proposing the leadership buiding model for fpt

Leadership Building Model – A case of FPT Software ACKNOWLEDGEMENT This thesis could not be accomplished without the assistance and encouragement of many people. I am very grateful and indebted to all of them. First of all, I would like to express to the valuable help of MBA. Phan Thuy Chi who has provided me the appropriate guidance and invaluable comments in structure and logical ideas of the thesis. I have also benefited a lot from the lectures by famous professors coming from the Solvay Business School. I am impressed not only by the depth of their knowledge but also by their professionalism in approaching to the matters. I really feel grateful with the help and instruction from the Faculty officers to students like us. I also would like to express my thanks to my colleagues, my managers my friends who support me about the data, reports and sharing the ideas for statistic. Last but not least, I would like to express my sincere thank to the support and encouragement from my classmate, especially from members of Group 7 who share the learning experience enthusiastically during the course. Nguyen Thi Thu Hien MBM5 27 Propose Leadership Building Model for FPT TABLE OF CONTENT III.2.1 The Objectives of the FPT Building Leadership Model (FLB) 44 Roles of training module 57 EXECUTIVE SUMMARY Within the limit of the thesis, the writer would like to propose the Leadership Building Model for FPT Corporation, the company in the strong need of leaders to prepare for the development in the coming years. The reason for the model is that: FPT is a biggest corporation on Technology in Vietnam at the average growth rate of 40% every year. Besides, with ambitious plans for the near future, FPT is facing the hard problem of qualified human resources. In estimating, FPT will be in need of about 400 team leaders and managers and governing leaders within next 3 years. Also, Vietnam is integrating to the open economy. The companies, included Vietnamese and foreign invested will compete fiercely to have good human capital. Nevertheless, the quality and quantity of the leaders in Vietnamese labour Market is such a huge problem. To prepare for this situation, FPT is in strong need to build up its own robust leader team in both quantity and quality. The thesis has been inspired from this context and targeted to solve the question: How FPT will build their leadership? In fact, FPT is not lonely in this matter. Hundreds of huge companies, corporation, organizations all over the world has serious develop this math. There are successful leadership building models in practice. Among of them are Infosys Corporation, Unilever, Tesco, Georgia State Government, IBM, HP, etc… The writer decides to choose the two models from Infosys and Georgia State Government for reference for FPT leadership building Model. The reason is that, Georgia Model is a methodical leadership building program and Infosys has similar characteristics in business, organization and strategy that FPT can learn effectively. In the deeper research on FPT leadership building Model, we will see how the model operates, how it will help FPT to address the leadership problem of FPT. The start of a successful model is the worthy resource of potential talents. The next step is the identifying the necessary competencies that suitable for FPT development and mapping the gaps from candidates. The role of communication has never important like that in leadership building. The success of the model is lying in the effective development plan which can be evaluated accurately. However, in a fast developing irregularly organization like FPT, the model here must be applied flexibly. That is the most important thing of leadership building, indeed. And thanks to Infosys and Georgia Model, FPT could learn precious experiences to ensure an effective sample to start their leadership journey Finally, the method to study the thesis is basing on theory study, combination with the analysis of the practical leadership situation in FPT Corporation. Earning precious and methodical theory from Human resource Management in the Solvay Business School and other reference in Nguyen Thi Thu Hien MBM5 2 Propose Leadership Building Model for FPT practical studies, the writer proposed a leadership building model with hope that this model is, in fact, applied successfully and solve somehow the problem of prepare the qualified leaders for a Vietnamese corporation to compete and move forward to the globalization. INTRODUCTION FPT Corporation is a joint stock company, established since 1988. In fact, it has been reorganized 2 times: from a state-owned company to a joint stock company and reformed to be a corporation. FPT has run and dominated the IT industry in Vietnam after just more than 10 years existing. At this time, FPT is leading in 10 fields of IT industry in the whole Vietnam market. FPT also export software and does outsource for a lot of countries in the world such as Japan, US, Malaysia, France… Now it has a workforce of 7000 and the annual speed of growth at 40%. Base on this background, FPT is having an ambitious strategy to move to the globalization process. In specific, FPT would like to have 16.000 staff and gain the revenue of USD 1.3 billion in the next 5 years. To prepare this, FPT have to face many problems. One of them is the lack of leaders adequate in quality and quantity as