Goldenstate Manufacturers main purpose is to make profit

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The purpose of Goldenstate Manufacturers PVT. Ltd is simply to achieve the goals and objectives as indicated within the organization's vision and mission statement. The mission statement will indicate how they plan on reaching those goals and objectives.

Their purpose is to provide satisfaction of quality goods and services to the community and stakeholders for what they pay for and also provide jobs and career opportunity not only within the company but also to the community.

Their purpose is also to provide improve the quality of their product and provide top quality service and goods to their users and stakeholders and to take care of everybody's interest in the organization.

Goldenstate Manufacturers Ltd's purpose is to maintain their position amongst the top five manufacturing organizations in Australia.

Their aim can be also to improve the performance of the Company and its employees through Management by Working around (MWA) and through better communication.

Goldenstate Manufacturers purpose is to survive in the competitive market and to produce desired results to survive in the market. As there is pressure to meet targets, goals need to be clearly assessed and there will be a need to check if additional employees are needed at which particular stage or department of the production process.

Apart from that, there are social aspects about how the product is going to influence the minds of people in terms of mental relations with each others.


Organizations vary in nature and type, where their primary goal differs from profit making to non-profit-making organizations and the employees are trained to drive the vision and mission of the organization.

3 types of Organizations that differ in their purpose from Goldenstate Manufacturers are:

Charitable Organization - This is a type of organization that carries out charitable activities and exists solely for charitable purposes and not to make profits. Their purpose is to help the community through providing education, religious or relief of poverty, the advancement of education or religion, or any other matter beneficial to the community.

Clubs - A club is a voluntary organization formed by 2 or more people who share the same hobbies or interests and they are merged by a common goal. They are formed by the community to learn each other's interest and share their interests.

Non Government Organization [1] - A non government organization is an association which is based on the common interest of its members, individuals, or institutions, has no governmental status or function, and is not created by a government, nor is its agenda set or implemented by a government.[1] NGO purpose is to help community organizations, involved in aid and relief, promoting education etc.


An effective organization achieves its goals and mission. They produce the results desired by the organization. An effective organization will satisfy its customers, users and stakeholders by providing high quality delivery and value for money. Effectiveness in an organization will give customers the satisfaction they want from buying the goods or services.

An effective organization will be able to delight the customers, make profit for the organization and the investors, and make a positive impact on the community through providing employment opportunities, infrastructure development and driving the vision of the organization.


Goldenstate Manufacturers are currently not as effective as it should be. There is a communication barrier within the organization.

The Manager's leading the teams seem to have differences in the way they do things for example Adam, the Knitting Manager believes in the philosophy of "My way or no way". Ron the Fishing Manager follows the same approach and has the same believes as Adam not allowing his staffs to take the liberty of doing things without his knowledge. Whereas James altogether has a different approach to his staffs and is very concerned about the feeling of his staff. Managers are working more for themselves than for the organization, and the interaction between the departments and the works is not well, thereby reducing effectiveness.

Due to these differences amongst the department and due to lack of communication the organizations profits and production has dropped by 20%. The quality of the finished goods has dropped resulting in diminished customer confidence in the service and product provided by Goldenstate Manufacturers.

As the work pressure is very high the staff does not stay with the company for too long. If the Managers start to communicate well and put their differences aside the organization might start to get its effectiveness back and regain the position to be amongst the top 5 manufacturing organizations in the country.


For any organization to be competitive and to reach its goal and missions it needs to be directed in to the right direction. This can only be achieved by professional and people with a wide experience, vision, and leadership skills. The fact is that effective leader's drives organizational performance and drive the vision and leadership development is vital for the success of any organization.

As for Goldenstate Manufacture's in this situation, for the organization to be competitive it requires certain changes in the company. The 3 main skills needed for the organization to be competitive, the company requires:

1. Leadership Skills

[2]Leadership is influencing people by providing purpose, direction, and motivation, while operating to accomplish the mission and improve the organization.

Leadership skills are very vital for any company to work towards their goal. A good leader will have the ability to motivate the staff's towards a common goal of the company. A good leader will have good ethics and will have a vision. [2]

[3]In order to be a good leader the person has to be honest, competent, inspiring, intelligent, fair-minded, broad - minded, courageous, straightforward and imaginative. Managers need to be leaders . . . their workers need vision and guidance! On the other hand, leaders need to be good managers of the resources entrusted to them. [3].

Basic Skills of Outstanding Leadership

• Integrity

• Vision/strategy

• Communication

• Relationships

• Persuasion

• Adaptability

• Teamwork

• Coaching and Development

• Decision-making

• Planning



2. Communication Skills

[4]Good Communication skills are also one of the factors that can help to make an organization more competitive. Communication skills are skills that help people and individuals to interact with each other efficiently. Effectual communication engages the choice of the best communications channel, the technical know-how to use the channel, the presentation of information to the target audience, and the skill to understand responses received from others. Self development, interpersonal skills, mutual understanding, mutual cooperation and trust is also important to set a complete channel of most effective and winning communication skills. [4]

Goldenstate Manufacturers lack communication skills which have resulted in staff to leave the organization and to some level the Manager's are also not having open communication with the employees. Communication is the barrier for the improvement in staff performance and quality of the product and service.

