ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 4: Leadership and Management (5036)

Submission date 17/12/2022 Date received (1st submission)

Re-submission date Date received (2nd submission)

Student name Nguyen Thi Hoai Thuong Student ID GBS210986

Class GBS1005D Assessor name Nguyen Thi Ngoc Quynh

Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I
understand that making a false declaration is a form of malpractice.
Student’s signature: Thuong

Grading grid

P5 P6 M4 M5 D2 D3

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 TABLE OF CONTENTS
INTRODUCTION------------------------------------------------------------------------------------------------
I. Motivation strategy ------------------------------------------------------------------------------------------
1. Briefly introduce various motivational theories and discuss the main impact of motivation on
organizational performance. (P5) ----------------------------------------------------------------------------
1.1. Content theories of motivation
1.2. Process theories of motivation
1.3. Impacts of motivation on organization performance Aliababa-------------------------------------
2. A detailed and comprehensive motivational strategy for the selected organization ------------

2.1. Motivation strategies should consider both internal and external motivation in addition to
social, cultural and organizational variables (M4) --------------------------------------------------------
2.2. How motivational strategies support the achievement of organizational goals (D2)------------
2.3. The link between strategy and organizational performance improvement is clearly relevant
to the selected business (D2)

II. Performance management for continuous improvement -------------------------------------------

1. Explain the concept of performance management and discuss different performance
management methods with specific examples (P6) --------------------------------------------------------
1.1. The concept of performance management
1.2. How different leadership styles affect performance management ---------------------------------

1.3. The impact of different leadership styles on employee performance------------------------------

1.4. Assess different ledership and management approaches to managing performance for
continuous improvement
1.5. Applying performance management approach in companies---------------------------------------

2. Evaluate different leadership and management approaches including their role in

performance management for continuous improvement. Different applications business
situations need to provide (M5) -------------------------------------------------------------------------------
3. Recommendations for selected company to improve performance management to ensure
continuous improvement (D3) ---------------------------------------------------------------------------------
CONCLUSION ---------------------------------------------------------------------------------------------------
REFERENCES----------------------------------------------------------------------------------------------------

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INTRODUCTION

Figure 1: Alibaba logo (Alibaba, 2022)

Alibaba is the name of the largest online commerce in China and, by some measures, the
entire world. Alibaba processes more transactions than any other e-commerce firm. Alibaba has
consistently raised the quality, made investments in cutting-edge equipment, and increased both
local and international distribution. In order to significantly contribute to the company's achievement
of this annual target, special attention was paid to the development of the human resource
department's highly skilled jobs. Alibaba doesn't put pressure on its staff and instead cultivates a
welcoming workplace. As a result, the primary goal of this research is to identify some ways that
Alibaba may increase employee motivation and forge a solid business team to carry out the strategy.

I. Motivation strategy
1. Briefly introduce various motivational theories and discuss the main impact
of motivation on organizational performance. (P5)

Motivation theory is a method of examining a person's motivation and how this affects their
conduct, whether for personal or professional purposes. Every sector of society should consider it,
but business and management in particular should. A motivated employee is more productive, which
is the key to having workers who are more profitable. (knowledgehut, n.d)

1.1. Content theories of motivation

Need theory by McClelland

According to McClelland's need theory, there are three main wants that most individuals have,
and each need is matched with a certain personality type that is driven to meet that need. Managers

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may be able to determine employee needs by using McClelland's need theory, which will assist them
position staff members in environments where they may succeed and accomplish their objectives.

 Need for affiliation: According to the affiliate theory, people desire to fit in with a group and be
accepted by others. This idea can assist managers in determining if a worker will function
effectively in a team environment and learn from the experience.
 Need for achievement: Some workers have an inherent desire to rise to key positions. These
people could be competitive and have a high standard of work ethics.
 Need for power: Some employees are motivated by the desire to have an influence on others,
their coworkers, and the workplace.

