Paris Graduate School of Management Thai Nguyen University INTERNATIONAL EXECUTIVE MASTER OF BUSINESS ADMINISTRATION PROGRAM THESIS EFFECTIVE LEADERSHIP THE CASE OF NEXANS VIETNAM POWER CABLE COMPANY Le Duc Minh Student’s ID: Vn1001083 Class: ieMBA.B02 May 2013 Effective Leadership Le Duc Minh – IeMBA-B02 COMMITMENTS I guarantee that the contents of this thesis have never been submitted to any master program or other programs. In addition, I am committed that this thesis presents my own efforts. All analysis outputs and conclusion included (apart from quoted contents) are results of my research. Research student Le Duc Minh i Effective Leadership Le Duc Minh – IeMBA-B02 ACKNOWLEDGEMENTS First and foremost, I would like to express my sincerest thanks to my instructor – Doctor Dang Ngoc Su – for his dedicated and enthusiastic instruction to the completion of this thesis. But for Doctor Dang Ngoc Su’s help, my thesis would not have been completed. Besides, I am grateful to leaders, managers and lecturers of PGSM program and Thai Nguyen University for their facilitation and support in my MBA course as well as research process and thesis formation. In addition, I would like to acknowledge leaders and colleagues at Nexans Vietnam Power Cable Company who give me their enthusiastic and impartial support in my data collection process by spending their precious time and putting efforts in meeting me and completing survey questionnaire. Particularly, I would like to thank all beloved members in my family including my kind old parents, my beloved wife, daughter and son as well as my older brothers and sisters for their support and affiliation for my completion of the program and this thesis. ii Effective Leadership Le Duc Minh – IeMBA-B02 TABLE OF CONTENTS 1.1. Concept, nature and significance of leadership 4 1.1.1 Concept and nature of leadership 4 1.1.2 Role and importance of leader 6 CHAPTER II 29 LEADERSHIP IN REALITY 29 AT NEXANS VIETNAM CABLE POWER COMPANY 29 2.1 Introduction to Nexans Vietnam Power Cable Company 29 Core capacity 31 Nexans Vietnam Power Cable Company (NPVC) is the leading company in aluminum rod, high quality power cables with aluminum and aluminum alloy conductors in accordance with international standards. During over 15 years of formation and development, the Company has gained a lot of experiences and knowhow in production of power cables with active and professional officers and employees trained oversea. It has established its unique culture. All play as a firm foundation for sustainable development of NVPC that cannot found in other companies in the industry 31 2.1.2 Organizational structure 31 2.2 Current situation of leadership in Nexans Vietnam Power Cable Company 33 2.2.1 Old organizational model 33 2.2.2 New organizational model since 2010 36 2.2.3 Human resources 38 2.3. Assessment of leadership in the company 40 2.3.1. Vision 40 2.3.2. Decentralization, authorization 48 2.3.3. Motivation, encouragement 52 2.3.4. Influence 56 2.3.5. Leadership communication 59 2.3.6. Decision making 61 2.3.7 Self-understanding - understanding others 63 2.4. A summary of achievements and shortcomings 66 Conclusion to Chapter II 70 CHAPTER III 71 SOME SOLUTIONS TO IMPROVEMENT OF LEADERSHIP EFFECTIVENESS IN NEXANS VIETNAM POWER CABLE COMPANY (NVPC) 71 3.1 Develop vision 71 3.2 Exploit employees’ psychology factor 73 3.4 Maintain and develop competitive human resources 76 iii Effective Leadership Le Duc Minh – IeMBA-B02 LIST OF ABBREVIATIONS English English NVPC Nexans Vietnam Power Cable Company AAC All Aluminum Conductor ACSR Aluminum Conductor Steel Reinforced AACSR Aluminum Alloy Conductor Steel Reinforced AAAC All Aluminum Alloy Conductor ABC Arial Bundled Cables ACAR Aluminum Conductor Alloy Reinforced iv Effective Leadership Le Duc Minh – IeMBA-B02 LIST OF TABLES Table 1.1: Concepts of leadership Error: Reference source not found 1.1. Concept, nature and significance of leadership 4 1.1.1 Concept and nature of leadership 4 1.1.2 Role and importance of leader 6 CHAPTER II 29 LEADERSHIP IN REALITY 29 AT NEXANS VIETNAM CABLE POWER COMPANY 29 2.1 Introduction to Nexans Vietnam Power Cable Company 29 Core capacity 31 Nexans Vietnam Power Cable Company (NPVC) is the leading company in aluminum rod, high quality power cables with aluminum and aluminum alloy conductors in accordance with international standards. During over 15 years of formation and development, the Company has gained a lot of experiences and knowhow in production of power cables with active and professional officers and employees trained oversea. It has established its unique culture. All play as a firm foundation for sustainable development of NVPC that cannot found in other companies in the industry 31 2.1.2 Organizational structure 31 2.2 Current situation of leadership in Nexans Vietnam Power Cable Company 33 2.2.1 Old organizational model 33 2.2.1 Old organizational model 33 2.2.2 New organizational model since 2010 36 2.2.2 New organizational model since 2010 36 2.2.3 Human resources 38 2.2.3 Human resources 38 2.3. Assessment of leadership in the company 40 2.3.1. Vision 40 2.3.1. Vision 40 2.3.2. Decentralization, authorization 48 2.3.2. Decentralization, authorization 48 2.3.3. Motivation, encouragement 52 2.3.3. Motivation, encouragement 52 2.3.4. Influence 56 2.3.4. Influence 56 2.3.5. Leadership communication 59 2.3.5. Leadership communication 59 2.3.6. Decision making 61 2.3.6. Decision making 61 2.3.7 Self-understanding - understanding others 63 