Leadership Theory and Research

This assignment delves into current leadership theory and research. It examines theoretical advancements, changing perspectives, and the evolving nature of leadership in the 21st century. It references prominent scholars like Lord, Donaldson, Gladwin, and Northouse, emphasizing network analysis, motivational theories, and the impact on organizational management.

Running head: INTRODUCTION TO MANAGEMENT
Introduction to management
Name of the University
Name of the student
Term
Unit coordinator
Authors note
Management report for
Rock Paper Scissors
By
Employer’s name
Name
Title/position
Date

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INTRODUCTION TO MANAGEMENT
Executive summary:
The report is prepared to analyze the various management and contemporary challenges faced by
hair dressing salon provide din the case study. Case is about Rock Paper Scissors that is facing many
issues and have never been able to operate profitably. Issues faced by salon have been addressed in
depth by recommending adoption of various management and leadership theories. Planning,
controlling and leading the salon for achieving profitable and successful growth in future is done by
implementing approach that would incorporate competing values of salon. Moreover, report has
considered some of the facts of business environment of Australia and changing tastes and
preferences of customers for development of required business skills suiting to their needs.

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INTRODUCTION TO MANAGEMENT
Table of Contents
1.0 Introduction:....................................................................................................................................5
1.1 Background:.....................................................................................................................................5
1.2 Recommendation:...........................................................................................................................6
2.0 Management concepts, principles and theories:.............................................................................6
Mission and vision statement:...............................................................................................................6
Recommendations:................................................................................................................................6
Strategy, goals and objectives:..............................................................................................................7
Recommendations:................................................................................................................................7
Strategic and Financial planning:...........................................................................................................7
Recommendations:................................................................................................................................8
Leadership:............................................................................................................................................8
Recommendation:.................................................................................................................................9
Motivation:............................................................................................................................................9
Recommendations:................................................................................................................................9
Performance management:.................................................................................................................10
Recommendation:...............................................................................................................................10
Innovation:..........................................................................................................................................11
Recommendation:...............................................................................................................................11
3.0 Managerial environment in which hairdressing salon operates:...................................................11
4.0 External environmental factors affecting hairdressing salon:........................................................12
5.0 Priorities and process of managers of Rock Paper and Scissors:....................................................12
6.0 Contemporary management challenges presented by issues faced by Rock Paper Scissors:........13
7.0 Conclusion:....................................................................................................................................14
8.0 Recommendations:........................................................................................................................14
References list:....................................................................................................................................15

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INTRODUCTION TO MANAGEMENT
1.0 Introduction:
1.1 Background:
Rock Paper Scissors is a salon operating on small scale in hair dressing industry in Australia.
Establishment of salon was done after its owner won a major Australian national hair dressing
competition. Report is prepared to address several contemporary challenges faced by salon in the
Australian business environment. Rock Paper Scissors does not have any established mission and
vision statements and does not have any defined strategic goals and objectives. Management of
organization lacks in each and every aspect as it does not have any properly planned financial and
strategic planning (Dean & Bowen, 2016). Since, the year of its formation, salon has never been
operating profitably and in light of ongoing issues profit generation seems impossible.
Present study deals with analysis and evaluation of strength of salon by forming and
executing strategic in appropriate manner to achieve desirable targets. Furthermore, it has been
viewed that there are no proper documentation of policies and does not have any developed
performance indicators for measuring financial performance and customer satisfaction. Employees
are demotivated to the extent that they are not punctual and leading to theft of salon properties
(Petronio, 2013). All these have a devastating impact on the overall performance of salon and its
sustainability position.
1.2 Recommendation:
 Implementation of proper management tool for improving the position of salon in
competitive environment of Australia hairdressing industry.
 Development of key performance indicators for assessing financial performance and
performance of employees.
 Formation of coherent and cohesive mission statements and development of
corporate goals and objectives.
 Identification of core competencies and working on it for gaining competitor
advantages over other salon operating in same area.
 Employment of management tools and principles of leadership and motivational
theories for creating a environment that will generate organizational success.