Figure 2: McClelland's Theory of Needs (Slidesalad, n.d)

Maslow's theory of needs

A psychological theory called Maslow's hierarchy describes the different requirements that must
first be met before a person can move on to more complicated demands. The five stages of the
hierarchy of needs are as follows: Physiological, Safety, Socialization, Esteem, Self-actualization.
(Indeed Editorial Team, 2022)

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 Figure 3: Maslow's Hierarchy of Needs (Mcleod, 2022)

Herzberg’s Motivation Two-Factor Theory

The dual-factor theory, also known as Herzberg's motivation-hygiene theory or the two-factor
theory, contends that there are two distinct sets of workplace variables that can either result in job
satisfaction or job discontent (Herzberg, 1966; 1982; 1991; Herzberg, Mausner, & Snyderman,
1959).

Figure 4: Herzberg’s Motivation Two-Factor Theory (Nickerson, 2021)

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Applying company:

Alibaba applies McClelland's Need theory into the workplace. Alibaba expects its first-line
managers to demonstrate their fundamental abilities and practical supervisory capabilities, such as
making the right recruiting decisions and creating productive teams for the business. This illustrates
how important the managers' decisions are to the company. Workers would also have the
opportunity to advance. Additionally, the business need association. During debriefing sessions,
employees are encouraged to share lessons learned from projects and events. Employees are
additionally rewarded by the corporation through a number of variable-pay plans. These shares are a
benefit offered to employees. This helps with employee retention and motivation to work better.
(Bartleby, n.d)

At Amazon, financial rewards are a major factor in employee motivation. Employees' "hope for
money" serves as a powerful incentive and keeps them going. Every employee has an enormous
carrot in front of them, and as you approach it, it gets bigger and bigger. When a worker is aware of
the visibility of their future salary today, such knowledge becomes motivating. Employees are
inspired to work hard and sprint toward that future. Amazon uses Maslow's theory of needs to help
encourage its staff through chances for learning, professional development, and a positive work
environment.

1.2. Process theories of motivation

The Equity Theory of Adams

John Stacey Adams, an American psychologist, created the Adams Equity Theory in 1963. It
concerns striking a balance between an employee's input of effort and output of the resulting product
(output). Work ethic, aptitude, and excitement are examples of input. The output can include things
like compensation, acclaim, and accountability. An employee's satisfaction and motivation are
increased by a healthy balance between input and output, which boosts productivity.(Toolshero, n.d)

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 Figure 5: The Equity Theory of Adams (Sketchbubble, n.d)

Locke's Goal Setting Theory

This idea was created by Edwin A. Locke in 1968 for his essay titled "Toward a Theory of
Task Motivation and Incentive." In this article, Locke demonstrated how explicit and quantifiable
objectives increase employee motivation and increase the likelihood that these goals will be
attained. (Indeed Editorial Team, 2022)

Figure 6: Locke's Goal Setting Theory (getlucidity, n.d)

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Vroom's expectancy theory

According to Vroom's expectation theory, conduct is the consequence of conscious decisions

made between options with the goals of maximizing pleasure and minimizing pain. Vroom came to
the realization that a worker's performance is influenced by personal traits including personality,
skills, knowledge, experience, and talents. To account for this, he employs the variables Expectancy,
Instrumentality, and Valence. (Yourcoach, n.d)

Motivation = (Expectancy X Instrumentality X Valence)

Expectancy: the conviction that greater effort will produce greater results, i.e., if I work harder, this
will be better. This is influenced by factors like the availability of suitable resources, the capacity to
do the required tasks, and having the help needed to complete the task

Instrumentality: the idea that you will achieve a worthwhile goal if you work hard enough. how
much a first-level result will influence a second-level result. This is impacted by factors like clear
awareness of the connection between performance and results, such as the reward "game's" rules,
have faith in the decision-makers who will determine who will benefit from the outcome, and
transparency of the procedure used to determine who receives what result.

