Management issues existing at Wei Du


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This consultancy report summarises the advice of Wei Du about management issues important for starting and running a shop with internet cafe and karaoke bar business in Wollongong. The internet cafe and karaoke bar will be called " The One" in honour of its speciality: popular and entertainment fashion.

I research procedure involved reviewing of MGMT901 materials, doing a basic literature review of management issues in internet cafe and karaoke, and observing popular songs, softwares and games trend.

I conclusions and recommendations are based on academic evidence around five management issues crucial to you new venture's succuss: 1 organisational culture; 2 motivation; 3 leadership; 4 Ethics and corporate social responsibility; 5 the internal environment.

Organisational culture

1. The natural character of organisational culture can help manager to manage internet cafe and karaoke bar.

2. Organisational culture has material culture, behavioural culture, institutional culture, mental culture.

3. Organisational culture functions include lead function, constraint function, cohesion function, motivation function.


Motivation can stimulate employees' initiative work which can increase the performance of organisation.

Initiative of employees can be mobilized by motivation.

Target motivation is an essential in motivation.

Internal environment

Ensure suppliers' products meet Australian regulatory requirements and customers' needs, and the products are occupational and environmental health and safety.

When the internet cafe and karaoke bar business opens and have more details what you need to manage, but we do not forget customer service. Because the internet bar and karaoke bar business are easy to open, so a good customer service can improve organisational performance.

3. Competitors situation should be researched.

1 Introduction

This consultancy report summarises the advice of Wei Du about management issues important for starting and running a shop with internet cafe and karaoke bar business in Wollongong. The internet cafe and karaoke bar will be called " The One" in honour of its speciality: popular and entertainment fashion. You are wise to have taken professional advice about this as Robert et al (1996, p382) claim that as manager need takes a long time to learn essential management. You have advised me that you and your friends have no formal management training. Accordingly, we have chosen five management topics we believe will be crucial to your new venture's success. They are: 1 organisational culture; 2 motivation; 3 leadership; 4 Ethics and corporate social responsibility; 5 the internal environment.

2 Research procedure

I researched your question by reviewing the textbook, lecture notes and other materials in MGMT901, supplementing this with basic library research into the literature on internet café and karaoke bar as a business, and our personal observations of popular songs and games trend in Wollongong and globally.

3 Findings

My findings are grouped around the five management topics listed in the introduction.

3 .1Organisational culture

We can know that every organisation has own culture, because internet cafe and karaoke bar management can not with organisational culture, organisational culture plays role in the development of internet cafe and karaoke bar, an excellent organisational culture needs hard work. Only can organisational culture develop, the internet cafe and karaoke bar will against competitors, and keep development.

3.1.1Organizational culture in internet café and karaoke bar management

Theory of organisational culture

The organisational culture can be defined as ' the set of values, norms, standards for behaviour and shared expectations that influence the ways in which individuals, groups and teams interact with each other and cooperate to achieve organisational goals' (p97).

The natural character of organisational culture

(1) Dependence The change of interpersonal relationship and work relationship in organisational culture is often had problem, but they are also continuing keep balance. Organisational culture is an active of interaction between person and person. Thus, organisational culture is based in organisation, depended organisation, but the most factors in the organisation are people.

(2) Purpose Organisational culture has bright purpose, it always around organisation and services organisation.

(3) Malleability Organisational culture is developing with the development of organisation.

Concept of internet cafe and karaoke bar of organisational culture

(1) Material culture

Material culture has 3 parts in internet cafe and karaoke bar; firstly, organisation needs meet the employees, and provides some protections, like welfare. Secondly, the organisation gives motivation and arranges suitable occupation for employees. Thirdly, the internet cafe and karaoke bar must meet consumers' service.

(2) Behavioural culture

As the internet cafe and karaoke bar, benefit is at the first place, the benefit comes from consumers, good environment of internet cafe and karaoke bar and nice staffs can offer excellent service. If the employees work not hard, it will lead to miss consumers, so the excellent services can be presented by employee and consumers face to face.

(3) Institutional culture

The institutional culture must meet the benefit of organisation and employees.

(4) Mental culture

Mental culture is the core of organisational culture, and also it is intangible culture in organisational culture. The mental culture can be showed by the process of internet cafe and karaoke bar management, and reacted by the work behaviour of employees. Good employees can create more and more performance of internet cafe can karaoke bar, and good organisation can create excellent employees.

3.1.2 Organisational culture functions in internet cafe and karaoke bar management

(1) Lead function

Lead function can not only guide the thinking of employees, but also lead the value and behaviour of organisation.

(2) Constraint function

Organisational culture can constrain and guide the thinking, psychology and behaviour of employees. It can improve the sense of responsibility and mission for employees.

