Nâng cao năng lực lãnh đạo chi nhánh xăng dầu quân đội khu vực bắc trung bộ en

TABLE OF CONTENT...iiLIST OF CODES AND ABBREVIATIONS...iii LIST OF TABLES...iv LIST OF FIGURES...v INTRODUCTION...1 CHAPTER 1: THEORETICAL BACKGROUND OF LEADERSHIP CAPABILITY...5 1.1 Lea

PETROLEUM REGION NORTH CENTRAL

This is the work of my own research, the results and data in the essay iscollected by myself, research and apply their knowledge to complete I herebydeclare that all content is presented throughout the study, my analysis of fieldresearch thesis registration

I will take full responsibility commitments

TABLE OF CONTENT ii

LIST OF CODES AND ABBREVIATIONS iii

LIST OF TABLES iv

LIST OF FIGURES v

INTRODUCTION 1

CHAPTER 1: THEORETICAL BACKGROUND OF LEADERSHIP CAPABILITY 5

1.1 Leadership and effective leadership 5

1.1.1 Leadership and theories about leadership 5

1.1.2 Effective leadership and effective leadership models 10

1.2 Capability and leadership capability 15

1.2.1 Capability 15

1.2.2 Leadership capability 17

1.3 Components of leadership capability and importance of leadership capacity 18

1.3.1 Components of leadership capability 18

1.3.2 The importance of leadership and leadership capability 33

Summary of Chapter 1 34

CHAPTER 2: ACTUAL SITUATION OF LEADERSHIP CAPABILITY OF THE UNIT LEADERS DIRECTLY UNDER MILITARY PETROLEUM CORPORATION- NORTH CENTRAL BRANCH 36

2.1 Overview on Military Petroleum Corporation- North Central Branch 36

2.1.1 Brief on the branch 36

2.1.2 Apparatus organization, functions and duties 36

2.2 Actual situation on leadership capability of the unit leaders directly under Military Petroleum Corporation- North Central Branch 38

2.2.1 Actual situation on general cognition about leadership of the unit leaders ……….38

Summary of Chapter 2 60

CHAPTER 3: SOLUTIONS TO IMPROVE THE LEADERSHIP CAPACITY OF THE LEADERSHIP AT BRANCH OF MILITARY PETROLEUM REGION NORTH CENTRAL 61

3.1 The basic of proposal – GAP model 61

3.2 The proposed solutions to enhance leadership capability of the unit leaders directly under Military Petroleum Corporation- North Central Coast Branch 62

3.2.1 Group of solutions to improve strategic vision 62

3.2.2 Group of solutions to improve encouragement capacity 65

3.2.3 Group of solutions to improve decentralization and authorization capacity .68 3.2.4 Group of solutions to improve decision-making capacity 70

3.2.5 Group of solutions to improve capacity to understand yourselves and understand others 73

3.2.6 Group of solutions to improve leadership communication capacity 76

3.2.7 Group of solutions to improve capacity to influence and build images 80

Summarization of Chapter 3 82

CONCLUSION 83

LIST OF REFERENCES 85

APPENDIX 87

NLLĐ Leadership capacity

Table 1.1: Concepts of leadership

Table 1.2: Decision making model- DECIDE Page 26

Table 2.1: Cognition of the unit leaders about the nature of

Table 2.8: Actual situation on capacity to make decisions of the

Table 2.9: Actual situation on understanding themselves and

understanding others of the unit leaders Page 55Table 2.10: Actual situation on leadership communication

Table 3.1: Training program to improve vision Page 64Table 3.2: Training program for improving encouragement

Table 3.3: Some suggestions to exploit human factors Page 68Table 3.4: Some suggestions in the treatment Page 68Table 3.5: Training program to improve decision making

Table 3.6: Training program to improve capacity to understand

Table 3.7: Training program to improve leadership

Table 3.8: Training program to improve capacity to influence and

Table 3.9: Some suggestions for influencing and building images Page 82

Firgure 1.1: Components of power

Figure 1.2: Behavior-Task effective leadership model Page 11

Figure 1.3: Task-oriented leadership model Page 12Figure 1.4: Effective leadership – process-based approach Page 14Figure 1.5: Effective leadership – component-based approach Page 15Figure 1.6: Personal capability – ASK Model Page 16Figure 1.7: Strucure of knowledge Page 17Figure 1.8: Component-based leadership model Page 19Figure 1.9: The relationship between outcome and capacity,

encouragement and working condition

Page 21

Figure 1.10: Encouragement Process Page 22Figure 1.11: Maslow's hierarchy of needs Page 23Figure1.12: Impact of encouragement Page 24Figure1.13: The basis of empowerment Page 25

Figure 3.2: GAP model of strategic vision Page 63Figure 3.3: GAP model of encouragement capacity Page 65Figure 3.4: GAP model of decentralization and authorization

Figure 3.5: GAP model of decision-making capacity Page 71Figure 3.6: GAP model of capacity to understand yourselves and

Figure 3.7: GAP model of leadership communication capacity Page 77Figure 3.8: GAP model of capacity to influence and build images Page 80

1 Urgency of the topic

Leadership in general and leadership capacity in particular have become ahot topic for along time attracting attention of not only scholars and researchers, butalso leaders of businesses Reality has shown that leadership, specifically leadershipcapacity of the head, is the decisive factor for the success of all businesses andorganizations According to scholars Bennis, leadership is the process of socialinfluence seeking for voluntary involvement of subordinates Therefore, it can besaid that the business or organization will not be successful if it doesn’t have its trueleader

A true leader is the one who has enough capacity to bring people onto thesame boat to move in the same direction, and paddle the same speed Leadershipcapacity is applying simultaneously knowledge, skill, experience, and behavior,attitudes to enable the leader to make their own business into a block which iscohesive and consistent, to ensure competition successfully in the market In view

of components, leadership capacity is the combination of specific capabilitiesincluding: (1) ability to think strategically/strategic vision, (2) ability to decentralizeand authorize, (3) ability to encourage, (4) ability to influence, (5) the ability tomake decisions, (6) ability to understand himself and people, and (7) ability tocommunicate in the manner of leadership

