Factors affecting the implementation of leadership development

Factors affecting the implementation of leadership development Factors affecting the implementation of leadership development Factors affecting the implementation of leadership development Factors affecting the implementation of leadership development Factors affecting the implementation of leadership development Factors affecting the implementation of leadership development Factors affecting the implementation of leadership development Factors affecting the implementation of leadership development Factors affecting the implementation of leadership development Factors affecting the implementation of leadership development Factors affecting the implementation of leadership development Factors affecting the implementation of leadership development Factors affecting the implementation of leadership development Factors affecting the implementation of leadership development Factors affecting the implementation of leadership development Factors affecting the implementation of leadership development

THE CHALLENGE FACTORS AFFECTING THE IMPLEMENTATION OF LEADERSHIP DEVELOPMENT IN THE RETAIL INDUSTRY IN VIETNAM SECTION 1: GENERAL INTRODUCTION 1.1 Retail industry in Vietnam overview 1.2 Overview of leadership development in the Vietnamese retail industry 1.3 Challenges of developing effective leadership 3 SECTION 2: PROBLEM STATEMENT 2.1 Challenges and difficulties of Leadership Development in Vietnam 2.2 The current situation of leadership ability of entrepreneurs in the retail industry Vietnam 2.3 Negative effects in leadership development influence on the retail industry 2.4 The importance of a good leadership development in an enterprise 6 in 8 SECTION 3: MANAGEMENT TECHNIQUES, TOOLS AND ANALYSIS 3.1 Research methodologies 3.1.1 Qualitative method 3.1.2 Quantitative method 3.2 Research design 3.3 Conceptual model 3.3.1 Personal Challenges 3.3.2 Organizational Challenges 3.3 Conceptual model 11 11 11 11 11 11 11 11 11 SECTION 4: PRESENTATION OF FINDINGS 4.1 Descriptive analysis 4.1.1 Personal Challenges impacts on Effective Leadership Development 4.1.2 Organizational Challenges impacts on Effective Leadership Development 4.2 Conclusion 12 12 12 12 12 SECTION 5: PRESENTATION OF SOLUTIONS 5.1 Organizational Challenge Solution 5.2 Organizational Challenge Solution 12 12 12 CONCLUSION 12 References 12 Appendices 14 SECTION 1: GENERAL INTRODUCTION 1.1 Retail industry in Vietnam overview When renovating the economy, especially starting in the 1990s, when Vietnam switched strongly to a market economy and integrated more deeply into the world and regional economies, the face of the entire socio-economic Society has undergone many changes The retail market is one of the most profoundly changing markets in the entire economy With the trend of trade liberalization and the development of information technology today, there is an urgent requirement for economies to open up faster and wider One of the accompanying inevitable factors of the rapid opening is that multinational corporations will strongly dominate the global retail network Decrees 2/2003/ND-CP, Decision No 27/2007/QD-TTg, along with other guiding documents on the development of the domestic trading system, were quickly implemented by the Ministry of Trade in the past In January 2007, Vietnam officially became a member of the WTO, starting to implement strong commitments to open the market for goods and services, including distribution services These commitments have really impacted the country's retail services industry At the time of Vietnam's accession to the WTO, many views were concerned that, before the opening, with the encroachment and acquisition of retail giants from abroad, the risk of collapse of the traditional retail distribution channel was large Opening the market with the presence of multinational distribution groups, with strengths in finance, technology and networks, Vietnam's retail market will prosper and develop After 10 years of joining the WTO market, Vietnam's retail market has completely innovated, diversified, and promptly met the essential needs of consumers in the integration period; and is a potential market, attracting investment both at home and abroad According to statistics of the Vietnam Association of Retailers (AVR), the total retail sales of Vietnam's retail market has increased sharply over the years (Cong, 2018) In 2010, the total retail sales of the retail market reached 88 billion USD, in 2015 this figure was 146 billion USD, in 2016 it reached approximately 158 billion USD, it is expected that 2017 will set a new growth milestone of 172 billion USD According to this momentum, it is forecast that the total circulation of retail goods and services in Vietnam will reach 180 billion USD in 2020 This result partly reflects the attractiveness and attractiveness of Vietnam's investors retail market in Vietnam in the past 10 years This ranking result is a push for multinational retail groups to quickly find Vietnam Although Vietnam's Global Retail Business Development Index (GRDI) has been on a downward trend, its potential is still attractive and attracting investment participation