well. Especially, to FPT in particular and to the successful corporations all over the world, leadership is one of the most important factors. Therefore, basing on the reference on two of practically successful leadership building models in the worlds in Infosys Corporation and Georgia State Goverment, the writer proposed herewith a Leadership Building Model applied for the case of FPT. We will see what is the model, how it operates in order to help FPT solve the problem of FPT in lacking leaders in the future within the thesis with topic: Proposing the Leadership Buiding Model for FPT 1. Research questions • FPT in the current situation and where it is going in the future • What is the role of Leadership Building in the development of FPT • What is the Leadership Building Model for FPT • How will the Leadership Building Model operate • How this Model support the Leadership of FPT 2. Research scope • Scope: FPT Corporation • Time period: from February 2007 to Oct 2007 3. Objectives • Why does FPT need to build the Leadership Building Program i. To identify talents early and develop in the right path ii. To have an effective and standardized process in leadership building iii. To prepare the leader supply for the future development Nguyen Thi Thu Hien MBM5 3 Propose Leadership Building Model for FPT •How will the Program operate? •Practical usage of this thesis to help FPT build the qualified leaders team for the development 4. Research theories Theories and practical Model on leadership building in Human resource Management in common, and leadership building in particular, includes: • Human Resource Management • The Healthy Organization • Leadership Building Model of Infosys Corporation • Leadership Building Model of Georgia State, U.S. 5. Research methodology • Theory and Practical Research 6. Tentative results • Propose the FPT Model of Leadership Building for the Talents 7. Thesis structure Chapter I: Literature review on Leadership Building Model • Overview about leadership • Leadership Building Theory • Infosys Leadership Building Model, Infosys Corporation • Georgia Leadership Building Model, Georgia State, U.S. Chapter II: Overview about FPT and leadership • Overview about FPT Corporation • Introduction of FPT Vision, Mission, Value and Strategy • SWOT Analysis of FPT Chapter III: Proposing FPT Leadership Building Model for the Talents • Overview on Leadership Building in FPT - The role of leadership in FPT - FPT Leadership development History - FPT Leadership Competencies Set - The necessity of developing a Leadership Building Model in FPT • Proposing the FPT Leadership Building Model - Objectives of the Leadership Building Model in FPT - Introduction of the Leadership Buiding Model for FPT - Characteristics of FPT Leadership Buiding Model - How this Model help FPT improve the leadership Building Chapter IV: Conclusion Nguyen Thi Thu Hien MBM5 4 Propose Leadership Building Model for FPT CHAPTER I: LITERATURE REVIEW ON LEADERSHIP BUILDING I.1 LEADERSHIP I.1.1 What is Leadership Due to the literature on Human resource Management by Derek Torrington, Laura Hall & Stephen Taylor, they introduce the definition of leadership as follows: Leadership is the process in which an individual influences other group members towards the attainment of group or organizational goals. (Shackleton, 1995, p. 2) Also, another interesting point of view on what is leadership that would be introduced for reference as follows: Leadership involves an asymmetrical influence on group members in the direction of collective, interdependent goals. It also means coordinating member behavior in pursuit of group goals. Leaders use resources and a repertoire of styles, i.e., recognizable and regular constellations of behaviors directed at influencing others. Leadership is reciprocal, involving exchange and negotiation between leaders and group members. One cannot lead without acceptance among group members. In efficient societies and among more informal or volunteer groups in any society, leadership invokes conformity rather than compliance. Common lay references to leadership usually focus on personal behaviors rather than social roles. When someone expresses solely in-role behaviors that are legitimately designed to influence others, we typically call this authority. Occupants of an authoritative role exert highly situation-specific influence. I.2.2 Leadership competencies Many study and research was invested to the find the competencies of leaders. Competencies are defined as underlying characteristics such as knowledge, skills, abilities, motives, traits, self-concept, and behaviors that allow people to effectively perform in a position. A different set of competencies and/or competency levels is required at each leadership level. Competencies belong to one of two domains: career specific OR generic. Career specific competencies are often thought of as technical, professional, or managerial competencies, which apply to a particular function or occupational family. Generic competencies are often thought of as behavioral competencies, which apply cross-functionally in multiple occupational settings. Career specific and generic competencies are considered to contribute equally to job success, unless compelling information exists to the contrary. Due to the literature by Derek Torington, trait approaches, which were earliest to be Nguyen Thi Thu Hien MBM5 5 Propose Leadership Building