L/618/5036 - Unit 4: Leadership and Management Sem 2 Assignment Brief 2025

Learning Outcomes of L/618/5036 - Unit 4: Leadership and Management

LO3: Develop a motivational strategy to optimise organisational performance. 
LO4: Apply leadership and management approaches to managing performance to ensure continuous improvement.

Scenario

The Piaggio Group is the largest European manufacturer of two-wheel motor vehicles and one of the world leaders in its sector. The Group is also a major international player on the commercial vehicle market 1.

Established in 1884 by Rinaldo Piaggio, since 2003 the Piaggio Group has been controlled by ImmsiS.p.A., an industrial holding listed on the Italian stock exchange.  Roberto Colaninno is the Chairman and Chief Executive Officer of the Piaggio Group, Matteo Colaninno is Deputy Chairman. The Piaggio Group has been listed on the Italian stock exchange since 2006. The Piaggio Group product range  includes scooters, motorcycles and mopeds from 50 to 1,400 ccmarketed under the Piagio, Vespa, Gilera, Aprilia, Moto Guzzi, Derbi and Scarabeo brands. The Group   also   operates   in   the   three-   and   four-wheel   light   transport   sector   with   its Ape,   Porter   andQuargo (Ape Truck) ranges of commercial vehicles. The Piaggio Group brand portfolio contains someof the most distinguished and historic names in the two-wheeler industry, from Gilera (founded in1909) and Moto Guzzi (founded in 1921) to Aprilia (which in just over twenty years has establisheditself  as   the most successful  Italian and  European   vehicle  manufacturer in the  world motorcyclingchampionships)   and   Vespa,   the   extraordinary   two-wheeler   that   has   come   to   be   regarded   as   “the”scooter: with more than 18 million vehicles produced since it made its debut in 1946, the Vespa is anincredibly  long-lived  market  success  as   well  as  one   of   the   best  known   icons  of   Italian   style  andtechnology in the world.

Worldwide presence

The Piaggio Group is headquartered in Pontedera (Pisa,Italy)  and   has   production   plants   in: Pontedera  (Pisa),which produces Piaggio, Vespa and Gilera branded two-wheelers,   light   transport   vehicles   for   the   European market   and   engines   for   scooters   and motorcycles; Noale (Venice), a technical centre for the development   of   motorcycles   and   the   base   of   Aprilia Racing; Scorzè   (Venice), which   produces   Aprilia   and Scarabeo   branded   two-wheel   vehicles; Mandellodel Lario (Lecco,   Italy),   which   produces   Moto   Guzzi vehicles  and engines; Baramati (in the Indian state of Maharashtra),   which   produces   three-   and   four-wheellight transport vehicles for the Indian market, diesel and turbodiesel engines for the Group’s commercial vehicles,and, since the beginning of 2012, the Vespa scooter forsale  on  the   Indian   market; China   with   a  joint   venture ( Zongshen   Piaggio   Foshan   Motorcycles,   based   in Foshan in   the   province   of Guangdong);  VinhPhuc (Vietnam) which produces Vespa and Piaggio scooters for the local market and the ASEAN area.

he Piaggio Vietnam Co.Ltd

The   opening   of   Piaggio   Vietnam   factory   on   the   24th  June   2009   has   marked   a   milestone   to   thedevelopment of Piaggio in Vietnamese market. With the investment of 30 million USD, the factory isexpected to produce more than 100,000 units a year when reaching the maximum operational capacity.The  Piaggio  Vietnam  Co.Ltd  is  one   of   the   most   important   steps   in   the strategic   development   forglobally manufacturing operations of the Piaggio Group.In October 2010, the 50,000th Vespa was shipped as a milestone marking the development of PiaggioVietnam Co.Ltd after 15 months of operations. Concerning engine assembly and testing, in Italy, in December 2011, a new assembly line for LEmengines  was   developed   and   testing   completed   at  the   supplier's   premises.   The   line   was  dispatchedto Vietnam in the first few weeks of January 2012 and installed in the new engine assembly building inFebruary. A procedure was established to issue orders for aluminum processing lines (production start-up in the second half of 2012) and cylinder head processing lines (production start-up in the first half of 2013).

