The Establishment Of Goldenstate Manufacturers Business Essay


The primary purpose of establishing Goldenstate Manufacturers is financial. They have to do the business to earn money or profit. Secondly, they have to satisfy the need of the customers who are looking for best textile materials. Finally, Maintain as one of the top five manufacturer companies in Australia, create good quality products to compete in the market and provide jobs to more than a thousand people.

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

Non -Profit/ Charity Organization: Starship Children's Hospital and Foundation

The Starship Foundation is a non-profit organisation that raises funds so Starship Children's Health can better care for its young patients. Starship is a hospital in Auckland inclusive of services for children and their health needs. This group provides a wide range of complex medical, surgical and mental health services for children throughout New Zealand and the South Pacific.

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In comparison to Goldenstate Manufacturers where they mainly make profits, starship was established to provide charitable services to children where funds and materials are just donated by people and companies.

Clubs: Lions Club of New Zealand

The Lions Club of New Zealand believes in a world of service. They aimed at helping, educating, and serving others; that's their purpose of existing. People from different walks of life come and gather their services and raise funds to help others like in cases of calamities. Lions club compared to Goldenstate Manufacturers is a non-profitable and charitable group and does not hire people to provide services instead accept volunteers to reach out.

Academic Institutions: Manukau Institute of Technology

The purpose of this institution is transforming lives, organisations and communities through education. Their purpose is to deliver vocationally focussed tertiary education, research and technology transfer that ensures Auckland's economy, graduates, employers and communities have the capability and skills to achieve their potential ( This type of organization is also a profitable one like the Goldenstate Manufacturers, the consumers have to pay to be able to use or have the services.

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

Mark (CEO) - His main responsibility is setting strategies a vision and ultimately sets the directions.

Carl (Operations Manager) - The main responsibility of an operations manager is handling or directing activities that are related to the production of goods and services. In addition, his indirect responsibility is communicating to the other manager such as the finance, marketing and accounting managers.

Quality Control Manager - His responsibility is planning, coordinating, and directing quality control program to ensure good quality products. He formulates and maintains quality control and works with other managers to ensure the budget and quality of the products made.

Research and Development Manager - the work of this person is planning, organizing, directing and coordinating policy advice and strategic planning within an organisation. He also creates and develops ideas of what products that will best suit the market demand.

a) Explain how effective you feel Goldenstate Manufactureres is in meeting its purpose.

Ineffective, Goldenstate Manufacturers is a large company and they have a lot of people to manage and leaders have different styles of leadership. As the line in the case study states "Company's production has dropped to 20 % over the past 18 months and customer complaints have increased with regards to the quality of the finished goods" it only shows that goals were not met by the company. Furthermore evidence of infectivity are evident such as production staff leaving the company, team leaders and supervisors always have excuses to explain the delays and poor quality, and section managers blaming each other with regards to the issues of production delay and quality.

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

Technical skills- it refers to the specialized knowledge and proficiency of a person in a skill.

Human Relations Skill - refers to how effective a person communicate with colleagues and co workers, maintaining, developing and handling relationships and problems with other people

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Conceptual Skills - refers to the formulation of new ideas and conceptualize about abstract and complex ideas. In this skill the person thinks creatively to solve problems.

Political skills - refers to the ability necessary in making deals and resolve conflicts between the stakeholders. It is also the ability to understand and influence others.

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

Technical skills- They should hire or assign people who are specialized in a skill. For example is the great turnover of staffs in knitting and finishing sections therefore they should gather the people in the overstaffed section and train them to do the other skills and continue with the efficient outcome.

Human Relations Skill - In every company or any relationship communication is very important to solve problems as well as develop a harmonious working environment and achieve goals. In the case of Carl, he finds it very hard to communicate with colleagues and staff therefore goals may not be achieved or misunderstanding might happen.

Conceptual Skills - it is important so that people can come up with other solutions to the problem. The company will be able to understand the whole company and its needs and be able to think of creative strategies to reach goals.

Political skills - with this skill, as a leader you can inspire and motivate others such as your employees and colleagues to work and achieve their common goals.

2.1 a) From any of the leadership theories you have studied n 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.

Autocratic leadership - in this type of leadership, one person has the power and control over his followers. The leader has the full power and the other members have no power to suggest or give ideas even though it will benefit the company.

In Ron (the finishing manager) is not allowing his staff to take the liberty of doing things without his knowledge. Therefore, the members of the finishing department do not have the freedom to do things their ways instead; follow all the rules and directions of Ron as the leader.

2.1 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.

Adam - Autocratic Leadership- in this type of leadership, one person has the power and control over his followers. The leader has the full power and the other members have no power to suggest or give ideas even though it will benefit the company.

Adam believes in the philosophy of "My way or no way." He does not allow or give freedom to his followers to do things their way; everything should be under his supervision. He also sole power for decision and would not take in inputs from the people under him.

James - Laissez-Faire Leadership - this type of leadership style is also known as "hands-off" style. The leader provides little supervision or none at all.

