The Establishment Of Goldenstate Manufactures Business Essay

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Purpose: the purpose of establishing Goldenstate Manufactures is to produce textile fabrics which can be consumed by the society and therefore generates the profit for the shareholders.

Reason: the reason to establishing Goldenstate Manufactures is that this establishment is the direct way and tool to fulfill the purpose of making profits.

B) Identify three other types of organizations and explain how their purposes ad reasons for establishment might differ from Goldenstate Manufactures

Goldenstate Manufacturers is of the type called Functional Organization. There is always a top manager or director in grouping and managing all the work in the organization.

Line and Staff Organization

In this type, the organisation is based on the line organization and the functional experts advice the line officers as to the functions of the enterprise. The line officers are the executives and the staff officers are their advisors..(Henry P. Knowles; Borje O. Saxberg 2008))

Committee Organization

Committee organization is widely used for the purpose of discharging advisory functions of the management. Committees are found in different levels of organization. A committee is a group of people who meet by plan to discuss or make a decision on a particular subject.(Laurence J. Peter and Raymond Hull 2001)

Divisional design structure organization

This structure is based on the product departmentalization approach, the organization is divided into separate divisions often based around a product or type of service. Process departmentalization, jobs are grouped together on the basis of workflow, allows for efficient flow of process activities.(Julie Morgenstern2004 )

From the comparison we can see that there are many different types of organization that suits different groups.


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


Advocates / promotes organization and stakeholder change related to organization mission

Final decision-making, all of the company's major operations of matters, including financial, operational direction, increase or decrease of business

Carl(Operational Manager )

Human resource management - the people employed by an organization either work directly to create a good or service or provide support to those who do. People and the way they are managed are a key resource of all organizations.

Asset management - an organization's buildings, facilities, equipment and stock are directly involved in or support the operations function.

Quality Control Manager

Describe the wants and needs of the clients to the sales and marketing department and identify ways that company can satisfy them.

Record and filter the errors in products and document the areas of improvements and the results of quality control

Research and development Manager

Identify the ways of developing new products and describe the possibilities of certain project.

Study of new product development, according to the requirements of customers in different areas, to come up with effective solutions.

(source: )


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

Not very effective. First of all, it is a very significant fact that Goldenstate Manufacturers is one of the top five manufacturing organization in Australia in 30 years, which laid a firm and strong fundament for its development. However, its production has dropped by 20% recently and there have been some problems within the management. What is worse, customer complaints have increased because of a delayed supply and poor quality of products.

All of the above situation are negative to the development of Goldenstate Manufacturers' profit earning purposes.

Therefore, A new CEO, Mark, has been assigned a goal of 'optimizing the production and improve the quality of the finished garments to the required level within six months. Has identified that the QC department is performing an excellent job with regards to identifying the quality issues during the production process.

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

1. Human skills: Human skills: it is ability to work with people with cooperative effort it is the creation of an environment in which people feel secure and free to express their opinions

2. Technical skills: technical skills : this refers to acquisition of knowledge and proficiencyin a certain specialized field how can we work with tools were I have to learn the superior and implement its usage (Gill,L & Poi, E 2007)

3. Management skill: it refers to the skills or experience that facilitate the management process such coordinating the resource, delegating the right power and maintaining good relationship between suppliers and clients

4. Conceptual and leadership skills: conceptual skill: it is the ability to see the big picture to recognize significant element in a situation to understand the relationships

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

Human skills: employees and other human resources are the main tool for a manager to get works done. And if he is good at managing people with his interpersonal skills, he'll get a competitive characteristic in doing a better management job. These skills will help managers in interacting and communicating with employees; thus motivating them to achieve the goal of the organization. In addition, the skills are vital in delegating the the tasks and power in a right track. (Morgen Witzel 2003)

2. Technical skills: as a manager in the department, he is the first one who knows the techniques in the field and be able to instruct the staff at the right time. Moreover, knowing the technical skills can facilitate the manager to supervise the performance. For instance, in Gold Manufacturers, the manager of production department should be familiar with the producing process of the textile products.(Lewis R. Ireland 2006)