John Kotter believed that leadership in the modern era is required to havesufficient capacity to create a vision, communicate the vision, plan strategically,manage changes, build distinctive corporate culture Leadership in new conditions

is required to have enough capacity to arise passion and enthusiasm of the staff, andcreate coherence between the employee and the business

Developing leadership capacity for leaders of businesses is an important taskfor any enterprise Therefore, it is necessary to conduct a research on leadershipcapacity in order to clarify nature of leadership capacity, components of leadershipcapacity, and methods to develop leadership capacity

2 Overview of the study

Leadership capacity is a familiar familiar topic to scholars in developingcountries There have been many publications, many studies, researches deeplystudying content leadership and leadership capacity For example, for leadership

syllabus, there are some syllabuses outstanding such as "Leadership in Organizations" (6th ed.) written by Gary Yukl which was published by Prentice Hall

Publisher in 2006, "The Art & Science Of Leaderrship" (4th ed) by AfsanedNahavandi which was also published by Prentice Hall publisher in 2006 Thesyllabuses refer to the basic content of the sience of leadership in which the specificcontents such as the nature of leadership, theories of leadership, qualities of aleader, leadership styles, effective leadership, leadership in multiculturalenvironments are presented insightfully in detail For works and researches, thereare many studies deeply research how to apply theories of leadership not only inbusiness of the enterprise, but also in many other areas such as health, education &training, sports & entertainment, non-profit organizations In detail:

Lynn Denise Anderrson 2003 A case study on leadership in transforming non-profit certification organizations University of Minnesita

Robert Smith 2003 Leadership skill development experience in the healthcare system University of Virginia

Colleen McColm Crickmore 2002 Increasing leadership capacity in the Alberta Public Service Roal Roads University

Dexter Davis 2001 An analysis of the perceived leadership style and levels

of satisfaction of selected junior college athletic directors and head coaches United

States Sports Academy

While there are many researches studying specific content of leadership andleadership capacity to apply for businesses in the world, in Vietnam until now,there are quite a few studies researching the specific content of leadership andleadership capacity fully and systematically to apply into practical leaders andbusiness management

3 Purpose of research:

This study aims at achieving the following objectives:

Systematizing perspectives and approaches about leadership and leadershipcapacity to clarify nature of the leadership; especially nature of leadership capacity.

Clarifying the relationship between real leadership of the leaders at branchwith the result or performance of its business

Clarifying internal relationship between components of leadership capacitysuch as strategic vision, ability to decentralize and authorize, ability to encourage,ability to influence, the ability to make decisions, ability to understand himself andpeople, and ability to communicate in the manner of leadership with leadershipcapacity

Identifying the basic elements decising leading capacity of the branchleaders

Recommending some major solution to improving and developing theleadership capality of the leaders at the branch

4 Subject and scope of research:

Objects of the study is leadership capacity of the leaders at the branch (The case study at branch of petroleum army north central region)

Leadership capacity is divided into specific capabilities such as strategicvision, ability to decentralize and authorize, ability to encourage, ability toinfluence, the ability to make decisions, ability to understand himself and people,and ability to communicate in the manner of leadership These specific capabilitieswill criteria for evaluating overall leadership capabilities of business leaders Due totopic of the study is leadership capacity, the study goes deeply into the innerleadership capacity, doesn’t mention management and management capacity

Scope of the study is limited in scope of leadership capacity of the leaders atbranch of military petroleum region north central

5 Research methodology:

Research Methods: Qualitative methods Specifically, the method of

analysis, comparison and synthesis - descriptive analysis will be used in this study

Method of data collection: Both primary and secondary data are used in this

study To collect primary data, the authors use the method as survey forms,

interview, interviews of subjects in order to get the most reliable information on thestatus of leadership capacity in the branch Specifically, the authors used twomethods of investigation data: (1) survey through questionnaires (surveyquestionnaire); and (2) direct interviews, in-depth interviews (in-depth interview)leaders of branch.

6 The structure of the thesis

Besides introduction and conclusion, the list of acronyms, lists of tables, thethesis is structured into three chapters:

Chapter 1: Theoretical basis for Leadership Capacity

Chapter 2: Situation on the leadership capacity of the leadership at the

branch of military petroleum region north central

Chapter 3: Solutions to improve the leadership capacity of the leadership at

branch of military petroleum region north central

7 Main contribution of the thesis are:

The system of doctrines (or rationale) about leadership, leadership capacity, and effective leadership is prevalent in worldwide

Going interpretation and applying doctrine of leadership, leadership capacity

at Petroleum branch army north central region, which indicates the existence andcause of the existence on leadership capacity of the leaders in the branch

Recommend solutions primarily to improve, enhance leadership capacity ofleaders in branch

CHAPTER 1: THEORETICAL BACKGROUND OF LEADERSHIP

CAPABILITY

Leadership and leadership capability always are the favorite subjects of politicians, researchers and well-known professors For an overall picture of leadership and leadership capability, Chapter 1 introduces about fundamental background, the keys of nature of leadership and leadership capability as well as approach ways to effective leadership and importance of leadership and leadership capability for enterprises and organizations.

