Chapter 1: MANAGEMENT IN GLOBALIZATION

1) What is Management?
- Management:
 Management is a multidimensional process that includes planning, organizing,
leading, and controlling human and other resources to achieve organizational
goals effectively and efficiently. At its core, it is the process of completing
activities with and through other people. Another approach defines management
as the process in which managers influence and direct individuals and groups to
coordinate their activities in order to achieve the organization’s predetermined
objectives.
 In a business context, business management refers to the actions taken to
manage business operations in order to maintain and develop the organization,
including designing systems, creating processes, and maximizing performance.
 The definition of management (planning, organizing, leading, and controlling
resources to achieve goals) directly indicates that the effective allocation and
coordination of resources are key factors that lead to organizational success (in
both effectiveness and efficiency). Without proper management, resources may
be used inefficiently or in the wrong direction, resulting in suboptimal
outcomes. This follows a functional model: when management functions are
performed well, resources are optimized and desired results are achieved;
conversely, if any function is weak, it negatively affects resource utilization and
the achievement of goals, establishing a direct causal relationship between the
quality of management and organizational performance.
- Managers: Managers are the people responsible for supervising the use of an
organization’s resources to meet its goals (individuals responsible for overseeing
the use of an organization’s resources to achieve its goals). They work within
organizations to coordinate, guide, make decisions, and connect various non-
managerial tasks so that all activities align and contribute to the organization’s
common objectives.
- Resources are organizational assets: Organizational resources are the assets that
an organization uses to operate and achieve its objectives. These resources include
both tangible and intangible elements such as people, skills, knowledge,
information, raw materials, machinery, and financial capital. Including “skills,”
“knowledge,” and “information” alongside tangible assets like machinery and
capital highlights the growing importance of intellectual capital in modern
management. This shows that managing human resources and information flows is
just as important as managing financial or physical assets, especially in a global,
 knowledge-based economy. In an international context, where talent and
information can move across borders, the effective management of these
intangible resources becomes a key differentiating factor for global success,
requiring strong systems for human resource and knowledge management.

2) Key concepts:
International Management is the process of applying management concepts and
techniques in a multinational environment and adapting managerial practices to fit
different economic, political, and cultural contexts. This definition, provided by Luthans
(2022), emphasizes that adaptability and contextualization are key factors in cross-border
management.

3) Why Study International Management?

- Social Impact: Proper management directly impacts improvements in the well-
being of a society. This shows that the role of management goes beyond
organizational boundaries and influences broader economic and social
development. Such a statement elevates management from a purely business
function to an essential societal requirement. If good management enhances social
welfare, then poor management can harm society. This expands the responsibility
of managers beyond shareholder value to include social impact. For an economics
student, this connection is important because it links micro-level organizational
effectiveness with macro-level social outcomes, indicating that policy frameworks
and regulations may also need to consider the quality of management. It also
implicitly connects to later discussions on ethics and sustainability in
management.
- Personal and Professional Development: Studying management helps people to
understand what management is and prepares them accomplish managerial
activities in their organizations. Moreover, it opens pathways to a well-paying
job and a satisfying career. To succeed in the field of business management,
students need to master both general and specialized knowledge in specific areas,
as well as economic and social understanding, providing a solid foundation for
work and advanced research. This not only equips them with practical skills but
also develops strategic thinking and adaptability - essential qualities in today’s
dynamic global business environment.

4) Types of Managers
 - First-line managers: These managers are responsible for day-to-day operations
and directly supervise people performing activities required to make the good or
service. They are often production supervisors, project managers, or team leaders.
- Middle managers: These managers supervise first-line managers and are
responsible for find the best way to use departmental resources to achieve goals.
They implement strategies and operate with a short-term vision tied to specific
objectives. They also act as a bridge, communicating information from top
managers downward and conveying feedback from employees upward. Examples
of middle-management positions include department directors, division heads, and
branch managers.
- Top managers: This is the highest managerial level, responsible for the
performance of all departments and have cross-departmental responsibility. They
establish organizational goals and monitor middle managers. Along with the CEO
(Chief Executive Officer) and COO (Chief Operating Officer), they form the top
management team. Top managers provide strategic direction and long-term vision
for the organization’s development. Common titles at this level include CEO, CFO
(Chief Financial Officer), and CMO (Chief Marketing Officer).
The distinct roles of each managerial level – strategic for top managers, tactical for
middle managers, and operational for first-line managers – highlight an essential division
of labor. This structure is not accidental; it is designed to ensure both long-term vision
and effective daily execution. If this chain of communication and decision-making breaks
down (for example, when strategic goals are not effectively translated by middle
managers, or first-line managers lack the autonomy to adapt to operational realities), the
performance of the entire organization will suffer. This underscores the importance of
vertical integration and strong communication channels in organizational design.
Organizations can also adopt different structural types:x

- Centralized: Decision-making is concentrated at the highest levels of the

organization.
- Decentralized: Decision-making authority is delegated to lower levels within the
organization.
The choice of structure depends on the organization’s size, industry, and operating
environment. The decision between centralized and decentralized structures becomes
especially important in international management. Centralization can provide control and
consistency across global operations, while decentralization allows for faster responses to
local market conditions, cultural nuances, and legal environments. A centralized structure
may be effective for global standardization (e.g., product design, brand image) but may
respond slowly to diverse local markets. A decentralized structure, although potentially
less efficient globally, enables cultural adaptation and quicker responses to local
consumer preferences or political changes. In a “rapidly changing global environment,”
this becomes a dynamic decision, often requiring a hybrid approach to balance global
scale with local responsiveness.
Management Example Job
Main Role Time Horizon
Level Titles

Strategic direction,
CEO, COO, CFO,
Top Manager setting Long-term
CMO
organizational goals

Implementing
Department
strategy, optimizing
Middle Manager Short-term Director, Manager,
departmental
Branch Director
resources

Production
Supervising daily
Supervisor,
First-line Manager operations, Very short-term
Supervisor, Team
executing tasks
Leader

5) Four Functions of Management

- Planning: The planning function involves choosing appropriate organizational
goals and courses of action to best achieve those goals. It includes activities such
as identifying objectives and development directions, drafting action plans,
scheduling activities, and establishing initial control measures. This is the first and
most important step, laying the foundation for all subsequent activities.
- Organizing: Establish and authority relationships that allow people to work
together to achieve organizational goals. Activities in this function include
establishing organizational charts, describing the duties of each department,
creating employee recruitment standards, and developing personnel policies.
Effective organization ensures that resources are allocated appropriately and
individuals are placed in suitable positions to execute the plan.
- Leading: The leading function involves motivating, coordinating, and energizing
individuals and groups to work together to achieve organizational goals. Although
sometimes referred to as "directing" or "coordinating" in some sources, the term
"leading" more accurately reflects the role of inspiring and guiding people,
aligning with modern academic and practical management contexts. This function
includes delegating to subordinates, explaining policies, coaching and motivating,
supervising and commanding, as well as establishing effective information
systems and close internal and external relationships.
 - Controlling: The controlling function is the final step in the management cycle,
but it also serves as the starting point for new planning cycles. It involves setting
up accurate measurement and monitoring systems to evaluate the extent to which
the organization has achieved its goals. Control activities include developing audit
standards, scheduling audits, assessing plan implementation, and recommending
corrective actions when necessary.
These four management functions are not separate activities but form a continuous,
cyclical process. Planning sets the direction, organizing provides the structure, leading
drives action, and controlling ensures alignment with the plan, which then informs new
planning cycles. A weakness in one function can undermine the effectiveness of the
others. This creates a causal loop: planning provides information for action, action is
structured and led, and controlling evaluates action against the plan, leading to new plans.
This continuous feedback loop is crucial for flexible adaptation, especially in a dynamic
global environment.

The above chart illustrates the proportion of time managers at different levels spend
on each management function. Senior managers typically devote more time to planning
and organizing, reflecting their long-term strategic responsibilities. In contrast, frontline
managers spend more time leading and controlling daily activities, which aligns with
their operational role. The differing time allocation across management levels indicates
that managerial effectiveness is not about performing all functions equally but
prioritizing them based on one’s position and strategic scope. This implies that different
skill sets and priorities are required at each level.
Management
Planning Organizing Leading Controlling
Level

Top Manager High High Medium Medium

Middle
Medium Medium High Medium
Manager
First-line
Low Low High High
Manager

6) Managerial Skills
- Conceptual skills: Refer to the ability to analyze and diagnose a situation while
distinguishing between cause and effect. These cognitive and abstract thinking
skills help managers see the big picture, understand the relationships between
different parts of the organization, and make strategic decisions. This skill allows
managers to grasp the complexity of the organization and its environment,
synthesizing information from multiple sources to form a coherent vision.
- Human skills: Are the ability to understand, influence, lead, and manage the
behavior of individuals and groups. This skill includes the ability to listen,
empathize, respect employees, foster team spirit, and communicate effectively.
Human skills are fundamental for building relationships, resolving conflicts, and
creating a positive work environment that supports collaboration and productivity.
- Technical skills: Are the specific knowledge and techniques required to perform
an organizational role. These are job-specific or professional skills, involving the
ability to apply specialized knowledge and tools to specific tasks. For example, an
engineer needs technical skills in design and analysis, while an accountant requires
skills in accounting principles and financial software.
Management
Conceptual skills Human skills Technical skills
Level
Top Manager Very important Important Less important
Middle Manager Important Very important Important
First-line Manager Less important Important Very important

7) What is the Managerial Environment?

- Managerial Environment: Is a key factor that influences how an organization
operates and its ability to achieve its objectives.
- Environment: Is the set of forces surrounding an organization that can influence
how it operates and its access to scarce resources. In a management context, the
environment refers to the business environment of companies and enterprises,
where production and business outcomes are constantly affected by both external
and internal factors.
- Organizational Domain: The organizational domain is the specific scope of goods
and services that the organization produces, as well as the customers and other
stakeholders it serves. Clearly defining the domain helps the organization focus its
resources and strategies effectively.
8) General vs. Specific Environment
- General Environment: The forces that shape the specific environmant and affect
the ability of all organizations in a particular environment to obtain resources.

 Economic Forces: Factors such as interest rates, the state of the economy (GDP
growth, inflation, unemployment rate), and financial policies. These elements
determine the level of demand for products and input costs. Stable GDP growth
provides ideal conditions for business development, while high inflation
increases production costs and reduces purchasing power. Economic systems
can be market-based, non-market (command), or mixed.
 Technological Forces: The development of new production techniques and new
information-processing equipment, ìnluence many aspects of organizational
operations. Technological advances can create new products, more efficient
processes, or change the way business is conducted.
 Political and Environmental Forces: These influence government policies
toward organizations and their stakeholders. This includes environmental
regulations, trade policies, political stability, and issues such as land, water, and
air pollution, as well as greenhouse gas effects, requiring environmental
protection policies and corporate social responsibility.
 Demographic, Cultural, and Social Forces: These include age, education level,
lifestyle, norms, values, and customs of a country’s population. They shape
customers, managers, and employees, influencing market demand and human
resource management practices.
 - Specific Environment: The specific environment includes forces from external
stakeholder groups that directly affect an organization’s ability to secure resources.
These external stakeholders include customers, distributors, labor unions,
competitors, suppliers, and the government. An organization must engage in
transactions with all these external stakeholders to obtain the resources necessary
for survival.

The distinction between the general environment and the specific environment,
along with the different forces within them, highlights that organizations operate within a
complex, interconnected system. Changes in the general environment (e.g., economic
recession, technological breakthroughs) inevitably ripple through and impact the specific
environment (e.g., customer demand, supplier costs), requiring managers to adopt a
comprehensive and systemic perspective rather than focusing solely on individual factors.
A detailed analysis of environmental forces serves a practical purpose beyond mere
description. By identifying these forces and their potential impacts, managers can move
from simply reacting to external pressures to proactively shaping their strategies and even
influencing the environment (e.g., lobbying against trade barriers, investing in R&D to
drive technological change, or engaging in corporate social responsibility to affect social
norms). This proactive approach is essential for achieving long-term competitive
advantage, especially in dynamic global markets.

