Purpose And Reason For The Establishment Business Essay

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The purpose and reason for the establishment of Golden state Manufactures is to make profit through manufacturing quality textiles. It is one of the largest textile companies in Australia running from 30 years. It is among the top five manufacturing organisations in Australia which provides employment to more than 1700 employees. But over the last 18 months, the production of company has decreased by 20% and the complains of the customers have increased.

Mark Frazer a new CEO of the company set a new goal of optimizing the production and improving the quality of finishing garments within 6 months of time. They all must work together to achieve their goals.

(b) Identify three other types of organisations and explain how their purpose and reason for establishment might differ from Golden state Manufacturers.

1. Mc Donald NZ: Mc Donald is known all over the world for its food and service. Mc Donald's business model depicted by the "three legged stool "of owners/operators, suppliers and the company employees are the foundation and the balance of interests among the three groups is the key.

2. Private sector organisations: It is run by private sector like franchises. Their main motive is to increase the productivity and to gain profit.

3. Voluntary sector organisation: It is not owned by any individual. There is someone for ensuring its purpose and funds to meet its goals. It provides shelter to orphanage, surrendered, abandoned, and less privileged children.

1.2 Two of the main roles that need to be carried out by:

Mark (CEO)

# The task of Mark is to increase the production and to improve the overall quality of products.

# He gives direction and leadership towards the achievement of organisation.

Carl (operational manager)

# He has the responsibility over the deputy general managers of the knitting, dyeing, finishing, cutting, stitching and purchasing sections of the operations department.

# He is responsible for the improvement of operational services, policies and process in support of organisations goal to support better flow of management.

Quality Control Manager

# This manager is responsible for the lower levels of QC managers and their staff, overall they are the one who identifies the quality issues during the production process.

# They need to carry out and to review and evaluate the employee's performance as well.

Research and Development Manager

# He is responsible for research and development team of the company, they are responsible for the innovation of the existing to suit the ever changing taste of their clients.

# maintains constant coordination between himself and members of other departments of the company.


a)Explain how effective you feel Golden state is in meeting its purposes.

Being among the top five manufacturing organisations in Australia. And staying over 30 years in business, I think Golden state manufacturers Ltd.has done a good job in meeting its purpose of gaining profit, expanding and high quality production goods. However, over the past 18 months, a decline of 20% has been observed in the company's production, and also, an increase in customer complaints has been identified. This can be detrimental to the income and goals of the company if the root cause of the problems are not identified and dealt with effectively.

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

Technical Skills

Effectiveness Skills

Interpersonal Skills

Conceptual Skills

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

1)In order to become effective, the manager should have ample knowledge of the tools, machines, ICT and materials used in the production lines and in the maintenance of the company.

2) A good manager must manage his time efficiently and the ability to multitask so that he can meet the conflicting demands of the organization, beat deadlines without having to rush himself

3) ) Managers should have the ability to work with people, and serve as a beacon of cooperation for the lower level managers and the staff.

4) ) Managers should be proactive in facing problems and always foresee them before they even develop, or if they should, then an effective manager must be able to deal with these problems with innovative solutions.



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.

It would be Transactional theory which states a clear chain of command and does not allow his staff to do things without his knowledge. He does not allow changes or innovations without consulting him. When the staff has new ideas it should always have the approval of the manager.

2.1 B) Leadership styles of Adam, the Knitting Manager, and James, the Dyeing Manager based on the case study.

Adam, the Knitting Manager

The leadership style that Adam uses is the Autocratic leadership style. According to the case study, he believes in the philosophy of "My way or no way" which means that it is him who dictates what job is to be done and how it should be done. He is the one who makes the decisions without asking the other staffs' opinions or suggestions.

James, the Dyeing Manager

The leadership style that James uses is the Laissez Faire leadership style. The Laissez Faire style states that leadership responsibility is shared by all. It is the laid-back type of leadership. It relies on good team work and good interpersonal relations. Basing on the case study, James does not care if his staff does the work or not. He likes being liked by his staff and does not do anything that may upset his staff.