1.1 Leadership and effective leadership

1.1.1 Leadership and theories about leadership

1.1.1.1 Leadership

Leadership is a subject appeared for a long time and received a lot of interestand attention Usually, leadership is understood as an imposing and powerful personthat is a leader of a country, a tribe, a religion or a commander of a powerful army.However, along with the development of human society, the concept of the leaders

as the person having power or giving commands and orders to other has changed topositive points of view, e.i leaders are active, creative persons having strategicvision, and ability to insprire others and ablity to gather various forces

History proves the extent and sphere of influence of leaders in various fieldssuch as religion, politics or military For example, many preeminent leaders in theworlds such as Ly Quang Dieu, Dang Xiao Ping, Franklin Lincoln and militarygeniuses such as Alexander the Great, who have extraordinary abilities to not onlydirect but also gather a numerous force around them

Although the term “leadership” had been used a long time before, but in XXcentury, the concept or nature of leadership just was discussed by theorists andresearches The term “leadership” itself carries extensive connotation, which createsambiguity of meanings (Janda, 1960) Scholars usually define leadership under theirown opinions as well as their most favorites Scholar Stogdill, after researching thetheories about leadership, concluded that each scholar have different approach to

leadership Concept of leadership can be approached in terms of traits, behaviors,influence, and interaction (See Table 1.1).

Table 1.1: Concepts of leadership

Concept

1 Leadership is the behavior of an individual when he is directing the activities

of a group toward a shared goal (Hamphill & Coons, 1957)

2 Leadership is the influential increment over and above mechanical compliancewith the routine directives of the organization (D Katz & Kahn, 1978)

3 Leadership is the process of influencing the activities of an organized grouptoward goal achievement (Rauch & Behling, 1984)

4 Leadership is a process of giving purpose (meaningful direction) to collectiveeffort (Jacobs & Jaques, 1990)

5 Leadership is the ability to step outside the culture … to start evolutionarychange processes that are more adaptive (E.H Schein, 1992)

6 Leadership is the process of making sense of what people are doing together sothat people will understand and be committed (Drath & Palus, 1994)

7 Leadership is about articulating visions, embodying values, and creating theenvironment within which things can be accomplished (Richards & Engles,1986)

8 Leadership is the ability to influence, motivate and enable others to contribute

as much as possible to the success of the organization (House et al, 1999)

(Source: Synthesized by the author)

In addition to the approaches to leadership as mentioned above, scholarBennis provided a general but comprehensive concept of leadership According toBennis, leadership is the process of social influence, which looks for volunteerpartipation of subordinates towards the best achievement of the organization’sgoals In this thesis, the author also emphasizes on the importance of subordinates’volunterr participation in the process of performing the organization’s missions, andthe responsibility of leader is looking for such volunteer participation Only if the

members of an enterprise or organization are volunteer to contribute their efforts,can the best success of a enterprise or organization achieve.

1.1.1.2 Theories about leadership

Intensive study on theories about leadership will help us to more clearly anddeeply undertand the nature of leadership At present, there are 5 existing theoriesabout leaders in the world, which are the trait-based leadership theory, the behavior-based leadership theory, the power-influence leadership theory, the situationalleadership theory, and the integrative leadership theory Below paragraphes presentdetails of some key leadership theories

- The trait-based leadership theory The trait-based leadership theory is the

earlist theory about leadership This theory says that leaders shall be the personhaving supernatural trait and outstanding values over the others; and such thesupernatural trait and outstanding values awared by Nature help them to beoutstanding persons and become the leader of a country, a tribe, a religion or aorganization (Yukl & Van Fleet, 1992) Scholars and researchers in this period(1930s-1940s) worked on studies and found out that the outstanding traits andvalues such as extremely strong, extremely decisive, extremely shrewd, havingextraordinarily –strategic vision are the key factors to help somebody to become aleader Therefore, the leaders in that period had unlimited power and they controlledtheir subordinates by such power

Embodiment of the leaders in this period are the heads of countries, thegenerals, business owners, and ranchers, who have heavy responsibilities and aredecision makers in all activities of society, communities and orgianzations Theyfigure out tasks and assign tasks to their subordinates, while, the subordinates onlycarry out the tasks passively The nature of this leadership style is via-commandmanagement and task-based approach (presented in section: Effective leadership).Apart from the trait factors, scholas e.g Bass, Hosking & Morley, and Yukl & VanFleet claimed that skills and experiences in life and war have significant support tothe available outstanding traits in order to help the leaders control their ships

-The behavior-based leadership theory This theory has appeared since 1950s

after scholars, researchers and practical activitists started to perceive the weaknessand shortages of the trait-based leadership theory The behavior-based leadershiptheory says that anybody, who by his behavior can lead others to follow hisintension, is a leader Indeed, a long with the development of soco-economy, livingsand intellectural standards of people have been improved and enhanced

The continous development of economy, society and intellectual standardsfacilitate and develop the demoracy in which everybody has freedom, equal rightsand equality The freedome, equal rights and equality are the factors which

“constrast” to centralism and command mechanism Therefore, it is necessary tohave a new theory of leadership that meets the requirement of reality That is thetrait-based leadership theory Scholars Yukl & Van Fleet and Wall & Lepsingerperformed studies and indicated that the success of leadership depends on not onlythe outstanding traits gifted by Nature of leaders but also profusely on the factors ofpeople such as encouraging, influence, developing mental and psychologicalfactors

- The power-influence leadership theory Influence and Power are two of the

factors determining leadership capability As mentioned above, influence is acritical and indispensible ability for any leader Influence is the process of affecting

to win the hearts of subordinates based on reasonable and comprehensive using ofencouraging measures Thus, influence not only helps leaders to create closeconnection and gather forces around them but also to perfect their image (Bradford

& Cohen, 1985)

In order to influence subordinates, leaders must have power So what is thenature of power? What is specific expression of power? Power presents theauthority of a leader to his subordinates Power is the ability to influencesubordinates (Mintzberg & Pfeffer) In general, power is the ability of an individual

to influence the others Hence, power and ability to influence have close reciprocalrelation