Work began to install a third vehicle assembly line, and production start-up was scheduled for the firstfew months of 2012.  In Mar 2012, the opening of the Engine Plant helped  the Piaggio Vietnam toincrease the production capacity from 140,000 units per year to 300,000 units per year. Expansion of  the  industrial  site   in Vietnam was  completed, with  new  industrial buildings   built formechanical processing and for engine and spare parts assembly. Work also began to transfer the vehiclewelding   department   from   the   assembly   plant   to   a   more   suitable   area   inside   the   new   spare   parts warehouse.

The   Industrial   complex   of   Piaggio   Vietnam   in   Vinh   Phuc,   including   the   Research   and   ProductDevelopment Center for two-wheelers, the Engine plant, the Assembling plant, cooperates closely withthe Group to develop motor vehicles and serves markets in Asia – Pacific.

In 2023, Piaggio Vietnam merged two projects to develop a world-class Two-wheeler assembly plantand Engine plant, increasing the total investment capital from 90 million USD to 165 million USD;increasing   the   production   scale   from   250,000   vehicles/year   to   400,000   vehicles/year   for   domesticdistribution and export, the engine production and assembly scale from 300,000 engines to 400,000engines/year, making Piaggio Vietnam one of the Group's most important factories globally.

Piaggio Vietnam Co., Ltd. has continuously developed, affirmed its brand and position in the top 200largest   enterprises   in   Vietnam   in   2024,   top   50   FDI   enterprises   with   impressive   business   results,received the Golden Dragon Award 3 years 2021, 2022, 2024 and ranked as one of the best place towork in Asia.

Piaggio’s production sites in Italy – Noalè-Scorze and Mandello del Lario – as well as in Vietnam and the   Indian   production   site   2W   have   for   many   years   held   certifications   for Quality (ISO9001), Environment (ISO 14001) and Occupational Health and Safety (BS OHSAS 18001).Quality, Health  and  Safety, Employee Benefit  and  Well being,  Environmental policies established by Top Management and are proof of the reliability of Management Systems which are applied with the contribution of managers from all functions and the individuals who work in them.Safeguarding   and   improving   the   health   and   safety   of   workers   is   integral   to   the   Piaggio   Group'soperations and strategic within the framework of its more general objectives. This principle is valid and a dopted in all countries where the Piaggio Group operates. In particular, the Group has taken concrete actions for:

• Continual developments for a safer working environment: all aspects concerning the safety of theworking environment,   equipment  and tools   needed  to   carry   out   daily  activities  are  considered,starting with defining new activities or revising existing ones;
• Safer behaviour: all workers are trained, informed and familiarised, to carry out their work safelyand   undertake   their   occupational   health   and   safety   obligations;   the   Company   achieves   safety objectives through assigned duties and competencies.

Health protection for workers in such a complex industrial context as the Piaggio Group, both in Italyand abroad, can only take place through an adequately structured organisation which specifically aimsto foster as far as possible a safety "culture" within the Company. Therefore, the belief that safety must focus on conduct and daily operations is disseminated at all levels; this approach has led the PiaggioGroup to adopt safety management standards that are very similar in all countries where it operates,regardless  of whether legal constraints   are not as  strict as company  standards.

The Piaggio Group therefore   guarantees   its   employees   a   pleasant   working   environment   and   safe   working   conditions,beyond the minimum conditions established by law. In this framework, sites in Italy and Vietnam andthe Vespa plant in India have an Occupational Health and Safety Management System certified toOHSAS 18001 by an accredited certification body.The   Health   and   Safety   Management   System   implemented   at   Piaggio   includes   a   large   body   of documents that, starting from the Safety Manual which outlines the policies issued by Management, are implemented   in   the   Management   Procedures   (covering   the   entire   company   organisation),   in   the Operating Procedures   (which regard only  some company structures)  and   in Work  Instructions   that illustrate how every single operation is to be carried out correctly.

In   line   with   Health   and   Safety   Management   System   requirements,   the   Piaggio   Group   has identified safety training as the key driver for disseminating a culture and fostering a conduct focused on safety leadership and for generating commitment and steering conduct.Promoting health is another important aspect for the Piaggio Group, and this is achieved based on twoareas of action: free testing and information campaigns on healthy lifestyles. Each Group site has a health unit for prevention, surveillance and first aid, manned by specialist medical and paramedical staff.