2.1 C) Comment on how appropriate each leadership style is to the current situation.

Adam's leadership style is not appropriate for the current situation of the company. He should change his leadership style into a democratic leadership style wherein his staff can actually contribute to the decision making process. Once the workers feel that they are valued, they may feel motivated and that they are really a part of the company. An autocratic leadership style will not work in the current situation because it will just cause de-motivation and alienation to the staff.

James' leadership style, Laissez Faire is also not working for the department. Work is not being done on time and causing delay on the production process. Work should be faster when they are overstaffed but it is not happening because of the laid-back type of leadership. James should change his leadership style into an autocratic leadership style wherein he can be firm and strict. He should be task-oriented rather than employee-oriented in order for the work to be done on time and not cause delay on the production process.

2.2 A) One (1) Motivational Theory:

Maslow's Hierarchy of Needs

According to Maslow, the needs of the human being can be categorized in 5 levels. The 5 levels range from lower to higher order needs. Individuals must first satisfy the lower-order needs before they can satisfy higher-order needs. Satisfied needs can no longer motivate a person. The lower-order needs are the physiological, safety and love and belongingness which are externally created and influenced while the higher-order needs are self-esteem and self-actualization which are internally created and influenced. A person is motivated every time he/she satisfies one need per level. Motivation increases as the need satisfaction goes up in the higher-order needs.

Mark, the CEO, can use this as a Motivational Theory on Carl by trying to satisfy Carl's needs. Carl is known to be firm and strict and finds it hard to communicate at all levels. Carl's need is on the Self-esteem level or Maslow's Hierarchy of Needs. He desires the respect of his staff and may want recognition for the job he does. Mark can help in sorting out issues in the department and gain everyone's cooperation in recognising Carl as a General Manager and giving him respect. Carl can also be given incentives and privileges and recognise him for any achievements or good work he has done for the company. Mark can also teach Carl to use the said theory in motivating his staff and get things done on time and produce good quality products.

2.2 B) Adam, the Knitting Manager, can motivate his staff so they will remain in the company by:

As Adam has the autocratic style of leadership, he needs to motivate his staff by:

Respecting the people you work with- Because of being bossy, he needs to learn others respective and accept their ideas.

Asked for advice- There must be cooperation among the members of the sectors and listen his staff to express their opinions.

Helping other people-He leads his staff and teamwork is important. He must not leave his staff doing the task by their own.

Make a challenge- In this situation, he will set a goal and encourage the staff to participate. By doing the activities he will give reward in return.

2.3 A) Three (3) benefits of delegation.

1. Save time- It will be advantage for the manager's personal benefit. Allows more time doing their own jobs when they assign the task to others.

2. Organize- Delegating the task to the right person makes the work more easily and precisely. Working with others to achieve an aim has been a proven way to succeed.

3. Efficient and effective- It increases the self-esteem and confidence of the staff member. They will feel that they are involved, that their opinions and voices are received and they are creating change in their work.

B. Five steps that Ron needs to take to make the delegation effective.

1. Define the task.

Ron must know what task is to be delegated. Take some time to think about tasks that needs delegation to make work easier and faster in the department.

2. Select the individual or team.

Ron must assess his staff and find who is the most suitable or appropriate person to delegate the task with. He must make sure that the person is experienced enough or is capable of doing the task properly and with knowledge about the task to be delegated. Ron must also explain the reason why he chose the task to be delegated and why to that certain person.

3. State required results and deadline.

Ron must explain to the chosen worker what needs to be done, prioritize the task, how it should be done and when should it be accomplished. Ron must also consider the resources needed to get the job done. Monitoring must be agreed by both parties to avoid misunderstanding and other issues during the process.

4. Support and communicate.

Communicate to other staff that needs to know what is going on and those who should be involved in the process. Inform the General Manager about the delegation done and always make sure that there is an open communication between you and your workers .

5. Feedback on results.

Let your worker know the progress of the work being done, how he/she is doing and if they have achieved the goal. Ensure that they are being monitored and that they are on track in meeting the desired result. If problems arise, formulate solutions together with your worker and review what went wrong in the process. Make sure to give credit to your worker If he/she is successful in accomplishing the task given.