Establishment Of Goldenstate Manufactures Business Essay


The purpose and raeson of establishment of Goldenstate Manufacturers. Profit-making is the main purpose. The owner of the Goldenstate Manufacturers use the goods they offer in order to maximize their profit and overtake their competitors. Thus, their company can grow bigger and go further. The second is to meet the demands of society. They produce high standard of products which people need in their daily life. They create job opportunities to the public, allowing people to have a stable income to support their life and have a chance to fulfill their potentials. The more employment a society has, the more stability it generates. This also helps to the commercial development of the society.

B) Identity three(3) other types of organizations and explain how their purpose and reason for establishment might differ from Goldenstate Manufacturers.

Non-profit organizations

A nonprofit organization exists primarily to provide a particular programs and services for the interest of the public. It is not profit-driven. A charitable organization is a type of non-profit organization which is focusing on the common good of the society. While everything Goldernstate Manufacturers do is for maximizing their profit and overtaking their competitors.

Government organizations

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Government organizations owned and operated by the government. typically supplying services that benefit the public, and they are not competing with any other public sector organizations for profit. Government organizations like public schools, hospitals and other public sector organizations. On the other hand, Goldernstate Manufacturers owned by private and provide goods which earn money from them.

Social clubs

Social club is an association of two or more people who have a common interest to get together in order to develop friendship and hobbies. Members take part in activities to share information and experiences. It owned by the members who delegate to a committee the management of its affairs. Social clubs do not produce products and the members do not need to compete with each other for promotion like Goldernstate Manufacturers do. Rotary International (also known as the Rotary Club) is an international service club whose stated purpose is to bring together business and professional leaders in order to provide humanitarian services, encourage high ethical standards in all vocations

1.2 Identify at least two (2) of the main roles /functions that need to be carried out by the following:

Roles/functions of Mark (CEO)


Ceo acts as a Leader. They responsible for leading the development of the company's long term strategy .strategy provides a direction, Ceo discuss the direction and vision of the company with senior management teams and decides where the company is going . With clear direction, the team can work together and make it happen.

As a leader, they should oversee the implementation of the Company's long and short term plans in accordance with its strategy;


The CEO acts as a direct liaison between the Board and the management of the company and communicates to the Board on behalf of management. They need to generate the channels of communication and communicate effectively and successfully with shareholders, employees, Government authorities, and the public;

Roles/functions of Operations manegers(Carl)


Operations managers take charge of directing of company's day to day activities and operation along with the organization's long term goals to ensure the company running smoothly and productively.


Operations managers need to coordinate the supply chain. By doing this, he must monitor the inventory, purchasing and supplying the materials. He also needs to help the different departments work together by facilitating communication between employees and department managers, indentifying conflicts and developing strategies to resolve the argument and disagreement.

Roles/functions of Quality control managers


Quality control managers are expected to fortify the quality standard to staff, directs staff to conduct tests, control the test procedure and prepare for statistical reports in order to meet customers' expectation and requirements.


Quality control manager oversights the production process and the total quality of final products to ensure the safety, reliability and effectiveness of products in accordance with the legal compliances and also suggests modifications to enhance it

Roles/functions of Research and Development Manager


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Research and development managers are expected to carry out specific activities and events to reach and develop new products and processes for greater customer satisfaction and the maximization of profit by implementing the latest technologies and intentions.


Research and development managers are always encouraging and motivating staff to apply and generate new knowledge and concepts in order to utilize their creativity for the leading status in the market.


a)Explain how effective you feel Gildenstate Manufacture is in meeting its purpose.

From my point of view, I do not think Goldenstate Manufacture is effective in meeting its purpose. From the case study, I am informed that Company's production has decreased by 20% over the past one and half years. At the same time, customers are unsatisfied with the quality of the finished goods they provide. We all know that if a company whose production has dropped, its profit must be affected and reduce. In addition, the company's reputation which may take years to build up has ruined due to the increase in complaints from customers. What is more, because some managers' poor management, many staff do not stay with the company for long, the company needs to spend time and money for employing training new staff. On the other hand, some staff prefer to remain in the company because of no requirements and supervision, they contribute nothing to the company. Thus, the company fails to run productively and successfully in meeting its purpose.

b)List four(4) main management skills or competencies needed for it to be competitive.

Conceptual Skills

Conceptual skills are the mental ability to analyze and diagnose complex situations .conceptual skills mean knowing how to response to critical and various circumstance and carry out effective course of action.