(3) Cohesion function

When the organisational culture can be recognized though employees, it will become cohesion, and can make the employees together, which leads to achieve performance of organisation.

(4) Motivation function

Organisational culture can make mental effect of employees who have high spirit. The good thinking value and behaviour will product stronger sense of mission, durable power of drive. As employees, they can create good environment, improve the relationship between employees, which can enhance the core competitive of organisation.

3.1.3 The development of organisational culture of internet cafe and karaoke bar

The development of organisational culture needs to consider the valuation. There are many factors built organisational culture, one most factors is the valuation of organisation, it can lead and arrange another factors of organisational culture. For the valuation of organisational culture includes valuation of talent, wealth, time quality, services, view, benefit, humanism knowledge, information, competition. Though these valuations, it can help employees to decide the right goal, and continually enhance ability of pressure and understand, and set up good interpersonal relationship, and ensure cooperation of work. Therefore, it can develop the internet cafe and karaoke bar.

Environment is an image of organisational culture, is protection of organisational culture. Every internet cafe or karaoke bar exists in the environment, and with the development of environment. Internet cafe or karaoke bar not only suits environment, but also creates environment. So the internet cafe and karaoke bar need to suit the change of marketing, and suit the thinking of manager. Thus good operate environment can get more benefit.

3.2 Motivation

The development of internet cafe and karaoke bar needs every employ long time effort, the incentive level of employees in the internet cafe and karaoke bar will directly impact work performance, employees' performance depends on their ability and level motivation. Applying function of motivation which can impact on behaviour of employees, and it also will make the organisational goal to demand of employees.

3.2.1Motivation in the internet cafe and karaoke bar management

Theory of motivation

Motivation can be defined as 'psychological forces that determine the direction of a person's behaviour in organisation, a person's level of effort, and a person's level of persistence' (p227).

Motivation can stimulate employees' initiative work which can increase the performance of organisation. Any organisation is very caring its performance, if organisation has good performance which can exist. But organisational performance links to personal performance, so organisation needs motivation to stimulate employees.

Process of motivation

Essence of motivation is that though affect demand or motivation of people to achieve goal of behaviour of people. Actually, it is a deeply process of behaviour of people. So, when managers of internet cafe and karaoke bar use motivation, they need to understand the behaviour of employees. The process of motivation in the employees has different phases, so the managers must understand motivation completely which can product effective result. Motivation can administrate people's behaviour, and it is also based on the need. Need theories mean that 'theories of motivation that focus on what needs people are trying to satisfy at word and what outcomes will satisfy those needs' (p230). When employees product need, the psychology will feel upset and nervous, so employees will have driving force in their mind, this is motivation. Having motivation, employees will lead to goal of active orient. When employees achieve goal, the need satisfies, and following the need will be happened, so the essential motivation is based on unsatisfied need, and using all kinds of goals can stimulate motivation and driving, and also will improve achieve goal, and enhance the degree of need satisfaction.

According to Maslow's hierarchy of needs (p230), it has five kinds of needs, including physiological needs, safety needs, belongingness needs, esteem needs and self-actualisation need. All kinds of needs can inter-transform. Motivation of employees work is arriving needful satisfy, especially in advantage need, only when employees get satisfy it is can employees improve their initiative.

3.2.2 Function of motivation

Generally, motivation is mobilizing initiative, initiative is self-conscious psychology and behaviour condition when employees complete the task, this condition can promote employees' intelligence and physical energy to release, and employees have more energy to work hard. The initiative of work is most important factor in work effectiveness, because initiative is most active and positive. So work initiative plays an important role in work effectiveness.

3.2.3 Principle of motivation

Internet cafe and karaoke bar are the new shop, so motivation is very important. In order to achieve organisational goal, the organisation will present some requires, and set some standards, and make the goal of organisation and employees to stay the same level. So the organisation must meet the need of employees which can motivate employees' initiative.

3.2.4 Using motivation in the internet cafe and karaoke bar management

Using motivation can mobilize personal initiative, so I will set up an effective way to manage internet cafe and karaoke bar. Because internet cafe and karaoke bar as popular shop in Wollongong, so the employees are young, I need choose special motivation to stimulate them, and dig initiative, positive and creative of employees, and transform them become large energy.

Target motivation

Target is spiritual support of personal behaviour, once the target misses, the people will mislead orientation and driving force. As young employees are easily miss their target, so I will make target motivation. There are serval points to note: (1) Establishing target of reasonable science. Because target of reasonable science has effort which can achieve, and can deeply improve people's capability. (2) Making target of internet cafe and karaoke bar's large, middle and small together, and let the employees to understand. So when organisation has more benefit, it means that the employees will get more money, and the welfare will be changed.

