Reason For Establishment Of Goldenstate Manufacturers Business Essay


The main purpose for the establishment of Goldenstate Manufacturers is for financial reasons and that is to make and earn profit. Also, to take care of the interests of the shareholders and stockholders invested through profit maximization and provide employment for the general public. Their aim is to continually supply their customers and the public with high quality textile products and maintain their top five position in the manufacturing industry.

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

Ministry of Health

This is a government organization which is responsible for the improvement, promotion and protection of the health of all New Zealanders. Their main purpose is overall management and development of the health and disability system to ensure that New Zealanders live longer, healthier and more independent lives.

Unlike Goldenstate Manufacturers where the aim is making profits, the Ministry of Health is more concerned with improving overall health and quality of health care at local and national levels in New Zealand. They work together with District Health Boards to meet the particular health needs of a certain community. It is mainly funded from general taxation.

Rotary International

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Founded in 1905, this is recognized as the world's first volunteer service organization. purpose is to bring together business and professional leaders in order to provide humanitarian services, encourage high ethical standards in all vocations, and help build goodwill and peace in the world. Their motto is "Sevice above Self". The difference between Rotary International and Goldenstate Manufacturers is that the former is non-profit and mostly funded through private donations and fundraisers while the latter earns profit.

UNICEF (United Nations Chidren's Funds)

This is a charitable organization established by the United Nations in December 11, 1946 after the World War II to help children who were facing famine and disease. They were provided with food, clothing and health care. Today, they are the world's leading aid agency in helping a child in need. Their mission is to create a better world for every child. UNICEF is a non-profit organization and mostly funded by the government, private donors and groups, and the National Committee while Goldenstate Manufacturers operates mainly towards making profits..

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

Mark (CEO)

Since Mark is the new CEO, he should have a vision and mission on where he wants to take the company and how to represent it in the best possible way that he can. He should be able to identify policies and rules that could give direction to the company. He should know the company's strengths and weaknesses as well as have the ability to recognize threats and opportunities in order to strategically manage each department and advise the general managers.

Mark should also come up with fresh, innovative ideas that the company could use to create, develop and further enhance their products, procedures and processes especially in increasing production of quality goods and services. These ideas should be in line with achieving the organizational goals set and could be used to make long-term plans that would help the company in reducing costs and maximizing its profits.

Carl (Operations Manager)

Carl should assume the role of being a leader. He should be able to motivate and encourage his staff to do their work. Instead of being too firm and strict to them, he should adopt a more open and flexible approach. This would facilitate more creativity and open communication of ideas among the staff. Also, Carl would be able to listen effectively to the concerns and problems that the team are facing and would be able to give feedback and solutions to them.

Due to his difficulty in communication, Carl's department has become disorganized. As an Operations Manager, he should become a spokesperson who has good communication skills which would lead to effective communication between him and his team members. Effective communication leads to better coordination and team work, avoid misunderstandings and improve the working relationship among the staff. Also, having good communication skills means that Carl would be able to express the right message at the right time.

Quality Control Manager

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One of the main roles of being a Quality Control Manager is making sure that all the products that are being sent out are of high quality and with has no defects. This would mean that the manager has to identify and establish quality standards that would be used as a guideline of all the employees in this department.

The manager has to ensure that all goods and products are thoroughly examined and tested. The manager should constantly remind the staff to make sure that they monitor, check and control the quality of all goods produced. A good quality system should be in place for all staff to follow which includes that all goods should meet the specific requirements set by their company, be safe, highly satisfactory and fiscally sensible.

Research and Development Manager

The company highly depends on fresh and innovative ideas to have an advantage towards its competitors. As the Research and Development Manager, he and his team should come up with creative new ideas in order to edge out the competition. Their knowledge on market research and customers' tastes and preferences should help them develop new products, services and processes that could increase the company's profit while reducing costs and wastage.

Another function that the Manager has is to be able to organize and coordinate policies through new information gathered. He should be able to share this knowledge for strategic planning within the organization.


Explain how effective you feel Goldenstate Manufacturers is in meeting its purpose.

I feel that the company is ineffective in meeting its purpose. Goldenstate Manufacturers' main purpose is making profits however in the past 18 months the company has been on a decline. They have dropped off 20% in their production of goods and there have been an increasing number of complaints made by customers due to the quality of the products produced. I believe that these reasons have greatly affected the company's sales and in earning profits. Sales would be lower compared to previous months because of limited supply of goods produced. Also, customer complaints regarding the quality of goods produced means that there is less satisfaction in buying these products. Customers who felt cheated of their money because of the poor quality would advise other potential buyers not to purchase goods from the company.