of foreign investors outside (Cong, 2018) Historically, the Covid-19 pandemic has been an unprecedented challenge for the global economy in general and Vietnam in particular In an effort to both prevent the pandemic from spreading and spreading, while continuing to operate the economy without paralysis, the growth rate of gross national product was only 1.81% in the first months of the 2020 For the second quarter of 2020, gross national product increased by only 0.36% over the previous year These indicators are low growth rates in the period 2011-2020 (Nielsen, 2020) The reason comes from the fact that the first quarter of the domestic economy still maintained the growth momentum from the Lunar New Year, but the second quarter was directly affected by the spreading pandemic Although currently, the Covid-19 epidemic in the country has been well controlled, there are still complicated developments in countries around the world Covid 19 is the "major surgery" of the retail market, because it has a long-term impact on the business situation of retailers (Phuong, 2020) Thus, the retail market in Vietnam is still considered an attractive market Vietnam's retail system has gradually moved in the direction of modern development, connecting domestic manufacturers and importers of goods, moving according to the market of residential areas, creating convenience in shopping and consumption Vietnam's retail market is one of the markets with impressive and attractive growth rates in the world today: Retail sales growth has increased continuously for many years; number growth impressive retail facilities; Growth outlook – global retail development index 1.2 Overview of leadership development in the Vietnamese retail industry As mentioned earlier, Vietnam has experienced a shortage of skilled labor (Cox & Warner, 2013) and a chronic mismatch between the output of the education system and the needs of the collectives unions, especially for the retail industry in Vietnam Currently, there is no university in Vietnam that specializes in retail training Lacking the necessary practical experience and job skills, graduates not meet the requirements of employers in the retail industry Up to 80% of students need to be retrained before being assigned a job (Jackson & Tomlinson, 2019) However, most organizations in Vietnam in general and retail businesses in particular not invest in staff training and development, but instead rely on vocational schools, colleges and universities to find employees resources and improve their workforce (Vo, 2009) As a result, it often takes a long time for a fresh graduate to be productive, leading to low productivity growth in Vietnam in general (World Bank, 2015) and the retail industry in particular In recent years, an emerging group of large private retail companies in Vietnam have begun to devote considerable resources to staff training and development These companies include Vingroup, The Gioi Di Dong, FPT retail, PNJ and others (Vietnam Report, 2015) At these retail companies, the training and development function is evolving through their human resources departments For example, Mobile World is well known in the Vietnamese retail industry for providing rigorous training courses for new employees FPT, as an information technology company, provides many development opportunities for its employees, including classroom training, management training and seminars Vingroup, a consortium of real estate, entertainment, hospitality and retail companies, recently established an educational institution to develop its talent pool as well as train its current employees Retail organizations in Vietnam are increasingly focusing on employee training, but most of the training provided is still focused on addressing immediate and short-term needs rather than contributing to human resource development strategy (Goodwin, O'Connor and Quinn, 2014) As a result, the developmental portion of the training and development or HRD function is generally limited In that context, leadership development, which refers to expanding the capacity of organizational members to participate effectively in leadership roles and processes in Vietnamese retail organizations is not to be an exception 1.3 Challenges of developing effective leadership Since the new millennium, the experience of organizations has improved and the leadership philosophy has also changed to meet the more changing needs of the business The documents suggest that some leadership styles that were effective in the past may no longer be relevant to this new age, while for-profit companies are investing large sums of money in the hunt for success of leadership (Leskiw and P Singh, 2007) An important element in leadership is the development of the leader's character In a successful organization, leadership is not a “job” with specific time constraints, but a way of life Selfawareness, adaptability, and agility are some of the traits that leaders at all levels of the organization must possess in business strategy These findings come from a study that concluded that while most organizations emphasize the need to develop leaders, only 44% of them actually have a key leadership