9) Current Challenges for Management in a Global Environment

- Increasing Number of Global Organizations: The rise of multinational
corporations and businesses operating globally has intensified competition and
 requires managers to be capable of operating across diverse cultural, legal, and
economic contexts.
- Building a Competitive Advantage: In a globalized market, creating and
maintaining a competitive advantage becomes more challenging. Organizations
must continuously seek ways to differentiate their products/services, optimize
costs, leverage core competencies, and meet target customer needs to outperform
competitors.
- Geopolitical Tensions, Trade Barriers, and Uncertainty: Political volatility,
international conflicts, and increasing trade barriers can disrupt supply chains,
raise costs, and create an unpredictable business environment. Companies must
adapt through supply chain diversification and contingency planning to mitigate
risks. This highlights the need for resilience and adaptability amid geopolitical and
trade uncertainties.
- Maintaining Ethics and Sustainability: Stakeholder pressure regarding corporate
social responsibility (CSR) and environmental issues is increasing. Managers must
ensure ethical, sustainable, and socially responsible business operations while
complying with global regulations and standards.
- Managing a Diverse (and Scarce) Workforce: Global organizations must manage
a workforce diverse in culture, nationality, gender, and generation. At the same
time, they face talent shortages in some markets. This requires strategies for
cultural diversity and inclusion, flexible job arrangements, employee skill
development, and leveraging global talent.
- Leveraging Technological Advancements: Rapid technological developments
(e.g., artificial intelligence, automation, data analytics) present both opportunities
and challenges. Managers need to continually update and integrate new
technologies to enhance operational efficiency, innovate products/services, and
maintain competitiveness. Technological progress and workforce diversity are not
only challenges but also significant opportunities. Properly leveraging technology
can optimize processes, while effectively managing a diverse workforce can boost
creativity and adaptability.
 Chapter 2: MANAGEMENT THEORIES

I. Scientific Management Theory

1. Tác giả + bối cảnh
- Theory: Scientific management theory, also known as Taylorism, is a
management theory that emphasizes the systematic analysis of work processes to
maximize efficiency and productivity. According to Taylor, employers should
reward workers for increased productivity rather than scold them for every minor
mistake.
- Authors: Frederick Taylor was an American mechanical engineer in the late
1890s and early 1900s who prioritized the improvement of industrial efficiency.
Frederick Taylor is considered one of America’s first management consultants. In
1909, his management theory was published in the book The Principles of
Scientific Management
In addition, Lillian Gilbreths inherited and studied this theory from another aspect.
He optimized the work process through studying movements and reducing waste,
thereby making the whole process more efficient by reducing the movements
involved.
- Context: In the late 19th and early 20th centuries, the United States and many
Western countries entered the Second Industrial Revolution.
+ Key Characteristics: Rapid industrialization: increasing demand for mass
production and standardized products.
+ The expansion of factories: large scale, frozen number of workers, need for
effective management methods.
 + Labor management conflict: workers often reduce productivity to avoid being
peeled, while employers want to increase output and profits.
+ Management in this period is mainly based on experience, emotion, and lacks
system.

2. Quan điểm chính của học thuyết

Frederick Taylor Gilbreths
Taylor sought to reduce the time a worker
spent on each task by optimizing the way
the task was done.

Principle 1: Study the way workers Refined Taylor's work and significantly
perform their tasks, gather all the informal enhanced the time and motion study
job knowledge that workers possess, and approaches.
experiment with ways of improving how  Time and motion studies
tasks are performed. o Divide each job action
into its constituent steps
Principle 2: Codify the new methods of or component actions.
performing tasks into written rules and o Find more effective ways
standard operating procedures.
to perform the action and
Principle 3: Carefully select workers who complete tasks.
possess skills and abilities that match the o Reorganize each job
needs of the task, and train them to action to be more
perform the task according to the efficient.
established rules and procedures. Also studied worker-related fatigue
problems caused by lighting, heating,
Principle 4: Establish a fair or acceptable and the design of tools and machines.
level of performance for a task, and then
develop a pay system that rewards
performance above the acceptable level.
→ Results:
 Jobs were more repetitive, boring, monotonous
 Workers increasingly dissatisfied
 Workers tried to hide the potential efficiency of the work environment
3. Ví dụ minh họa: THACO GROUP
- Principle 1: Gather data about ways workers perform their tasks; experiment with
different ways to improve performance
Thaco Group has not only based on the ìndividual ‘s experience but also conducted a
large number of deep and actual research in determining the most effective operation
methods. For example, at automobile factories, THACO Industry has monitored and
recorded each worker's detailed operations through: SCADA system, automatic sensors
on assembly lines and MES (Manufacturing Execution System) software to collect data
on operating time, productivity and technical errors. Those datas would be updated
continuously on the Production Egineering to analyze the labor efficiency at each stage
=> Contributing to improving capacity and reducing product costs by 5% annually.
- Principle 2: Codify the new methods of performing tasks into written rules and
standard operating procedures
Thaco group developed detailed standardizing and documenting work processes
throughout its manufacturing lines. Particularly, THACO has announced the
implementation of Kaizen (continuous improvement) across Chu Lai and its factories,
which involves recording, standardizing tasks, and updating work procedures. Moreover,
the group also organised ISO 90l1:2015 training courses for managers and specialists,
applying a quality management system along with documented work procedures. Also,
the production profile of THACO Industries describes its manufacturing process, further
evidencing that each production step is clearly defined and standardized.
- Principle 3: Carefully select workers who possess skills and abilities that match
the needs of the task, and train them to perform the task according to the
established rules and procedures
The process of selecting employees of Thaco Group is really careful and considerate.
They tend to hire people with a good educational background and professional skills.
Thaco group has promoted many programs on promoting partnership in training and
recruitment with many universities.
->Evidence:
On May 18, in Nha Trang city, Khanh Hoa province, THACO and THACO College had a
working session with Nha Trang University (NTU) to discuss ways to strengthen their
collaboration in training programs and expand recruitment efforts for graduating
students from the South Central Coast of Vietnam.
Thaco Group also organizes many training courses to ensure the working quality of
employees.
-> Evidence: THACO AUTO Chu Lai organizes over 200 training courses,180 courses
about knowledge and skills in automobile manufacturing and assembly, periodic training
courses for management skills, occupational safety and health, fire prevention, Kaizen,
5S and so on.
- Principle 4: Establish a fair or acceptable level of performance for a task, and then
develop a pay system that rewards performance above the acceptable level: At the Thaco
Chu Lai, after applying the MES system and SCADA, Thaco can accurately measure
each worker's productivity like the number of operations/day, technical error
rate,...Therefore, the company applied the production KPI evaluation mechanism based
on MES - SCADA data and rewards productivity based on the level of completion of
technical standards and production progress.

4. Bình luận
- Taylor - Low productivity or inconsistent work performance among workers
-> Uses scientific analysis of tasks to eliminate unnecessary motions and identify
the “one best way” to perform each job efficiently.
Example: Managers would study each step of the process (kneading, proofing, shaping,
baking) to determine the fastest and most efficient method. Then, they would assign each
worker to specialize in only one specific task.
+ Worker A only kneads the dough.
+ Worker B only shapes the bread.
+ Worker C only bakes it.
Result: Each worker becomes an expert in their step, works faster, and produces more
bread. However, their jobs become very repetitive and monotonous, which may lead to
boredom and dissatisfaction.
- Gilbreths - Inefficient workflow with redundant or tiring movements ->
Conducts motion studies to remove unnecessary motions, redesign work
processes, and improve productivity.
Example: A bricklayer needs to pick up bricks from a pile to build a wall.
According to Taylor: He might simply find a way to place the pile of bricks closer to the
worker.
According to the Gilbreths: They would film the bricklayer and discover that bending
down to pick up each brick wastes a lot of time and energy. They would then design a
special scaffold or adjustable stand so that the bricks are always at hand level, eliminating
the need to bend down. They would also ensure proper lighting so the worker can see
clearly and reduce eye strain.
II. Administrative Management Theory
Administrative Management Theory is the study of how to create an organizational
structure that leads to high efficiency and effectiveness. This school of thought focuses on
establishing principles and frameworks for managing the entire organization, rather than
concentrating solely on individual performance as in Scientific Management Theory.
1. Max Weber and Bureaucratic Theory
In the 1920s, Max Weber developed the concept of bureaucracy as a formal
organizational and management system designed to ensure efficiency and effectiveness.
His core idea was that an organizational structure should be based on bureaucracy with
clear rules and hierarchy. A distinctive feature of this theory is the creation of an
organizational mechanism with a high degree of hierarchy and specialization. It is most
suitable for application in government agencies or large organizations that require a clear
and stable structure.
Weber’s principles of bureaucracy include:
- Legitimate-rational authority: Authority is established based on formal rules and
regulations, not personal influence.
- Clear division of labor: Each position has specific, well-defined responsibilities
and tasks.
- Clear hierarchy of authority: There is a well-established chain of command from
the highest to the lowest level.
- Formal rules and regulations: All activities are governed by clearly documented
rules and procedures.
- Impersonality and objectivity: Decisions are based on rules and facts, not
emotions or personal relationships.
- Recruitment and promotion based on competence: Employees are hired and
promoted based on professional qualifications and performance, not personal
factors.

2. Strengths and Weaknesses of Weber’s Bureaucratic Model

Weber’s bureaucratic model offers several significant strengths. It is believed to
improve organizational efficiency and make it easier for managers to organize and
control operations. The system also promotes fairness and equality in salary increases and
promotions, enhances employees’ sense of security, reduces stress, and encourages
ethical behavior.
 However, bureaucracy also has inherent weaknesses. If poorly managed, the system
can become inefficient. Decision-making and organizational change tend to be slow, and
the system is often inflexible.
The coexistence of strengths and weaknesses shows that bureaucracy is a double-
edged sword. In stable environments, it can be effective, but in dynamic environments, it
becomes a barrier. This insight laid the foundation for later theories, which argue that
there is no “one best way” to organize—structures must depend on the context. Students
should recognize that every organizational structure has its advantages and limitations,
and choosing and applying a management model requires careful consideration of the
organization’s characteristics and operating environment. This also relates to the
manager’s role in minimizing the weaknesses of bureaucracy.

3. Fayol’s 14 Principles of Management

Henri Fayol, in 1916, developed 14 management principles focusing on
organizational structure and leadership. His distinctive contribution was providing a set
of concrete principles applicable across various managerial environments that require
comprehensive management guidelines.
Fayol’s 14 principles include:
1. Division of Labor: Allows for job specialization. However, Fayol noted that
excessive specialization can lead to poor quality and worker dissatisfaction.
2. Authority and Responsibility: Includes both formal authority and informal
authority arising from special expertise.
3. Unity of Command: Each employee should report to only one supervisor to avoid
confusion and conflict.
4. Line of Authority: A clear chain of command from the highest to the lowest level
of the company.
5. Centralization: The degree to which decision-making authority is concentrated at
the top levels of the organization.
6. Unity of Direction: Employees should receive instructions and report to only one
supervisor.
7. Equity: Ensuring justice, fairness, and impartial treatment for all employees.
8. Order: Arranging people in positions where they bring the greatest value to the
organization while ensuring career opportunities.
9. Initiative: Encouraging creativity and innovation by allowing employees to act
independently.
10. Discipline: Employees’ obedience, commitment, and respect are essential for
organizational functioning.
 11. Remuneration of Personnel: A fair and consistent compensation system that
motivates employees and contributes to organizational success.
12. Stability of Tenure of Personnel: Long-term employment is important for
developing skills and improving organizational performance.
13. Subordination of Individual Interest to the Common Interest: The organization’s
interests must take precedence over the personal interests of individual employees.
14. Esprit de Corps: Promoting team spirit and shared enthusiasm to increase
dedication to the organization’s goals.
Although Fayol is classified under the “Administrative Management” school,
several of his principles—such as Initiative, Equity, Esprit de Corps, and Stability of
Tenure—extend beyond structure and procedures. They touch on motivation and human
relationships, demonstrating the overlap and foundational influence his ideas had on later
behavioral theories. This shows that the evolution of management thought is not divided
into isolated boxes; instead, each school influences and builds upon the previous ones.
Fayol, despite focusing on administration, already recognized the importance of human
factors—a perspective ahead of his time.
Students should understand that management theories are not entirely independent;
they reflect continuity and complementarity. Recognizing the “seeds” of later theories in
earlier ones helps students better appreciate the evolution of management and the
interconnectedness of concepts.

4. Why do some companies outperform their competitors?

Key factors drawn from Fayol’s principles help explain why certain companies
achieve superior performance. These include emphasizing managerial autonomy and
entrepreneurial spirit, encouraging risk-taking and initiative, and ensuring top managers
are actively involved in day-to-day operations while maintaining unity of command and
unity of direction. Decisions are not made in an isolated “ivory tower”; instead, authority
is decentralized, and organizational goals guide everyone’s actions. Tasks and authority
are assigned with the understanding that individual interests must align with the common
interest.
The elements that help companies outperform competitors are not the rigid
application of a single theory but rather the flexible combination of principles from
various schools of thought. For example, unity of command from administrative theory,
encouraging initiative from behavioral theory, and decentralization from organizational
environment theories. This implies that effective management in practice is an integrative
art, not strict adherence to one theoretical approach.
 This reflects the complexity of modern management, where managers must
synthesize and adapt different theories to fit the specific context of their organization and
environment. For students, the key lesson is that there is no single “golden
formula”. Success comes from deep theoretical understanding, awareness of contextual
factors, and the ability to flexibly combine principles to create an adaptive and effective
management system. This also sets the foundation for the necessity of Contingency
Theory.

III. Behavioral Management Theory

Behavioral Management Theory is the study of how managers should behave to
motivate employees and encourage them to achieve high performance and commit to
organizational goals.
Its core focus is on how managers should manage individuals to stimulate
motivation, shifting attention from processes and structures to psychological and social
factors in the workplace.

1. Mary Parker Follett

Mary Parker Follett, active between 1924 and the 1930s, was an influential pioneer
in early management theory.
Her main principle emphasized encouraging cooperation and resolving conflict
through social interaction.
A distinct characteristic of Follett’s thinking is her focus on human relationships
and social dynamics within organizations.
Her theory is most applicable to businesses seeking to resolve conflicts or improve
organizational culture.
Follett argued that Taylor ignored the human side of organizations and overlooked
how employees could contribute to managerial tasks.
She promoted a lateral view of power, asserting that “authority should go with
knowledge.”
According to her, managers should act as facilitators rather than controllers or
supervisors.
Her ideas laid the groundwork for self-managed teams, empowerment, and cross-
functional management in modern organizations.

