Management and

operation
F12-040 Vu Minh Duc
Content

• Action-centered leadership
• Management by objective
• Contingency theory
• Branch problems and solution
• Performance appraisal (KPI) criteria
 Action-centered leadership

John Adair’s Action-centered leadership (ACL) is a management model that is defined in form of three
factors that divide leadership into: Task, Team, and Individual along
Define with &the main responsibilities
Support
Plan Brief Evaluate
objectives Monitor
including achieving the task; managing the team or group and managing individuals in order to meet the
objectives and goals (Chapman, 2000)
 Strength and weakness of ACL

Strength
• Simple to use, thus easy to understand;
• Adapts well for the requirements for
modern business manager
Weakness
• Conflicts within the three elements of
circles;
• It is part of an integrated approach which
does not stands alone (culcjainm4, 2012)
Management by objective

Peter Drucker’s Management by objective (MBO) is a management model that design to improve the
performance of the corporation by setting specific objectives and strategic plan that verified by both
management and employees (Hayes, 2019)

Peter Ferdinand Drucker

(1909 – 2005)
 Strength and weakness of MBO

Strength
• Better managing based on S.M.A.R.T
• Clarifying organizational role
• Devising effective controls
• Improve communication
Weakness
• Difficulty in Setting goals
• Inflexibility due to structured objectives
• Short-term goals
 Contingency theory

Fielder’s Contingency theory imply that there is no best leadership style and effective
leadership depends on the interaction between the leader’s behaviors and the situation itself
(Cherry, 2017)
Strength and weakness of contingency theory

Strength Weakness
• Predict leadership effectiveness • Stricted to singular style instead of partial
styles
• Flexibility
• Lack of communication
Types of leadership

Autocratic Laissez-Faire Transformational Participative Transactional

Lazzari, 2018
The differences between transactional and transformational leadership
TRANSACTIONAL TRANSFORMATIONAL
BASIS FOR COMPARISON
LEADERSHIP LEADERSHIP
Concept Leader lays emphasis on Leader lays emphasis on the
communicating with values, ideals, morals and
employees needs of the staffs

Nature Reactive Proactive

Suitable for Settled Environment
Purpose Developing the established
organizational culture.
Style Bureaucratic
Numbers of leaders in a One
group
Focused on Planning and Delivering
Motivational tool Attracting followers by
putting their own self
interest in the first place.
Turbulent Environment
Changing the established
organizational culture.
Charismatic
More than one
Innovation
Encourage followers by
setting group interest as a
priority. Surbhi, 2015
Branch operation chart
Manager
(Laissez-Faire)

Head teller
(Transactional)

Cashier Cashier Cashier

Branch issues

• Lack of training
• Staff are busy/lazy
 Solutions - Lack of training

Procedure:
• Step 1: ACL
 Task: Provide training and improve skills for
employees Outcome: The
Solution: Create
 Group: make training group, sharing knowledge, accuracy of
training groups for
skills and idea employees has
employees with given
 Individuals: Self improvement through practice increased to 98% and
material to develop
• Step 2: MBO reduce number of
skills
- Goals: Ensure to improve skills in order to reduce mistake to 1
mistake to 1 or lower with accuracy up to 95%

• Step 3: Leadership style: Participative

 Solution – Lazy/Busy employees

Procedure:
• Step 1: ACL
 Task: establish minimum performance standard to
all staffs Outcome: The work
Solution: Set specific  Group: Assist in developing necessary skills and progression has risen
performance experience for improving performance to 87% tasks.
objectives for  Individuals: Follow the procedure and complete However the
employees in order to the tasks with the given standard attendance is 83%
meet the goals • Step 2: MBO and lower than the
- Goals: Ensure employees complete 85% tasks at standard
minimum with attendance up to 90% per month

• Step 3: Leadership style: Transactional

Performance appraisal process

Establish Measuring the

performance Feedback
standard

Communicating Comparing
Leonard, 2019
Performance appraisal criteria
Targets: Actual performance:
• Performance target: 85-90% tasks per month • Performance: 87% tasks
• Risk: 2 or less mistakes • Mistake: Only one
• Accuracy: 95% • Accuracy: 98%
• Attendance: 90% per month • Attendance: 83% per month

Feedback:
• Reduce the mistake number
• Increase the attendance rate
Reference
Chapman, A. (2000). John Adair's Action-Centred Leadership Model - BusinessBalls.com. [online] Businessballs.com. Available at:
https://www.businessballs.com/leadership-models/action-centred-leadership-john-adair/ [Accessed 18 May 2019].
culcjainm4 (2012). THEORIES AND MODELS OF LEADERSHIP AND MANAGEMENT. [online] Leadership. Available at:
https://culcjainm4.wordpress.com/2012/04/02/theories-and-models-of-leadership-and-management/ [Accessed 18 May 2019].
Cherry, K. (2017). What Is the Contingency Theory of Leadership? - Explore Psychology. [online] Explore Psychology. Available at:
https://www.explorepsychology.com/contingency-theory-leadership/ [Accessed 18 May 2019].
Hayes, A. (2019). Understanding Management by Objectives (MBO). [online] Investopedia. Available at:
https://www.investopedia.com/terms/m/management-by-objectives.asp [Accessed 18 May 2019].
Lazzari, Z. (2018). 5 Different Types of Leadership Styles. [online] Smallbusiness.chron.com. Available at: https://smallbusiness.chron.com/5-different-
types-leadership-styles-17584.html [Accessed 18 May 2019].
Travis, E. (2018). Fiedler's Contingency Theory of Leadership. [online] Bizfluent.com. Available at: https://bizfluent.com/info-7756327-fiedlers-
contingency-theory-leadership.html [Accessed 18 May 2019].
Leonard, K. (2019). Six Steps of the Performance Appraisal Process. [online] Smallbusiness.chron.com. Available at:
https://smallbusiness.chron.com/six-steps-performance-appraisal-process-1912.html [Accessed 18 May 2019].
Surbhi, S. (2015). Difference Between Transactional and Transformational Leadership - Key Differences. [online] Key Differences. Available at:
https://keydifferences.com/difference-between-transactional-and-transformational-leadership.html [Accessed 19 May 2019].
Thank you for listening