development process (Giber, Goldsmith and Justin, 2009) As a result, these organizations may not be effectively prepared to face the changing business environment Effective leadership development activities are often fragmented and lack an overall strategy that is successfully applied in the organization In a study called “Global Human Capital” released by International Business Machines (IBM), some interesting material was provided and highlighted the growing importance of leadership in organizations organization In this study, which was the result of interviews with 400 HR executives from 40 countries, researchers suggest that organizations are putting their growth strategy at risk if they cannot recognize and develop the next generation of leaders The report also highlights companies' interest in developing future leaders (IBM, 2008) A conceptual dichotomy persists, in which, while there is increasing attention to improving the development of effective leadership, the lack of effective leaders remains pervasive and the need for effective leadership development planning is growing faster and faster SECTION 2: PROBLEM STATEMENT 2.1 Challenges and difficulties of Leadership Development in Vietnam The Vietnamese government acknowledges the lack of managerial skills and leadership skills in business leaders of state-owned enterprises and, therefore, these leaders are provided, in addition to political training, with some formal management training and soft-skill training The training is provided, as a rule, not in enterprises themselves but through external government-related institutions, such as Vietnam Chamber of Commerce and Industry, or formal education institutions In the early 2000s, most managers of stateowned enterprises participated in a distance program on business management provided by a state university in Vietnam Despite these efforts, the recent survey of business leaders, conducted by the VCCI (2011), showed that the majority of Vietnamese current business leaders have not undergone training courses for business administration On-the-job training by job rotation is commonly used in state-owned enterprises to train their potential leaders In an informal interview with one of the authors, a recently retired executive of a state-owned company who has devoted his entire career to the state-owned sector, recounted the story of how he developed his managers by giving them a variety of tasks; which explained that through these assignments, he assessed their leadership and tried many different people until, together with VCP's corporate committee, selected his eventual successor for the role of CEO of the company The interview revealed the lack of a usable system for assessing and identifying talent in SOEs Truong and Ha (2013) point to this problem in a list of what they call management problems in SOEs The lack of a sound rating system leads to nepotism and political alliances in these organizations As a result, managers who have successfully advanced through the ranks in these organizations are often sponsored by members of senior leaders or members of the CPV committee at the organization Leadership development in enterprises in Vietnam is relatively limited Dang (2013) in a survey of 45 small and medium enterprises in Hanoi city showed that some small and medium enterprises began to prioritize training in management and leadership These companies have budgets for training and investment in human resources About 60% of enterprises participating in the survey have trained middle and senior managers while the remaining 40% not train managers Companies that provide management training have used different forms of training, including job rotation, on-the-job training, seminars and more Training programs mainly focus on basic management skills such as strategic planning, business planning and marketing development, while skills and personal development are not emphasized (Dang, 2013) It should be noted that only 36% of participants said that their training programs were tailored to their business strategy The training programs for managers and leaders at these enterprises are deployed sporadically and without a system They not have a specific method for identifying target groups of employees for these programs or evaluating training effectiveness In an intimate interview with the CEO of a medium-sized business, the CEO suggested that his company is willing to send and even pay employees to attend management training programs such as MBAs, but those managers must be key people in the company and must demonstrate a commitment to stay with the company The CEO decides who to send to these training programs In most cases, these individuals have a personal relationship with the CEO such as a friend or relative 2.2 The current situation of leadership ability of entrepreneurs in the retail industry in Vietnam As a bridge between production and consumption, the retail sector has become one of the spearhead industries of Vietnam's economy In particular, during the outbreak of COVID-19 as well as when it is pushed back, the retail sector has always affirmed its role in regulating the market and ensuring a smooth supply