2.3.7 Self-understanding - understanding others 63 2.4. A summary of achievements and shortcomings 66 Conclusion to Chapter II 70 CHAPTER III 71 v Effective Leadership Le Duc Minh – IeMBA-B02 SOME SOLUTIONS TO IMPROVEMENT OF LEADERSHIP EFFECTIVENESS IN NEXANS VIETNAM POWER CABLE COMPANY (NVPC) 71 3.1 Develop vision 71 3.2 Exploit employees’ psychology factor 73 3.4 Maintain and develop competitive human resources 76 Table 1.3: Comparison of approaches to leadership Error: Reference source not found Table 2.1. Production and business outputs of NVPC during the past several years Error: Reference source not found Table 2.2 Statistics on quantity and quality of human resources in the company Error: Reference source not found LIST OF FIGURES/GRAPHS Figure 1.1: Effective leadership – Procedural approach Figure 1.2: Behavior – Task based model in effective leadership Figure 1.3: Effective leadership – Component approach 1.1. Concept, nature and significance of leadership 4 1.1.1 Concept and nature of leadership 4 1.1.2 Role and importance of leader 6 CHAPTER II 29 LEADERSHIP IN REALITY 29 AT NEXANS VIETNAM CABLE POWER COMPANY 29 2.1 Introduction to Nexans Vietnam Power Cable Company 29 Core capacity 31 Nexans Vietnam Power Cable Company (NPVC) is the leading company in aluminum rod, high quality power cables with aluminum and aluminum alloy conductors in accordance with international standards. During over 15 years of formation and development, the Company has gained a lot of experiences and knowhow in production of power cables with active and professional officers and employees trained oversea. It has established its unique culture. All play as a firm foundation for sustainable development of NVPC that cannot found in other companies in the industry 31 2.1.2 Organizational structure 31 2.2 Current situation of leadership in Nexans Vietnam Power Cable Company 33 2.2.1 Old organizational model 33 2.2.1 Old organizational model 33 2.2.2 New organizational model since 2010 36 2.2.2 New organizational model since 2010 36 vi Effective Leadership Le Duc Minh – IeMBA-B02 2.2.3 Human resources 38 2.2.3 Human resources 38 2.3. Assessment of leadership in the company 40 2.3.1. Vision 40 2.3.1. Vision 40 2.3.2. Decentralization, authorization 48 2.3.2. Decentralization, authorization 48 2.3.3. Motivation, encouragement 52 2.3.3. Motivation, encouragement 52 2.3.4. Influence 56 2.3.4. Influence 56 2.3.5. Leadership communication 59 2.3.5. Leadership communication 59 2.3.6. Decision making 61 2.3.6. Decision making 61 2.3.7 Self-understanding - understanding others 63 2.3.7 Self-understanding - understanding others 63 2.4. A summary of achievements and shortcomings 66 Conclusion to Chapter II 70 CHAPTER III 71 SOME SOLUTIONS TO IMPROVEMENT OF LEADERSHIP EFFECTIVENESS IN NEXANS VIETNAM POWER CABLE COMPANY (NVPC) 71 3.1 Develop vision 71 3.2 Exploit employees’ psychology factor 73 3.4 Maintain and develop competitive human resources 76 vii Effective Leadership Le Duc Minh – IeMBA-B02 PREFACE Name of thesis: Effective Leadership – The case of Nexans Vietnam Power Cable Company (NVPC) 1. Reason for choosing this thesis In this changing context of “Flat world”, groups, companies and enterprises of all sizes are facing increasingly fierce competition in all fields. With small size, limited resources and modest experiences, corporations and enterprises of different sectors in Vietnam are challenged. For the survival and development of Nexans Vietnam Power Cables Company, leaders of the Company should respond to constant changes in surrounding environment besides seeking a suitable and proper direction for management to achieve set targets. How can we achieve effective leadership? Getting influence to seek voluntary participation of employees and create favorable conditions in order to achieve targets in the short-run and long-run is demanded of leaders in the current changing environment. As a leader of the Company, I have chosen the thesis of “Effective leadership – The case of Nexans Vietnam Power Cable Company” for graduation project. From reality of the Company during the past years and development direction for the years to come, and my knowledge, I choose this thesis in order to contribute more to the sustainable development of the Company. 2. Research objectives Applying learned theory and leadership skills, this thesis investigates and assesses current situation of leadership in Nexans Vietnam Power Cable Company in accordance with procedure, behavior – task factors and component; at the same time it recommends solutions for improving leadership in Nexans Vietnam Power Cable Company. 1 Effective Leadership Le Duc Minh – IeMBA-B02 3. Research Scope The study just focuses on the leadership in Nexans Vietnam Power Cable Company (NPVC). 4. Research methodology - Qualitative method: Case study of Nexans Vietnam Power Cable Company - Detailed method: Analysis, comparison and consolidation (Descriptive analysis) - Data collecting method: Direct interviews, survey questionnaire. - Data: Primary and secondary data are used in this study. 5. Significance Theoretically, the thesis focuses on systematizing some common theories, skills and styles of effective leadership in the world. Practically, the thesis analyses the leadership in NVPC by using theories of leadership and effective leadership. Additionally, the thesis may be used as a reference for other enterprises in the same field. 