Applying company:

By applying Vroom's theory, the Chinese website TaoBao (a branch of Jack Ma-led Alibaba)
redefines how e-commerce has traditionally been understood on Chinese Singles Day every year.
The process of social cognition provided by Vroom's theory represents individual differences in
job motivation. According to the expectancy theory, changing a person's effort-to-performance
expectation, performance-to-reward expectancy, and reward valences may be done in order to
inspire them. This has management implications for employee motivation.

Amazon, a competitor of Alibaba, also uses Vroom's Theory of Expectancy to encourage

employee members to meet measurable, achievable, and specified objectives. In order to get
substantial rewards, employees work hard to improve their job performance. By recognizing
employees' skills, Amazon can make sure that they reach their performance goals. Even if the
rewards are not what they expected, employee performance can still be enhanced (Ltd, 2022).

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1.3. Impacts of motivation on organization performance of Aliababa

Profitability and sales volume

Figure 7: Annual e-commerce revenue of Alibaba from financial year 2012 to 2022 (Statista, 2022)

Chinese internet sales generated around 592.71 billion yuan in revenue for Alibaba Group's
fiscal year that ends March 31, 2022. This is equivalent to around 93.5 billion dollars in the United
States. Alibaba and the Chinese online retail industry. The gross merchandise volume of China's e-
commerce market was estimated to be 11.76 trillion yuan in 2020 and was projected to increase
during the following years. The Alibaba Group's revenue for the fiscal year 2022 was 853.06 trillion
yuan, or around 134.6 trillion USD. (Statista, 2022)

The corporation made the most money in 2021 on Singles' Day, a celebrated Chinese holiday
that serves as the antithesis of Valentine's Day. Chinese singles around the nation celebrate being
single and proud on November 11 by giving themselves gifts in particular. Alibaba's online retail
platforms reported a cumulative GMV of China than 84.5 billion US dollars during the Singles' Day
sales in 2021.

Employee Satisfaction

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 Alibaba previously claimed that happy employees work 12 hours a day, six days a week. In
order to increase staff morale, Alibaba offers extra benefits. In order to raise morale following a
difficult year, the firm has improved the well-being of its staff by providing more paid time off,
larger allowances, and flexible work schedules. The business is faced with stringent regulatory
oversight, intense rivalry, and falling stock prices. The majority of Alibaba's workers are content
with their positions. Because they believe their job may have a significant influence on others,
employees say they love working here. Employees at Alibaba assert that they are highly independent
and adaptable. Alibaba's pay and benefits, even for part-time workers, are quite competitive. (Zhang,
2021)

2. A detailed and comprehensive motivational strategy for the selected

organization
2.1. Motivation strategies should consider both internal and external motivation in
addition to social, cultural and organizational variables (M4)

Numerous studies have shown that internal motivation influences employee attendance in
organizational activities. Attitudes, behaviors, and performance in the workplace are influenced by
cultures. According to studies, Alibaba workers may not have a big desire for autonomy at work. To
be inspired to engage in professional activities and to feel that their office is an extension of their
home. To be motivated to join in work activities at Alibaba, employees need to have their primary
psychological needs met, which may make them feel as though their office is an extension of their
home and that they are thrilled and passionate about the work they are doing. (McLaughlin, 2020).

DeMers (2015) considers motivational strategies as one of the key aspects of an organization's
long-term success. To maintain personnel, Alibaba needs a strong motivation strategies. DeMers
(2015) claims that there is some sort of self-sustaining connect with culture, society, and employee
retention. Employee turnover is decreased by a strong corporate culture. In a similar vein, company
culture will develop stronger the longer people stay (Schein, 1990). It is essential for survival and
growth to identify an effective organizational culture that benefits employees, build a company with
happy and dependable employees, nurture employee community, promote a planned atmosphere at
work, and adjust the organization to its external motivation.