2. The Hawthorne Studies

The Hawthorne Studies, conducted between 1924 and 1932 at the Western Electric
Company’s Hawthorne Works, had a profound impact on Behavioral Management
Theory.
Their central principle was the influence of managerial attention on employee
productivity.
A key unique finding was the identification of the Hawthorne Effect—the tendency for
productivity to increase when workers receive attention.
This theory is most applicable in service industries or workplaces that emphasize
human interaction.
In the studies, workers’ productivity was measured under various lighting
conditions. Surprisingly, productivity increased regardless of whether lighting increased
or decreased.
Researchers concluded that this rise in productivity resulted from employees feeling
observed, indicating that attention and interest from others affected their behavior.
These findings gave birth to the Human Relations Movement.

3. The Human Relations Movement

Originating from the Hawthorne Studies, the Human Relations Movement asserts
that workers’ attitudes toward management significantly affect their job performance.
It recommends training supervisors to encourage cooperative behavior from subordinates
to enhance productivity.
The studies recognized that employees’ influence can be as substantial as
managers’, and that managers must understand the informal organization.
This is considered the beginning of the field of Organizational Behavior.
The shift from Scientific Management to Behavioral Management—especially
through the Hawthorne Studies—marks a fundamental change in how organizations view
people.
Instead of seeing workers merely as technical inputs to be optimized, they are
viewed as individuals with emotions, attitudes, and social relationships that significantly
affect productivity.
The failure of Scientific Management to sustain high performance due to its
disregard for human factors opened the door to exploring psychological and social
influences at work. The “Hawthorne Effect” provided empirical evidence for this shift.
The emergence of Organizational Behavior as a distinct discipline directly stems
from these findings, representing a maturation of management thought.
Students must understand that management is not only about processes and
structures but also about people.
 Ignoring the human element can lead to negative consequences and reduced
effectiveness—especially important today, where high-quality human resources and
employee engagement are key competitive advantages.

4. Douglas McGregor’s Theory X and Theory Y

Douglas McGregor, in 1960, proposed two fundamental assumptions about human
nature in the workplace: Theory Xand Theory Y.
The defining feature of this theory is the clear distinction between an authoritarian
approach (Theory X) and a positive, participative approach (Theory Y).
This theory is most useful in human resource management in environments with
low employee motivation.
A comparative table of the two theories is presented below:
Theory X Theory Y
The average employee is lazy, dislikes Employees are not inherently lazy. If
work, and will try to do as little as given the opportunity, they will do what is
possible. good for the organization.
To encourage employees to work for the
To ensure employees work hard, benefit of the organization, managers must
managers should closely supervise them. create a work environment that provides
Managers should establish strict work opportunities for initiative and self-
rules and implement a clearly defined direction. Managers should delegate
system of rewards and punishments to authority to employees and ensure they
control employee behavior. have the necessary resources to achieve
organizational goals.

Theory X and Theory Y are not merely two hypotheses about human nature; they
also serve as a call for a shift in managerial mindset. Moving from the assumptions of
Theory X (tight control) to those of Theory Y (empowerment) can create a more positive
work environment that encourages initiative and self-direction, thereby potentially
increasing employee performance and satisfaction. This has profound implications for
modern human resource management policies.
If managers believe in Theory X, they tend to implement strict control measures,
creating a vicious cycle in which employees feel monitored and demotivated, ultimately
reinforcing the manager’s initial assumptions. Conversely, if managers believe in Theory
Y, they are more likely to empower employees and provide opportunities for them to
develop, which in turn validates the original assumption. This is an example of a “self-
fulfilling prophecy” in management.
 In the context of a knowledge-based economy and the growing need for innovation,
Theory Y becomes more relevant, supporting modern management models such as
management by objectives, employee empowerment, and self-managed teams. Students
should recognize that a manager’s assumptions are not merely personal beliefs but factors
that shape organizational culture and work performance. Applying Theory Y can be an
effective strategy to enhance motivation, creativity, and productivity in modern
organizations, especially in industries that require flexibility and innovation.

IV. Management Science Theory

The Management Science Theory, which emerged in the 1940s–1950s, is a
managerial approach that applies rigorous quantitative techniques to maximize the use of
an organization’s resources.¹ Its core principle is the use of mathematical models and
quantitative tools to support decision-making.¹ What distinguishes this theory is its
reliance on data to optimize complex organizational processes.¹ It is most suitable for
industrial manufacturing companies, finance, or logistics, where data optimization is
essential.¹
The key components of Management Science Theory include:
- Quantitative Management: The use of linear programming, modeling, and
simulation systems to solve complex problems.
- Operations Management: Techniques for analyzing all aspects of production
systems, from planning to quality control.
- Total Quality Management (TQM): A focus on improving quality across the
entire organization—from products to services and processes.¹
- Management Information Systems (MIS): Managing information across the
organization so that the right people receive the right information at the right time
to support decision-making.
Management Science Theory emerged in response to the increasing complexity of
large-scale business operations, where decisions could no longer rely solely on
experience or intuition. It represents a shift toward evidence-based, data-driven
management, forming the foundation for modern fields such as business analytics and
data science.
As organizations grow in size and complexity, traditional management approaches
based on experience or human relations become insufficient. More precise tools are
needed to handle large amounts of data and optimize complex processes—for example, in
supply chains or manufacturing systems. The rise of computers and information
technology enabled the adoption of mathematical models and quantitative tools in
management, leading to systems such as MIS and TQM.
 For students, this highlights the importance of quantitative thinking and the ability
to use data in managerial decision-making. In the digital era, data analysis and evidence-
based decision skills are highly valuable, making the Management Science Theory still
relevant today.

V. Organizational Environment Theory

Organizational Environment Theory focuses on the set of forces and conditions
operating outside the boundaries of an organization that influence managers’ ability to
acquire and utilize resources.¹ This theory shifts attention from the internal organization
to the organization’s interaction with the external environment, recognizing that an
organization’s survival and growth depend on its ability to adapt to external forces. A key
question raised by this theory is: what “forces” exist in the “environment” that affect
managers’ ability to obtain and use resources?

1. Open Systems Perspective

The Open Systems Perspective, developed by Katz, Kahn, and Thompson in the
1956–1960s, argues that organizations interact with the external environment in order to
survive.¹ Its distinguishing feature is the view of organizations as open systems that
depend on external factors.¹ This perspective is most applicable to organizations
operating in rapidly changing environments that require continuous adaptation.¹
According to this view, organizations obtain inputs (resources) from the external
environment, transform them into goods and services, and then return these outputs to the
environment. Organizations must interact with the environment in order to survive.¹ This
contrasts with the concept of a closed system, which is self-contained and susceptible to
entropy (decline).¹
The open systems perspective also emphasizes synergy, where the whole is greater
than the sum of its parts, and the benefits gained when entities coordinate their efforts.¹
This perspective represents a significant advancement in helping managers understand
that organizations do not exist in isolation but are part of a larger ecosystem,
continuously exchanging with and adapting to the environment.

2. Contingency Theory
Contingency Theory, developed by Burns and Stalker in the UK during the 1960s,
is one of the most influential theories in management.¹ Its core principle is that there is no
single best way to manage; instead, everything depends on the organizational context.¹ Its
distinctive feature is flexibility in managerial approaches to fit real conditions.¹ This
theory is most suitable for organizations that require flexible strategies, especially in
times of uncertainty.¹
The central idea of Contingency Theory is that there is no one best way to organize
because the external environment (particularly resource availability) influences
organizational structure and control.¹ A rapidly changing environment resists rigid
approaches.¹ This theory also distinguishes between mechanistic structures and organic
structures, with organic structures being more flexible and better suited to dynamic
environments.
Contingency Theory represents a peak in the evolution of management thought,
integrating lessons from earlier schools of thought. It explains why earlier theories (such
as Scientific Management or Bureaucracy) may be effective in some contexts but fail in
others. This provides students with a powerful framework for analyzing complex real-
world management situations.
Earlier theories often proposed “universal principles” or a “one best way.”
However, real-world practice shows that such approaches are not always effective.
Contingency Theory explains these differences by emphasizing the role of the
environment and specific internal factors. This is especially important in today’s
globalized and volatile business environment, where flexibility and adaptability are
essential.
Contingency Theory helps students develop “if–then” thinking rather than “always”
thinking. For students, it is a powerful analytical tool that teaches them that management
is not a rigid set of rules but a flexible decision-making process requiring deep contextual
understanding. This directly supports the goal of solving managerial problems by
applying different theories appropriately to different situations.

VI. Modern Management Theories

The field of management is a dynamic discipline that continuously evolves to
respond to new global challenges. The emergence of modern management theories
reflects this development, especially in the context of globalization, digitalization, and the
growing complexity of cross-cultural relationships.

1. New Management Theory

New Management Theory, introduced in 2012, is based on the principle of
integrating the two major schools of management worldwide while emphasizing high
adaptability to changes in the social, economic, financial, and cultural environment. This
theory also places a strong focus on people in the management process.¹
 Its key distinguishing feature is the promotion of democratic management, the
avoidance of extreme power centralization, and the pursuit of balance between economic
efficiency and human factors.¹ It is most suitable for multinational corporations and
global enterprises that must adapt to dynamic and diverse business environments,
especially in the context of globalization and economic integration.¹

2. Cross-Cultural Management and Behavior Theory

Cross-Cultural Management and Behavior Theory, developed by Hofstede and
Trompenaars in 2021, focuses on the influence of cultural factors on managerial and
business behavior in international environments. Its main objective is to develop effective
management skills in multicultural contexts.
Its distinctive feature is its strong emphasis on understanding and managing cultural
diversity within organizations, highlighting the importance of cultural awareness and
adaptability in international management.¹ This theory is most applicable to multinational
companies, international organizations, and businesses operating in multicultural
environments, where effective management of employees and partners from diverse
cultural backgrounds is essential.

3. Overall Significance
The emergence of these “new theories” demonstrates that management is a living
science that continuously evolves to meet new global challenges. In particular, the
emphasis on high adaptability and cross-cultural diversity managementreflects the
growing importance of globalization and the complexity of human factors in modern
business environments.
While earlier theories remain valuable, they may not fully address the challenges of
the digital age, globalization, and an increasingly diverse workforce. These modern
theories integrate and expand upon earlier ideas to fill those gaps. They reflect a shift
from focusing solely on internal efficiency toward managing the complexity of the
external environment and diverse human factors.
For economics students—especially those specializing in international management
—these theories are critically important because they provide essential tools for
understanding and operating effectively in multinational corporations and global business
environments. This confirms that studying management theories is not only about
learning history but also about preparing for the future. Students must recognize that
management theories are continuously updated and developed, and the ability to grasp
new trends is the key to becoming a successful manager in an ever-changing world.
VII. Why Is It Necessary to Understand Management Theories?
Understanding management theories is essential for economics students for many
important reasons. It goes beyond theoretical knowledge and extends to the development
of analytical skills, problem-solving abilities, leadership competence, and an
understanding of the global business environment.¹
First, it helps students gain a deep understanding of fundamental management
principles and core concepts regarding how organizations operate, how businesses are
managed, and how resources are allocated. For example, Scientific Management
Theory helps students understand how to optimize labor productivity, while Behavioral
Management Theory emphasizes the role of people within organizations.¹
Second, these theories provide a foundation for students to analyze and solve real-
world management problems. For instance, Contingency Theory helps students
recognize that there is no universal solution for all situations, and that strategies must be
adapted based on specific contexts.¹
Third, understanding these theories serves as a basis for developing leadership and
managerial skills. Theories such as McGregor’s Theory X and Theory Y and Fayol’s
14 Principles of Management help students learn how to motivate employees and
organize work effectively, thereby building leadership capacity. In addition, Cross-
Cultural Management Theory fosters creative thinking in resolving cultural conflicts in
the workplace.¹
Finally, management theories help students understand the relationship between
economics and the international business environment. For example, theories such as
the Open Systems Perspective clarify how global economic, political, and social factors
influence business operations, thereby enabling better adaptation and management in
international organizations.¹
This section not only lists the benefits but also implies that understanding
management theories is an integrative process, in which different theories complement
one another to provide a comprehensive view of management. For example,
understanding Scientific Management Theory (efficiency) and Behavioral
Management Theory (human factors) at the same time demonstrates the necessity of a
balanced approach. This prepares students to develop flexible and multidimensional
managerial thinking.
The examples show how theories from different schools of thought can be
combined to achieve different benefits. This is not simply about “learning many
theories,” but about learning how to use them together. For instance, to solve a complex
problem, a manager may need to apply Taylor’s efficiency principles, McGregor’s
understanding of human motivation, and the adaptive thinking of Contingency Theory.
 In the modern business environment, management problems rarely belong to only
one field. They are often multidimensional and require an integrated approach. For
students, this emphasizes that the true value of learning management theories lies in their
ability to synthesize and flexibly apply them to real-world situations. It reinforces the
idea that theories are tools, and mastering multiple tools will help them become more
effective managers in different contexts.

