Principle of management midterm assignment

UNIVERSITY OF ECONOMICS AND BUSINESS SCHOOL OF BUSINESS ADMINISTRATION ***** PRINCIPLE OF MANAGEMENT MIDTERM ASSIGNMENT SCHOOL YEAR 2022 2023 STUDENT Đỗ Ái Lâm STUDENT CODE 21050237 MODULE CODE BSA200[.]

UNIVERSITY OF ECONOMICS AND BUSINESS

SCHOOL OF BUSINESS ADMINISTRATION

QUESTION

It is believed that management level is one of the key disadvantages of Vietnamese enterprises/organizations in comparing with the management level of enterprises/organizations in developed countries

What is your view on the above opinion? What are strengths and weaknesses as well as opportunities and challenges of management of Vietnamese enterprises/organizations? Offer solutions to promote strengths, improve weaknesses and take advantage of opportunities, overcome challenges

Illustrated by specific Vietnamese enterprises/organizations, in comparisons with specific enterprises/organizations in developed countries

TABLE OF CONTENTS

QUESTION 1

FOREWORD 3

CONTENT 4

I-About management level 4

1 Definition 4

2 Is management level necessary? 4

3 Three main levels of management 4

II- Management level issues in Vietnam 5

1 Real situation 5

2 Causes 5

3 Strengths of management level in Vietnam 6

4 Weaknesses of management level in Vietnam 8

5 Opportunities for management level in Vietnam 11

6 Challenges for management level in Vietnam 15

III- Proposed solutions 18

1 Financial management 18

2 Labor management 19

3 Production management 20

4 Information transparency 20

5 Risk management 20

IV- Compare specific Vietnamese company to foreign enterprise 20

REFERENCES 23

FOREWORD

Firstly, I would like to thank University of Economics and Business for including Management module in our program It is a good chance for me to learn about management thoroughly

Secondly, I would like to send my sincere thanks to PhD Pham Manh Hung, PhD Nguyen Ngoc Quy and Master Nguyen Khanh Huy, who have taught me many interesting things about managament Your enthusiastic lessons have not only inspired me so much but also provide knowledge to help me finish this exam

However, due to the lack of awareness and experience, my assignment may have many mistakes It would be my bless to have you correct my fault and and give me some feedback

Thank you!

2 Is management level necessary?

My answer is “yes” Dividing work into management levels allows a company to hire more employees because there are many managers available to supervise and direct for different tasks This also helps create smoother processes and ensures each level of management can check one another's work before sending a product to the public Moreover, management levels raise the degree of specialization, which leads to better productivity

3 Three main levels of management

As far as I know, each level of management has different characteristics Top-level managers have a greater need for interpersonal and decision-making skills; while middle-level managers are said to have a balanced need for all three skills: decision-making skills, interpersonal skills and technical skills The most basic level is first-line management, which requires higher need for technical and interpersonal skills

To be more detailed, top-level managers are obligated to be able to oversee the direction

of an entire company Their primary goals are to maximize the profit and build good reputation for the company They are responsible for developing business plans, setting attainable goals and keeping contact with other employees

Middle-level managers have different tasks They ensure the connection between top-level management and other employees, make sure that they understand the company’s aims clearly and do their best to achieve them Middle-level managers’ duties also include

guiding for first-line managers Therefore, their tasks often stick to specific sections, such

as department manager, regional manager, …

First-line managers, or supervisory, interpret instructions from mid-level managers to help them direct their teams successfully and contribute to the growth of the company They also listen to employee concerns and discuss them with mid-level management, who may take the concerns to top-level management Many first-line managers perform duties like assigning tasks to their employees, maintaining the quality of production and supervising daily activities

II- Management level issues in Vietnam

1 Real situation

According to Vietnamplus online article, management level of Vietnamese enterprises is still low as compared to Singapore, Thailand, Indonesia,… The number of enterprises was unlikely to reach the set target of 1.5 million enterprises by 2025 while the quality of enterprises in value chains and global production networks were still limited, and have not yet taken full advantage of the opportunities brought by FTAs

Based on above data, people assume that management level is one of the main negative aspects in Vietnamese business, especially in comparison to other developed nations From

my perspective, I completely agree with this statement due to some reasons illustrated below

2 Causes

Firstly, it is undeniable that Vietnamese economy is still young and small when compared

to other large-scale economies like Singapore, Korea, Japan, Indonesia, Malaysia, That’s the reason why our management levels are still uncompleted The immature economy requires Vietnamese businessmen and regulators much more time to perfect the organizational structure

Secondly, I would mention one more reason that makes management levels in Vietnam disadvantageous That is the inconsonant training program at universities Our curriculum

mainly focuses on academic theories, not practical knowledge Even excellent students are having difficulties in understanding all things mentioned in textbooks and apply them in the real life What is the purposes of learning if we can’t find it useful? How do people make capital of this awareness while they don’t understand it clearly?