2.2. How motivational strategies support the achievement of organizational goals (D2)

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 Another definition of motivation is anything that encourages employees to work hard by
meeting or appealing to their needs. According to Mullins (2010), the fundamental idea of
motivation is a force that pushes people to work toward an organizational objective in order to
satisfy a need or expectation. Each employee enters an organization with personal aspirations that
are typically dissimilar from those of the organization. In order to achieve specific goals,
management must focus and integrate workers' ambitions with those of the organization. Alibaba
provides unrivaled customer service. There is a staff of xiaoer to settle any disputes between clients
and vendors. However, Alibaba cares about its employees as much as its customers. "Customers
first, employees second, stockholders third" is the company's motto. Additionally, he resists
shareholder pressure and consistently seeks a profit, even when the company experiences a decline.
The business not only has a lovely and healthy campus, but it also provides loans with no interest.
He also keeps them inspired. These and other elements combine to produce a committed workforce
that is eager to put in long hours. Additionally, several staff have been with Alibaba for a long time.
Employees are motivated by success when that success translates into material reward for them.
(Amis, 2022)

2.3. The link between strategy and organizational performance improvement is

clearly relevant to the selected business (D2)

Strategy is the link between the organizational performance improvement. A mirror of strategy
is the pattern of activities and strategies management creates to accomplish the desired performance.
The development of a strategy shows a managerial commitment to follow a certain course of action
for growing the business, attracting customers, pleasing them, competing successfully, managing
operations, and improving the company's financial and market performance. Alibaba's strategy
therefore focuses on how management aims to grow the business, build a loyal customer base,
outperform rivals, operate each functional component of the company, including research and
development, sales and marketing, distribution, finance, and human resources, and enhance
performance. The flexible management of resources and tools, as well as the requirement that the
production system be customized to the life cycle of the organization, are two of the most important
aspects of manufacturing. The novelty value or product maturity level are important considerations
when choosing Alibaba's best strategy. In order to create a strong innovation organization, Alibaba
focuses on those specific areas that offer a long-term competitive advantage.

II. Performance management for continuous improvement

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1. Explain the concept of performance management and discuss different
performance management methods with specific examples (P6)

1.1. The concept of performance management

Performance management is a corporate management approach that assists managers in

keeping track of and assessing workers' performance. The purpose of performance management is to
foster a culture where employees may work to their full potential and deliver the highest-quality
work most effectively and efficiently. (Tardi, 2022)

Continuous approach

A relatively new method of performance management is continuous performance management.

Continuous performance management, as opposed to the conventional method of yearly
performance assessments, incorporates regular check-in meetings throughout the year and real-time
feedback to enhance employee performance. The following are the main principles of continuous
performance management: Periodic discussions on goals, Frequent performance reviews and
conversations, Emphasis on constructive feedback, Learning and development plans, Monitored
performance improvements,Real-time recognition and appreciatio

Figure 8: Continuous Performance Management (Profit.Co, n.d)

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Traditional approach

An employee's performance is examined throughout the course of the year in this typical
method to performance management. It seeks to assess a worker's performance throughout the
course of the year, following which the worker is given an assessment letter. The conventional
method is an annual event where a management reviews the employee's performance from the
previous year. Although this approach is still used in certain businesses, it is ineffective. (Synergita,
2022)

Difference between Traditional and Continuous Approach

Traditional Approach Continuous Approach

The main objective of communication is
The goals of communicating effectively include
employee performance, not general
employee and corporate growth.
development.
Because it is so focused on the future and wants
Performance reviews are conducted after the
to enhance employee careers, it adopts a
occurrence.
strategic strategy.
Due to how poorly the organization handles Employee shortcomings typically improve as a
their problems, employees frequently get result of appropriate involvement and help in
anxious or disengaged. resolving their issues.
Because it is not done consistently, it is It is simple to assess a worker's performance
challenging to recall an employee's excellent since there is a system in place for continuous
performance. feedback.
Since there is a constant flow of ideas,
Since there is minimal cooperation and collaboration is improved. They are inspired to
employees have limited liberty when doing be imaginative and collaborative, and they
their jobs, employees frequently feel dictated experience a sense of community inside the
to. company.