Interpersonal skills

Interpersonal skills are the capability to deal and work with people of different backgrounds and temperaments. Interpersonal skills are equally necessary at each level of the management hierarchy.

Technical skills

Technical skills are those abilities that are necessary to perform a specific task. People who have technical skills expertise in any particular field.

Leadership skills

Leadership skills are the competence to motivate, guide(show how to complete the task ) and his team members to achieve company's goal.

c)Explain why you feel each of the four skills or competencies listed in 1.3(b) are important.

I think that these skills are important becease

1)People who has conceptual skills can see the whole picture of the organization and give direction and make a long plan for the organization. People with conceptual skills have excellent cognitive talent and they think creatively which make them formulate specific solutions to solve complex problems.

2) People who acquires interpersonal skills specialize in communicating with others in a way that will improve the successful completion of the task at hand. Some interpersonal skills that are often necessary for managers to deliver company's goal, culture and polices by effectively communicating with all levels of people. Because people who have Interpersonal skills are good at building relationship with their superior, subordinates and their colleagues, they can gain feedback and support from them .This also help to faster cooperative and harmonious environment in the work setting.

3)people who have technical skills have specialized knowledge and know how to apply for a given situation. Technical skills are most essential at lower levels of management because first-line managers are closer to the production process, where technical expertise is in greatest demand.

4)People who have leadership skills can recognize the strengths and weakness of all their team members. They can fully utilize staff's potential and assign task in accordance with their ability. They also know how to delegate their authority to empower and motivate staff who will put their maximum effort on daily task which lead to the best outcome for the company.


a)From any of the leadership theories you have studied on the course identify and briefly explain which theory Ron, the Finishing Manager most closely aligns with, giving evidence from the case study to support your comments.

From the leadership theories I have studied on the course, I identify that Behavioral theory most closely aligns with because Ron, the Finishing Manager follows the same approach and believes in not allowing his staff to take the liberty of doing things without his knowledge.

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Behavioral Theory focuses on the action of leader not to physical, mental and emotional traits. This theory believes that leaders can be trained and traits that a leader must have can be taught and developed. Therefore, anyone can be a leader if they learn the most appropriate behavioral response for any given situation and follow the approach of others.

Based on the case study, just like himself, he follows the approach of Adam's, he does not allow his staff to do things by their own way. He believes in his way of doing thing which is the best and the most appropriate way. He thinks that if his staff follow his way of doing things, they are become successful. If they are not,succeed is impossible. He puts emphasis on the actions of the leader. His staff must change their way of thinking or way of doing things to fit their manager's way. Otherwise, there is no way. That is why he does not allow his staff to have freedom of doing things by their own way.

b)Identify and explain the leadership styles of Adam, the Knitting Manager, and James, the Dyeing Manager giving evidence from the case study to support your comments.

From the types of leadership style I have studied on the course, I indentify that Adam is the autocratic style of leader because he believes in philosophy of "My way or no way'' .He impose totally authority and his will on employees. His staff are not allowed to participate in decision-making. They are forced to obey his order without discussing or receiving any explanations. Under this style of leadership, his staff just only have one choice: his way because there is no any other ways.

By contract , James is so different from Adam because he does not take much notice if workers do not do their jobs. What is more, he refrains from taking any actions which might upset the team and/or turn them against him .From his performance, I can indentify that he is a laissez-faire leader. He prefers to give employees as much authority as possible. He lets his staff do on their own without direction and supervision. Also, if his staff fail to perform well, he will not ask them to pay more effort on their tasks. Even his staff do something wrong, there is no punishment. He just concerns about making good relationship with his team member because he likes to be supported by his staff.

c)Comment on how appropriate you feel each of these styles are in the current situation-give two(2) reasons for you answers to each style.

I think that each of these styles are not appropriate in the current situation.

For Adam, 1)because his philosophy of "My way or no way", his staff are not allowed to give any input and innovation, they just do what they required to do without reason and purpose. They can not fulfill their potentials and feel their self-value. So, his staff's turn-over is high, they do not stay with the company for long. 2)What is more, due to this leadership style, he fails to get feedback and support from his staff, which lead to the argument among different department with regards to the issues of production delay and quality.

When it comes to James, his department is 1) overstaffed because they lack of control. They are given as much freedom as possible to do things on their own. More staff want to stay in his department doing whatever they want to do. Laissez-faire places emphasis on no motivation, no supervision which cause 2) low efficency and poor production. Consequently, company's production has dropped by 20% over the past 18 mouths and customer complaints have increased with regards to the quality of the finished goods during this time as well.