3. Management skill:In a business, successful and effective management skills by managers help in solving the problems. Therefore, a manager should be a quick thinker with logical mind so that he can take the appropriate decision which is beneficial for whole organization. Such decisions made out of calm mind and based on fairness would be competitive for an organization.(Martin Stevens 2002 )

4. Conceptual and leadership skills: Manager is a leader in a group of people, therefore, leadership skills are important. It includes: co-operation skills, self-confident and motivation skills etc.manager can use these skills to effectively lead his team.

Question 2


A). Identify and briefly explain which theory Ron, the Finishing Manager most closely aligns with, giving evidence from the case study to support your comments.

Ron, the Finishing Manager aligns with one of the leadership theories---"Behavioral theories" which examines the behavior of the leaders at work- how they behave with employees and what perspective they have towards work assigned to them. This theory assumes that leaders can be made through teaching, learning and experience(in the case Ron follows the same approach of Adam, my way or no way and believes in not allowing his staff to take the liberty of doing things without his knowledge.)

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: his leadership style is Autocratic leadership style which means that manager gives orders to his subordinates and expects them to follow those orders without any questions and ideas.((Chemers M. 2009)

This shows in the way he manages his staff. He put complete control over his employees. His approach of "My way or no way" indicates that he has centralized all the power in his hands and does not like to delegate the authority to other teammates.

James:the Dyeing Manager used "Laissez- Faire leadership style" which refers to a leadership style that Manager leaves his total work on his subordinates and does not exert sufficient control. (Smith, J.A., & Foti, R.J. 2012)

In the case, James acts as a passive leader, believing that his employees are working in their best shot. He does not take much attention in how the staff performs. He is afraid of making the team angry and turn against him. He neither supervise his team nor solves their problem when there is a problem.

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

The Autocratic leadership style by Adam in his team is not appropriate. And this can be cause of the current failure in the company

Reason1:It might lead to quick decision making but such strong attitude from Adam had led to frustration among the employees as the production pressure has been over them for long.

Reason 2: The staffs know creative ideas would not get acceptance from manager at any point. And their confidence level falls down and they may leave the organization.

Lazzir Fair leadership style of James is also not appropriate.

Reason1: He put all the work on staff and gives no guidance and supervision to them which may lead to uncontrolled situation and the production goals may not be that the department is overstaffed and human power is working without any proper directions.

Reason 2 : the Self- direction and self- control which are resulted from James' Lazzir Fair may not produce the right dying of the cloth which finally have great impacts the overall production in the organization.


Select one motivation theory:

Briefly describe the theory

The theory selected is Goal setting theory. This theory refers to an effective tool for making progress by ensuring that participants in a group with a common goal are clearly aware of what is expected from them. On a personal level, setting goals helps people work towards their own objectives-most commonly with financial or career-based goals. (Swezey, Robert W.; Meltzer, Zach L.; Salas, Jimmy M. 2010)

The theory basically describe a process which can motivate the person by having a SMART way of achieving their goal, and the results will be the motivation for them. In the first step of this process, the Goals which are specific and difficult are accepted and set; in the next step, the person who has the goals will have direct attention and is encouraged to be persistent in fulfilling the goal; then, the performance is there to be accessed which can determine whether the goals are achieved. The feedback is therefore accessed and if the goals are not achieved, the new direction and new strategies can be planed in the second stage and the process will go through again.

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

In the case study, there are several problems that affects the operation of the company. Mark the CEO can use this theory to motivate Carl by doing the following factors:

Setting a clear aim of the organization from last 3 months. The clear goal brings up the strategy to handle the operation.Specific goals can be made for Carl so that he is aware about what he has to reach and where. This would be helpful for him to remain focused on his targets.

Giving the right direction to Carl in solving the current problems such as production has not increased as expectations and customer complaints have increased. This can be the first steps to develop the company and can gain effects in a short term.