Reward motivation

Reward motivation means that organisation needs to set up distributive regime of fair and equitable. According to the present of employees, I will give fair valuation, and give some money as reward. Reward includes wages, bonus, promotion, praise, welfare, position, training and so on.

Trust motivation

I think that although employees have good wages, welfare and so on, the motivation of employees can be not completely used. However, the trust motivation will impact on the rest of employees' motivation. Trust can give employees energy and hope, and also can let employees to work hard and have good service to consumers. Thus, trust motivation is very important in motivation.

3.3 Leadership

Leadership plays a vital role in the organisation. The internet cafe and karaoke bar is a new open shop in Wollongong, so leadership is very important in operation model and operation way. Using leadership can improve the development of internet cafe and karaoke bar.

3.3.1 Leadership in the internet cafe and karaoke bar management

Theory of leadership

Leadership can be defined as 'the process by which an individual exerts influence over other people and inspires, motivates and directs their activities to help achieve group or organisational goals' (p193).

Power: the key to leadership

Different manager has different leadership

3.4 Ethics and corporate social responsibility

Ethics and corporate social responsibility is an important part in organisational management. Ethics and corporate social responsibility is easier understand and reception than law, because they always remain in personal mind.

3.4.1 Ethics and corporate social responsibly in the internet café and karaoke bar management

Theory of ethics and corporate social responsibly

Ethics can be defined as 'moral principles or beliefs about what is right and wrong' (p164). Corporate social responsibility can be defined as 'a manager's duty or obligation to make decisions that promote the welfare and wellbeing of stakeholders and society as a whole' (174).

Using ethics and corporate social responsibility

As a manager, I can feel that keeping operational organisation is very hard when I use standards and rules, but using ethics and corporate social responsibility are very easily, because people receipt them for a long time, and ethics and corporate social responsibility have effect of efficiency, reasonable and fair in orgainsation management.

3.4.2 Reason

For the organization, internet café which belongs to it should relate to social issue with children and young people's physical and psychology health. Because they might be forced to inhales second-hand smoke and contact with some WebPages which involve unhealthy contents.

Firstly, the smokers who are smoking in the internet café will force children or teenagers to inhale passive smoke. It is common knowledge that tobacco is harmful for human physical, it contains many harmful substances, and children or young person are growing with more vulnerable apparatus, thus, they are easier to be injured.

Secondly, it is inevitable that some unhealthy contents just like pornography and violence could be found in the internet. "In 1999, 24.7 percent of the children surveyed were disturbed by something on the internet, but this had increased to 50 percent by 2004. The most-mentioned experience was that they had been confronted by pornography, followed by horror, viruses, threats from a known person (A threats) and threats from an unknown person (B threats)." (Soeters & Schaik, 2006) The unhealthy WebPages might make young people have violence and sexual tendency, thereby, it might produce more crimes, such as rape and homicide.

3.4.3 Solution

The first solution is that refuse children who under 16 years old entry internet café without guardians. The second one is that internet café should set different areas for different customer groups, on the one hand, could limit young people to access some WebPages with violent and pornographic contents; on the other hand, could avoid them suffer from passive smoking.

Karaoke bar relate to social issue about crime, the maintain social responsibility of them is helping government to resist drug and other type of crime in private spaces which provide by them.

3.5 Internal environment

Wollongong is famous city in Australia, one is most important reason is the University of Wollongong, so there are many international students. Internet cafe and karaoke bar is very popular around students. So doing some studies about external environment can help managers to operate internet cafe and karaoke bar and make bright decision.

Internal environment plays an important role in organisation, because it can be directed effect on managers' daily business as soon as possible. Internal environment can be defined as 'the set of forces and conditions that originate with suppliers, distributors, customer and competitors and affect an organisation's ability to obtain inputs and dispose of its outputs, because they influence managers on a daily basis' (Devine W & George J, 2007 p83). For manager, if can obtain resource and output effectiveness, they depend on internal environment, and internal environment can affect short-run's decision and planning.

Popular improves the internal environment, so it is a good time to open internet cafe and karaoke bar business based on popular song and internet wieldy can be used.

Suppliers are very important in external environment; suppliers will decide the price and quality of productions. Good computers and internet speed are very important to internet cafe, and audio-visual specialists are vital for karaoke bar business. So keeping a good relationship with supplier is necessary.

The aging of the different population has different needs, so internet cafe and karaoke bar business should make different businesses to meet different people. But young people as maintain consumer group for internet cafe and karaoke bar, so the organisational operation must meet need of young people.

Pricing, good customer service and place should be competitive with other internet cafe and karaoke bar in Wollongong.

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