.2.3. Management styles
Management styles may be visionary or imaginative style, coaching,
affiliative style, democratic, pacesetting, autocratic and laissez-faire style.
• Visionary or imaginative style is toward a new set of shared vision
and goals.
• Coaching style guides employees how to improve their performance
and align their goals with organization goals.
• Affiliative style underlines the significance of collaboration and
makes group harmony by strengthening people communication.
• Democratic

style

recommendations, and ideas.
20

appreciates

employees

for

their

feedback,


• Pacesetting style set high standards for performance

• Autocratic style has precise, clear regulations that employees should
comply with
• Laissez-faire style is the inverse of autocratic. Employees can settle
most of the decisions with management giving directions when required.
Managers are viewed as advisers instead of leaders.
1.3. Practical trends in management

LLO 1.2:

Current trends and issues of management

Discuss

research and practice are globalization, workforce

dimensions of

diversity, entrepreneurship, managing in an e-business

management

world, need for innovation and flexibility, quality
management, learning organizations and knowledge
management, and workplace spirituality.
Managers in organizations of all sizes and types around the world are
faced with the opportunities and challenges of operating in a global market
Globalization is such a significant integrate discussion of its impact on the
various management functions throughout the text.
Workforce Diversity
One of the major challenges facing managers in the twenty-first century

will be coordinating work efforts of diverse organizational members in
accomplishing organizational goals. Today’s organizations are characterized by
workforce diversity - a workforce that’s more heterogeneous in terms of
gender, race, ethnicity, age, and other characteristics that reflect differences.
Entrepreneurship
Entrepreneurship is the process whereby an individual or a group of
individuals uses organized efforts and means to pursue opportunities to create
value and grow by fulfilling wants and needs through innovation and
uniqueness, no matter what resources are currently controlled. It involves the
discovery of opportunities and the resources to exploit them. Three important
21


themes stick out in this definition of entrepreneurship. First is the pursuit of
opportunities. Entrepreneurship is about pursuing environmental trends and
changes that no one else has seen or paid attention to.
The second important theme in entrepreneurship is innovation.
Entrepreneurship involves changing, revolutionizing, transforming, and
introducing new approaches-that is, new products or services or new ways of
doing business.
The final important theme in entrepreneurship is growth. Entrepreneurs
pursue growth. They are not content to stay small or to stay the same in size.
Entrepreneurs want their businesses to grow and work very hard to pursue
growth as they continually look for trends and continue to innovate new
products and new approaches.
Managing In an E-Business World
The Internet and World Wide Web were still a novelty to most managers
and organizations. E-mail as a form of communication was gaining in
popularity,


and

occasionally

we

saw

Web

addresses

in

company

advertisements. Organizations (small to large, all types, global and domestic,
and in all industries) are becoming e-businesses. Today’s managers must
manage in an e-business world.
E-business (electronic business) is a comprehensive term describing the
way an organization does its work by using electronic (Internet-based) linkages
with its key constituencies (employees, managers, customers, suppliers, and
partners) in order to efficiently and effectively achieve its goals. It’s more than
e-commerce, although e-business can include e-commerce.
E-commerce (electronic commerce) is any form of business exchange
or transaction in which the parties interact electronically. Firms such as Dell
(computers), Varsitybooks (textbooks), and PC Flowers and Gifts (flowers
and other gifts) are engaged in e-commerce because they sell products over
the Internet.
22



1.4. Management in private sector of Vietnam

LLO 1.3:

Private sector of Vietnam experienced more State who managers are,
than 40 years along with fluctuation of Vietnam’s what they do and which
politics and economics. Before 1986, after a long skills they need to
war ended, Vietnam carried out “a central planning develop
economic regime” with many difficulties from the
internal to the external, resulting in economic
failure and hyper-inflation. Then, after economic
renovation of 1986, from 1989 private sector
started to fast develop because the government
eliminated

restriction

enterprises’

activities

policies

on

private

(Tran-Nam,


1999),

especially Enterprise Law came into effect from
January 1st of 2000, leading to a large number of
new businesses. Their rapid growth has been
contributing to more than 50% of GDP and 60%
of new jobs in 2013 (OECD, 2014).
However, private sector has to face some major constraints such as unequal
competition with state-owned enterprises, small and medium sized with limitations
of resources, vulnerable to changes of the world economy (Le, 2009).
Some obstacles in private sector development in Vietnam
Private sector of Vietnam is facing many difficulties from external and
internal factors that are based on business environment as well as firm-specific
characteristics.
From perspectives of government actions, although Vietnam makes
efforts to facilitate private sector to well run businesses by improving business
environment by legislative policy in supporting private enterprises (Hoang,
2016), tax corruptions still happened to negatively impact private owned
enterprises. Tax corruptions impact sector private development (Nguyen et al.,
2017), petty corruption influences firm innovation in Vietnam (Nguyen et al., 2016).
23


In the firm-specific features, internal factors such as human capital,
firms’ age, size and improvements of the production process are important
determinants of firms’ performance (Konings et al., 2015). However, private
sector has limitations in resources such as human, finance or technology, and
also almost enterprises of this sector are newly established. Therefore, internal
factors are considered as big obstacles in improving organizational

performance.
Small – and – medium sized enterprises in Vietnam
Tran et al. (2007) describe factors affecting SMEs’ development
including market – oriented and business environment reforms, Vietnam’s proSMEs’ development institutions (Pro-SMEs legal framework and policy, SMEs
supporting organizations, SME’s supporting funds and programs).
Le (1997) indicates that SMEs are “a main vehicle for poverty alleviation
particularly in rural areas and narrowing development gaps among provinces,
urban, and rural areas”. Moreover, they help maintain the “high flexibility of the
labor market”, “contribute significantly to absorb the “shocks” of the transition
from a centrally planned economy to a market – oriented one” (Le, 1997).
Referring to degree of internationalization of Vietnamese SMEs, Kokko
et al. (2004) find out that “very few SMEs have been directly influenced by the
country’s internationalization, through import competition, direct contacts with
foreign firms, or direct exports”; so they have “very unclear expectations of
what further internationalization may mean and are, consequently, not
preparing in any explicit manner for the opening of the Vietnamese market”.
Swierczek et al. (2003) investigate that “SME owners in Vietnam are
more motivated by challenge and achievement than the necessity for a career
and economic security”, and “focus a short-term approach based on net profit
rather than business growth”. Otherwise, they prove that “Thai SMEs are more
innovative and proactive than their Vietnamese counterparts, while Vietnamese
24


SMEs are inclined to be more risk-taking; Thai SMEs have higher perceived
business growth, job creation and net profit than Vietnamese SMEs”
(Swierczek et al., 2003).
Son Dang - Duc (2011) reveals that “SME’s compliance with accounting
standards is limited”, and “this phenomenon is largely a legal issue because
SMEs perceived little benefits from that, lacked accounting skills as well as

infrastructure to implement accounting regulations and standards”.
Therefore,

almost

researches

in

Vietnam

focus

on

functional

management such as operations, human resource, quality, technology, supply
chain, financial, and change management. However, recently, some authors
analyze management techniques such as decision making, management
functions, management environment.
1.5. Managers

LLO 1.3:

A manager is someone who coordinates and State who managers are,
oversees the work of other people so that what they do, which skills
organizational goals can be accomplished. A they need to develop
manager’s job is not about personal achievement it’s about helping others do their work.
That may mean coordinating the work of

a departmental group, or it might mean
supervising a single person. It could involve
coordinating the work activities of a team with
people from different departments or even
people outside the organization, such as
temporary employees or individuals who work
for the organization’s suppliers.

25