Researchers on power and influence indicated that leaders used power toinfluence and in turn they combined measures and techniques of influence in order

to increase their power The reality proved that subordinates respect their leadersperharps because of the leaders’ outstanding traits, but also their venerable virtues.Therefore, scholar Raitz says that power of leaders is created and developed by theirreciprocal relationship with their subordinates Similarly, French & Raven claimedthat power cannot be established via any specific relationship, but by relationshipwith everyone during a long period There are many viewpoints about thecomponents of power; however, basically we can illustrate power as in Figure 1.1:

Firgure 1.1: Components of power

(Source: Leadership In Organizations, Gary Yukl, Prentice Hall, 2002)

1.1.2 Effective leadership and effective leadership models

Effective leadership refers to results and effectiveness of leadership of aleader Most of scholars on leadership over the world assess leadershipeffectiveness based on the final results and effectiveness achieved by leaders in acertain period Results and effectiveness are general concepts They reflectgenerally all activitives of an organization or enterprise The following paragraphspresent the widespread effective leadership models in the world

(i) Behavior-Task effective leadership model Behavior-Task effective

leadership model (see Figure 1.2) is the the most general effective leadership model

Legistimate power

Reward power

Coercive power

Referent power

Expert power Information

power

Figure 1.2: Behavior-Task effective leadership model

(Source: Bennis, Harvard Business Review on Leadership, Harvard Business

School Press, 1998)

In this model, Bennis classify all factors into 2 main groups: behavior-basedfactors and task-based factors Behavior-based group include all factors ofbehaviors, manners, culture and emotion Task-based group consists of organizingtasks, making plans, building up output quota, distributing tasks, supervising,evaluating and adjusting ( if applicable) Those are purely activities of working andthis group can be called as another term – “ scientific labour organization”

Behavior is a grealy important factor that any leader has to pay properattention In any age, in any field, man is always the determining factor for success

of organizations, hence, the role and importance of people should always be fullyaware and appreciated Leading and manage people has significant difference withwork management Personality, viewpoint and even reaction of people is subject tonumerous factors including feelings, thinking and desires Therefore, exploitpsychological and human factors is constant requirement in leadership of anyleader

Ph.D W Ouchi in his theory Z (1970) claimed that it is necessary to makelabourers feel secure and satisfied when working, and with such conditions,labourers will devote their best efforts He mentioned in his theory theses such as

“manager should usually concern all problems of labourers including their family.Thereof, harmony, affection, and non- isolation between leaders and subordianatesare established” Psychologists conducted tests and concluded that one person intwo different psychological states (such as happy and sad), the effectiveness of thework he does in such psychological states will be completely different

Differing from behavior-based orientation, task-based orientation normallydoes not consider the human factors when performing a certain task Task-orientedleaders normally reveal the relationship between people and tasks via mathematicequation Therefore, task-oriented scholars usually highlight the factors such as taskdistribution, output quota, task pay, task assignment, plan making, checking,evaluation, wage based on final outcome One remarkable task-oriented scholar is

Taloyr with theory “Scientific labour organization” The below task-oriented

leadership model (Figure 1.3) clearly illustrates for that

Figure 1.3: Task-oriented leadership model

(Source: The author developed for this Research)

Target

determination implemetationPlan for assignmentTask implementationInstruction for

Set up higher or more suitable standards for each units

 Organization for

effectiveness

enhancement

 Plan for implementation

 Explain clearly standards

of working process

 Highlight effectiveness, quality, and inspire enthusiasm

 Solve problems affecting the tasks

It is ideal if leaders concern both task and people However, it is impossiblefor command –focused management mechanism In leadership, the upper right box

is the highest target of leaders and that is effective leadership Indeed, only whenlabour organization is scientific, human factor is exploited properly to encouragethe efforts and intelligence of subordinates, can leaders achive the maximumoutcomes and effectiveness

(ii) Process-based effective leadership model Process-based approach to

settle a certain issue is considered as logical approach in the forward direction Thisapproach is also used by leaders to reveal the outcomes and effectiveness ofleadership The below figure 1.4 illustrate this approach

Process-based approach starts at Input, continues with “Black box” andcompletes at Output Input consists of the factors such as leadership capability ofleaders, ability of subordinates, environmental factors (e.g: guidelines, policies,rules, regulations of organizations or enterprises) These are all factors establishinginitial background for leaders to implement their leadership If considering onaspects of production or service supply, these factors are human resource, materialresource, machinery, and equipment Therefore, these are the basic factors

Figure 1.4: Effective leadership – process-based approach

(Source: Essentials of Contemporary Management, Mc Graw Hill, 2004)

Next step of process-based approach is “black box” Black box is the termimplying the works of the middle step and we donot know what are in the step andhow the interaction among them is However, the term black box is put in“…”, itmeans that we know clearly what are in the “black box” and the interaction amongthem The factors in “black box” of effective leadership ( process-based approach)include supervision, evaluation, encouragement decentralization, authorization,decision making, reward, punishment, understanding yourself-understanding others,leadership communication The factors of “black box” basically are actions ofleaders, which is interaction between leaders and subordinates

Output of effective leadership (process-based approach) is the acquiredoutcomes of leadership process Although the term used is effective leadership, thenature of this term covers two contents – outcome and effectiveness Acomprehensive and extremely important criterion reflecting leadership quality iscustomer satisfaction, especially the internal customers (subordinates of leaders).Satisfaction of internal customers (subordinates) is a general criterion presentingsatisfaction on the specific aspects such as salary, bonus, welfare, and other monies

Decentralization, authorization Decision making Reward, punnishment…

Customer satisfaction

Subordinates

Partners

(iii) Effective leadership – component-based approach The nature of

effective leadership – component-based approach is the approach based on thecomponents of leaders’ ability Ablity of a leader is composed by the specificabilities such as: (1) strategic vision, (2) ability to encourage, (3) Ability toinfluence, (4) Ability to decentralize, (5) Ability to make decisions, (6) Ability tounderstand himself and understand others, and (7) ability to communicate (theseabilities are illustrated in figure 1.5) These specific abilities can be considered asthe criteria reflecting leadership capability in general of a enterprise leader