VIII. Practical Case Study

To apply the theories that have been learned into practice, students will participate
in group discussions in the role of management consultants for a specific case. The case
revolves around VinaAgro, a Vietnamese agricultural export company of medium size
that specializes in supplying fresh fruits such as mangoes, dragon fruit, and durian to
international markets, including Japan, China, and the EU. VinaAgro has signed a major
contract with an EU partner to supply 5,000 tons of GlobalGAP-certified mangoes over
a period of two years.¹
However, VinaAgro is facing numerous challenges in contract implementation and
international supply chain management:
 Production management: Local farmers are struggling to comply with
GlobalGAP standards due to a lack of knowledge and insufficient investment
capital. In addition, unstable weather conditions are seriously affecting
productivity and product quality.¹
 Supply chain management: Current storage facilities do not meet required
capacity and preservation standards, causing products to lose freshness during
transportation. At the same time, international deliveries are frequently delayed
due to poor coordination among stakeholders such as farmers, transporters, and
customs agents.¹
 Human resource management: The leadership team is divided over management
style, resulting in conflicts between the group advocating strict control and the
group supporting greater autonomy for departments.¹
 Cultural differences: Cultural differences between VinaAgro and its EU partner
have caused frequent misunderstandings in communication and expectation
management, negatively affecting cooperation efficiency.¹
 Financial issues: Financial difficulties also pose a major challenge, as rising
transportation and storage costs significantly reduce the project’s profitability.¹
Given this situation, each group will discuss and propose a concrete solution to
one specific management problemthat VinaAgro is facing, applying at least one
management theory that has been studied. The detailed discussion points include:
identifying the management problem, analyzing possible causes (using one theory as the
analytical foundation), and proposing solutions (using one theory as the basis for
solutions).¹
The VinaAgro case is a typical example of the complexity of international
management, where problems are not merely technical or financial but are deeply
connected to human factors, cultural differences, and the external environment. The
challenges presented can be analyzed through the lens of various theories, demonstrating
their strong practical applicability.
For example, the problem of production management and GlobalGAP compliance
may be analyzed using Scientific Management Theory (process optimization and
standardization) or Management Science Theory (data and operations optimization).
Supply chain coordination issues can be examined through the Open Systems
Perspective(interaction with the external environment and stakeholder coordination)
or Fayol’s principles (unity of command and scalar chain). Human resource
management conflicts and leadership disagreements are clearly related to McGregor’s
Theory X and Theory Y (leadership styles and empowerment) and Follett’s
ideas (conflict resolution and cooperation). Cultural differences are directly linked
to Cross-Cultural Management and Behavior Theory.
Overall, finding appropriate solutions for VinaAgro represents a direct application
of Contingency Theory, as there is no single universal solution; instead, responses must
be tailored to the specific context of each problem and of the company.
This case study serves as the highlight of the lecture by transforming theoretical
knowledge into practical problem-solving tools. It not only tests students’ understanding
but also strengthens their critical thinking, analytical, and solution-proposal skills,
which are essential competencies for managers in the real business environment.

Chapter 3: ORG STRUCTURE – DESIGN – CULTURE

I. Organizational Roles
- Organizational roles: A role is a set of task-related behaviors that an individual is
expected to perform based on their position. Organizational structure is built upon
this system of roles.
 As the division of labor increases, managers specialize in some roles and
hire people to specialize in others.
 Specialization allows people to develop their individual abilities and
knowledge within their specific role.
 - Organizational Structure: The formal system of task and reporting relationships
that determines how employees use resources to achieve organizational goals.
 How a firm organizes its activities and personnel to achieve its goals.
- Organizational Design: The process by which managers create a specific type of
organizational structure and culture to enable the organization to operate as
effectively as possible.

II. Basic Organizational Structures in International Companies

Multinational corporations (MNCs) must continuously restructure in order to
remain competitive, balancing the pressures of global integration with the need to
respond to local market demands. Organizational structures typically evolve through the
following stages:
1. Initial Division Structure
- Many firms make their initial entry into international markets by setting up a
subsidiary or by exporting locally produced goods or services.
- Each subsidiary is responsible for operations within its own geographic area.

2. International Division Structure: If international operations continue to grow and

require more control, subsidiaries are grouped into an international division structure.
- A unit is added, while the original organizational structure is left intact.
- Advantages of an international division structure.
 International focus receives top management’s attention.
 Allows a unified approach to international operations.
 At the same time, there are drawbacks.
 The structure separates the domestic and international managers.
 As operations grow, resources may become scarce.
 Ideas from the international market are given low priority.

3. Global Organizational Structure

- This structure focuses on the expansion and integration of international operations.
- Global structural arrangements differ from international division structure because
the former focuses on expansion and integration among international operations.
- This international perspective signifies a major change in management strategy,
and it is supported by the requisite changes in organization structure.
- PROS:
 Products are in the growth stage.
 Managers here have considerable autonomy.
  Provides the most benefits if a high need for product differentiation in
different markets.
 It preserves product emphasis and promotes product planning on a global
basis.
 It provides a direct line of communication from the customer to those with
product expertise.
 It permits line/staff managers to gain expertise.
- CONS:
 Duplication is a drawback.
 Division managers may neglect areas with better long-term potential.
 Division managers may spend time on the local, for convenience and
experience.
- There are three main types:
 Global Product Division Structure: Domestic divisions are assigned
worldwide responsibility for specific product groups.
 Global Area Division Structure: Managers are responsible for all business
activities within a specific geographic region.
 Global Functional Structure: The company organizes its worldwide
operations primarily based on functions (e.g., Production, Marketing,
Finance).

a) Some MNCs prefer to use a global area division.

- This approach signals a major change in strategy because now international
operations are on the same level as domestic operations.
- Under this arrangement, global division managers are responsible for all business
operations in their designated geographic area.
- Each division focuses on regional tastes and offers specialized products for and
within that area.
- A disadvantage is the difficulty of reconciling a product emphasis with a
geographic orientation.
- If a product is sold worldwide, a number of different divisions are responsible for
sales.
- Lack of centralized management can increase costs and duplicate efforts in each
region.
- A second drawback is that new R&D efforts often are ignored because the
products have reached the maturity stage.
b) The global functional division organizes worldwide operations primarily based on
function and secondarily on product.
- This approach is not widely used other than extractive companies.
- Advantages include the following.
 An emphasis on functional expertise.
 Tight centralized control.
 A relatively lean managerial staff.
- Disadvantages include the following.
 Coordination of manufacturing and marketing often is difficult.
 Managing multiple product lines can be very challenging because of the
separation of production and marketing into different departments.
 Only the CEO can be held accountable for the profits.

c) Some companies opt for a mixed organization structure, which combines all three
into an MNC that supplements its primary structure with a secondary one and,
perhaps, a tertiary one.
- For example, a company uses a global area approach, and functional managers
provide assistance and support to the geographic divisions.
 Conversely, in a firm using a global functional approach, product committees
coordinate transactions that cut across functional lines.
 In other cases, the organization will opt for a matrix structure that results in
managers’ having two or more bosses.
- Mixed organizational structures have become increasingly popular.
 It allows the organization to create designs that best meets its needs.
 As the matrix design’s complexity increases, coordinating the personnel and
working toward common goals becomes difficult.

4. Transnational Network Structure

- The basic structural framework consists of three components: dispersed subunits,
specialized operations, and interdependent relationships.
 Dispersed subunits are subsidiaries located anywhere in the world.
 Specialized operations are activities carried out by subunits.
 Interdependent relationships are used to share information and resources
throughout the dispersed and specialized subunits.
- This is designed to help MNCs take advantage of global economies of scale while
being responsive to local customer demands.
 - At the center of the transnational network structure are nodes, units coordinating
product, functional, and geographic information.

III. Organizational Characteristics of MNCs

- Although MNCs have similar organizational structures, they do not all operate in
the same way.
- Factors that help explain the differences include overall strategy, employee
attitudes, and local conditions.
- Of particular significance to this discussion are the organizational characteristics
of formalization, specialization, and centralization.

1. Formalization
- Formalization is the use of defined structures and systems in decision making,
communicating, and controlling.
- In recent years, this formal-informal characteristic of organizations has become the
focal point of increased scrutiny.
 MNCs now realize there are two dimensions of formality-informality that
must be considered: internal and external.
- There are two approaches that firms that must compete globally employ to achieve
the layering of competitive advantages.
 Development of extensive internal networks of international subsidiaries in
major national or regional markets.
 Forging external networks of strategic alliances with firms around the world.

2. Specialization
- As an organizational characteristic, specialization is the assigning of individuals
to specific, well-defined tasks.
 Horizontal specialization assigns jobs so individuals are given a particular
function to perform and stay within the confines of this area.
 Vertical specialization assigns work to groups or departments where
individuals are collectively responsible for performance.
- As an organizational characteristic, specialization is the assigning of individuals
to specific, well-defined tasks.
 Horizontal specialization assigns jobs so individuals are given a particular
function to perform and stay within the confines of this area.
 Examples of jobs are customer service, sales, recruiting, training,
purchasing, and marketing research.
  When there is a great deal of horizontal specialization, personnel develop
functional expertise in one particular area.
- Vertical specialization assigns work to groups or departments where individuals
are collectively responsible for performance.
- Here, there are differences between hierarchy, those higher up are accorded more
status, and the overall structure is quite tall.

3. Centralization
- Centralization is a management system in which important decisions are made at
the top level of the organization (The opposite is Decentralization, which is
common in the United States and allows lower-level employees to participate in
decision-making).
 Many U.S. firms tend toward decentralization, pushing decision making
down the line and getting the lower-level personnel involved.
 This hands-off approach promotes creativity, entrepreneurial effort, and
personal responsibility.
 In order to prevent operations from spinning out of control, the company
exercises very tight financial discipline.

IV. Organizational Design

The process of shaping an organization's structure to align with its goals, strategy,
and environmental changes. It involves creating, evaluating, and refining the structure.

1. Mechanistic Structures: designed to induce people to behave in predictable,

accountable ways.
- Decision-making authority is centralized.
- Subordinates are closely supervised.
- Information flows mainly in a vertical direction along a clearly defined path.
- Hierarchy principal integrating mechanism.
- Tasks and roles coordinated primarily through standardization and formal written
rules.
- Best suited to organizations that face stable, unchanging environments.

2. Organic Structures: structures that promote flexibility, so people initiate change and
can adapt quickly to changing conditions.
- Decision making distributed throughout the hierarchy.
- Coordination is achieved through mutual adjustments.
 - Status conferred by ability to provide creative leadership.
- Encourages innovative behavior.
- Suited to dynamic environments.

3. Contingency Approach: A management approach in which the design of an

organization’s structure is tailored to the sources of uncertainty facing an organization.
Organization should design its structure to fit its environment.

V. Organizational Culture
- Shared values and beliefs that enable members to understand their roles and the
norms of the organization.
- May include:
o Observed behavioral regularities, as typified by common language,
terminology, and rituals.
o Norms, as reflected by things such as the amount of work to be done and
the degree of cooperation between management and employees.
o Dominant values that the organization advocates and expects participants
to share, such as high product and service quality, low absenteeism, and
high efficiency.
o A philosophy that is set forth in the MNC’s beliefs regarding how
employees and customers should be treated.
o Rules that dictate the dos and don’ts of employee behavior relating to areas
such as productivity, customer relations, and intergroup cooperation.
o Organizational climate, or the overall atmosphere of the enterprise, as
reflected by the way that participants interact with each other, conduct
 themselves with 20 customers, and feel about the way they are treated by
higher-level management.
- There are three aspects of organizational functioning in determining MNC
organizational culture:
 (1) the general relationship between the employees and their organization;
 (2) the hierarchical system of authority that defines the roles of managers and
subordinates;
 (3) the employees’ perceptions of the MNC’s purpose, destiny, goals, and
their place in them.
- This analysis is relevant to multinational alliances. It shows that even though an
alliance may exist, the partners will bring different organizational cultures with
them.
- Such comparisons also help explain why it can be difficult for an MNC with a
strong organizational culture to break into foreign markets where it is not
completely familiar with divergent national cultures.

- Incubator culture: A culture that is characterized by strong emphasis on equality

and orientation to the person.
- Guided missile culture: A culture that is characterized by strong emphasis on
equality in the workplace and orientation to the task.
- Family culture: A culture that is characterized by a strong emphasis on hierarchy
and orientation to the person.
 - Eiffel Tower culture: A culture that is characterized by strong emphasis on
hierarchy and orientation to the task.
- Importance of Cultural diversity:
 Cultural diversity can positively contribute to people’s professional and
personal enjoyment of the project, as well as a project’s outcome.
 Cultural diversity can indirectly encourage project members to rethink their
usual working habits and expectations, behave with fewer assumptions
about the ‘right’ way to address an issue and promote linguistic clarity.
 The dominance of cultural diversity amongst team members reduces the
bias to interact with people who have common characteristics and create a
unique bond.
 This analysis is relevant to multinational alliances. It shows that even
though an alliance may exist, the partners will bring different organizational
cultures with them.
 Such comparisons also help explain why it can be difficult for an MNC
with a strong organizational culture to break into foreign markets where it
is not completely familiar with divergent national cultures.

Chapter 4: DECISION MAKING & CHANGE MGT

I. Organizational Decision Making
The process of responding to a problem by searching for and selecting a solution or
course of action that will create value for organizational stakeholders.
- Programmed decisions: decisions that are repetitive and routine.
- Nonprogrammed decisions: decisions that are novel and unstructured.

II. Models of Organizational Decision Making

1. The Rational Model: decision-making is a straightforward, three-stage process:
- Stage 1: Identify problems that need to be solved
- Stage 2: Design and develop a list of alternative solutions and courses of action to
solve the problems
- Stage 3: Compare likely consequences of each alternative and decide which course
of action offers the best solution.
 Underlying assumptions
 Information and uncertainty: the assumption that managers are aware of all
alternative courses of action and their consequences is unrealistic.
  Managerial abilities: managers have only a limited ability to process the
information required to make decisions.
 Preferences and values: assumes managers agree about what are the most
important goals for the organization.

2. The Carnegie Model: Introduces a new set of more realistic assumptions about the
decision-making process, known as the Bounded Rationality Model (Cyert, March, and
Simon, 1960s).
- Satisficing: limited information searches to identify problems and alternative
solutions
- Bounded rationality: a limited capacity to process information
- Organizational coalitions: solution chosen is a result of compromise, bargaining,
and accommodation between coalitions.