The potential of the retail market in Vietnam is still great, so many large retail groups in the world continuously promote their strategies to expand market share in Vietnam, which creates great pressure on entrepreneurs in the retail industry in Vietnam (Tien, 2022) Figure: Market share of supermarket chains in Vietnam by point of sale Source: VietNambiz, 2022 If before, more than 50% of Vietnam's retail market share was in the hands of foreign businesses, now, Vietnamese retail businesses are accounting for about 70-80% of retail points across the country (Tien, 2020) This shows that the leadership capacity of Vietnamese retail enterprises has been significantly improved in recent years Some familiar business names in the retail industry such as: Mr Nguyen Duc Tai - Chairman of the Board of Directors of Mobile World Joint Stock Company, Nguyen Dang Quang - Chairman of the Board of Directors of Masan Group with a chain of super Winmart and Winmart+, Pham Nhat Vuong - Chairman of the Board of Directors of VinGroup, with the Vincom shopping mall chain Behind the Chairman of the Board of Directors is a dedicated and talented leadership team power The strength of entrepreneurs in the retail industry is knowing how to take advantage of new opportunities, knowing how to think creatively in a new context They regularly update knowledge and new information of domestic and international business markets (Pham, 2019) However, universities in Vietnam still not have a specific training major in the retail industry, so retail business leaders in Vietnam still lack the basic background specific to the retail industry 2.3 Negative effects in leadership development influence on the retail industry Leadership is the process of influencing the actions of an individual or a group to achieve a common goal of the organization under certain conditions The lack of leadership skills has a great influence on the development of a business (Surji, 2015), especially retail businesses with fierce competition from foreign brands A typical example is that despite having a large market share in the supermarket industry in Vietnam, which are Winmart and winmart + chains, this business still reported a loss of VND 3200 billion (NDH, 2022) This shows that leadership thinking in business performance of Vietnamese retail enterprises has a great influence on business performance Foreign supermarket chains such as BigC or Aeon Mall, although occupying a smaller market share and revenue, still reported profits in business activities 2.4 The importance of a good leadership development in an enterprise Leadership is a very important factor for any management leader Leadership is not only needed in work but also in life A good leader needs to establish his direction and Leadership ability to lead the team to accomplish the goal in the best way Some important points of good leadership development in an enterprise include: First, Unifying vision development: Excellent organizational leaders create a motivating, clear, and simple vision that celebrates and reinforces the core purpose of the organization They create a mental picture of “where the organization is headed” and “what the organization is trying to achieve in the future for stakeholders” (Warrick and Gardner, 2021) Second, Developing a strategy: The strategy is not just for CEOs Each leader has to drive the lean-style strategy in their sphere of influence Throughout the strategy-making process, leaders learn ‘why,’ ‘how,’ and ‘when’ of decision-making Leaders develop strategy by guiding their people through their choices about where and how to compete with customers who are better than rivals The leader needs to set the stage for the strategymaking process by asking the leadership purpose in strategy, ensuring the involvement of the audience and stakeholders to set strategic goals (Silva and Fernandes, 2015) Leaders need to understand the current scenario by assessing a team’s current performance and capabilities for competition They need to identify key issues and problems to be solved and to ensure opportunities are provided for the team or unit to create significant new value to the organization and customers Finally, they must allocate resources to execute the strategy by involving team members Third, Getting great people on board: Leaders have a role to play in building an organization with the best talent and motivating them to produce the best results from their skills and abilities To ensure this, leaders need to balance the needs and aspirations of their team, providing opportunities for people to learn, grow, and develop them with timely feedback and appropriate compensation For this, the element of diversity with different backgrounds will also help the organization A leader should not hesitate to make tough decisions like firing people for the good of the organization In doing so, they should reinforce common thinking, values and a sense of identity among the groups (Tien, 2022) In an ever-changing world where job roles need to be revisited with revised expectations, it is necessary to provide performance feedback to both individuals and teams so that their efforts help the organization (Surji, 2015) Good leaders create lasting opportunities for the best performers; rational allocation of financial resources for their development; and create a variety of learning experiences in the form of challenging tasks that will help them reach their full potential, set them difficult goals, require different employees to work together, and encourage Job rotation In short, leaders need to understand what is the correlation between culture and strategy Therefore, it is necessary to develop an identity among different talent factors to drive certain behaviors and actions that will enable strategy execution Fourth, Motivate employees to achieve goals: The role of a leader is not only as a caregiver but also as a troublemaker that motivates employees to work harder; setting high expectations is also a starting point for improving results High performance expectations is the least developed skill in organizations and that leaders should demand better results If employees cannot compete despite all support and encouragement, then leaders must take appropriate action Letting poor performance pass without consequences sends a message that the leader is not serious about achieving results Leaders at all levels need to practice this to create a culture of accountability and performance (Warrick and Gardner, 2021) They should consider initiatives that deliver quick results to stimulate their employees to find newer approaches The real challenge for a leader is to ensure that only the right things are measured, not everything Fifth, Innovating for the future: Interestingly, the average lifespan of an S&P 500 company has fallen from more than 60 years in 1952 to about 17 years today, and data shows that 60–80% of all startups fail after years (Melroy, Smith and Arnold, 2015) Even if the company is successful and has transformed itself, the market will continue to change, often new technologies will emerge suddenly and global economic shocks will periodically shake the system; while these are external factors, some are internal, such as complacency with past success, inward focus and, at times, arrogant ignorance that there is no need to change affects organizations Leaders need a healthy dissatisfaction with the status quo for sustainable growth For growing leaders, there is no better way to build the innovation and thinking skills needed at higher levels of the organization than by practicing them, making mistakes, and learning from the mistakes on a smaller scale (Silva and Fernandes, 2015) Building a culture that focuses on continuous innovation means that the organization will be successful in the long term even after the current leaders are gone and new leaders will inherit the institutional capabilities and have a solid foundation to build on Leaders need to create an environment of fast learning, not fast execution, and encourage a culture of innovation; People need to be rewarded and recognized, rather than not recognized for their ideas Therefore, to build innovation in the enterprise, leaders must always personally demonstrate and set an example by modeling growth-appropriate behaviors that seek the future, demonstrate curiosity and Get excited about new ideas while respecting the importance of day-to-day business In conclusion, Leadership development is a key component to business management including identified leadership elements such as vision, strategy, people, results, innovation and self leadership The landscape of leadership has changed dramatically in the organizational landscape, as formal hierarchical leadership is not effective today and leaders need to inspire and make an impact and bring the organization to life SECTION 3: MANAGEMENT TECHNIQUES, TOOLS AND ANALYSIS 3.1 Research methodologies 3.1.1 Qualitative method 3.1.2 Quantitative method 3.2 Research design 3.3 Conceptual model 3.3.1 Personal Challenges Emotional Intelligence Empathy Social Judgment Skills Self-confidence 3.3.2 Organizational Challenges Organizational Culture Lack of Continued Investment in Leadership Development Lack of Higher Management Support Lack of Synergy between Organizational Strategy and LeadershipDevelopment Strategy 3.3 Conceptual model Effective Leadership Development: Personal challenges Organization challenges SECTION 4: PRESENTATION OF FINDINGS 4.1 Descriptive analysis 4.1.1 Personal Challenges impacts on Effective Leadership Development 4.1.2 Organizational Challenges impacts on Effective Leadership Development 4.2 Conclusion SECTION 5: PRESENTATION OF SOLUTIONS 5.1 Organizational Challenge Solution 5.2 Organizational Challenge Solution CONCLUSION References Cong, D (2018) Thị trường bán lẻ Việt Nam sau 10 năm gia nhập WTO viễn cảnh tương lai https://tapchitaichinh.vn/thi-truong-ban-le-viet-nam-sau-10-nam-gia-nhap-wtova-vien-canh-tuong-lai.html Cox, A., & Warner, M (2013) ‘Whither ‘training and development’ in Vietnam?: Learning from United States and Japanese MNCs’ practice’ Asia Pacific Journal of Human Resources, 51(2), 175–192 Carmeli, A (2003) ‘The relationship between emotional intelligence and work attitudes, behavior and outcomes: an examination among 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