Figure 1.5: Effective leadership – component-based approach

(Source: Barrow, The variables of leadership, Academy of Management

Review, 1977)

In nature, effective leadership – component-based approach is similar to twoapproaches mentioned above Particularly, with ability to encourage, ability toinfluence and ability to understand yourself and others, a leader is able to win thehearts of his subordinates by his behaviors and manners

1.2 Capability and leadership capability

1.2.1 Capability

According to Bass B.M, capability is the range of abilities and resources of a

person or an organization in order to carry out a certain task Thus, in nature,

Strategic vision

Encouragement

InfluenceImage building

Decentralization,authorization

DecisionMaking

LeadershipcommunicationUnderstandingyourself –understandingothers

capability of a person is the set of what he has.The below ASK capability model(Figure 1.6) is a popular model to demonstrate personal capability of a person.

Figure 1.6: Personal capability – ASK Model

(Source: Bass B.M Handbook of leadership, New York: Free Press, 1990)

For easy remembering, personal capability starts with letter A ( Attitudes,next is letter S (Skills), and completes with letter K ( Knowledge) However, we can

start at any factor when studying the nature of capability Knowledge is the sum of

what belong to rules or are regular acquired by each person Knowledge can beclassified into 3 main parts: (1) specialist knowledge, (2) knowledge of culture andsociety, (3) knowledge of natural sciences and geography Firgure 1.7 belowillustrates such 3 parts

Capabilities

K nowledge

A ttitudes

S kills

Figure 1.7: Strucure of knowledge

(Source: Gareth & George, Essentials of Contemporary Management, Mc

Graw Hill, 2004)

Apart from knowledge, skills are also the essential factor for the success ofany leader Skills are seniority, experiences, and skills in leadership Thereore, innature, skills are the embodiment of knowledge and the highest expression of theapplication of available knowledge in practice

The combination of knowledge and skills has not been complete without the

third factor – attittude Attitude (also referred as trait) is viewpoint, awareness,

personality of a person In the other words, attitude is morals and culture of eacheach person Hence, positive attitude is very important to build up the true andcomplete capability for any person

1.2.2 Leadership capability

In accordance with ASK model, leadership capability is the sum ofknowledge, skills and attitude that a leader should have Therefore, a leader shallhave the background and intensive knowledge to direct and manage an organization

Specialist

knowledge

Knowledge

of culture and society

Knowledge of natural sciences and geography

or enterprise Knowledge that a leader needs may consist of elementary knowledge(mathemetics, physics, chemistry,…), basic knowledge ( economics, laws,management,…) and specialist knowledge such as policy planning, strategyplanning, leadership skills, management skills, problem solving and decisionmaking, encouragement, and so on

Aside from knowledge, there are numerous skills that any leader shall have,which are skills to encourage, skills to solve problems and make decisions, skills todecentralize and authorize, skills to influence, and so on A skilled person can settletasks experientially, and solve well from the step of raising issue, developing issueand then concluding issue

Attitude is essential to ensure the success of each person Especially, forleaders, the role, meanings and importance of attitude is much more remarkable Inleadership, attitude can be considered ad the behavior of superiors to subordinates.Such behavior is formed by conception of life, personality, morals, and culture ofleaders Improper behavior, negative conception, unsound morals and culturedefinitely will lead to negative results

1.3 Components of leadership capability and importance of leadership

capacity

1.3.1 Components of leadership capability

Leadership capability consists of the following ability: (1) strategic vision,(2) ability to decentralize and authorize, (3) ability to encourage, (4) ability toinfluce and build up image, (5) ability to make decision, (6) ability to communicate,and (7) ability to understanding yourself and others The component abilities –

“separate ability” are the criteria to evaluate leadership capability in general of aleader

Figure 1.8: Component-based leadership model

(Source: Campbell, The cutting edges of leadership, Southern Illinois Uni 1977)

Hereinafter, we delve into research on each "sub-ability" and ASK capabilitymodel shown in Figure 1.6 will be applied when studying "sub-ability"

1.3.1.1 Strategic vision

Strategic vision Jacobs & Jacques (1990) considered that strategic vision

was a long-term goal of enterprises Strategic vision is the ability to foresee thetrend of business environment, the trend of market; or more specifically, it is thetrend of relation between supply and demand of a product or service in the marketboth in the short term and in the long term To have real strategic vision, leaders ofenterprises are required to meet the factors as follows: (1) leadership with strategicvision, (2) knowledge about the business and their own operation sectors as well asother related sectors, (3) having a thorough grasp of the trend forecasting methodsand forecasting changes in the market between demand and supply of products orservices which they are carrying on business as well as the factors affecting this

Outcome Leadership Capabilities

Strategic vision Decentralization,

Decision-Encourage

Understanding yourself and others

Leadership communication

trend, (4) understanding the requirements for strategic vision, and (5) understandingthe role and significance of strategic vision clearly.

Two leading scholars on leadership: Warren Bennis & John Maxwell (2002)also considered that vision was big and long-term goal of enterprises In the work

"Leadership Development", John Maxwell described vision as an overall andbeautiful picture that could be achieved and the first people who imagined it clearestwere leaders According to Jim Collins, vision is all philosophy, point of views,plans or objectives that may affect or have long-term orientation However,according to scholar Jim Collins, besides objectives that need to be achieved, heshowed enclosed factors quite clearly and specifically: pointed out the core values,things to do to achieve that goal; Researched factors of the enterprise spirit moreprofoundly, more widely and more generally; Indicated invariant and stable factorsthat were the foundation of the vision