3. The Incrementalist Model: managers select alternative courses of action that are only
slightly, or incrementally, different from those used in the past.
- Perceived to lessen the chances of making a mistake.
- They correct or avoid mistakes through a succession of incremental changes.

4. The Unstructured Model: describes how decision making takes place in environments
of high uncertainty.
- Unstructured model recognizes uncertainty in the environment.
- Managers rethink their alternatives when they hit a roadblock.
- Decision making is not a linear, sequential process leading to nonprogrammed
decisions.

5. The Garbage Can Model: a view of decision making that takes the unstructured
process to the extreme.
- Decision makers are as likely to start decision making from the solution side as the
problem side.
- Different coalitions may champion different alternatives.
- Decision making becomes a “garbage can” in which problems, solutions, and
people all mix and contend for organizational action.
- Selection of an alternative depends on which person’s or group’s definition of the
current situation holds sway.
 Create decision-making opportunities that they can solve with ready-made
solutions based on their competencies and skills.
 SUMMARY
- Rational Model → Logical, research-based, and structured.
- Carnegie Model → Political, coalition-driven, and negotiation-based.
- Incrementalist Model → Gradual, adaptive, and step-by-step changes.
- Unstructured Model → Reactive, flexible, and influenced by circumstances.
- Garbage Can Model → Chaotic, random, and based on momentary opportunities.
- Three of the most common performance measures used to control subsidiaries
are:
1. Financial performance typically is measured by profit and return on
investment.
2. Quality performance often is controlled through quality circles.
3. Personnel performance typically is judged through performance
evaluation techniques.

II. Decision-making in Global Firms

- The decision-making process for international managers is often linear.
- The degree to which managers are involved in this procedure depends on the
structure of the subsidiaries and the location of decision-making.
- If decision making is centralized, most important decisions are made at the top;
- If decision making is decentralized, decisions are delegated to operating
personnel.
- Cultural differences can both inspire and motivate the process and outcome of
decision making.
 The managerial decision-making process, choosing a course of action among
alternatives, is a common business practice becoming more and more relevant for
the international manager as globalization becomes more pervasive.
III. The Nature of Organizational Learning
1. Organizational learning: the process through which managers seek to improve
organization members’ desire and ability to understand and manage the organization and
its environment. Creates an organizational capacity to respond effectively to the changing
business environment.
E.g. A company launches a new product that fails in the market. Instead of only
making a better decision next time, they analyze consumer feedback, identify internal
process gaps, and improve cross-functional collaboration—turning failure into
organizational learning.
- Exploration: organizational members search for and experiment with new kinds
or forms of organizational activities and procedures.
- Exploitation: organizational members learn ways to refine and improve existing
organizational activities and procedures.
Learning organization: an organization that purposefully designs and constructs
its structure, culture, and strategy so as to enhance and maximize the potential for
organizational learning to take place.
Employees at all levels must be able to analyze the way an organization performs
and experiments with change to increase effectiveness.

2. Levels of Organizational Learning: Individual -> Group -> Organizational ->

Interorganizational.

3. Factors Affecting Organizational Learning

Cognitive structure: system of interrelated beliefs, preferences, expectations, and
values that predetermine responses to and interpretations of situations. These shape the
way managers make decisions and perceive environmental opportunities and threats.
- Cognitive biases: systematically bias cognitive structures to cause misperception
and misinterpretation of information, thereby affecting organizational learning and
decision making.
- Cognitive dissonance: state of discomfort or anxiety experienced when there is an
inconsistency between one’s beliefs and actions. Managers seek or interpret
information that confirms and reinforces their beliefs and ignore information that
does not.
- Illusion of control: causes managers to overestimate the extent to which the
outcomes of an action are under their personal control
- Frequency: deceives people into assuming that extreme instances of a
phenomenon are more prevalent than they really are
 - Representativeness: leads managers to form judgments based on small and
unrepresentative samples.
- Projection: allows managers to justify and reinforce their own preferences and
values by attributing them to others
- Ego-defensiveness: leads managers to interpret events in such a way that their
actions appear in the most favorable light
- Escalation of commitment: leads managers to remain committed to a losing
course of action and refuse to admit that they have made a mistake.

IV. What is Organizational Change?

1. Organizational Change: The process by which organizations move from their present
state to some desired future state to increase their effectiveness. Goal is to find improved
ways of using resources and capabilities in order to increase an organization’s ability to
create value.
Typical kinds of change efforts directed at human resources include:
1. Investment in training and development.
2. Socializing employees into the organizational culture.
3. Changing organizational norms and values to motivate a multicultural and
diverse workforce.
4. Promotion and reward systems.
5. Changing the composition of the top- management team.
Change efforts directed at functional resources by transferring resources to the
functions where the most value can be created in response to environmental change.
An organization can improve the value that its functions create by changing its
structure, culture, and technology.
Change efforts directed at technological capabilities are intended to give an
organization the capacity to change itself in order to exploit market opportunities
Technological capabilities are a core competence.
Change efforts directed at organizational capabilities alter organizational culture
and structure, thereby permitting the organization to harness its human and functional
resources to exploit technological opportunities.

2. Targets of Change: include improving effectiveness at four different levels:

- Human resources.
- Functional resources.
 - Technological capabilities.
- Organizational capabilities.

3. Forces for Change

- Competitive forces: organization must make changes to attempt to match or
exceed its competitors on at least one of the following dimensions:
 Efficiency.
 Quality.
 Innovation.
- Economic, political, and global forces: affect organizations by forcing them to
change how and where they produce goods and services. Need to change
organizational structure to:
 Allow expansion in foreign market.
 Adapt in a variety of national cultures.
 Help expatriates adapt to the cultural values of where they are located.
- Demographic and social forces: changes in the composition of the workforce and
the increasing diversity of employees has presented many challenges for
organizations. Increased need to manage diversity.
- Ethical forces: government, political, and social demands for more responsible
corporate behavior.
 Creation of ethics officer position.
 Encourage employees to report unethical behaviors.
 Chapter 5: MOTIVATIONS AND LEADERSHIPS
A. MOTIVATION
I. The Nature of Motivation
Motivation is a psychological process in which unsatisfied wants or needs lead to
drives that aimed at goals or incentives.

The basic motivation Which leads to a Leading to goal

process starts with drive toward a goal attainment—need
an unsatisfied need. to satisfy this need. satisfaction.

Motivation can be:

- Intrinsic, an individual is fulfilled by carrying out an activity itself and helping
others.
- Extrinsic, the external environment and activity outcome - competition and
compensation or incentive plans - are more important.
Examples in business:
- Intrinsic motivation: Programmers at VNG enjoy solving difficult problems and
feel proud as their skills improve.
- Extrinsic motivation: Sales staff at Mobile World (Thế Giới Di Động) work to
meet daily KPIs in order to earn commissions.

II. Content and Process Theories

1. Content theories
→ Explain what employees need in order to be motivated.
→ Focus on needs: Maslow, Herzberg, Achievement.

2. Process theories
→ Explain how employees choose their behaviors: why they choose Behavior A instead
of Behavior B.
→ Focus on processes: Equity, Goal-setting, Expectancy.
Business example:
An employee at MB Bank wants to get promoted.
However, if they think “no matter how hard I try, I still won’t succeed,” the Expectancy
Theory breaks down → they lose motivation.

III. The Maslow’s Hierarchy-of-Needs Theory

This theory postulates that everyone has five basic needs, in a hierarchy.
- Physiological needs are basic physical needs for water, food, clothing, and
shelter - in the work context - wages and salaries.
- Safety needs are desires for security, stability, and absence of pain.
- Social needs are interaction, affiliation, and being wanted by others.
- Esteem needs are needs for power and status.
- Self-actualization needs are a desire to reach one's full potential.

Key assumptions (Giả định chính):

- One assumption is that lower-level needs must be satisfied before higher-
level needs can be achieved.
- A second is that a satisfied need no longer serves as a motivator.
- A third is that there are more ways to satisfy higher-level needs than there are
ways to satisfy lower-level needs.

IV. Herzberg’s Two-Factor Theory of Motivation

Formulated by well-known work-motivation theorist Frederick Herzberg and his
colleagues - closely linked to the need hierarchy.
• The two-factor theory of motivation identifies two sets of factors that influence
job satisfaction: hygiene factors and motivators.
 • The data from which the theory was developed were collected when respondents
answered two basic types of questions.
• When did you feel particularly good about your job?
• When did you feel exceptionally bad about your job?
• Responses to the first question generally related to job content and Herzberg called
these job content factors motivators.
• Responses to the second question related to job context and Herzberg called these
job-context factors hygiene factors.

According to the two-factor theory, if hygiene factors are not taken care of or are
deficient, there will be dissatisfaction.
• If hygiene factors are taken care of, there may be no dissatisfaction, but there also
may be no satisfaction.
• Only when motivators are present will there be satisfaction.
One criticism involves the classification of money as a hygiene factor and not as a
motivator - there is no universal agreement on this point.
A second line of criticism is whether Herzberg developed a total theory of motivation.
• Some argue that findings actually support a theory of job satisfaction.
 Hygiene factors: Nếu thiếu -> gây bất mãn; Nếu có đầy đủ -> chỉ giúp “không bất
mãn”, không tạo hài lòng mạnh.
 Motivators: Khi xuất hiện, tạo động lực mạnh, hài lòng mạnh.
Cross-Cultural Job-Satisfaction Studies
Motivators are more important to job satisfaction than hygiene factors.
• A comparison shows that hygiene is strongly associated with factors that relate to
job dissatisfaction (or avoidance of).
• And that motivation correlates with factors that drive job satisfaction.

V. Motivation Theories
1. Achievement Motivation Theory
Achievement motivation theory holds that individuals can have a need to get ahead to
attain success and to reach objectives.
Đặc điểm:
• A characteristic profile of high achievers include those who take personal
responsibility for finding solutions to problems.
• Second, they tend to be moderate risk takers.
• Third, they want concrete feedback on their performance.
• High achievers can be developed, không phải bẩm sinh.
Shortcomings (Hạn chế):
• One is that it relies almost solely on the projective personality Thematic
Apperception Test (TAT) to measure individual achievement.
• Another concern is that achievement motivation is grounded in individual effort—
but many countries focus on groups.
 The important point is that achievement is a learned need and therefore not
universal and may change over time.

2. Popular Process Theories

- Process theories explain how employee behavior is initiated, redirected, and
halted.
- Some of these theories have been used to examine motivation in the international
arena.
- Among the most widely recognized are equity theory, goal-setting theory, and
expectancy theory.

2.1. Equity Theory

Equity theory focuses on how motivation is affected by people’s perception of how
fairly they are being treated.
• If people perceive they are being treated equitably, it has positive effects on job
performance and satisfaction, no need to strive for equity.
 • If they perceive unfair treatment, especially in relation to others, their
dissatisfaction negatively effects job performance, they strive for equity.
• Findings support the basic concepts of equity theory in Western work groups.
• However, when the theory is examined on an international basis, results are mixed.
• Perhaps the biggest shortcoming is that the theory appears to be culture-bound.
 Although the theory may explain guiding motivation principles in the U.S. and
Canada, it may have limited value in Asia and Latin America.

2.2. Goal-Setting Theory

Goal-setting theory focuses on how individuals go about setting goals and responding to
them and the overall impact of this process on motivation.
There are specific areas given attention in goal-setting theory.
• The level of participation in setting goals.
• Goal difficulty.
• Goal specificity.
• The need for objective, timely feedback to progress toward goals.
Unlike many theories of motivation, goal setting has been continually refined and
developed.
• Research shows that employees perform well when assigned specific and
challenging goals they have a hand in setting.

2.3. Expectancy Theory

Expectancy theory postulates that motivation is influenced by a person’s belief of the
following.
• Effort will lead to performance.
• Performance will lead to specific outcomes.
• The outcomes will be of value to the individual.
In addition, the theory predicts that high performance followed by high rewards will lead
to high satisfaction.
Remember that expectancy theory is based on employees having considerable control
over their environment.
• A condition that does not exist in many cultures, such as Asia.
 In short, the theory seems culture-bound, remember this when applying this theory
to motivate human resources.
B. LEADERSHIP
I. The Manager-Leader Paradigm

 Many believe there exist clear distinctions in characteristics and behaviors

between a manager and a leader.
 Some believe leaders are born but managers can be shaped.
 Managers may lead and leaders may perform management functions.
 Managerial positions often consist of sheer responsibility.
 Leader status is not learned, but earned through respect.
 Leaders guide and motivate team members and are extremely visible.
 Leaders get the right people in the right positions and motivate them.
 Proactive behavior is crucial as leaders create change with a vision.
 Leadership is about the drive to ultimately do the right thing.
Firms are searching for an all-encompassing package of skill sets.
 Internationally, we assume a high level of overlap in characteristics.

II. Theory X – Y – Z Managers

1. Theory X
A Theory X manager believes people are lazy and coercion and threats often are
necessary to get them to work.
• People do not like to work and will avoid it whenever possible.
• Workers have little ambition, and like to be directed.
• The primary need of employees is job security.
 • Coerce, control, and threaten to get people to attain organizational objectives.
Example: nhà máy may, công nhân dây chuyền.

2. Theory Y
A Theory Y manager believes people work hard and seek responsibility and challenge.
• Physical and mental effort at work is natural.
• People’s can use self-direction and self-control.
• There need to be rewards for obtaining objectives.
• Humans seek responsibility.
• Imagination, ingenuity, and creativity are common.
Human intellectual potential is only partially tapped.
Ex: VNG, FPT Software trao quyền nhân viên trẻ.

