Understanding the Purpose of a company

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As any other company the main purpose of the Goldenstate Manufacturers is to make profit and increase revenue by increasing productivity. The purpose of the company is to also provide employment and helping the economy. It also includes making excellent quality garments.

b) 3 Different Organisations

Charitable organisation: The purpose of charitable organisation is to help the poor, bring advancement in the education and bring advancement in religion. Moreover, the purpose also includes all the efforts which are beneficial to the community.

Club: The clubs are a group of people who meet regularly for a common purpose. For example; a garden club, where people come together regularly to stimulate the knowledge of gardening. The main purpose of this kind of organisation is to restore, improve and protect the environment through actions in the field with educational programmes as well.

Trade Union: The trade union organisation is basically bunch of people from a same field of work come together to achieve same goals. The purpose of a Trade Union organisation is to protect and fight for the rights of the worker and the members of the union. They perform other tasks like negotiating to the employer and the company where they work to get desired results for the workers.


Mark (CEO):


2.1(a)Adam - The Knitting Manager believes in the philosophy "My way or no way", it is an example of 'Autocratic Leadership Style'. This is considered a classical approach in which managers are powerful and they have all decision making authority.

James - The Dyeing Manager is currently using 'Laissez-Faire Leadership Style'. This is a style in which the employee has greatest freedom. This is evident as James doesn't seem to bother whether his staff does the job or not, he just wants to be liked by them and does not do anything to upset them.

(b) Adam leadership style would seem inappropriate for the following reasons:

Ø From staff s point of view this would be a negative approach of leadership, it would seem to them the manager is very punishing.

Ø Most likely the cause of high turnover of staffs in his department because staff most likely believe Adam is too strict.

Ø No feedback from staffs as Adam would not ever consult them or consider their input while using this leadership style.

James leadership style would seem inappropriate for the following reasons:

Ø Definitely the cause of overstaff in the department.

Ø James does not provide feedback to his staffs, because of this his staffs are unaware if they are doing a good job or not, which results in poor performance. This is probably the cause in delay of providing fabric to the stitching section.

Ø James is not leading a good example.

2.2(a) The motivational theory is used our the expectancy theory of motivation and Maslows theory. The expectancy theory of motivation explains why people choose to behave in a particular way that is because they are motivate to choose ones behavioural option over the other. It also helps us to know the way they make decision to gain their objective which they strive for. There are three elements of expectancy theory :-

(1) Expectancy-Efforts->Performance(E-P)

(2) Intrumentality: Performance-> Outcome (P->O)

(3) Valance-> V(R)

Expectancy-Probability(E-P) :- Expectancy is believed to be effort of an individual which results in the obtainment of the wanted required goals. It is based on a persons experience, beliefs and his perception towards the performance standard or goal. The expectancy is high when people believe that there should be control over the expected results.

Instrumentality- Probability (P→R) :- Instrument is rewarding person according to his performance. The reward can be a rise in wage, moving to hire level in the company, acknowledgement of work or a sense of achievement. This is possible only if the employees have faith in their managers. But lack of faith in the leadership. The reward system is to control to a certain extend.

Valance- V(R) :- It is the value based on the requirements, objectives, values and factors effecting motivation. Basically, it is the prioritization of reward by an individual e.g. -1 →0→ +1

-1= avoiding the outcome

0= indifferent to the outcome

+1=welcomes the outcome

In short, expectancy theory of motivation makes us know how a person decides between behavioural options. The option selected by people with greatest motivation force is (MF)

Motivational Force (MF) = Expectancy x Instrumentality x Valance

Ref: http://en.wikipedia.org/wiki/expentancy_theory

(b)To control staff turnover in his department, Adam needs to motivate his staff. He should set up a meeting and discuss the following motivational techniques with his staff:

Ø Clarify the purpose of the company. Explain the reasons for their existence e.g. reputation, competition and customer service.

Ø Allow input from staff, have them share their knowledge and contribute their ideas.

Ø Reward good performance based behaviour e.g. providing bonuses, increase in wages, free parking or even free vouchers to a movie.

Ø Provide growth opportunities for performance based staff.

Ø Provide training and product training, keep staff informed and updated at all times.