At Piaggio Vietnam, the health and safety of employees and everyone working within the Company system are considered as being of the utmost importance, confirming the key principle that promoting and maintaining health and safety in the workplace is one of the primary responsibilities of managers.To this end, managers at all levels are required to develop, implement and monitor the Health and Safety Management System defined by the Occupational Safety and Medicine unit of Piaggio Vietnam,in conjunction with its partners.The main priority of the Company, in terms of it being an organised system, in compliance with local laws,   international   health   and   safety   standards and   Piaggio   Group   policies.   In   this   framework,   it guarantees   that   objectives   to   improve   occupational   health   and   safety   are   pursued   through   an Occupational   Safety   and   Medicine   unit.

The   presence   of   a   doctor   and   professional   nurses  at Occupational Safety and Medicine unit means that medical assistance can be provided at the site in the case of minor illnesses, to carry out medical tests and administer medicines that are reimbursed by the Vietnamese state, thanks to an agreement with the local welfare department. The Medical Centre also organised a "Nutrition Day" in June dedicated to the health of employees' children, which is reported inthe   section   on   Industrial   Relations.  All   employees   had   annual   health   checks   in   December,   as   of regulations. Employees who work in conditions of discomfort, such as painting and welding, have 2 occupational disease check ups, in June and December.

• Managers of each department guarantee that the occupational health and safety programme is effectively developed and implemented in their areas of responsibility, helping their co-workers perform activities in their remit;
• All managers and supervisors are tasked with establishing and maintaining a safe working environment,that poses no risks to health; in this context, each supervisor adopts concrete measures to guarantee that:
• Employees in their area of responsibility are trained in health and safety issues;
• Employees are consulted about matters concerning health and safety;
• All employees cooperate in developing programmes that guarantee their own and colleagues' health and safety. In this regard, all workers are trained, informed and made aware of safety aspects, in order toadopt a safe conduct in the workplace;
• Suppliers   and   external   companies required   to   perform   works   at   the   site   shall,   as   indicated   in   their contract, conform to occupational health and safety policies, comply with Piaggio Vietnam procedures and programmes and observe health and safety information given to them during the preparation of the contract.  Failure   to   observe  these   indications   is   considered   as   a   breach   of   contract   and   sufficient grounds to terminate the contract.In line with the Health and Safety Management System, extensive training on conduct and specialist training  are provided.
• The purpose of training workers about conduct is to promote a greater safety awareness and ensure that all employees can address safety issues as players.

Along with personnel training, actions also focused on consolidating a culture of safety, including:

• “The best   safety   coordinator   of  Piaggio Vietnam"  where  the  coordinator   making the   biggest contribution   to   safety   activities,   identifying   the   most   hazards,   making   the   most   suggestions   to improve safety and the most inspections etc., is selected;
• Safety interviews or toolbox meetings, with specific topics prepared by the safety department in conjunction with the area supervisor and safety coordinator, that are then notified by the line manager to co-workers, to increase their involvement and responsibility concerning safety issues;
• Periodic safety audits to guarantee that safety conditions are maintained and indicate possible improvement   actions.   Moreover,   audit   results   are   used   to   compare   various   company   areas   and identify the safest place, which is also considered in recognition & reward policies.
• Contractors / external suppliers that operate at Vietnamese sites are required to attend a specific training   session   on   safety,   after   which   permits   to   access   the   workplace   are   issued.   The   list   of companies   granted   access   is   managed   by   the   Industrial   Safety   department   and   updated   every   3months. Specific training addresses the following:
• Piaggio Vietnam's safety policy and regulations in force at the factory;
• the Company emergency plan and fire prevention;
• safety measures indicated in work instructions provided by the contractor.

Assignment activity and guidance

You are a professional consultant invited by CEO of Piaggio Vietnam . You are required to prepare areport, citing relevant research, which addresses the following tasks in the areas outlined below:

Task 1:

Develop a motivational strategy to optimise organisational performance

• Produce   a   motivational   strategy   for   an   organisation   that   supports   optimal   achievement   of organisational objectives.
• Produce a detailed motivational strategy for an organisation that addresses intrinsic and extrinsic motivation.
• Produce a comprehensive motivational strategy that effectively addresses all variables of motivationto enhance organisational performance.

Task 2:  

Apply leadership   and   management   approaches   to   managing   performance   to   ensure continuous improvement.

• Apply to a range of business situations, appropriate leadership, and management approaches for managing performance and continuous improvement.
• Assess   how   leadership   and   management   approaches   for   managing   performance   supports continuous improvement.
• Make   recommendations   to   improve   performance   management   that   will   ensure   continuous improvement