3. Theory Z
A Theory Z manager believes workers seek opportunities to participate in management
and are motivated by teamwork and responsibility.
• People are motivated by a strong sense of commitment to be part of a greater
whole.
• Employees seek responsibility and look for opportunities to advance in an
organization.
• Employees with different aspects of the business contribute to the broader goals.
• Committing to employees’ security engenders strong bonds of loyalty, making the
firm more productive and successful.
In sum, each of these three theories, X, Y, and Z, provides useful insights.

III. Leadership Styles

1. Authoritarian Leadership (Độc đoán)
Authoritarian leadership is work-centered behavior designed to ensure task
accomplishment.
• Typically one-way communication from manager to subordinate.
• Focus is on work progress, work procedures, and roadblocks.
• Managers lack involvement with subordinates, and final decisions are in the hands
of the higher-level employees.
• This leadership style is effective in handling crises, but some leaders employ it as
their primary style regardless of the situation.
• Widely used by Theory X managers.
2. Paternalistic Leadership (Gia trưởng)
Paternalistic leadership uses work-centered behavior coupled with a protective
employee-centered concern.
• This leadership style can be best summarized by the statement, “Work hard and
the company will take care of you.”
• Usually, this leadership behavior satisfies some employee needs, and in turn
subordinates tend to exhibit loyalty and compliance.
• More broadly, paternalistic leadership has been shown to positively impact
employees’ attitudes in collectivistic cultures.

3. Participative Leadership (Tham gia)

Participative leadership is the use of both work-centered and people-centered
approaches to lead subordinates.
• These leaders encourage people to play an active role in assuming control of their
work, and authority usually is highly decentralized.
• The way in which leaders motivate employees: consulting with employees,
encouraging joint decisions, or delegating responsibilities.
• Regardless of the method, employees tend to be more creative and innovative
when driven by leaders exhibiting this behavior.
• Participative leadership is very popular in many technologically advanced
countries.

4. Transformational Leadership (Chuyển đổi)

Transformational leaders are visionary with a sense of mission, capable of motivating
followers to accept new goals and new ways of doing things.
Bass discovered the 4 I’s:
• Idealized influence.
• Inspirational motivation.
• Intellectual stimulation.
• Individualized consideration.
5. Charismatic Leadership (Lôi cuốn)
Charismatic leaders inspire and motivate employees through their charismatic traits and
abilities.

6. Transactional Leadership (Giao dịch)

Transactional leaders exchange rewards for effort and performance and work on a
“something for something” basis.
7. Servant Leadership (Phục vụ)
• Servant-leaders achieve results for their organizations by giving priority attention
to the needs of their colleagues and those they serve.
• Servant-leaders are often seen as humble stewards of their organization’s
resources (human, financial, and physical).
• In order to be a servant leader, one needs the following qualities: listening,
empathy, healing, awareness, persuasion, conceptualization, foresight,
stewardship, growth, and building community.
• There have been several studies on servant leadership, all identifying key qualities
needed by the leader.
Unlike a top-down hierarchical style, servant leadership instead emphasizes
collaboration, trust, empathy, and the ethical use of power.
• The objective is to enhance the growth of individuals in the organization and
increase teamwork and personal involvement.

8. Entrepreneurial Leadership
A critical factor in the long-term success of a new venture is the personal leadership
ability of the entrepreneurial CEO, who has the following.
• They appear to be more creative and innovative.
• They tend to break the rules and do not need structure, support, or an organization
to guide their thinking.
• They are able to see things differently and add to a product, system, or idea value
that amounts to more than an adaptation or linear change.
• They are more willing to take personal and business risks and to do so in visible
and salient ways.
• They are opportunity seekers, comfortable with failure, rebounding quickly.
Entrepreneurial leaders operating internationally must possess the cultural sensitivity,
international vision, and global mindset to effectively lead their venture.

Chapter 6: COMMUNICATION AND TEAMWORK

A. COMMUNICATION
I. The Overall Communication Process
Communication is the process of transferring meanings from sender to receiver.
 The effectiveness of communication in the international context often is
determined by how closely the sender and receiver have the same meaning for the same
message.
• If their meanings are different, effective communication will not occur.
• A U.S. firm wanted to increase production in their Japanese plant so they
began an individual incentive plan effective in the U.S.
• The plan flopped in Japan as workers were accustomed to working in
groups and being rewarded as a group.
There are a great many problems in the international arena that can result in the
failure to transfer meanings correctly.
In addition, the means and modes of communication have changed dramatically
in recent decades.
• On the plus side, we have more opportunities to communicate rapidly, and
enrich the content with photos, videos, and links.
• On the other hand, there is some concern these devices make our
communication less meaningful and personal.

II. Communication Media Types

There is no one best communication medium for managers to rely on.

In choosing a medium for any message, managers need to consider three factors:
1. Information richness
2. The time needed for communication
3. The need for a paper or electronic trail or other written documentation that a
message was sent and received.
III. Verbal Communication Styles

Context surrounds and helps convey the message.

- High-context societies have coded and implicit messages.
 Direct and straightforward.
 Value data and logic.
 Saying “no” directly is normal → Suitable for transparent environments.
- Low-context societies have explicit messages.
 Avoid direct speech.
 Use implied meanings.
 Avoid causing others to “lose face” → Relationships are more important than
literal answers.
Ex: Nhật: “It may be difficult” = từ chối; Mỹ nghe câu đó hiểu: “Họ sẽ thử”.

IV. Communication Flows

1. Downward (Cấp trên → Cấp dưới)
Downward communication is the transmission of information from manager to
subordinate.
• The primary purpose is to convey orders and information.
• In the international context, this poses special challenges.
• In Asian countries, downward communication is less direct than in the U.S.
• In some European countries, downward communication is direct and
extends beyond work.
2. Upward (Cấp dưới → Cấp trên)
Upward communication is the transfer of information from subordinate to superior.
• The primary purpose is to provide feedback, ask questions, or obtain assistance.
• The U.S. now seeks to increase upward communication.
• In other countries, it has long been a fact of life.
• Employees want upward communication.
• It does not always occur due to communication barriers.

V. Barriers to Communication
1. Language (Ngôn ngữ)
If managers do not understand the language that is used at headquarters, they
likely will make a wide assortment of errors.
• Language training continues to lag in the U.S.
• Increasingly, European countries have multilingual young people.
The ability to speak the language used at headquarters is often not enough to ensure
that the personnel are capable of doing the work.
• Many MNCs place importance on an applicant’s ability to speak English—not
considering if they can interact with others.
• Culture is routinely not taken into account during interviews.
• Nonnative speakers may know the language, but not be fluent.
Poor writing is proving to be a greater barrier than poor talking.
• Advancements in technology may eliminate many language barriers.

2. Culture (Văn hoá)

Culture affects communication through values and misinterpretation.
• In Middle Eastern countries, people do not relate to and communicate with each
other in a loose, general way as do people in the U.S.
• Relationships are intense and binding and class and status matter.
• Another cultural value is the way that people use time.
• In the U.S., people believe time is an asset and is not to be wasted.
• An idea with limited meaning in some other cultures.
Cultural differences can cause misinterpretations both in how others see expatriate
managers and in how the latter see themselves.
• The informal approach used in the U.S. is not used everywhere.
• Many Americans also have difficulty interpreting the effect of national
values on work behavior.
 - A significant number of native speakers in the U.S. might deviate from the
standard business communication practices of other cultures.
- Even in English-speaking countries, there are different approaches to writing
letters.
- When compared to Asians, many American writers are far more blunt and direct.

3. Perceptual (Nhận thức)

Perception is a person’s view of reality.
In international incidents, perception and misperceptions are critical.
A failure to understand home-country perceptions can result in disastrous
advertising programs.
• In Taiwan, “Come alive with Pepsi” frightened consumers as it literally meant
“Pepsi will bring your ancestors back from the grave.”
Managers must be careful when translating messages.
• Common phrases in one country will not mean the same in others.
Perception influences how individuals “see” others.
- Most Americans see themselves as friendly, outgoing, and kind, and believe others
see them in this way.
- Many are unaware of the negative impressions they give to others.

4. Nonverbal Communication (phi ngôn ngữ)

Nonverbal communication transfers meaning through body language and physical
space.
- Kinesics is body movement and facial expression.
• Communicating through eye contact/gaze is oculesics.
• Communicating through bodily contact is known as haptics.
- Proxemics—people use physical space to convey messages.
• Intimate distance, personal distance, social distance, and public distance.
- Chronemics refers to the way in which time is used in a culture.
• In a monochronic time schedule, things are done in a linear fashion.
• In a polychronic time schedule, people multitask and place higher value on
involvement than on completion.
- Chromatics is the use of color to communicate messages.
• Such knowledge can help you avoid embarrassing situations.

B. TEAMWORK AND CONFLICT

I. Understanding Groups
1. Group
- Two or more interacting and interdependent individuals who come together to
achieve specific goals.
- Formal groups
 Work groups defined by the organization’s structure that have designated
work assignments and tasks.
 Appropriate behaviors are defined by and directed toward organizational
goals.
a. Top Management Teams
 Includes the CEO, CFO, COO, etc.
 Responsible for setting overall strategy and direction.
b. R&D Teams
 Focus on research and development.
 Members are selected based on specialized expertise.
 Example: Intel’s chip development team.
c. Command Groups
 Groups formed based on the reporting structure.
 Example: a team of employees under a department manager.
d. Task Groups
 Created to complete a specific task.
 Dissolved after the task is completed.
e. Task Force (Ad-hoc Committees)
 Cross-functional teams formed to solve major issues.
 Example: Samsung’s crisis communication task force.
- Informal groups
 Groups that are independently formed to meet the social needs of their
members.
a. Friendship Groups
 Form naturally based on shared interests or personal relationships.
 Example: a running club within the company.
b. Interest Groups
 Groups formed around common goals (e.g., demanding higher wages,
improving benefits, etc.).
- Virtual Teams (Đội làm việc ảo)
a. Characteristics of virtual teams
 Members are located in multiple countries
 Different time zones
  Communicate via email, Zoom, Slack, Teams
 High risk of misunderstanding if not managed well
b. Advantages
 Cost-effective
 Ability to hire top talent globally
 24/7 productivity (due to multi–time-zone teams)
c. Challenges
 Lack of a strong “team spirit”
 Difficult to track progress
 Hard to build trust
 Differences in work culture

2. Work Team
A group whose members work intensely on a specific common goal using their
positive synergy, individual and mutual accountability, and complementary skills.

II. Stages in Group Development

1. Forming: Members join and begin the process of defining the group’s purpose,
structure, and leadership. Members test water. Interactions are superficial.
Honeymoon Stage.
 2. Storming: Intragroup conflict occurs as individuals resist control by the group and
disagree over leadership. There are healthy and unhealthy type of storming.
3. Norming: Close relationships develop as the group becomes cohesive and
establishes its norms for acceptable behavior. Conflicts are no longer as frequent
to throw group off course. It is a necessary transition step.
4. Performing: A fully functional group structure allows the group to focus on
performing the task at hand. A payoff stage. Group has developed its relationship,
structure, purpose.
5. Adjourning: The group prepares to disband and is no longer concerned with high
levels of performance.

III. Group Behavior Conditions

1. External (Organizational) Conditions
- Overall strategy
- Authority structures
- Formal regulations
- Available organizational resources
- Employee selection criteria
- Performance management (appraisal) system
- Organizational culture
- General physical layout

2. Internal Group Variables

- Individual competencies and traits of members
- Group structure
- Size of the group
 - Cohesiveness and the level of intragroup conflict
- Internal pressures on members to conform on the group’s norms

IV. Motivating Teamwork

1. Social Loafing (Lười biếng xã hội)
- Working less hard and being less productive when in a group.
- When working in groups → individuals tend to put in less effort than when
working alone
- Occurs more frequently in individualistic cultures
- Solutions:
 Assign specific tasks to each member
 Use both individual KPIs and team KPIs
 Make contributions transparent and acknowledged

2. Social Facilitation Effect (Hiệu ứng thúc đẩy xã hội)

- Working harder when in a group than when working alone.
- The presence of others makes individuals work faster.
- Effective in competitive environments.
- Example: An internal competition within the sales team leads to higher
performance.

3. Cohesiveness (Độ gắn kết nhóm)

- The degree to which a group is attractive to its members, members are motivated
to remain in the group, and members influence one another.
- High cohesion → strong cooperation → high performance
- But if cohesion is too strong → groupthink (no one dares to disagree)
- Ways to increase cohesion:
 Share common goals
 Team-building activities
 Create a mutually respectful environment.
4. Managing Global Teams (Quản lý đội nhóm đa văn hoá)
- Group Member Resources:
 Unique cultural characteristics of team members.
 Avoiding stereotyping.
- Group Structure:
 Conformity - less groupthink.
 Status - varies in importance among cultures.
  Social loafing - predominately a Western bias.
 Cohesiveness - more difficult to achieve.
- Group Processes - capitalize on diverse ideas.
- Manager’s role – a communicator sensitive to the type of globe team to use.

V. Conflict & Conflict Management

1. Conflict
The perceived incompatible differences in a group resulting in some form of
interference with or opposition to its assigned tasks.
- Traditional view: conflict must be avoided.
- Human relations view: conflict is a natural and inevitable outcome in any group.
- Interactionist view: conflict can be a positive force and is absolutely necessary
for effective group performance.