Communication should not be one way as it is a two way process and having open communication will also help to maintain good relationships between the Managers and the workers.

[5]At management level, effective communication skills are used to create an environment of open communication, short messages, recognize nonverbal signals and mutual understanding. [5]

3. Motivational Skills

[6]Motivational skill is a very important aspect to achieve the organizations effectiveness and for it to be competitive. If there is motivation within the organization then employees will work more efficiently and in their jobs and do more to further the bottom-line objectives of a company than unmotivated employees. As a manager, you are in a position to increase the motivation of your employees.[6]

[6]This basic managerial skill training in motivation will enable you to become a more effective manager for yourself, and for your company. You will learn how to handle motivational problems, which will help you gain 100% effectiveness of your employees.

Managers share the responsibility in motivating their employees with the individual employees themselves. The manager is 100% responsible for establishing a motivating climate in which the employee works. The employee is 100% responsible for taking advantage of the motivating climate to perform the best they can perform. [6]



Autocratic Style:

This is often considered the classical approach. Autocratic style is one in which the manager retains as much power and decision-making authority as possible. This situation is often created by the manager and when the manager takes advantage of his/her power and status.

This type of style is not an effective style to lead a team. It causes fear within the department and thus reduces communication between the departments. This often takes place when the leaders or managers don't have trust in their employees and the employees can also feel threatened in some situations. It causes low self esteem in the employees who lose interest in the job and start to move out of the organization. This sort of behaviour from the manager can have a great impact of the production of the company and also result in poor production quality of goods and services.

The manager does not take into consideration any input given by the staff towards work related issues. Employees don't have any say and are expected to obey orders without receiving any explanation or asking any questions. Autocratic style can be a part of the personal ethics and self perception of the manager or leader. Adam the Knitting manager is being very autocratic as he wants things to be done his way and being very inflexible. He believes in the philosophy of "My way or no way"! A huge concern for Goldenstate Manufacturers is that the employee turn-over is quite high and can be an expense to the organization. They have to hire and train new staffs and thus slow the production down and also affect quality of good and service.

Adams leadership style has an overall negative impact not only of the staff but also the organizations performance and also the quality of the goods and service. And all these lead to drop in profits and customer dissatisfaction.

This style of leadership is very inappropriate according to the situation of Goldenstate Manufacturers.


[7]The laissez-faire leadership style is also known as the "hands-off¨ style. It is one in which the manager provides little or no direction and gives employees as much freedom as possible. All authority or power is given to the employees and they must determine goals, make decisions, and resolve problems on their own.

This is an effective style to use when:

Employees are highly skilled, experienced, and educated.

Employees have pride in their work and the drive to do it successfully on their own.

Outside experts, such as staff specialists or consultants are being used

Employees are trustworthy and experienced.

This style should not be used when:

It makes employees feel insecure at the unavailability of a manager.

The manager cannot provide regular feedback to let employees know how well they are doing.

The manager doesn't understand his or her responsibilities and is hoping the employees can cover for him or her.[7]

James the Dyeing Manager altogether has a different leadership style. His leadership style is laissez-faire. He is not that interest in the performance of his department employees. He has more interest in the staff to like him. He refrains from taking any action which might upset the team and / or turn them against him.

The Dyeing department is also overstaffed. As the staffs start to feel that they have the power to do anything without the concern of the manager and they feel they don't have to report to anyone. This type of leadership style is inappropriate for Goldenstate Manufacturers to some extent because the department is overstaffed. There is also no one to check on the work they do and no one to comment on their work.

This leadership style also has a negative impact on the performance of the organization.

(b) Adam's leadership style is Autocratic. Autocratic leadership style is one in which the manager retains as much power and decision-making authority as possible. This situation is often created by the manager and when the manager takes advantage of his/her power and status.

This style of leadership is very inappropriate according to the situation of Goldenstate Manufacturers. This leadership style has caused an overall negative impact on Goldenstate Manufacturers reducing its profits and reducing the quality of the textile they manufacture. All organizations ethics vary from each other, but it's the duty of the leaders to make the employees feel comfortable and take pride in what they do.

James's leadership style is Laissez-faire. Laissez-fair leadership style is one in which the manager is not concerned about what is going on within his/her department.

The manager is not prepared to risk his reputation amongst the staff and doesn't want to be the bearer of the bad news to the staff allowing the employees to have freedom and power. This type of leadership style is not going to benefit the organization because the manager is assigned to manage the department and not the employees. There are certain decisions that can only be made by the manager in order to control the production and assign duties.