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

Time Management skills - managing time properly by prioritizing what should be done.

Interpersonal skills - being a people's person.

Communication skills - being a good communicator to explain well to subordinates.

Decision-making skills - capability to make the right decisions.

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

Time Management skills

Being able to manage time effectively is crucial in running a business and a company. For a leader to promote time management skills, planning should be a priority. With planning, goals and objectives of the organization are clearly defined and set. Also, allocation of time for each task and delegation of responsibilities should be discussed. Deadlines are set because they help the team members be on track in prioritizing what they need to do first and allowing them specific time in finishing a certain task. Delegating responsibilities is very important because the staff need to know who will do a certain task. Tasks which need specialists should be given to the right team members who have specialised knowledge and training. Proper delegation should be done so that time and resources will not be wasted. This helps the company be competitive because the staff know how to manage their time carefully and become more resourceful. Time is always limited so the quality of the goods produced should not be compromised just because the staff didn't have sufficient time to finish their assigned tasks.

Interpersonal skills

Interpersonal skills are needed by all the managers and the staff of the company because they should have the ability to deal and work with different types of people, personalities, backgrounds and educational qualifications. Having good interpersonal skills makes them more aware of what motivates others to do their tasks well. Also, if the managers and the staff are motivated they bring out the best from each other. This leads to more efficiency, more productivity and better time management in meeting goals and deadlines.

Communication skills

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Effective communication fosters loyalty and trust among the managers and their staff. Creative ideas and solutions are shared more easily because there is open communication making it easier for each member of the team to do his task. Team members would be able to express their ideas freely and understand others viewpoints better. Also, the manager would be able to explain better to his team members what needs to be done, what the goals and priorities of the company are in order to achieve them together. Having good communication skills is also important because it promotes team work and cooperation. This helps a company become well-organized, highly efficient and dynamic.

Decision-making skills

This is one of the most vital skills that a leader should have to make his organization highly competitive. In this case study, Mark as the CEO of the company should be able to make decisions that would be both beneficial to the team members and the company. Decision-making and problem-solving skills go hand in hand together. Mark should consider several factors first before making a decision. These factors include the people (the staff), procedures, certain situations, resources of the company, money, roles and functions. He should then weigh the advantages and disadvantages of all the options considered before choosing the best solution for the benefit of the organization.

Question 2 Learning Outcome 8a


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.

I think that Ron is an autocratic type of leader. In the case study, it stated that he believes in not allowing his staff to take liberty of doing things without his knowledge. As an autocratic leader, Ron has total control over decisions and authority. He makes decisions based on his own ideas and opinions without consulting and asking for the help and input of his team members. Not allowing the staff to do things on their own means that they are highly dependent on Ron's decision-making. Prior to doing certain procedures and processes, Ron must be consulted. If he does not approve or give the go signal to go ahead with plans to do the job, then the staff would not be able to proceed with it.

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.

Adam like Ron is an autocratic type of leader. He believes in the philosophy of "My way or no way". He is the type of leader who likes to be in control all the time and he demands little input from his team members. His decisions and judgments are all that he considers and he rarely asks advises from the team. The team members can't criticise whether Adam's decisions are the best because he still would not consider their views and opinions. Also, they would not be allowed to question him on how things should and would be done.

James is the type of leader who employs the Laissez Faire style of leadership. This type of leader advocates the "Let It Be" approach where in they give free rein to their staff to do whatever they want. Being a Laissez Faire type of leader, James believes in a "hands-off" approach wherein he allows the team members to make their own decisions. As stated in the case study, he does not take not notice if workers don't do their jobs. He would rather be liked by his staff and refrains from taking any actions which might upset the team and turn them against him. His attitude towards his team members leans more on non-interference and believes that he should intervene as little as possible in their affairs.

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

Autocratic - This leadership style is inappropriate for Goldenstate Manufacturers now because the company needs to be organised in order to produce better quality products. Autocratic style of leadership believes in a one way communication. However this type of communication has no feedback from the team members. This leads to misunderstanding and disorganization in the company. Misunderstanding causes conflict among the staff and the managers which leads to wastage of time arguing and blaming one another for issues which could have been resolved properly. Also, autocratic leadership is unsuitable because it doesn't facilitate a good working environment. It allows the team members to become hostile towards their managers and resent their work. So the managers should be able to create a working environment wherein the atmosphere is creative, flexible, open, and fosters team work and respect for the company to be successful and produce good results. Team work is very important for the work to be done and for the quality of the work to be good.