James, the Dyeing Manager, does not take much notice if workers do not do their jobs. He allows the people under to take account all their actions. He allows them to be responsible with their works as well as allow them to participate in everything.

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

Autocratic Style of leadership is not that appropriate, because the leaders have all the power over their workers. Therefore workers have no freedom to express their feeling and share ideas about the problems and suggest possible solutions. However, in a very big company and a thousand of workers employed there should also be one person who will control most of the job to control the production as well as the people in the company. There should be one person to have the authority to have a uniform set of rules and quick decision making. But the worst part is, people will feel demotivated and feel they are restricted of their freedom.

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Laissez- faire style of leadership is also appropriate because the leader gives the employees much freedom to the employees and allows them to work freely without any pressure and allow them to suggest new ideas. However, this kind of leadership will delay the time for decision making. Too much freedom to the workers will probably lessen the quality of their output.

2.2 a) Motivational theory: Briefly describe the theory; Using information form the case study explain to Mark how might use the theory to motivate Carl the General Manager Operations.

Motivation theory by George Elton Mayo and the Hawthorne Studies:

Elton Mayo believed that workers are not just concerned with money but could be better motivated by having their social needs met while at work. He introduced the Human Relation School of thought, which focused on managers taking more of an interest in the workers, treating them as people who have worthwhile opinions and realising that workers enjoy interacting together ( According to mayo motivation is possible if there is greater communication, good teamwork, showing interest in others, involving others in decision making, ensuring the well being of others, and ensuring that work is interesting and non repetitive.

Mark the new CEO has observed that Carl, the General Manager is firm, strict, and finds it hard to communicate at all levels. Mark should talk to Carl, one on one and tell him that communication skill is very important in every task; through communication he will be able to detect the problems, be aware of the workers' needs and complaints, get contributions as well as share creative ideas in solving the problem. In addition, being strict and does not mean you always get everything right, Carl should give freedom and importance to the workers. Being too strict and firm will make the work boring and unmotivating to the workers. He should always consider the workers skills and abilities as to their assigned works.

2.2 b) 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.

Recognition/ Attention - Appreciate the hard work or any achievement/ accomplishment of any worker. Compliment them with good words such as "good job!"

Provide a good environment - as much as possible lessen pressure in the environment. In their situation pressure demotivates the workers. He should involve the workers in meeting the goals and allow them to do things with minimal supervision but no full control.

Leadership roles - He should give his people the chance to be leaders even just a short time. This will be a form of reward to the person who did a good performance in his job.

Consult with decision making - it will not be easy for him to consult the workers because he believes in "my way or no way rule" however, the workers are part of the achievement of their goals, therefore involving them in decision making makes them feel important and useful more than just skilled workers. They might come up with good ideas that can help solve the problem.

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.

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

Manage time effectively - with delegation, jobs will be distributed equally to the skilled and non skilled workers, be able to finish on time (not delayed) so as to produce good quality products.

Opportunity to develop skills - When you delegate you try to look for a person who is worthy of the task delegated and informs and orients him to the role; in this case both the persons gain from it. They both gain experience the delegator will enhance skills of communication, managing and monitoring, while the person whom task was delegated will learn a lot from the new role.

Increased Motivation- When staff knows that there are going to be opportunities to take on new tasks, responsibilities and learn new things, they will be more motivated to do a good job.

2.3 b) 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 to Ron's job and case study.

Accountability - refers to the state of being answerable to any obligations or actions made.

As the finishing manager, Ron is responsible for his own actions. However, if delegate his tasks to others and whatever happens he will still be answerable for any wrong decision or actions made by the person whom action was entrusted.

Responsibility - refers to the commitment of a subordinate or a worker to perform something that he is bound to do as given by his superior. Ron is the type of leader who does who does not allow the staff to take the liberty of doing things without his knowledge, however Ron should always take think that these people are also responsible of doing their tasks. If he has delegated a task the people will perform well in the delegated task. He must allow them to take responsibility in performing their tasks; this will increase the trust of the superior to the employees, thus motivating them to work.

Authority - refers to the right or the power appointed to a manager or leader to achieve certain goals (especially organizational goals) and the person has the power to direct or give orders and should be followed. Ron has the power to decide on everything his purpose is to achieve the company's goals. This act puts more pressure on the people, thus demotivating them to perform well.

Empowerment - refers to giving the employees the power to decide and do their job. Through this the employees will feel that they are important and that their decisions and actions count. As a manager, he has the power to make the decision and direct the employees, however, in delegating, Ron has to allow people to do their job and allow them to be a part of the decision making process, through this they will feel valued, trusted and important.

Process employed/ Process of Delegation - refers to the steps or ways the person in authority should entrust one obligation or task to a right person. Ron has the power to delegate the tower. For delegation to be successful he must select which task to be delegated, select the right person to give the task: this person must have the skill to deal with such task, Explain the task to be given: role, procedures and goals must be clear, Constant communication is a need: feed backing and reporting is very important to know the progress or decline of the task, at the end, reward the person who did the task if he or she has completed it and punish him or her if it was unsuccessful.