Ø Make their job more challenging, exciting and meaningful by giving diversity to their work and particular targets to achieve by the end of the week.

Ø Counsel the employees who go against company goals. If counselling doesn t work, remind them of company guidelines and policies that will be followed if they are disobedient.

To achieve the above Adam will have to change his leadership style from Autocratic of "My way or no way" to Participative of "Lets work together to solve this".

2.3(a) Ron's two benefits of delegation:-

(1) The benefits and steps of delegation are mentioned properly. He is requires to explain the desired goal to be achieve and get support by the employees that they will execute and carry out their duties according to their ability and explain that they will be checked and will be provided feedback. Ron is needed to have support of the employees to delegate efficiently and this can be done by making sure that he has faith in his employees and allow them independence. He must trained and help them if this is required. By giving duties and responsibilities to others he assigned different tasks within described goals and still keeps the responsibility for the final result. He should be ready to help give advice if asked for.

(2) A good execution of ideas, build up self-confidence in the workforce an d permits Ron time to give thought about other issue like allowing him to move on with work by taking more time to handle some crucial matters. Open communication is important step of delegating the task effectively.

(b) 2.3 Ron fiv e steps needed to be taken for effective delegation:

1) Define the task :- Ron should clarify both with himself and his team the company guidelines and procedures, purpose of the company, the current goal of optimizing performance in six months and the benefits that they can achieve through achieving the company goal such as growth opportunities, incentives, respect and reputation.

Remind team of the consequences if they breach company policy. He should assess the current situation:

These are the problems needed to be sorted and Ron can contribute his share of solving these by optimizing his team's performance through delegation. For starters Ron can change his autocratic leadership style to participative. By doing this his staff will find it easier to approach him and give their shared input, staff will become more co-operative and will start respecting Ron.

2) Describe the quality you expect

Ron should discuss with his team the past successful experiences the company has and how he expects his team to do better/equivalent. The team should understand their responsibilities. He should remind them he (Ron) has necessary experience and be willing to help his staff with anything if need be. Discuss with team current performance and how it's affecting the company and get their feedback.

E.g. the department is not being able to supply fabric to stitching department in a timely manner. This is a cause why company is getting complaints, because of delays final shipment of products are sent without the faults being rectified. Discuss with team how they can solve this problem: motivate staff, explain benefits, and ask if they need better equipment and materials, also consider the premises - how things are set-up and access to equipment and staff location. Make sure to get feedback from your team to ensure that they understand the quality expected.

3) Timelines / Deadlines

Ron and his team have six months to optimize performance in their department.

Prioritize work, motivate team and ensure them the task can be achieved. Confirm with them they understand the purpose of the task i.e. their excellence in performance will benefit to company such as reputation, less customer complaints, less turn-over of staff which will further result in benefits to the staff such as incentives and growth opportunities.

Agree with team the methods of checking and controlling work. Agree on weekly or fortnightly meetings with reports of current situations such as number of staff who left work and their reasons, complaints from other departments and any other issues that may have presented itself during the week. Agreeing upon a timetable for checking progress ensures your team they are aware of when their work will be reviewed. This will allow you to monitor your team's performance. It can also be a motivation for them as they know how much time they have available to organize their work.

4) Support and Communicate

Ensure that your team is well understood of the task at hand. Again explain to them future benefits. Always have an encouraging and positive attitude towards staff. Explain to staff how owning up to a mistake can be beneficial to them. E.g. one of your team members made a mistake while making the staff roster and timetable is already in progress. If he owns up and informs you then he's done a good thing because now you or your team won't have to search for the error. Give him a positive feedback, tell him he's done a good thing by informing you and correct the mistake by making an authorized adjustment. Ask him to be more careful next time. Also implement a procedure to control such mistakes from happening again e.g. have the roster approved by another member before it is implemented.

5) Feedback on Results

It is necessary to provide feedback to your team to let them know how well they are performing. You must review with your team how things are going according to the plan and deal with any problems they are facing. Provide feedback to your team for their success, reward good performance based behaviors by providing bonuses, increase in wages, free parking or a staff party. Work out solutions as to why you are not getting positive results: identify problems, check performances of staff, counsel them if need be and check if the equipment & materials being used are up to standard.

"You must absorb the consequences of failure and pass on credit for success.