Laissez Faire - This style is also unsuitable for the company because style is also unsuitable because the company needs to increase the turnover of their products and services as well as decrease customer complaints. Also, they need to be able to complete quality products in a specific amount of time. As seen in the case study, the workers don't do their jobs properly so there is less productivity and poorer quality of work. There is also poor management of the team and the staff would lose their focus and sense of direction. Also the workers see that their leader/manager seems not be interested in working which they also follow. Disinterest means that they would not be doing their jobs leading again to lower productivity rates.


Select one (1) motivational theory:

Briefly describe the theory

Herzberg's Motivation-Need Theory, also known as The Two-Factor Theory, is based on the hypothesis that there are 2 factors in the workplace where it might lead to satisfaction and dissatisfaction. This is a two step approach in understanding employee motivation and satisfaction. The two factors are called hygiene and motivator factors. Hygiene factors are those based on avoiding unpleasantness. If these are considered inadequate by a person, then dissatisfaction arises. Hygiene factors include company policy and administration; wages, salaries and other financial remuneration; quality of supervision; quality of inter-personal relations; working conditions and feelings of job security. On the other hand, motivator factors are based on an individual's need for personal growth. If these are adequate, it leads to satisfaction and motivates an individual to give more effort and have a highly satisfying performance especially in work. These include status; opportunity for advancement; gaining recognition; responsibility; challenging or stimulating work and sense of personal achievement and personal growth in a job.

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

With the help of the Two-factor Theory, Mark can motivate Carl along with his section managers and their staff by asking them a vital question, "What do you want from your job?" Herzberg's Theory will help Mark identify factors that could be used by Carl to eliminate dissatisfaction from his section managers and their workers and at the same time will keep them happy and more motivated to work. Mark can help Carl by adopting a two stage process that can motivate people.

First, they have to identify reasons why the workers feel dissatisfied and eliminate these. To help get rid of job dissatisfaction in the workplace, Mark should advise Carl to motivate his section managers to create and support a working relationship wherein everyone respects each other. As stated in the case study, Carl just doesn't interfere with how his section managers manage their staff and organize the workload. Mark must point out to Carl how important it is for section managers to be supportive to their workers to foster open communication and build trust and camaraderie among them. Also, Mark should point out to Carl that his being too strict and firm will make section managers hesitant to talk to him making them dissatisfied with their situation. Effective communication should take place between top level managers and middle managers to keep motivation levels high because there is more loyalty and trust. This is also an effective way of minimising misunderstandings and conflicts especially in a highly pressured job.

After eliminating the reasons for dissatisfaction, both Mark and Carl as top level managers should create an atmosphere for job satisfaction among the section managers and their workers. They should both identify and determine what are the factors that could make the job better, also known as job enrichment, to satisfy the staff to do their best. Mark knows that Carl is too strict and firm, he should talk to him about this. Mark should let Carl know that he should be flexible enough to give opportunities for his section managers. Carl should let them be responsible to their staff. Rewarding staff that have done a good job is giving them satisfaction and motivating them even further.

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

What he must do and

How he might do it

Adam should appreciate the hard work put in by his staff.

The Knitting Department has one of the highest turn-overs in the company; Adam should acknowledge the efforts and dedication put in by his staff to make quality products. He can do this by praising his team like telling them about a specific action that he really liked or with a certain task/job that was done really well. Regular appreciation by saying a simple "Thank you" to his team would go a long way. Adam's staff would feel compensated after a hard day's work with their boss's praise for their contributions to the company.

Adam must develop and have good interpersonal relationships with his staff.

Adam should be able to communicate with his staff easily. He should learn to have good social skills so that the staff would not hesitate to talk to him especially when they have concerns and worries regarding their jobs. He should adopt an open and supportive approach to facilitate open communication easier between him and his staff. Adam should also effectively listen to his team because there would be fewer chances for miscommunication and misunderstanding.

Instead of his "My Way or No Way" approach, Adam should consult with the team before making any decisions especially important ones.

Adam should listen to the views and opinions of his staff before making an important decision. All sides should be considered first as well as advantages and disadvantages before selecting the best option among the choices identified. Consulting his team members means that Adam values their opinions and thoughts so they would feel more involved and have more input in doing their work. Also, the staff would feel empowered and be more cooperative with each other making Adam's work easier.