Select one (1) motivation theory: Briefly describe the theory

Maslow' Hierarchy of Needs Theory

Human beings have needs and desires which influence their behavior .Motivation is driven by the existence of unsatisfied needs. In this regard, Abraham Maslow developed a model in which basic, low-level needs such as physiological requirement and safety must be satisfied before higher-level needs such as self-actualization are emphasized. Maslow' Hierarchy of Needs are shown in the following;

Physiological needs are those required to sustain life, such as water, food and sleep which are basic requirement for survival . If those needs are not met, individual feels anxious and con not to function.

Safety are security of body, of employment, of resources and so on. After their physical needs relatively satisfied, the individual's safety needs take place in order to be free from the threat of physical and emotional harm. According to Maslow' Hierarchy of Needs, if a person feels that he or she is always in a harm way, higher-level needs will not be given much attention.

Love and Belonging, the third level of human needs, relate to communication with other people and involve feelings of belongingness. Human need to love and be loved(sexually and non-sexually) by others. Deprivation of these elements, many people tend to be loneliness and social anxiety..

Esteem presents the normal human desire to be accepted and valued by others. two versions of esteem needs, a lower one and a higher one. The lower one is the need for the respect of others, the need for status, recognition, fame, prestige, and attention. The higher one is the need for self-respect, the need for strength, competence, mastery, self-confidence, independence and freedom. The latter one ranks higher because it rests more on inner competence won through experience. Deprivation In the absence of these needs can result in weakness and helplessness.

Self-actualization is the summit of Maslow' Hierarchy of Needs. It is the quest of reaching one's full potential as a person. Unlike lower-level needs, this need is never fully satisfied. Self-actualized person have frequent occurrences of peak experience, which are energized moments of profound happiness and harmony. According to Maslow, only a mall percentage of population reaches the level of self-actualization.

Everyone have the same four basic needs. Lower-level of needs must be at lease partially met before moving higher. Satisfaction of needs is the means of motivation, unmet needs motivate behavior. Once a need is satisfied, it no longer motivate behavior. supplying more of the same will not motivate a employee. The individual will attempt to look for new ways to satisfy these needs which involve fulfilling one's potential being the best they can be in as many areas as possible.

Use information from the case study explain to Mark how he might use the theory to motivate Carl the General Manager Operations

According to Maslow, individuals are motivated by unsatisfied needs. As each of these need is really satisfied, it forces the higher-level need to emerge. Based on the case study, we are informed that Carl, the general manager operations, is firm and strict and finds it hard communicating at all levels. We know that operations manager are responsible for managing activities that ate part of the production of goods and services. Thus, they play a vital role in a company. It is import to motivate them to get the job done smoothly and productively.

Before Mark motivate Carl, he should indentify what is Carl's unsatisfied needs. Because Carl is firm and strict, his staff are afraid of interacting with him, he become unapproachable and unwelcomed. He does not feel a sense of belonging and acceptance. Also, he is hard communicating at all levels, he can not be respected and valued by others. Apart from indentifying his unsatisfied needs, Mark need to know Carl's strengths and weakness in order to enlarge his capability.

Firstly, Mark should emphasize Carl's importance for the company, focusing on what he had done for the company. He feels being valued , and get recognition and a sense of contribution. Thus, he would like to do better for the company.

Secondly, Mark should encourage teamwork and organize events which help to enhance the relationship between different departments, creating a cooperative working environment. Then Carl should be suggested to have effective communication with all levels in order to get feedback and he become accessible and acceptable. What is more, Mark can set a measureable and achievable goal for Carl who can be appreciated and rewarded based on accomplishing and exceeding the goal. In this stage, he is proud of his achievement and keeps him more confident. The more confidence he has, the better performance he will carry out.

Furthermore, Mark also need to put trust on Carl by giving the challenging job in which his skills and potential are totally utilized. The last thing is to remember Carl's birthday and celebrate it .At this moment,he feels being fully valued ,and he will put his maximum effort to be the best he can be.

Advise Adam, the Knitting Manager, of four(4) ways he might motivate his staff so they will remain with the company ,Make sure you explain:

What he must do and How he might do it

He must understand what is his staff's concern and their needs and place trust on his staff.

He might need to listen to his staff, focusing on their problem and show his care for the staff. He need to figure out what their succeeds look like and advice them how to be more successful in their life. At the same tine, let them know his needs, then establish mutual respect and friendship.

He must help to decrease their work pressure.