Model for FPT employed, seek to identify the traits of leaders – in other words what characterizes leaders as opposed to those who are not leaders. These approaches rest on the assumption that some people were born to lead due to their personal qualities, while others are not. It suggests that leadership is only available to the chosen few and not accessible to all. These approaches have been discredited for this reason and for the fact that there has been little consistency in the lists of traits that research has uncovered. However. this perspective is frequently resurrected. Goleman analysed the competencies into three groups: Technical, cognitive, and emotional, and found that, in terms of the ratios between each group, emotional competencies proved to be twice as important as the others. He goes on to describe five components of emotional intelligence: o Self-awareness. This he defines as a deep understanding al One's strengths, weaknesses, needs, values and goals. Self-aware managers are aware of their own limitations. o Self-regulation: the control of feelings, the ability to channel them in constructive ways. The ability to feel comfortable with ambiguity and not panic. o Motivation: the desire to achieve beyond expectations, being driven internal rather than external factors, and to be involved in a continues striving for improvement o Empathy: considering employees' feelings alongside other factors when decision making. o Social skill: friendliness with a purpose, being good at finding common ground and building rapport, Individuals with this competency are good persuaders, collaborative manager and natural net-workers. Another way to distinguish the leadership competencies as follows according to DonClark, we have three categories, Core, Leadership, and Professional; with the behavioral indicators listed for each process. The core competencies is required of all individuals within the organization, the leadership competencies are specialty items for managers and supervisors, while the professional competencies are specific for each position. Be careful when building professional competencies for leaders. Unlike fish, who die when they are out of the water, leaders who are out of their territory often bring new insights and freshness to the organizations they are leading. Insure that the chosen behavioral indicators are really the required skills, knowledge, or attitudes. These are the skills needed to drive the organization onto the cutting edge of new technologies. Leadership Competencies form the basic structure that separates leaders from bosses. These skills create the walls and interiors of the pyramid. Without them, a leader is just a hollow windbag, or as Scott Adams of Dilbert fame best characterizes it, "a pointy-head boss." Leadership Abilities Nguyen Thi Thu Hien MBM5 6 Propose Leadership Building Model for FPT • Displays attributes that make people glad to follow. • Provides a feeling of trust. • Rallies the troops and builds morale when the going gets tough. Visioning Process • Applies effort to increase productiveness in areas needing the most improvement. • Creates and set goals (visions). • Senses the environment by using personal sway to influence subordinates and peers. • Gain commitment by influencing team to set objectives and buy in on the process. • Reinforces change by embracing it (prevents relapse into prior state). Create and Lead Teams • Develops high-performance teams by establishing a spirit of cooperation and cohesion for achieving goals. • Quickly takes teams out of the storming and norming phases and into the performing phase. Assess Situations Quickly and Accurately • Takes charge when the situation demands it. • Makes the right things happen on time. Foster ConFLBct Resolutions (win-win) • Effectively handles disagreements and conFLBcts. • Settles disputes by focusing on solving the problems, without offending egos. • Provides support and expertise to other leaders with respect to managing people. • Evaluates the feasibility of alternative dispute resolution mechanisms. Project Management • Tracks critical steps in projects to ensure they are completed on time. • Identifies and reacts to the outside forces that might influence or alter the organization's goals. • Establishes a course-of-action to accomplish a specific goal. • Identifies, evaluates, and implements measurement systems for current and future projects. Implement Employee Involvement Strategies • Develops ownership by bringing employees in on the decision making and planning process. • Provides the means to enable employee success, while maintaining the well-being of the organization. Nguyen Thi Thu Hien MBM5 7 Propose Leadership Building Model for FPT • Develops processes to engage employees in achieving the objectives of the organization. • Empower employees by giving them the authority to get things accomplished in the most efficient and timely manner. Coach and Train Peers and Subordinates • Recognizes that learning happens at every opportunity (treats mistakes as a learning event). • Develops future leaders by being involved in the company mentoring model. • Provides performance feedback, coaching, and career development to teams and individuals to maximize their probability of success. • Ensure leadership at every level by coaching employees to ensure the right things happen. • Ensures performance feedback is an integral part of