2. Categories of Conflict
- Functional conflicts are constructive.
- Dysfunctional conflicts are destructive.

3. Types of Conflict
- Task conflict: content and goals of the work.
- Relationship conflict: interpersonal relationships.
- Process conflict: how the work gets done.
4. Techniques to Reduce Conflict
- Avoidance: Use when the issue is minor or to let things cool down.
- Accommodation: Yielding when maintaining the relationship is more important
than winning.
- Forcing: Apply when a quick decision is needed and data is clear.
- Compromise: Each side gives a little; both parties’ concerns are moderately
addressed.
- Collaboration: Win–win approach; best when there is time and an optimal
solution is needed – time-consuming but sustainable.

Chapter 7: ETHICS, SUSTAINABILITY AND DIVERSITY

A. ETHICS (ĐẠO ĐỨC)
I. Ethics
1. The Nature of Ethics
- Considering international firms from the ethics and social responsibility
perspective is important.
- Companies must consider the various and often conflicting needs of each of their
stakeholders.
  Shareholders want additional sales and increased productivity.
 Employees want safer workplaces and higher compensation.
 Customers want higher-quality products at lower prices.
 Society wants more jobs, increased corporate taxes, more corporate support
for social services, and more trustworthy behavior by company executives.
- Ethics are the inner guiding moral principles, values, and beliefs that people use
to analyze or interpret a situation and then decide what is the right or
appropriate way to behave.
- Ethical issues are central to how companies and their managers make decisions,
and they affect not only the efficiency and effectiveness of company operations
but also the well-being of all relevant stakeholders.
- Ethical beliefs alter and change as time passes, and as they do so, laws change to
reflect the changing ethical beliefs of a society.
 Create competitive advantages (a more trustworthy brand).
 Reduce the risk of being seen as irresponsible or being penalized.
 Attract and retain talented employees.
 Avoid boycotts and damage to reputation.

2. Why Do Companies Care?

Ethics is not only about “doing the right thing” but also about creating long-term benefits:
- Creating competitive advantages (a more trustworthy brand).
- Reducing the risk of being seen as irresponsible or being penalized.
- Attracting and retaining talented employees.
- Avoiding boycotts and reputational damage.
- Develop a competitive advantage.
- Avoid being perceived as irresponsible.
Ethical behavior can be important for developing a competitive advantage and to avoid
being perceived as irresponsible.
Today, many nongovernmental organizations, or NGOs, actively encourage companies
to comply with certain standards of ethical behavior.
Example:
+ Starbucks theo đuổi “Ethical Sourcing”: cà phê được mua từ nông trại tuân thủ đạo
đức → được khách hàng đánh giá cao.
+ Ngược lại, vụ scandal “Dieselgate” của Volkswagen khiến công ty tốn hàng chục tỷ
USD dù chỉ là gian lận phần mềm.
3. Managerial Ethical Rules (Quy tắc đạo đức dành cho nhà quản lý)

a. Utilitarian Rule: A decision is considered ethical if it brings the greatest good to the
greatest number of people.
Example: A factory reduces its night-shift operating hours to lower noise pollution for
nearby residents, even though it increases operating costs.

b. Moral Rights Rule: Decisions must protect and uphold fundamental human rights such
as privacy, freedom, and safety.
Example: A company cannot install cameras in employees’ break areas because it
violates their privacy.

c. Justice Rule: Benefits and harms must be distributed fairly, transparently, and without
bias.
Example: KPI evaluations should be based on actual data, not personal feelings or
relationships.

d. Practical Rule: A decision is considered ethical if the manager feels comfortable

making it public without facing social criticism.
Examples:
- Unilever publicly releases its annual sustainability reports.
- IKEA allows independent audits of its supply chain and publishes the results.
4. Sources (Drivers) of Ethics Decisions

There are four major sources that influence ethical behavior in organizations:
a. Societal ethics: Cultural norms, ideologies, and traditions.
Example: Japanese society values honesty → companies enforce strict transparency
standards.

b. Occupational ethics: Professional codes of conduct and standards.

- Lawyer: must keep client information confidential
- Doctor: must not exploit patients
- Accountant: must not manipulate financial reports

c. Individual ethics: Personal beliefs and values of each employee/manager.

Example: A manager who values honesty will refuse to sign an overly optimistic revenue
report even under pressure.

d. Organizational ethics: Values, beliefs, and internal culture.

Example: “Don’t be evil” was once Google’s core guiding value.

5. Failures in Professional Ethics

a. Production & operations
- Ignoring quality defects
- Releasing dangerous product batches
- Overlooking labor safety to cut costs
Example: Chemical plant explosions in China due to reduced safety measures

b. Marketing & sales

- False advertising
 - Misleading imagery
- Targeting vulnerable groups (children, the elderly)
Example: Some supplement ads exaggerate their effectiveness

c. Finance & accounting

- Manipulating data, hiding debt
- Using company money for personal luxury
- Lack of transparency with shareholders
Example: Enron collapsed after years of accounting fraud

d. Human resources
- Favoritism
- Violating employee privacy
- Ignoring bullying/harassment
- Failing to address toxic workplace environments

6. Corruption and Bribery

- Corruption: the misuse of entrusted power for private gain.
- Bribery: payments or promises to pay cash or anything of value.
- Common areas where bribery occurs:
 Government contracts
 Licensing processes
 Bidding/tenders
 Customs & import operations
Example: Walmart Mexico was investigated for bribing officials to fast-track store
openings.

7. Ethics and the Environment

- Companies can harm the environment through:
 Air, water, and soil pollution
 High-emission products
 Unsustainable resource extraction
Example: Many oil companies have had to spend billions to clean up oil spills and
improve processes.
II. Corporate Social Responsibility (CSR)
CSR reflects how a business perceives its obligations toward society: protecting welfare,
reducing harm, and creating positive impact.

1. Four Approaches to CSR

a. Obstructionist Approach – The company hides, denies responsibility, and avoids
regulations.
Example: Illegally dumping waste, burying toxic materials, refusing to cooperate with
investigations.

b. Defensive Approach – The company complies only with the minimum legal
requirements; does just enough.
Example: Only preparing environmental reports when required by law.

c. Accommodative Approach – The company accepts responsibility and improves when

pressured or requested.
Example: After media criticism, a fashion brand increases inspections of its subcontracted
factories.

d. Proactive Approach – The company voluntarily sets high standards and leads in ethics
and sustainability.
Example: Patagonia recycles 90% of materials and donates profits to environmental
protection.

2. Motivations for Pursuing Social Responsibility

Unethical behavior leads to:
- Legal risks
- Consumer boycotts
- Lower employee morale
- Declining sales
- Long-term reputational damage
Example: After a scandal goes viral on social media, a brand can lose millions of dollars
in revenue.
3. Code of Conduct
An ethical company establishes:
- A global code of conduct
- Clear communication with employees, suppliers, and partners
 - Compliance monitoring
- Reporting to society and shareholders
Example: Nike requires its subcontracted factories to comply with international labor
standards (ILO).

B. DIVERSITY
I. Diversity
1. Diversity
Dissimilarities or differences among people due to age, gender, race, ethnicity,
religion, sexual orientation, socioeconomic background, education, experience,
physical appearance, capabilities and disabilities, and any other characteristic that is
used to distinguish between people.
There is an ethical imperative for equal opportunity.
Effectively managing diversity can improve organizational effectiveness.
There is substantial evidence that diverse individuals continue to experience unfair
treatment.
Ví dụ: Một công ty đa quốc gia như Unilever có nhân sự đến từ hơn 70 quốc gia → ngôn
ngữ, phong tục, phong cách lãnh đạo đều khác nhau.
Diversity is dissimilarities—differences—among people due to age; gender; race;
ethnicity; religion; sexual orientation; socioeconomic background; education;

Experience; physical appearance; capabilities/disabilities; and any other

characteristic that is used to distinguish between people.
2. Why is diversity important?
Diversity helps organizations:
- Increase innovation capability
- Generate more creative ideas
- Improve the quality of decision-making
- Prevent groupthink
- Better understand the needs of multicultural markets
- Increase employee engagement
- Boost long-term profitability
Ví dụ: Các công ty thuộc Fortune 500 có đội ngũ lãnh đạo đa dạng giới tính → hiệu suất
tài chính cao hơn, thị phần tăng nhanh hơn.

II. The Manager’s Role in Managing Diversity (Critical Managerial Roles)

Managers play a central role in creating and sustaining a diverse and inclusive (D&I)
environment. Their roles fall into three main categories:

1. Interpersonal Roles
a. Figurehead: Represents and demonstrates that the organization values diversity
through actions and communication.
Example: PwC’s CEO holds regular meetings with diverse employee groups to hear their
perspectives.

b. Leader: Creates policies and processes that ensure fair treatment.

Example: Microsoft leadership requires all managers to complete “Inclusive Leadership”
training.

c. Liaison: Connects diverse groups and creates collaboration opportunities.

Example: A manager assigns Indian and Brazilian employees to the same project so they
can understand each other better instead of working in isolation.

2. Informational Roles
a. Monitor: Observes and tracks fairness within the organization.
Example: Checking whether women and minority employees are promoted at rates
similar to men.
b. Disseminator: Communicates diversity policies throughout the organization.
Example: Sending monthly newsletters on D&I activities.
c. Spokesperson: Represents the company’s diversity commitments to partners and the
media.
Example: Apple regularly publishes transparent reports on workforce diversity.

Chapter 8: TECHNOLOGY, FLEXIBILITY AND

WELLBEING IN AN ORGANIZATION
I. Technology in the Workplace
1. Continuous Improvement Processes
Continuous improvement comes from the philosophy “good isn’t good enough”,
meaning an organization should never be satisfied with current results. The goal is to
minimize variations in processes so products/services become consistent, high-quality,
and low-cost.
- Good isn’t good enough.
- Focus is on constantly reducing the variability in the organizational processes to
produce more uniform products and services.
- Organizational impact.
Continuous improvement helps organizations:
 Eliminate defects from the beginning
 Optimize processes through small but steady steps
 Build a habit of improvement-oriented thinking in every employee
However, it can also create psychological pressure because employees must constantly
outperform their past performance.
Business example: Toyota’s Kaizen philosophy—workers can stop the production
line when they notice abnormalities, preventing defects and saving billions of USD
annually.

2. Process Reengineering
Unlike continuous improvement (which proceeds in small steps), process
reengineering means rebuilding everything from scratch. The goal is to achieve
breakthroughs in efficiency, speed, and quality.
- “Starting all over”.
- Rethinking and redesigning organizational processes to produce more uniform
products and services.
The process includes:
 Identifying core competencies: what the company does best
 Determining which processes directly add value to those competencies
  Redesigning activities horizontally, assigning tasks to cross-functional teams
instead of isolated departments
 Creating self-managed teams for greater autonomy
This approach breaks the old “departmental silos” model and replaces it with a
smoother process flow.
Business example: DHL reengineered its parcel-sorting process from multi-level
approvals to an automated flow system, reducing international delivery time from 72
hours to 36 hours.

3. Information Technology (IT) & Management Information Systems (MIS)

- Information Technology – set of methods or techniques for acquiring,
organizing, storing, manipulating, and transmitting information.
- Management Information System – specific form of IT that managers utilize to
generate the specific, detailed information they need to perform their roles
effectively.

Managers need information for three reasons:

1. To make effective decisions.
2. To control the activities of the organization.
3. To coordinate the activities of the organization.
 - More data improves decisions—but only when the data is timely, accurate, and
meaningful.
Business example: Vinamilk uses MIS to monitor milk production from each farm in
real time → reducing waste and increasing efficiency.

4. Limitations of Information Systems

4.1. Loss of the Human Element
- Information systems cannot present all kinds of information accurately.
 Thick information, which is rich in meaning and not quantifiable, is best
suited to human analysis.
 Information systems should support face-to-face communication, and not
be expected to replace it.

4.2. Causes of Difficult Implementations

– Information systems can be hard to develop and put into service.
– Consistent standards for systems do not exist.
 Makers of hardware use different standards which makes it hard to share
information between systems.

Technology processes data quickly, but it cannot replace thick information—

information that contains emotions, nuances, and context that computers cannot easily
capture.
In addition, implementing technology systems is challenging because:
 There is no universal standard for all software and hardware
 Many systems cannot communicate with one another
 Employees unfamiliar with technology may resist adoption
Business example: Some Vietnamese companies spend tens of billions of VND
integrating SAP with old systems that lack connection standards.

II. Trends and Challenges Affecting You in the Information Age Workplace
1. Social Media Use in Business and Disruptive Technologies
- Technology has led to a sharing economy, an economic model in which
individuals rent or borrow assets owned by others through disrupting services
such as Uber, Lyft, Bird, Lime, Spin, and Airbnb.
- Tech-savvy companies use consumer feedback to improve products and services
and are proactive in their social media strategies.
 - Skilled business communicators know how to select the best communication
channel, use each channel effectively, and build and safeguard credibility.

2. Anytime, Anywhere: 24/7/365 Availability

- Our present and future office is mobile, social, and always on.
- You may be expected to work long hours and be available practically anytime and
anywhere.
- Constant connectedness may lead to depression and anxiety.
Example: Employees in the United States spend eight hours a week on average answering
work e-mails after hours.