Besides internal factors such as core value, internal resources oforganizations and enterprises, to develop and create innovation, leaders must payattention to external factors According to scholar Bennis, leaders are people who

do right things From the aspect of external environment, right things are all whatbelong to the trend, what belong to the future and will take place in the future Thus,from the aspect of an organization’s leader, when offering the vision, he has toforesee trends of the external environment Only by this way, leaders can foreseeopportunities in order to set plans to seize opportunities - this is the vision oforganizations or enterprises

Convey vision to all members in organizations and make messages of visiondeep into each person’s mind is an urgent requirement for any leader Only wheninstilling core values, business philosophy, action guidelines, or in other words,instilling the reasons to exist and rise, people can just shoulder to shoulder andmake their best efforts So, consider conveyed contents, choose the manner toconvey have great significance in making people understand, instill the vision ofleaders, organizations and enterprises

1.3.1.2 Capacity to encourage

According to JP Kotter, encouragement is a process of encouragement andmotivation in order to transfuse enthusiasm to the subordinates so that they performtheir assigned works voluntarily Kotter also emphasized that only throughencouragement, leaders might exploit and develop maximum manpower andproperty of the organizations Capacity to encourage of leaders is expressed throughtheir capacity to solve problems such as: (1) How to make their subordinatesparticipate voluntarily, (2) How to transfuse enthusiasm to their subordinates (3)What manners of encouragement are there now? Which manner is the mostappropriate for their current subordinates, and (4) How is effective encouragement?

To solve these problems, leaders must delve into interpreting and clarifyingproblems such as the basis of encouragement, encouragement methods and criteriafor evaluating the effectiveness of encouragement Campbell & Pritchard proposedmodel as Figure 1.9 This model illustrates the mutual relationship between theoutcome of organizations and the encouragement, capacity

Figure 1.9: The relationship between outcome and capacity, encouragement

and working condition

(Source: synthesized by the author)

Thus, according to the model of Campbell & Pritchard, encouragement is amultiplier following capacity factor; in other words, encouragement is mainly amultiplication factor of capacity factor and here outcome depends on theencouragement a lot Normally, many scholars have included environmental factor

in encouragement factor; However, Campbell & Pritchard separated it fromencouragement factor to enhance its importance

Need is one of the most important core contents of encouragement In terms

of psychology, human needs are divided into two categories - needs derived from

Capacity Encouragement E nvironment Outcome

instinct and psychological needs Two types of needs are latent in each person andcalled intrinsic need So intrinsic need of people in general and the subordinates inparticular is the synthesis of desire that needs satisfying Understand human needs

to meet them is a successful factor in solving well the relationship between peopleand people in general and solving effectively the relationship between superiors andsubordinates in particular The process to influence subordinates is calledencouragement process

Figure 1.10: Encouragement Process

(Source: James A F Stoner, Charles Wankel, Management, Prentice Hall Inc.,

1998)

The scholars on need theories consider that people behave like the way theyact because they want to meet their needs Scholars also believe that human needsnot only stop at what they want but also shown at need levels Typically, there aretwo main types of needs – material need and spiritual need However, determinehow much physical need and how much spiritual need for each particular person isthe big question To help us answer this question, in early 1960s, scholar AbrahamMaslow shown hierarchy of needs named Maslow's hierarchy of needs (Figure1:11)

Needs

Cognition

Behavior Goals

LEADERS

Figure 1.11: Maslow's hierarchy of needs

(Source: Mamel C Certo, Modern Management, Prentice Hall Inc., 2008)

According to Maslow, basic and essential needs (physiological needs) are theneeds for food, clothing and shelter Specifically, they are the needs for food, water,clothing to wear and shelter Safety needs are the needs to get the peace of mind and

to be protected in order not to encounter any threat Love and belonging needs arethe feelings of their existences among people round and being recognized by them.Not only be recognized by people around, from the angle of an individual, ourneeds will take one more step – It is our desire to be respected and become people atupper class Aslow's concept is that once we experience steps of nice clothes, tastyfood, safety and being recognized, respected by people around, we will have desire

to live as their thoughts, express our capacity and creativity freely, not to be tied byany limitation At that time, all factors that belong to human are liberated

Physiological needs such

as food, clothing, and

shelter

Safety needs

Love and belonging Esteem Self-actualization

Salary, working place, etc

Be protected during working process, be insured, etc…

Have good collegues, friends, customers, etc …

Be assigned important tasks, arranged good seats, etc…

Free creation and innovation, etc

Theory of Maslow's hierarchy of needs has a great significance in explainingwhy people act and it also helps us explain why at different times, people havedifferent needs, leading to different motives Therefore, in our daily lives, someonehas objectives of making living for their existences, someone is worried abouthealth and safety; someone desires to be recognized and respected by those aroundthem while others are very confident and have no worry about anything

Encouragement is mainly the key to help leaders retain good employees,create enthusiasm for them and thus make them try their best for the organizations.Meaning and impact of encouragement are generalized as follows (Figure 1.12)

Figure1.12: Impact of encouragement

(Source: The model is developed by the author on the basis of encouragement

theory) 1.3.1.3 Capacity to decentralize and authorize

Decentralization and authorization are familiar categories to any democraticsociety In nature, decentralization and authorization are the empowerment fromupper to lower positions The manner, scope, duration as well as final results andeffectiveness of decentralization and authorization are important criteria reflectingthe leadership capability of leaders

Many studies have shown that the more suitable power is shared for manypeople, the increasingly strength of leaders becomes Two scholars Conger &Kanungo considered that empowerment is mainly a method of intrinsic motivationmaking subordinates feel that they are respected and highly appreciated However,

to help empowerment job get good result, while conducting empowerment, leadersshould depend on the basic of certain empowerment These empowerment bases are

Effectiveness ss

solid foundations to ensure results and effect of empowerment Figure 1:13specifies the basis of empowerment and authorization.