6. Limits This study is limited within Nexans Vietnam Power Cable Company. Therefore, conclusions from the study should be applied for the Company only. Additional study should be carried out if the study will be applied in other companies or other types of business. 7. Thesis Structure This thesis consists of preface, chapter I, chapter II, chapter III and a conclusion. The preface reveals reason for choosing this thesis, research objectives, methodology, significance and limitations. Chapter I presents theoretical foundation, emphasizing nature and significance of leadership, some approaches to leadership and international experiences in effective leadership. Chapter II gives an overview in the establishment and development, organizational structure, operation, production and business outputs of the Company during the recent years. It also assesses current situation of leadership of the Company, in 2 [...]... times In the famous book named The Art of Possibility”, Rosamund and Benjamin Zander mention the concept of “Leading from any chair” In the book, they give a very interesting example of an orchestra in which the conductor 24 Effective Leadership Le Duc Minh – IeMBA-B02 ensures integrity of the entire band, but the Violin players at the end of the band is actually the leader He directs tempo of the entire... difficult to determine the most necessary criterion Therefore, there is no perfect answer to the question of “What is the most comprehensive criterion in assessment of leadership effectiveness?” Selection of criteria in assessment of leadership effectiveness depends on objectives and standards in values of assessed subjects Assessment of the board of management differs from that of employees, shops and... always aware of their personal values and objectives to strive They self-evaluate themselves truthfully and accurately at work, knowing their strength and weakness Additionally, they are willing to have contributive assessment from their colleagues and admit their failures They believe in themselves, in the ability of knowing the time for help At the same time, they assess risks in their jobs and they do... Effective leadership and approaches to effective leadership 1.2.1 Effective leadership 10 Effective Leadership Le Duc Minh – IeMBA-B02 There have been many studies on effective leadership Most of studies try to understand the interconnection between leadership behaviors and such criteria for assessing effective leadership as working productivity, attitudes and satisfaction level of employees They also... members of an organization or a group of people in order to accomplish set goals Therefore, the concept of leadership is understood as a social process in which the leader is seeking voluntary participation of followers for success of the organization In other viewpoints, such concept implies the procedure of having influence and creating environment to reach common goal of the organization So what is the. .. goals of the organization In the book “Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies” published in 2004, House et al 4 Effective Leadership Le Duc Minh – IeMBA-B02 defined leadership as the ability of an individual in creating influence and encouragement for attracting the highest contribution from followers for the development of an organization Table 1.1: Concepts of leadership. .. the concept of effective leadership and factors that shape an effective leader Researchers often link the concept of effective leadership to the process of creating intentional influences towards one or different individuals for the purpose of directing, building and creating favorable working conditions and promoting relation within groups or organizations Results of studies show that almost effective. .. of people for successful missions of their organizations Although the term of leadership had been in use for long time, it was until the 20 th century, the concept of leadership received attention and discussion from scholars Researchers usually define leadership in accordance with their private concepts and aspects that draw their attention most The definition of Leadership may be approached in such... of leadership No Concepts 1 Leadership is the behavior of an individual when he is directing the activities 2 of a group towards a shared goal (Hamphill & Coons, 1957) Leadership is the influential increment over and above mechanical compliance with the routine directives of the organization (D Katz & Kahn, 3 1978) Leadership is the process of influencing the activities of an organized group 4 toward... Bennis described leadership as a social process of influence in seeking participation of followers for best implementation of targets of an organization Also the author emphasized the significance of follower participation in implementing missions of an organization and responsibilities of leaders as the search of such participation 5 Effective Leadership Le Duc Minh – IeMBA-B02 Success of companies and . demanded of leaders in the current changing environment. As a leader of the Company, I have chosen the thesis of Effective leadership – The case of Nexans Vietnam Power Cable Company for graduation. importance of leader 6 CHAPTER II 29 LEADERSHIP IN REALITY 29 AT NEXANS VIETNAM CABLE POWER COMPANY 29 2.1 Introduction to Nexans Vietnam Power Cable Company 29 Core capacity 31 Nexans Vietnam Power Cable. 29 2.1 Introduction to Nexans Vietnam Power Cable Company 29 Core capacity 31 Nexans Vietnam Power Cable Company (NPVC) is the leading company in aluminum rod, high quality power cables with aluminum