3 Strengths of management level in Vietnam

Financial management

We have to say that private companies have done their work quite well They run their business in a more effective way than public enterprises They rely on the purposes of business: the more hard-working people are, the more they can earn Profit directly drives workers’ motivation In Vietnam, there are over 25000 companies with 10000 billion in their funds as of September 2022

Labor management

Through many years of developing the economy, the team of Vietnamese entrepreneurs has reached millions of people I’m glad to be informed that in 2021 we had 6 entrepreneurs entered the global TOP "billionaires of dollars" and had 124 businesses with 283 products that are national brands

It is believed that the quality of labor force has been increasing significantly since we turn into the market economy The percentage of trained workers with degrees and certificates

in the third quarter of 2022 was 26.3%, which is 0.1 percentage points higher than the previous quarter and 0.2 percentage points higher than the same period last year

Vietnamese businesses have known how to apply digital transformation in their human resource management activities Instead of doing traditional paperwork and recruiting or interviewing candidates offline, all steps can be done online Therefore, employees can work at home This method is both quick and convenient, but still effective

Production management

Private enterprises are sensitive to new trends and take advantage of them well They create new products that adapt to the public’s desires which changes all the time Thanks to their wiseness, the range of Vietnamese procducts has broaden and kept up with the global trends like environmentally-friendly packaging, healthy food, reuseable tools, vegan and cruelty-free cosmetics,

4 Weaknesses of management level in Vietnam

Many state-owned organizations allocate their investment funds to a group of managers to

do shared business, and the consequence is that they conduct their own stuff, and then let the lower units take care of their own lives In many cases, the government is the nominal owner, but the real owner is someone else

Moreover, the scale of many enterprises is rather small Of the 5,800 listed enterprises, state-owned enterprises under central management have a total business capital of about VND50,700 billion Local businesses are currently using capital of about 17,800 billion VND Last but not least, corruption is still happening in many fields with millions of dollars lost Many of the accused were senior managers of both public and private companies

Mr Chu Ngoc Anh and Mr Nguyen Thanh Long were two members of the Party Central Committee were prosecuted and arrested on June 7 for the crime refers to inflating COVID 19 test kit price

Defendant Dinh La Thang (Former minister of Transport) at a trial for a shocking case related to PVN

Labor management

Our country's labor is weak in terms of qualifications if compared to other countries in the Southeast Asia The number of highly skilled workers in production facilities accounts for only a small part Workers in factories mostly start working right after graduating from high school As they get older, the value that they bring will decrease and, as a result, they lost their jobs for younger generations

To meet needs of development in the digital era, we must keep up with the demand for IT human resources But the labor market in this field in Vietnam is always in a state of shortage of quantity and quality Specifically, in 2019, the number of IT human resources was about 90,000 people, which meant there was lack of 350,000 people; in 2020, the number of human resources was estimated to have a shortage of 100,000 employees while this industry needed about 400,000 people; in 2021 it needed 500,000 people and still had

a shortage of 190,000 employees Meanwhile, training institutions are changing slowly, which leads to unability to meet the needs of the market

Production management

The state of production management is still loose, leading to production sprawl and fake goods People now can imitate all things of the real ones: packaging, brand’s name and stories, logo, even barcode and QR code – things that we used to consider as can-not-be-faked signals Fake merchandise influences our market in a terrible way People who buy fake goods accidentally may become angry and not want to consume domestic goods anymore This behavior brings about a huge loss to our industry The production management efficiency of state-owned enterprises is much worse than that of private ones Products of state-owned enterprises are not highly competitive in the market

5 Opportunities for management level in Vietnam

Firstly, the world is entering a period of digital transformation that happens stronger and faster than ever before That situation brings many benefits for Vietnam Technology makes work easier for us Managers find it much more convenient to supervise staffs through apps For example, when working online, working applications can record the time when employees check in and check out their shifts Owing to technology, leaders can know whether their employees work enthusiastically or not In addition, the group of higher-level specialized software such as customer relationship management (CRM), supply chain management (SCM) and enterprise resource management (ERP) also began

to be focused upon development Applying modern technology and the internet helps Vietnamese board optimize management activities

Secondly, many guidelines, policies and laws on creating a business environment and supporting businesses and entrepreneurs have been issued and implemented, which helps

businessman Thereby, Vietnamese organizations have chances of improving competitiveness for businesses and the development of business community, contributing

to the process of constructing socialism Furthermore, rebuilding stricter laws not only reduce corruption and tax evasion, but also boost the transparency and efficiency of corporate governance board

On September 29, at the trial of Ocean Bank (Ocean Bank), former Chairman of the Oil and Gas Group

of Vietnam ( PVN) Mr Nguyen Xuan Son was sentenced to death

Thirdly, the process of integration in trade, investment and finance is quite fast, especially

in terms of trade, which is rated as the largest openness economy among countries with over 10 million people; while not leading to economic instability Vietnam still maintains macro stability and financial security for a long time whereas other nations like Greek and Venezuela are in struggle for saving their economies Stable economic environment creates favourable conditions for the strong growth of all enterprises

Vietnam's digital economy has the fastest growth rate in Southeast Asia with gross merchandise value (GMV) expected to grow by 28%, from $18 billion in 2021 to $23 billion in 2022, thanks to 26% growth

of e-commerce over the same period last year

With the ratio of total import-export turnover to GDP at 185% according to 2016 data, Vietnam has the

third highest trade openness in Asia and the eighth highest in the world

6 Challenges for management level in Vietnam

Compared with countries such as Singapore, the Philippines, Malaysia, Indonesia, and Thailand, the management level of Vietnam's large enterprises is still very low, only half that of countries with high corporate governance scores such as Thailand This may partly explain the ability of large enterprises in these countries to grow and reach the regional and world level, which is much higher than that of large enterprises in Vietnam

According to the assessment, Vietnamese enterprises still have many limitations in risk management issues; information’s transparency; activities of the Board of Directors and the Supervisory Board In addition, good management level practices in recent times have added the assessment of environmental protection policies in the practice of production and business activities of enterprises This is a very new criterion for most Vietnamese businesses

To be more detailed, most Vietnamese organizations are only interested in short-term economic benefits and do not really care about environmental problems or sustainable development; while most of the Korean and Japanese brands specializing in natural cosmectics, construction, fashion, have shown special care towards protecting natural environment by producing recyclable packaging, reducing the amount of plastic bag, using plant-base ingredients, not testing products on animals,