Figure1.13: The basis of empowerment

(Source: Conger & Kanungo, The empowerment process, Academy of

Management Review, 1988)

In practice, there are many leaders who do not like to empower theirsubordinates It has many causes but they could be grouped into two main causes:(1) Leaders do not trust their subordinates and (2) Leaders are afraid their interest isinfluenced

1.3.1.4 Capacity to make decision

To have appropriate decisions, decision-making must be based on the certainbase and logic In general, decision-making capacity of leaders is expressed throughanswers to questions as follows: What to do? Why do those? How is sphere ofinfluence of those decisions? How to do those things? Specifically, leaders alsoneed to answer questions such as: Who will do? When will do? Where will do?What are physical conditions to implement? When will finish? What should theminimum obtained result be? How to organize to check and report?

Apply decision-making process flexibly in specific situations is one of thecriteria for evaluating the decision making capacity of the leaders Table 1.2 asbelow illustrates process of decision-making – Decision making model DECIDE

Table 1.2: Decision making model- DECIDE

Decentralizati

on, authorization

LEADER

1 D Define problems

2 E Enumerate possible causes

4 D & I Develop measures and Implement the chosen measure

5 E Evaluate the implementation

(Source: Huber, Steps in Decision Making, Prentice Hall, 1980)

The quality of decisions not only depends on the objectivity of collectedinformation but also the logic of decision-making process Decision making modelDECIDE in table 1.2 as above is one of such logics To solve problems oforganizations and enterprises, the first thing is to determine exact problems thatneed to be resolved Practice has shown that the majority of leaders think that defineproblems is extremely simple, on the contrary, identify problems is extremelydifficult and complex Among numerous problems the leaders must encounter,among a lot of information the leaders have, they must consider, select to determinewhat the main and core problems are

Understand the nature of problems is an important requirement However, inpractice, many leaders also understand dimly or even not understand the nature ofproblems clearly When talking about problems, many people imply them to benegative Nevertheless, on the contrary, today people’s concept is that problems arenot only negative but also positive Positive problems are understood as the gapbetween the goals to be achieved (anticipation/expectation) and the actual ability.Negative problems are the gaps between actual reached levels in fact and level bepossible to achieve Therefore, when referring to positive problems, people oftenrefer success factors when performing a certain task; and when referring to negativeproblems, people often refer causes, but especially the root causes so that thanks tothem we offer solutions to solve the root of problems

Besides being aware of problems clearly, the compliance of decision-makingprocess in Table 1.2 is also an important requirement The compliance of decision-making process and logic helps leaders make decisions methodically So, step 1 -

define problems helps leaders define problems exactly among innumerablecomplexity and information interference.

After defining current problems, we have to move to step 2 - enumeratepossible causes Enumerate possible causes is not easy In fact, leaders usually offerand enumerate causes by feeling However, by reason, there are many models tofinding out causes, especially the root causes However, each model has bothadvantages and disadvantages, so sometimes many models need combining at thesame time

A model that is familiar to everyone and has practical value in finding outcauses during problem-solving and decision-making processes is causal model.Causal model (also called fishbone model, Ishikawa model) presents the causes thatcan lead to a certain outcome or a certain consequence Causal model is illustrated

in Figure 1.14

Figure 1.14: Causal model

(Source: Huber, Steps in Decision Making, Prentice Hall, 1980)

Causal model in Figure 1.14 illustrates possible causes of traffic congestion

in some areas (for example traffic jam in Hanoi) According to the model, we caneasily imagine the causes of traffic congestion as poor urban infrastructure in Hanoi,

Traffic congestion

Poor infrastructure

Unsuitable regulations

Low awareness

of road users

Lowexecutiveawareness

low awareness of road users, unsuitable regulations or low executive awareness.However, with above information, it is difficult for us to define which are the rootand major causes primarily dominating remaining causes Therefore, one of thebiggest limitations of causal model is not easy to define the root causes if leaders donot have real capability as well as enough information.

After defining causes, especially the root causes, decision-makers still need

to collect more information in order to reaffirm their judgment; At the same time,collect more information is for the development of possible solutions and thenchoose optimal solutions to solve problems Develop or offer possible solutions andthen choose optimal solutions are a quite new approach to the leaders of Vietnamorganizations, enterprises For measure development, the idea formation andmeasure generation play a very important role To ensure offered ideas andsolutions be feasible and practical, leaders and decision makers are required to bealert, lucid and perspicacious However, it will not fully complete if leaders do notuse the techniques and tools in the formation of ideas and solutions

There are two methods and tools to form solutions They are Brainstormingand Mind-mapping methods These methods have different approaches withdifferent requirements; however, to a certain extent, we can say that their samenature and goal are to offer possible solutions to solve a particular problem

When taking shape (offer) solution, we can use model GREAT to chooseoptimal solutions GREAT model consists of five criteria to choose optimalsolution The first criterion is Gain – Benefit gained from choosing that solution.Naturally, to compare these solutions, we need to offer (use) a scale The secondcriterion is Risk - Risk when accepting solution The third criterion is Expense –Incurred expense The fourth criterion is Achievability - Feasibility of the solution.The fifth is Time-bound - Reasonable time expressing time constrain Thus, innature, model GREAT is to calculate the differences between PAIN and GAIN orREVENUE and COST of solutions in order to understand which solution is optimaland which solution has biggest difference between REVENUE and COST

1.3.1.5 Capacity to influence

In nature, influence has similar characteristics as encouragement; however,influence is a wider category Influence is process of applying all possible measures

in the most general way to create the best image and impression to subordinates aswell as everyone around If encouragement is more direct, influence is overall,general and covering Therefore, if encouragement mainly refers to the directfactors such as physical and mental factors, influence also mentions other "indirect"factors such as be always the leaders, bell the cat, the sacrifice, build images.Therefore, many scholars on leadership have named it capacity to influence andbuild images of the leaders Influence and build images often focus on unorthodoxfactors - There are marginal factors that are out of the rules, regulations, guidelinesand policies of organizations and enterprises but they have enormous significance