He might provide lunch break and rest break, allowing them to take their annual leave. He also might organize interesting activities in the company. Thus, they can entertain themselves and release pressure from such activities.

He must provide more training to his staff and more opportunities to fulfill their potential.

He might do this by inviting professionals to give them relevant lecture or encouraging them to share their work experiences with their peers. So, they can learn more and promote their personal growth. At the same time, the more chances he gives, the longer his staff stay in the company..

He must set an achievable goal for them and design a attractive retirement plan.

He might need to identify their contribution on the process and recognize their achievement to make his staff feel self-value and importance. Furthermore, he should reward his staff by increasing their wage and giving them more retirement benefit.

By all these ways, his staff will more likely remain within the company and dedicate themselves to the company.

a)Explain to Ron three benefits if delegation, using information from the case study to illustrate your comments.

Delegation allows employees to learn new skills and create innovative ideas for the company which leads to the development of employee's skills and the fulfillment of their potentials. They are given confidence and trust in their ability, and great opportunities to take part in the decision making which contributes to the process of decision making. Delegation gives a chance to employees to do the right things on their own way and let them see the big picture and appreciate their contribution and input. Managers just are not interested in their succes, they are also focusing on employees' growth and want to help them to progress. Therefore, an environment in which employee choose to be contributing and motivated is built. The more responsibilities they are given, the longer they want to stay in the company.

Delegation is a great way of identifying employees who have potential to promote in the organization. This help managers to determine the most capable employee for each task. Different tasks match different skill levels of employees and this allows skilled people to concentrate working on more skilled tasks which result in increasing productivity. Managers also know their staff and their current workloads through delegation. Ron can avoid turnover and overstaff in the operation department by prioritizing tasks match the skills of the employees who can get development from their best performance。As a result, the company can select technical managers within the company rather than recruit from the society.

3 ) Managers can create more time to concentrate on the most important things by delegating they authority to their employees. In addition, managers are provided great opportunity to foster main management skills like planning, controlling, communication and monitoring. With the good communication among operation department, team leaders, supervisors and the sections-managers will connect with each other in a meaningful way. Thus, a friendly and cooperative environment is built which leads to the achievement of assigned goal. They don not blame each other any more.

b)explain to Ron the five(5) steps needed to be taken for effective delegation



A duty or obligation to satisfactorily perform or complete a task (assigned by someone, or created by one's own promise or circumstances) that one must fulfill, and which has a consequent penalty for failure.

Ron should assign responsibility to his staff.


Power that is delegated formally. It includes a right to command a situation, commit resources, give orders and expect them to be obeyed, it is always accompanied by an equal responsibility for one's actions or a failure to act.

Ron should decide the level of authority and deliver to his staff.


The obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner. It also includes the responsibility for money or other entrusted property.

Ron should take charge of the outcomes of delegation.


A management practice of sharing information, rewards, and power with employees so that they can take initiative and make decisions to solve problems and improve service and performance. Empowerment is based on the idea that giving employees skills, resources, authority, opportunity, motivation, as well holding them responsible and accountable for outcomes of their actions, will contribute to their competence and satisfaction.

Ron should empower his staff.

process employed

Step 1: The first step of delegation process is to select the task. The following factors should be considered by the delegator.(Ron)

A task which can be delegated is similar to tasks already being carried out by his employees.

Tasks are also easily delegated and can be clearly defined related to the desire outcomes which are achieved from performing the jobs or works.

The delegating tasks which can help employees develop new skills and gain new work experiences should be given top priority.

Step 2: After determining the task, this step comes to who is the right person for the task. This person should have a can-do attitude,capabilities or at least the potential of doing jobs with the assigned task. In addition to the necessary skills and knowledge they have, candidates should demonstrate self-confidence, initiative, and accountability.

Step 3: Once the person is selected, Ron need to explain the task clearly and thoroughly. He should define the task into detail to the delegate so that there is no confusion as to what is his requirement and expectation. These include the priorities within the task, the level of authority and limitation and the deadlines for completion. It is important for Ron to ensure delegate who is clear about their responsibility and resources available .

Step 4: After assigning the task and providing authorities to the delegatee, communication in delegation is essential to its success. It allows Ron to monitor their work, gaining feedback and providing timely and efficient support to delegate for improvement.

Step 5:   At last step, Ron should evaluate delegate's performace. If they achieve the expected outcome, reward and appreciate their work. If not ,Ron still need to recognize the delegate's effort and both of them learn from failure.