1.2. How different leadership styles affect performance management

Making a clear distinction between leaders and staff is autocratic leadership. This approach
places all of the responsibility for making decisions on one person. Direction is expected to be

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followed, and choices are made swiftly. Democratic leadership is consultative, with team members'
individual perspectives being sought out by the leader. Leaders take more time to make decisions
and take into account the opinions of important stakeholders. Most decisions are delegated to
reliable team members under participative leadership. Leaders delegate tasks to people based on
their skills and provide guidance as required.

1.3. The impact of different leadership styles on employee performance

Short-term performance was found to be boosted by the autocratic approach. Researchers

found that authoritarian CEOs are better at coming up with answers to complex business problems
when teams consist of new hires. Both in the short and long terms, it has been demonstrated that the
democratic method is effective. Researchers found that asking team members for their input resulted
in a feedback loop that increased both morale and productivity. The participatory method had a
good influence on employee performance but was less successful in the near term than it was in the
long run. Researchers discovered that the approach produced a productive workplace that valued
innovation.

1.4. Assess different ledership and management approaches to managing

performance for continuous improvement

For a company or organization to succeed and develop over the long term, continuous
improvement is essential. People who are working to develop continuously may benefit or suffer as
a result of your leadership style. A person's personality, their degree of self-worth and confidence,
and ultimately the corporate culture and leadership style are the three main factors. The culture of a
business is influenced by its senior management's ideals, convictions, and leadership style.
Therefore, organizational leaders must adapt their ways of thinking and leading in order to
encourage continual development within their workforce.

To encourage and support ongoing staff progress, a participatory leadership style is essential.
This entails approaching issue solutions pro-actively as opposed to reactively. It also requires
creating autonomous teams with team members who are capable of leading problem-solving
sessions inside their particular teams or departments. Teams have to go from a dependent to an
interdependent state so they may operate more independently. Working in this fashion enables
employees to stand back from routine responsibilities and come up with creative ideas before
presenting them to management.

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 Another crucial element for employee satisfaction is continuous improvement. Establishing
trust is necessary at all levels, including that between management and employees, as well as
between individuals and groups like teams. It takes effort and dedication on the part of manegement
to foster an attitude of continuous improvement inside a business. In order to advance beyond simple
job execution to always coming up with new and better ways to accomplish things, leaders must
make sure that staff receive enough coaching and assistance. Any business that commits to the
process and properly understands the advantages of continuous improvement will reap great
rewards.

1.5. Applying performance management approach in companies

Leadership and management with a focus on relationships

Relationship-oriented leadership is focused on providing qualitative performance evaluations

through an interactive method to control that places an emphasis on rewarding effort above
outcomes. A leading corporation that prioritizes relationships is Alibaba. According to employee
evaluations, even if an employee doesn't do a good job, they may still be appreciated if they get
along well with their management. Moreover, there are divisions and factions among participants
while collaborating across organizations. The other side, the Aliaba general leadership criterion
continues to place a high value on the human element, everyone is treated with respect, and
confrontations and divides across groups are uncommon.

Task-oriented management and leadership

Task-oriented leadership and management employ a diagnostic approach to performance

management. Alibaba has a task-oriented approach of management and leadership. Alibaba
commonly creates performance objectives with the aim of assessing worker performance, spotting
departures from objectives, and rewarding workers who meet organizational objectives. Particularly
Alibaba, which has target plans that expanded years into the future and recognizes risks in the plan
that they specifically set out, such as Alibaba currently having a sustainable development orientation
for the corporation and a development strategy. Additionally, Aliaba offers bonuses to workers who
effectively accomplish the objectives of typical companies. Each employee will get half of the
monthly bonus income, which will include hard salary, bonuses, incentive salaries depending on
performance, and not just one month's wage as is typical for 13 months of pay, benefits excluded.