Capacity to influence of a leader depends on his power As mentioned inFigure 1.1 (the components of power), the power is not only brought by his positiondefined as traditional concept but here also implies factors such as reputation,image, professional capacity Therefore, a leader is considered to have positiveinfluence on his subordinates if he knows how to exploit efficiently factors thatbelong to psychology and human to create the power besides the power brought byposition

To influence subordinates, the leaders must understand the manners andprocesses of influence The psychologists have discovered that the influence of aperson on others depends on awareness, perception and immanent motivation ofthat person Scholar Kelman (1958) offered three "types" of different influence;they are instrumental compliance, internalization and personal identification

1.3.1.6 Capacity to leadership communicate

According to the traditional concept, communication is the process ofinformation exchange between two or more sides However, time after time, theconcept of communication in general has been a significant change Concept ofscholars today is that communication is not only process of information exchangebetween two or more sides but also emphasizes the outcome and effectiveness ofthat communication Therefore, Bass B.M considered that communication was the

process of information exchange between two or more sides to continuously build,strengthen and develop the relationships among the sides Thus, to achieve theirgoals, each side must continuously build, strengthen and develop reciprocalrelationships This is the basic for both sides be closer and as a precondition forthem to achieve their goals.

Like modern communication, leadership communication is process ofinformation exchange in order to continuously build, strengthen and develop thereciprocal relationship between superiors and subordinates Thanks to the process ofbuilding, strengthening and developing reciprocal relationships constantly, superiorsand subordinates understand each other closer day by day Intimate and steadfastrelationship is mainly the basis for development, the motivation for everyachievement, success of organizations and enterprises

When referring to communication, the majority of people consider that it isprocess of verbal exchange; however, modern communication is extremely diverse

It is possible to be verbal communication or writing or non-verbal language such asgestures, postures, images and languages Verbal communication may be direct orindirect Communicate in writing can be the form of transaction letters, memos,contracts, messages, manuals, reports and newsletters Each form or mode ofcommunication has its own characteristics as well as advantages and disadvantages.Thus, how to use any mode of communication in any case or to combine thosemodes for continuously building, strengthening and developing reciprocalrelationships between superiors and subordinates, improving communication quality

is one of the urgent requirements for leaders

In fact, leaders often choose verbal communication because this way isdirect, fast and efficient However, for serious and long-term problems as well asproblems with large governing scope; decisions are compulsory to be executed inwriting Especially, in the era of internet and digital technologies, manage onlineand hold meetings by teleconferencing become popular So communication throughinterfaces becomes increasingly popular and important

When referring to communication in an organization or enterprise, it meanscommunication between superiors and subordinates In the centrally-plannedeconomy and command mechanism, communication channel is one-way fromsuperiors to subordinates However, in the market-oriented economy anddemocratic mechanism, communication channel is two-way from superiors tosubordinates and vice versa There are two-way exchanges, before making decision,leaders have mutual exchange with their colleagues and subordinates.

1.3.1.7 Capacity to understand ourselves and understand others

Understand ourselves and understand others is the main content of “How toWin Friends and Influence People” - bestseller in America in the 2000s Manyleading scholars in the world consider that understand ourselves and understandothers is the secret of all success Leadership - a topic resolving the relationshipamong people – is perhaps not out of that rule Indeed, a real leader is a person whounderstands both himself and others However, to understand ourselves andunderstand others is not simple To understand themselves and understand others,leaders need to clarify the problems such as: (1) in leadership, management, is itreally necessary for the leaders to understand themselves and understand others?; Inother words, leaders must know the importance of understanding themselves andunderstanding others, (2) between understanding themselves and understand others,which is more difficult, and (3) how to understand themselves and understandothers?

Understanding ourselves and understanding others has a great significance inleadership Only when understanding ourselves and know who we are, what wewant, we can just set the goals in the right and suitable way Only whenunderstanding ourselves, we are just able to understand others around us We willnever understand others if we do not understand ourselves Likewise, understandingothers means that leaders know and understand exactly who their subordinates are,what they need, which level they expect, when they need, etc Only when leadersunderstand the needs of their subordinates and meet those needs, their subordinateswill be ready to respond to his superiors like that It is important that leaders

understand their strengths and weaknesses in order to determine what they do andwhat they need consult or assign their subordinates Understand the strengths andweaknesses of subordinates as well as their personality and ability will help leadersarrange, use and assign subordinates to do tasks and encourage their subordinateseffectively Besides, understanding yourself and understanding others facilitates theselection of junior colleagues.

To understand strengths, capability, hobby, personality, thoughts, feeling anddesire of subordinates, leaders need to proceed to learn about their subordinates andeverything related to them so that they can behave each person and each situationappropriately Learn about subordinates, analyze capacity, strength andpsychophysiology of subordinates is necessary for any leader

Understand ourselves and understand others has such importance, so how tounderstand ourselves? In addition, how to understand others? Currently, in theworld there are two common ways to understand ourselves and understand others?

The first way, use TESTS (evaluation forms are designed under standard).

They are TESTS designed under standard by American professional organizationsand used for the assessment, including: self-evaluation and peer evaluation

The second way, use 360-degree feedback (figure 1.19) This evaluation

method bases on the recognition and evaluation of all the people around Basically,this evaluation is conducted by the groups such as: (1) evaluation of superiors, (2)evaluation of subordinates, (3) evaluation of colleagues, (4) evaluation of customersand (5) evaluation of other related people For example, when self-evaluating, it ispossible and necessary to get evaluation and ideas of relatives, friends forobjectivity, fidelity and contribution When evaluating someone, it is possible andnecessary get evaluation, ideas from people who live near them such as neighbors,local police, or drink vendors Only having evaluations from such many sources, wecan ensure objectivity, honesty, fidelity and contribution and accuracy for theconclusion

Figure 1.15: 360-degree feedback