the day-to-day activities. Professional or Individual Competencies These are the skills and knowledge needed to direct the systems and processes that a leader controls. Professional Competencies form the mortar that binds the pyramid together. Without some knowledge of the technical skills that they direct, the pyramid soon begins to fall apart and the organization begins to operate in damage control mode. Each organization requires a different set of professional competencies for each leadership position. Although leaders do not need to be the Subject Matter Experts for the tasks that they direct, they must have a basic understanding of the systems and processes that they control. Again, each position requires a different set of skills and knowledge. The method you use to organize the competencies should be one that breaks it into smaller, more manageable chunks of information that can easily be identified and used throughout the organization. Again, what makes sense in one organization, might fail in another organization. 1.2.3 Leadership Styles Accoding to heresy and Blanchard, a propriate leadership style ifa situation should be dependent on their diagnosis of the “readiness”, that is developmental level or maturity, of their followers. That means leaders can adapt their leadership style to meet the demands of their environment. Readiness of the followers is defined in terams of ability and willingness. Table 01: Hersey and Blanchrd’s four styles of leadership Nguyen Thi Thu Hien MBM5 8 Propose Leadership Building Model for FPT High Relationship behaviour Low task behavior Followers are able, but unwilling or insecure Supportive (participating) style (3) High relationship behavior High task behavior Followers are unable, but willing or confident Coaching (selling) style (2) Low relationship behavior Low task behavior Followers are both able and willing or confident Delegation style (4) Low relationship behavior Low task behavior Followers are unable and unwilling or Insecure Directing (telling) style (1) Source Adapted from. P. Hersey and KH. BLanchaid (1988) management of Organization Behavior: utilizing human.Resources, Et eon. Englewood Cliffs, NJ Prentice-Hall international 1.2.3 How are leaders chosen? Leaders are often imposed upon groups through appointment rather than through internal selection. Many behaviors of these appointed individuals reflect authority, not leadership. Indeed, "leaders" may be chosen for authority roles because they appear to embody the goals of the organization or because they "manage" rather than "lead." In any event, authority figures are rarely emergent leaders. Upper management chooses most middle managers, although input from subordinates may be encouraged. Upper management, in turn, is often appointed by company presidents, boards of directors, church elders, school boards, business owners, high school faculty, or people in other relatively elite positions. New middle or upper managers may be even recruited from outside the organization. Political leaders typically are selected by their parties before their names go on the ballot (except sometimes in local races). These circumstances may explain why studies in naturalistic settings generally find little correlation between personal traits and leadership position (let alone leadership success). Pleasing status superiors rather than working well with group members may determine one's appointment to authority roles. Relational skills such as ingratiation or conformity may influence leadership selection in formal groups. Outstanding individual task achievement may also impress status superiors, even when individuals with these accomplishments have poor relational skills. 1.2.4 Process of leadership Leaders use what is available to them to influence group members. This means using bases of power such as: Nguyen Thi Thu Hien MBM5 9 Propose Leadership Building Model for FPT • Reward power and • Coercion power when subordinates achieve (or don't) • Referent power (since attractive, warm people are more persuasive) • Legitimate power (to appeal to our social "oughts" or "shoulds") • Expert power (because people we respect as more knowledgeable are more persuasive) For example, a coach may be an attractive figure who has a background in professional sports, thereby drawing on referent, legitimate and expert power bases simultaneously. Bases of power transform into styles of influence (Kelman) such as • Compliance • Conformity and • Identification Clearly compliance draws heavily on reward and coercion power while conformity draws on referent, legitimate and expert power. In identification processes, group members accept influence because they identify with the leader and want to be like her or him. Typically this means the leader uses personal attributes such as warmth or expertise rather than positional attributes such as an authoritative role. 1.2.5 Keep leaders effective It is probable` that subordinates will keep on flattering and leaders will continue to engage in self-delusion. What can be done to counteract these tendencies? Engage in periodic evaluation of the group and its leadership. Try to use objective measures of productivity and member satisfaction. For example, surveys of members, especially in small groups, will be problematic because group members may (and justifiably so) fear retaliation. Instead, examine turnover rates, grievances (in unionized organizations), quality and quantity of unit production. Foster ties across groups. The more outside information a group can draw on the better. Use outside evaluators, preferably at a peer level (fewer probable ingratiation attempts). Try to create structures that give all members some chance at participation and decision-making. Rotate leaders across groups. This prevents leaders from acquiring a territorial sense about their groups and limits syncopates. Some school districts do this with principals, rotating them across schools, every few years. The military does this in many cases as do some large corporations. I.2 LEADERSHIP BUILDING THEORY 1.2.1 Leadership Building Definition Nguyen Thi Thu Hien MBM5 10 [...]