CEO should give higher reward and reorganization to carl if he has done a good job in fixing the company problems which will push Carl to become more motivated.

Review reports must be done and submitted by Carl as the feedback to Mark which will help Mark to evaluate Carl's performance and provide changes as needed.

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

What he must do

How he must do it

Recognition and Attention. When the employees accomplish something and they have achieved something. The boss's recognition is appreciation for that achievement. If Adam can give more recognition and compliment to his staff, their staff will be feeling better. And this also means a acceptance of a free environment for staff to show their abilities.

Promotion both in career and financial reward. This is the most common way of retain employees. Promotion in the position of an employee and his payment would act as a stimulator in their productivity. Promotional opportunities may be offered by Adam to good employees so that they feel satisfied and a sense of self-actualization and esteem can be raised and they don't make any decision to leave the organization.

Offer a nice clean working environment. Make sure that the environment they are working in is conducive to good performance. Everyone likes to work somewhere nice and clean. Therefore, if Adam can change the work environment for the worker, it can be another factor that retain the staff.

Better communication. Managers must always sincerely communicate with their employees as it provide a trust factor between them. While communicating with them, manager can remind them about organization goals, present and future vision of the organization. As the manager communicate with the staff, many barriers can be overcome and a better relationship will be developed.


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

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

There are 3 benefits from a effective delegation

First, delegation focuses attention and increases productivity. By assigning lower priority tasks that are typically easier to do than higher priority tasks, allows delegators to better focus on more important and more difficult assignments. It must be recognized that training and monitoring is very important when delegating authorities for new missions, because this leads to second benefit.

In the case, if Adam and Ron could delegate more power to the staff, then the decision making process can be more effective and the management of the certain department can be easier.

Second, Eventually, before these newly delegated tasks will not require any training or supervision, thus increasing the productivity of the delegator and the entire team, people with assigned tasks will learn new and valuable skills when working on delegated tasks.

In the case, the staff in each department are delegated with insufficient tasks, and therefore, some department are over-loaded and not well-organized. It can partially because of the unfamiliarness from the staff.

Third, delegation helps manage time effectively. For instance, when less skilled employees work on less skilled tasks, this allows skilled people to concentrate working on more skilled tasks. As a result, delegation helps manage the limited time of more skilled employees.

In the case study, if the top management can delegate their power well, the conflicts and negative coordination in each department can be solved which enables the top management to deal with more important issues rather than this.

B) explain to Ron the five 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.

There are 5 steps in effective delegation:

Task Selection: the manager should decide first what are the tasks he wants to delegate He can delegate the authority to his subordinates relating to supply gaining , stock checking with dyeing department etc. Ron can see how much of delegation is to be passed upon to Deputy General Manager so that the work does not get hindered in any case. Make sure accountability part is also mentioned to the person.

Assigning and explaining Task to right people: this step is deciding who should be given the responsibility? Ron can decide about the person on various parameters such as trust, loyalty, ability and performance. He can choose deputy general manager or some other supervisor within team who would take care of all the aspects concerned with employees.

Evaluate the performance:it is important to evaluate the task process. It can help to make sure the task is under right action and can be fix at a early stage if anything go wrong. Ron can ask the staff to write and report in a certain period of time for evaluation.

review feedback: Once the work has been assigned and the responsibility is also attached; ensure whether the work is being done correctly or not through regular reporting and inspection. Ron can ask for weekly reports from the person authorized and seek for suggestions as well. Also, Ron should provide feedback for further improvements.

Task complete or restart: Once all above steps are done, Ron can further look into if some more changes or improvements can be done in the delegation process. He can perform this function by having short discussions with the subordinate heads, welcoming their ideas as well. At last, if it seems to him that everything is going in smooth order and deriving out positive results then he can opt for Manage by exception wherein he needs to intervene only when an exception occurs, otherwise he can assume job is on track.(Giandomenico Majone 2008)