James leadership style in inappropriate in the situation because it is giving too much freedom to the department and thus the Dyeing department is overstaffed.

All these situations and leadership styles have caused Goldenstate Manufacturers form being amongst the top five manufacturing organizations in Australia to drop production by 20 percent in over past 18 months.

Herzberg Two-Factor Theory.

[8] According to Herzberg (1968), there are two factors of motivations -one type (known as the motivators) results in satisfaction with the job, and the other (known as hygiene's) which merely prevents dissatisfaction. The two types are quite separate and distinct from one another. In the context of workplace motivation, typical hygiene factors include working conditions, quality of supervision, salary, status, security and etc. Motivators in a work place include: achievement, recognition for achievement, responsibility for task, interest in the job, advancement to higher-level tasks and more.[8]

Mark Frazer is the new Chief Executive Officer of Goldenstate Manufacturers PVT Ltd. He can use the Herzberg Two-Factor Theory to motivate Carl to communicate openly to the other managers and encourage Carl to lead by example. The fear of recruiting new staffs is stopping Carl from doing his job properly.

Mark should motivate Carl by implementing that success of a business is largely dependent on the work procedure within the company. A CEO must be aware of the study of motivational theories and more importantly, how to apply them critically within the organization.

Mark can motivate Carl by explaining to him the steps of Maslow motivational theory. He can ask Carl to try his best in approaching and communicating to the Other Managers. He can make Carl know that he is very important to the organization and his decisions are also vital to the organization, and plays a very important part in the performance of the company and where the company stands in the Market.

Carl can be assured through Mark that he is physically and psychologically secured. He can also be assured the job security. He can remind Carl that he as the General Manager of Operations has the responsibilities and duties and has to show his commitment to the organization. He can assure Carl that he will provide resources and support to him. Mark can also offer Carl professional development opportunities

2.2 (b) Motivational Theory

The motivational theory - Abraham Maslow Hierarchy of Needs

[9] Maslow's hierarchy of needs theory was developed by Abraham Maslow.

Abraham Maslow, the famed Hierarchy of Needs describes a pyramid of motivating needs that must be met before advancement to the next level, starting with physiological needs such as breathing, water, sex and food (though not necessarily in that order!), then safety needs such as warmth, shelter and security. The pyramid continues upwards with love and belonging needs, through esteem, and capping out at self-actualization. A self-actualized person is someone whose "regular" needs are all being met. As a result, s/he is pretty much at peace with him or herself, living creatively, vitally, and meaningfully. [9]

Adam can be linked to both be linked to individual needs (Maslow), and also to Herzberg's motivators, e.g. recognition, praise, responsibility.

Adam can allow his staffs to communicate face to face and have meeting. He can allow the staffs more freedom to communicate and give feedbacks to in regards to the operation of the Operations Department.

Adam can set individuals with goals and provide positive feedback. Adam make the staffs gain confidence in the organization by rewarding their achievements as employees are going to be more motivated if the company shows any appreciation of their contribution to the company.

The staff's can also be motivated to stay with the company by given more opportunity like job enlargement and also Adam can assure them more training. Everyone is eager to learn more within organizations.

Adam can also provide resources to the staffs in order to complete their given tasks and avoid job overload. Adam can assure a sense of job security to the staffs and can be treated with some respect. Adam can improve motivation around communication.


[10] Delegation is simply the process of giving decision-making authority to lower-level employees. For the process to be successful, a worker must be able to obtain the resources and cooperation needed for successful completion of the delegated task.[10]

The benefits Ron can achieve through delegation are that:


Ron can benefit by delegating through assigning employees specific task so that they do a better job because they will feel a personal accountability for the outcome of the task they perform, even though responsibility ultimately rests with the individual who made the delegation. The person/worker assigned to do a specific task will be accountable for the work they do. Ron will also not lose his staff from the Fishing department.

Results of Accountability are:

improved performance,

more employee participation and involvement,

increased feelings of competency,

increased employee commitment to the work,

more creativity and innovation, and

Higher employee morale and satisfaction with the work.


Ron can benefit from delegation by developing the department. This will provide Ron with personal Empowerment gain with his employees and he will also be given more respect and will be valued by his superiors and also by his employees. Delegation has a number of benefits. When you streamline your workload, you increase the amount of time available for essential managerial tasks. Your staffs feel motivated and more confident, and stress level decrease across the workforce.

2.3 (b) The steps that Ron should take to delegate efficiently is:

To define the objective's and the expectations to the employees.

Gain assurance from the staff that they will complete their task.

Ask the employees if they need any assistance.

Establish a time frame for a certain task.

Allow creativity in the working style.

Show appreciation to the employees for the task they do.

Trust the staffs and let them take pride in what they do.

Provide full training and support to encourage them.

Open communication.

By delegating effectively Ron will also receive several personal gains. By assigning task to the employees Ron will have some spare time to do his own work. By assigning task to the employees Ron will have a highly skilled department of employees.