... PROPOSING THE LEADERSHIP BUILDING MODEL FOR FPT III.1 Overview about leadership Building in FPT III.1.1 The role of Leadership in FPT Corporation Leadership is one of the core competencies of FPT They are the great fortune that bring FPT s image today They had set vision on the first day and have still the same today This vision has been engraved on each FPT s consciousness; it is also a guideline for our... century has thrown up a number of theories and models The table on page 40 gives a broad overview of the evolution of leadership models and associated theories in the 20th century: The shift from ‘great man (trait) theories’ to behavioural theories brought in the all-important dimension of leadership development’ The fundamental premise in the behavioural theories is that leadership is a set of behaviours... integration FPT is very much aware of the role of information technology in many traditional economic sectors, in that it can act as a level for this sector to develop FPT has, therefore, established FPT bank, FPT Securities, FPT Capital, FPT land, FPT Retail, FPT Promo and FPT Media Human Resource training has always been considered the foundation of stable development Since its early days, FPT has viewed... across the world Nguyen Thi Thu Hien 17 MBM5 Propose Leadership Building Model for FPT 1.3.3 The ‘nine pillar’ model of leadership development The nine pillars are the operational elements for leadership development in Infosys (see graphic) This model was developed after careful research of the processes followed by 18 of the most successful global companies Each pillar has its own unique importance to the. .. starts before a person reaches executive levels One of the key constructive experiences is being moved out of one's comfort zone early Many companies Nguyen Thi Thu Hien 13 MBM5 Propose Leadership Building Model for FPT insist that their trainees start at The frontline for a short period, in the store, on the road or on the night shift In these per-supervisory (ie work level 1) jobs people often get their... Later, the Industrial Age provided the context for the creation of ‘managers’ and ‘management’ Theories rooted in the disciplines of military history, economics and scientific management were the researcher’s response to the challenges of the Industrial Age The post-Industrial Age, characterised by the knowledge era has brought the spotlight onto ‘leaders’ and leadership Research on this theme during the. .. Building Model for FPT In this step, development strategies are outlined for members of the leadership development pool based upon the results of their assessment in the previous step I.3.2.6.1 Key Assignments Research has shown that key assignments are the primary source for developing future leaders By taking on challenging projects, individuals are afforded rich learning opportunities to prepare them for. .. Model for FPT Chart 01: FPT Organization Chart Chart 02: FPT Management Mechanism Chart Chart 03: Turnover and Personel Growth of FPT Nguyen Thi Thu Hien 28 MBM5 Propose Leadership Building Model for FPT Chart 04: Brief Recent Financial Report II.2.2 FPT People FPT employs the largest number of informatics engineers and specialists in the country; they have played a crucial role in the development of ICT... This bothered Murthy significantly and from this concern was born his grand plan to build a leadership institute that would groom and develop leaders from promising Infoscions, irrespective of hierarchy and give them the opportunity to shape the future of the company Nguyen Thi Thu Hien 16 MBM5 Propose Leadership Building Model for FPT they were helping to build The fundamental goal of the Infosys Leadership. .. each level In this step, leadership levels and corresponding leadership characteristics are identified First, the appropriate leadership level is identified for each leadership position Next, the leadership competencies and results required for success at each level are identified These characteristics will be used as the basis for determining bench strength Here are the key Leadership Results Employee . Objectives of the Leadership Building Model in FPT - Introduction of the Leadership Buiding Model for FPT - Characteristics of FPT Leadership Buiding Model - How this Model help FPT improve the leadership. of Leadership Building in the development of FPT • What is the Leadership Building Model for FPT • How will the Leadership Building Model operate • How this Model support the Leadership of FPT. leadership in FPT - FPT Leadership development History - FPT Leadership Competencies Set - The necessity of developing a Leadership Building Model in FPT • Proposing the FPT Leadership Building Model