Adam should recognise the effort put in by his staff and give them reward for excellent performance on the job.

Appraising his staff of good performance motivates them further to continue to do and give their best. Financial rewards are good but most of the time it is not feasible. Adam can give monetary reward to his staff if he wants to but it would be best for him to give recognition to them. Adam giving recognition to his staff means that he is giving them proof that he values their contributions.

2.3 Mark the CEO has told Ron, the Finishing Manager that he should delegate more. You are assigned to coach Ron through the steps he must take to delegate effectively.

Explain to Ron three (3) benefits of delegation, using information from the case study to illustrate your comments.

Better time management

Since the Finishing Department has one of the highest turn-over, time should be properly managed. Delegation equally divides the work between skilled workers and non skilled ones to finish their tasks and meet the deadlines set in order not to delay the other departments like the stitching sections who have to wait for the fabric to come through. With limited time, workers from the Finishing department would rush their work and produce poor quality goods but with proper delegation, good quality products would be ensured.

Increased motivation among the staff

The Finishing Department is always busy because they oversee a lot of things and Ron needs to motivate his staff to work harder to produce high quality goods. With delegation, the staff feel more empowered and responsible because they have more input in doing their jobs. Also, they would be more motivated to work harder because they would feel personally accountable for the results.

Increased productivity and high quality products

Since there has been a 20% drop in the company's production, Ron has to encourage his staff to work even harder to produce more high quality goods that can help the company. With delegation, there is increased productivity due to the increase in motivation of staff to work and through better time management. Also, it allows the staff who have more expertise and knowledge regarding certain products and services to make decisions that would be beneficial to the company and finish the tasks planned.

Explain to Ron the five (5) steps needed to be taken for effective delegation.

Make it clear what he should do at each step

Give practical examples of each step relating to Ron's job and the case study.

Accountability - As the Finishing Manager, Ron is responsible and answerable for all the end results in his department. If the fabrics are delayed and the Stitching Section need s it already, Ron will still be held accountable for it even though he has delegated the task and responsibility of finishing it to his team. He should make sure that he delegates the task properly to the right team members and give them a sufficient time or set a deadline for the tasks to be completed. Effectively delegating tasks would mean that tasks get done on time and high quality products would be made.

Responsibility - This is the duty of the person to finish tasks delegated to him. As Ron doesn't really allow his staff to take liberty in doing things, he should be able to take in consideration the capabilities and skills of his staff to get the job done. In order for Ron to effectively delegate the tasks, he should emphasize to the staff that the tasks delegated to them need to be done on time and they would be held responsible for the completion of it. Ron should make sure that the staff know what needs o be done and how to go about it. Also, that the staff delegated with the assigned task can work independently and be committed to finish it properly.

Authority - Ron is the section manager in his department that's why he has the power and right to make decisions and give orders. However, since he uses the Autocratic style of leadership, he doesn't give his staff the authority to take charge and make their own decisions which leads to demotivation. If Ron chooses to give authority to his staff, they would see this as a good sign that he trusts in their capabilities and decision-making skills. This would boost morale and increase productivity. However, he needs to see to it that the staff chosen to have authority knows what to do and should not abuse the power. Through proper delegation, he can give the chance to his staff to make their own decisions to achieve their desired goals which is completing tasks on time, not delaying other departments and producing high quality goods.

Empowerment - This is the process of giving the decision making power to staff. The aim of empowerment is to let the workers feel that they are an invaluable part of the company they are working for. It gives them the power to decide and how to go about their job. Ron should learn to delegate more responsibilities to his staff to motivate them and let them feel empowered. He has to give his staff the opportunity to make their own decisions and be responsible for it as well as involve them in consultation. This would give him more time to focus on important tasks knowing that he trusts his staff to get the job done properly. Also, Ron would be able to help his staff learn and develop new skills and build up their self-confidence and self-esteem.

Process employed/ Process of Delegation - These are the steps done for a successful delegation to happen. Since Ron is the person in authority being the manager of his department, he has the power to delegate. First he needs to select the task which needs to be delegated and select the appropriate staff which he could delegate the task to. He must consider the staff's strengths and expertise before delegating the task. Next, he needs to explain the task properly to the staff responsible for the task. Regular feedback should be maintained between him and the staff for updates on whether there are any problems or issues that need to be resolved as soon as possible as well as for the progress of the task. After the completion of the task, Ron can either reward or punish the staff depending on the results. If it was successfully completed with good results then he can reward the staff or if it was the other way around, the staff would be punished.