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 Alibaba is one such instance of a well-known company using continuous performance
management. Alibaba is a rapidly expanding firm with innovative applications that will satisfy the
demands of numerous clients all over the world, but in order for the business to accomplish these
objectives, it must cope with various external variables that might negatively influence it. affect the
company's expansion. opened the way for the business to grow its financial sustainability and
generate more profit. As seen in the following study, Alibaba made a significant amount of profit.
This result shows how Alibaba was able to rule the online industry because it had fewer
management issues. It also demonstrates that making money is the key to success. (Speedypaper,
2019)
 Besides Alibaba, some businesses also apply performance management approach such as
ByteDance company. The traditional approach of ByteDance for performance management is to
assess performance against KPIs. ByteDance employees perform administrative work rather than
sales or manufacturing activities, therefore it might be challenging to quantify their effort. Based on
the amount, quality, and progress of the task, work efficiency is assessed. The second is employee
accountability, which is measured based on factors including a person's willingness to participate in
corporate operations and knowledge of working practices. The staff's capability is assessed based on
their professional knowledge and sense of duty at work in the third step. (Xiaoye SHI, 2019)

2. Evaluate different leadership and management approaches including their

role in performance management for continuous improvement. Different
applications business situations need to provide (M5)

Management and leadership approachs are two distinct but interrelated concepts. Management
is the act of allocating resources to accomplish stated tasks in the most efficient manner, while
leadership is the process of developing innovations to achieve greater outcomes than the original.

The most essential and important resource in every organization is its people, thus leaders and
managers must put special emphasis on fostering employee growth, encouraging initiative and
innovation, and setting up the ideal environment for workers to perform to the best of their abilities.
It is inevitable that the emphasis will move from management to leadership. For effective leadership,
managers and leaders require certain attributes.

Application of management and leadership approach in performance management for

continuous improment should be based on the evaluation of personnel, job, and environmental

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characteristics as well as managerial and leadership positions within each business. Businesses
nowadays must deal with a variety of business situations, including dealing with financial
institutions, analyzing data, automating repetitive work, and monitoring all customer-related
procedures. It is crucial that they pick the appropriate leadership and management methods for their
company.

B2B businesses are always changing. Alibaba has a strict inventory management strategy,
different from the traditional management approach of counting books in favor of digital
transformation and data entry in performance management for continuous improvements. The use of
new software applications saves time and money by doing away with the need to assign workers to
manually count, record, and cross-examine stock across many locations. In order for warehouse
management to quickly address any errors or problems, inventory control solutions may also
immediately warn users when they are discovered.

3. Recommendations for selected company to improve performance

management to ensure continuous improvement (D3)

Alibaba is a large company with significant growth potential. However, there are few of
recommendations for the business from the research of leadership and management approaches to
performance development. Firstly, The business should honor and reward excellent talent.
Rewarding strong and great performers during that month will encourage employees to work harder
and be more receptive to new information. Secondly, as Alibaba companies primarily focus on cloud
management, B2B, and AI technology, it is advised to entirely forsake conventional approaches.
Alibaba should make the most of these advantages to grow the company and enhance performance
management in order to ensure continuous improvement. Thirdly, employees should feel heard and
encouraged by managers and leaders by having assistance setting goals. To make work more easy
and to enhance performance management so that continual improvement is ensured, should monitor
progress, select instructions, and point employees to relevant issues.

CONCLUSION

As one of the greatest businesses in China today, Alibaba has achieved impressive strides in
its development. It currently occupies the ninth spot on the list of 2020's most significant and high-
earning global corporations. One of the most important things that Alibaba worries about is inspiring
employees in order to achieve sustainable development in the future. Maximizing employee

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motivation not only helps individuals improve their personal capabilities but also aids the
organization in expanding its domestic and international clientele.

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