3. Global Markets and Competition

- Competition for high-end technology jobs and more complex products
(e.g., automobiles, microprocessors)
- Complications of multiple time zones; vast distances between offices; and
different languages, religions, customs, lifestyles, and business approaches
- Success requires developing new skills and attitudes (cultural awareness,
flexibility, and patience).
- New communication technologies, free-trade agreements, falling transportation
costs, and saturated local markets have encouraged companies to enter emerging
markets around the world.
- Opposition against globalization has grown, leading to calls for protectionism in
the United States and elsewhere.
- Even highly educated Americans will be competing with their smart counterparts
around the globe

4. Flattened Management Layers

- Flatter organizations mean fewer layers of management separate decision makers
from line workers, shorter lines of communication, faster decision making, quick
response to market changes, cost savings, and efficiency.
- Hierarchies can provide clarity and direction and minimize “interaction fatigue,”
where executives become too accessible.
- Tech firms and start-ups tend to gravitate toward a bossless organizational
structure, with one example being a radical system of self-management known as
a holacracy that was introduced by Tony Hsieh, the CEO of Zappos.
- Flatter organizations require proficient communication skills in every employee.
 - Online shoe retailer Zappos introduced a radical experiment—a system of self-
management its CEO Tony Hsieh called holacracy.
- He abolished job titles and managers, with Zappos workers digitally tracking
decisions and outcomes with an app.
- It wasn’t entirely successful, and Zappos suffered substantial staff departures.

5. Collaborative Environments and Teaming

- Teaming – a term meaning “teamwork on the fly: a pickup basketball game rather
than plays run by a team that has trained as a unit for years”
- Ad hoc teams – project-based teams that disband once they have accomplished
their objectives
- The independent workforce is growing, offering flexibility to workers and
employers, leading to a gig economy, where free agents are hired on a project
basis or doing other short-term, independent work.
- Whether companies form standing or ad hoc teams, individuals must work
together and share information.
- Companies prefer to hire new workers who already possess strong
communication, interpersonal, and collaboration skills.

6. Virtual and Nonterritorial Offices

- Virtual office – a workspace that’s mobile and decentralized.
- Anytime, anywhere office – an office that requires only a smartphone, a laptop,
and an Internet connection.
- Digital nomad – worker with a wandering lifestyle enabled by technology,
who often travels to exotic locales for extended periods of time.
- Palette of places – variable spaces that may include soundproof rooms,
team spaces, standing desks, etc.
- Coworking – a shared communal office space on an as-needed basis.
- Co-living – the sharing of coworking spaces and accommodations around the
world.
- With nearly ever-present Internet access, millions of workers no longer report to
nine-to-five jobs that confine them to offices.
- With flexible working arrangements, employees can work remotely at home, on
the road, or at a customer’s place of business.
- 43% of employed adults work remotely at least some of the time.
- Even traditional offices often use open-plan spaces that discourage territorial
behavior while encouraging casual interaction and spontaneous collaboration.
To avoid problems:
- List major organization goals and the information types require measure those
goals.
- Audit the current system to verify that information collected is accurate, reliable,
timely, and relevant.
- Investigate other sources of information
- Build support for the system with workers.
- Create formal training programs.
- Emphasize that face-to-face contact is important.
- “nudge” employees’ adaptability & flexibility.

III. Adaptability
1. Adaptability
- Adaptability is the nature of changing or create modifications in oneself to suit
to the new environment.
 For a workplace culture, it means that a person must be open to new ideas
or changes, must be able to work independently or in teams, or carry out
tasks that are not intended for one person only.
- Employers are increasingly shifting from single roles to rotation of roles and
flexible job descriptions.
 It’s a sought-after skill as it indicates the employee can adapt to changing
customer needs, technology trends.
 It is also tied to career growth as the person becomes more equipped.
- An adaptable employee is someone who can carry out multiple tasks, manage
multiple assignments by setting priorities and making changes to attitude to merge
with the new culture.
 To function or perform in the world in any situation or circumstances
requires an individual to possess the basic skill of adaptability.

2. Importance of Adaptability in the Workplace

Of all the skills that employers are looking out is:
- a person having adaptability.
- a core emotional intelligence quality.
- It is ranked the top among other important skills like communication, interpersonal
skills, work ethics and principles.
 IV. Flexibility
- Flexibility at the workplace allows one to evaluate what is happening and adjust
to the role and responsibilities or even the job being offered.
- It is very important for the employer and employee to be flexible as it creates a
streamlined workforce and technology adopted, due to changes in the market.
- There are various other factors when we talk about the word ‘flexible’ at work and
the importance of flexibility.

V. Job Satisfaction
1. Meaning and Definition
- Refers to the general attitude and feeling of an individual towards their jobs.
- “Job satisfaction is a pleasurable emotional state resulting from the appraisal of
one’s job or job experiences”.

2. Features of Job Satisfaction

- Job Satisfaction is a kind of attitude.
- It helps employee retention.
- Job satisfaction is linked directly with the motivation factors.

3. Determinants of Job Satisfaction

Determinants
of Job
Satisfaction

Individual Situational
Nature of Job
factors Variables

Level of Other Occupation Work

Age demographic Job content Supervision Rewards
education level conditions
factors

4. Why Job Satisfaction is Important?

- Influences on positive behavior.
- Increases productivity.
- Reduces employees’ turnover and absenteeism.
 - Improve the team spirit.

5. How it is measured?
- Rating Scales.
- Personal interviews.
- Tendencies measurement – satisfaction/dissatisfaction.
- Critical incidents technique.

V. Stress
A dynamic condition in which an individual is confronted with an opportunity,
constraint, or demand related to what he or she desires and for which the outcome is
perceived to be both uncertain and important.
Potential Sources of Stress:
- Environmental Factors:
 Economic uncertainties of the business cycle
 Political uncertainties of political systems
 Technological uncertainties of technical innovations
 Terrorism in threats to physical safety and security
- Organizational Factors:
 Task demands related to the job
 Role demands of functioning in an organization
 Interpersonal demands created by other employees
 Organizational structure (rules and regulations)
 Organizational leadership (managerial style)
 Organization’s life stage (growth, stability, or decline)
- Individual Factors:
 Family and personal relationships
 Economic problems from exceeding earning capacity
 Personality problems arising for basic disposition
- Individual Differences:
 Perceptual variations of how
reality will affect the individual’s
future.
 Greater job experience moderates
stress effects.
 Social support buffers job stress.
  Internal locus of control lowers perceived job stress.
 Strong feelings of self-efficacy reduce reactions to job stress.
VI. Burnouts
- Job burnout refers to the emotional exhaustion, depersonalization, and reduced
accomplishment.
- It is common among the professionals.
- Symptoms of burnout – Exhaustion, Cynicism and Negative self evaluation.
- Causes of Job Burnout:
 Lack of Recognization
 Big consequence of failure
 High stress times with no down times
 Impossible requirements
 Unclear requirements
 Poor fit for the job
 Lack of belief in what is done
 Shift work

VII. Managing Stress

- Individual Approaches:
 Implementing time management.
 Increasing physical exercise.
 Relaxation training.
 Expanding social support network.
- Organizational Approaches:
 Improved personnel selection and job placement.
 Training.
 Use of realistic goal setting.
 Redesigning of jobs.
 Increased employee involvement.
 Improved organizational communication.
 Offering employee sabbaticals.
 Establishment of corporate wellness programs.

VIII. Work-Life Balance

Work life balance is about individuals having a measure of control over when, where,
and how they work, leading them to be able to enjoy an optimum quantity of life.
 Options of Work-Life Balance: Flexi-time, Compressed workweek, Job sharing,
Flexible compensation, Telecommuting, Part-time work, Modified recruitment.
CÁCH TRẢ LỜI PHẦN TỰ LUẬN DỰA THEO KHUNG
WHY – WHERE – HOW – WHAT
Framework này giúp bài tự luận có logic – phân tích nguyên nhân – đưa giải pháp rõ
ràng, giống cách tư duy của nhà quản trị quốc tế.
Dù câu hỏi là “đa văn hóa tại UEH” hay “tình huống mâu thuẫn”, bạn đều áp dụng được.

1. WHY – VÌ SAO CÓ VẤN ĐỀ? (Nguyên nhân gốc)

→ Trả lời câu hỏi: Tại sao tình huống này xảy ra? Cốt lõi vấn đề nằm ở đâu?
Bạn phải chỉ ra root cause dựa trên lý thuyết.
- Ví dụ:
+ Sự khác biệt văn hóa (Hall, Hofstede).
+ Vai trò lãnh đạo yếu.
+ Cơ cấu tổ chức chưa rõ.
+ KPI/Policy gây xung đột.
-> Đây là trọng tâm để giám khảo thấy bạn phân tích đúng bản chất, không chỉ mô tả hiện
tượng.

2. WHERE – TÌNH HUỐNG DIỄN RA Ở ĐÂU? (Bối cảnh cụ thể)

→ Vị trí / bối cảnh tổ chức / nhóm / UEH / văn hóa nào?
- Bạn mô tả ngắn:
+ Trong nhóm làm nghiên cứu ở UEH
+ Trong nhóm đa văn hóa có sinh viên Việt Nam – Châu Âu
+ Trong tình huống lãnh đạo dự án
+ Trong môi trường học thuật quốc tế hóa
+ Bối cảnh giúp câu trả lời “thực tiễn”, đúng yêu cầu đề bài.

3. HOW – TẠI SAO NÓ ẢNH HƯỞNG TỚI HIỆU QUẢ? (Cách vấn đề tác động)
Phân tích cơ chế tác động:
- Giao tiếp kém → hiểu nhầm → mâu thuẫn
- Văn hóa khác nhau → kỳ vọng khác nhau → xung đột vai trò
- Quy trình không rõ → chậm tiến độ
- Lãnh đạo yếu → nhóm không đồng thuận
-> Đây là phần “phân tích”, không phải liệt kê.
4. WHAT – GIẢI PHÁP CỤ THỂ (Cái gì cần làm?)
Đề xuất 1 giải pháp rõ ràng, phù hợp với WHY & HOW.
Ví dụ:
- Thiết lập chuẩn giao tiếp chung
- Tái phân chia vai trò dựa trên năng lực
- Huấn luyện kỹ năng cross-cultural
- Áp dụng mô hình Tuckman để ổn định nhóm
- Điều chỉnh phong cách lãnh đạo
Kèm theo:
- Giải thích lý do giải pháp phù hợp
- Và 1 ví dụ minh họa ngắn

TOÀN BỘ CẤU TRÚC TRONG 1 BẢNG TÓM TẮT

Bước Ý nghĩa Viết gì?
WHY Nguyên nhân gốc Dựa theo lý thuyết để giải thích vì sao có vấn đề
WHERE Bối cảnh Nơi xảy ra vấn đề (UEH, nhóm đa văn hóa…)
Cơ chế ảnh
HOW Tại sao vấn đề làm giảm hiệu quả tổ chức?
hưởng
WHAT Giải pháp Đưa 1 giải pháp + giải thích + ví dụ minh họa

Câu 1:
- Hàn – Việt:
+ Communication Modes: 2
nguyên nhân chính khiến nhóm
làm trục trặc là:
 Kênh giao tiếp (email)
không hiệu quả -> đổi sang
Oral (gặp mặt trực tiếp để
trao đổi).
 Quy trình/cách thức nói
chuyện giao tiếp không rõ
ràng, thiếu căn cứ để đánh
giá lại -> xây lại quy trình -
> mỗi lần họp có biên bản
ghi lại (có vấn đề gì thì dò
 biên bản, không cần hỏi lại) -> đề xuất họp định kì (3 ngày/lần) sau đó
giảm tiến độ (7 ngày/lần); đưa quy tắc rõ ràng (nhân viên có thắc mắc thì
hỏi ngay hoặc hỏi trong bao nhiêu giờ).
+ Downword - Upword Communication:
 Downword: Người sếp hay quên check email.
 Upword: Nhân viên hỏi quá nhiều.

- Phillipines:
+ Communication Modes:
 Kênh giao tiếp (email) không hiệu quả. (quên cc, đính kèm cho người
Phillips) -> Dùng zalo (kênh informal) hoặc Line (như bên Hàn).
- Ma trận RACI (tham khảo thêm):
+ Responsible.
+ Accountable.
+ Consulted.
+ Informed.

Câu 2:
- Xác định mâu thuẫn trong đề là gì -> Phải giải thích ra tại sao lại là loại conflict đó
và tại sao lại không phải 2 cái còn lại.
+ Task:
+ Process conflict: liên quan đến quy trinh hoặc công việc từng người -> không có
mô tả -> X.
+ Relationship: mâu thuẫn về mặt tính cách, phong cách làm việc.
- Nguyên nhân của xung đột:
+ Avoidance: né tránh trách nhiệm -> X.
+ Accommodating: -> X.
+ Forcing: bắt buộc người khác làm theo ý mình -> X.
+ Compromise: yêu cầu mỗi bên nhường lại một chút.
+ Collaboration: thoả thuận, tìm giải pháp có ích cho cả hai bên.

- Bước 1: Tìm hiểu tâm tư, nguyện vọng của bạn Malay trước, tìm hiểu nguyên
nhân vì sao bạn rời nhóm.
- Bước 2: Tuỳ vào kĩ thuật các bạn chọn:
+ Compromise: Gặp và yêu cầu 2 bạn người Việt tém tém lại một chút -> ảnh
hưởng đến sức khoẻ tâm lý của bạn Malay.
 + Collaboration: Nghĩ đến tình huống win-win -> phải nghĩ đến phần thưởng
(ngân sách, certificate,...) -> đưa ra cơ chế để thưởng tuỳ theo đóng góp từng thành
viên -> có phân chia rõ ràng thì người trong nhóm sẽ có cơ sở để đóng góp phù
hợp.

LƯU Ý: Khi trả lời, không đi tìm HUNG THỦ, tập trung nhìn nhận vấn đề, cần có cái
nhìn khách quan.