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INTRODUCTION TO MANAGEMENT
2.0 Management concepts, principles and theories:
Mission and vision statement:
Mission and vision statements are regarded s an extremely important part of business
planning of enterprise such as salon. It serves as a platform for unifying all the stakeholders such as
employees, customers, government as they work towards attainment of organizational goals.
Mission statements should incorporate defining of core competencies that would set a particular
organization apart from its competitors. Such statements should ne motivating and inspiring and all
stakeholders are benefitted from uplifting mission statements. It is required by any business to
formulate its mission statement first as stayed by rational goal model that would ultimately lead to
establishment of strategies, objectives and goals (Van Wart, 2013).
Recommendations:
Rock Paper Scissors is required to formulate a mission statement that should incorporate the
following elements:
 Mission statement of Rock Paper Scissors should be concise, focused and clear and the
statement can be crafted depending upon the budget of salon.
 Mission statement should be displayed proudly and certain materials should also display
such statement.
 Providing quality service to its customers
 Incorporating and adhering to ethical requirements
 Priorities of management and organization as a whole
Strategy, goals and objectives:
An organization is likely to experience higher growth and profitability if it has well defined
strategy, objectives and goals. Setting clear objectives and goals will assist the management in
monitoring the performance of enterprise such as hair dressing salon. There are few organizational
goals that is served by the formulation of strategies and goals such as it facilitates planning, provides
direction and guidance, inspiring and motivate employees and staffs and assisting organization in
controlling and evaluating performance. Employees can seek strategies and goals for guidance when
they are to deal with difficult circumstances (Antonaki & House, 2013). Goal setting should be done
by considering all the facets of salon as there can be inappropriate gaol formation if it is done
promptly.
Recommendations:
 Carrying out assessment of salon opportunities and weakness for strategies formation
 Developing action plan and setting out measurement basis
 Developing ways to overcome some of operational issues faced by salon
 Gaining perspective of target market about what they seek from hair dressing salon
and according forming strategies
 Evaluation of financial and operational performance by setting benchmark

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INTRODUCTION TO MANAGEMENT
Strategic and Financial planning:
Rock Paper does not have any strategic and financial plan that is one of the reasons why
salon is lacking behind in terms of profitability and performance. Prolonged sustainability can be
experienced by any business if it has the capability of overcoming external and internal challenges
posed by competing environment. The back bone of any business is its financial planning (Meredith,
2013). Salon discussed in the case study does not have any such plan and it has never operated
profitably since its establishment.
Recommendations:
Rock Paper is required to have financial and strategic plan in place to deal with
current issues they are facing:
 Development of financial indicators for measuring financial performance and
reviewing financial report in annual basis as well
 Salon has immense potential for growth if they have proper plans and sufficient
amount of funds should be available to meet some unanticipated changes.
 A proper and understanding in the field of business should be there as having a professional
qualified experts and staffs would add great advantage to salon.
 Performance indicators and adoption of some techniques for data collection on number of
customer visits and serviced by staffs to monitor operations.
Innovation:
Innovation plays a vital role in shaping the future of salon and they should have the
commitment of responsible and sustainable innovation. Innovation will help salon to improve their
existing operations by developing, testing, prioritising and modifying. However, it is sometimes
difficult for organization to get involved and formulate innovative strategy. In the area of intense
competition in Australian business environment, shortened product life cycle and speedy changes in
trend and tastes of customers, innovation is regarded as critical factor (Hill et al., 2014).
Recommendation:
 Rock Paper should make marketing a central part of the business planning as they have a
very significant role to play in creating sustainable business.
 Rather than developing an image, salon should focus on cultivating an ethos that will
ultimately improve image.
 Salon is required to be savoir-faire about their products and services prices. Services
provided by professionals should be kept on higher prices and this high price can be offset
by offering discount on some promotional programs.
 Creation of an efficient process by and encouraging and creating a collaborative and
participative environment.
Leadership:
Leadership is essential tool of management that is necessity for managing any organization.
Team building is a key management approach for managing salon. For handling growth in cultural
diversities of employees and customers and changing trend in Australian society is done by
inculcating appropriate leadership skills and employing appropriate leadership theories. A leaders
leading any salon is required to have some traits such as confidence, self promotion, resilience,
delegation, motivation, independence, thirst for knowledge and passionate. Manage are required to

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INTRODUCTION TO MANAGEMENT
employ a particular leadership style depending upon organizational structure and current scenario
for dealing with emerging situations (Pfeffer, 2014).
A leadership style theory incorporates two basic leadership style that can be employed by
leaders or mangers such as democratic leadership style and autocratic leadership style. Democratic
leaders encourage staffs to participate in decision making, work with employees and do not carry
out supervisions. Autocratic leaders closely supervise employees and direct them and take decision
themselves. Fiedler’s contingency leadership theory makes the assumption that leadership styles are
constant and it considers the situation for employing leadership style and maximizing performance.
It determines whether the leadership style is relationship oriented or task oriented. Another model
is path gaol leadership theory that helps in identification of most appropriate style of leadership
suiting specific circumstances for maximization of both job satisfaction and performance (Northouse,
2015). In accordance with this model, responsibility of leaders is to motivate employees for attaining
organizational and personal goals. Such leaders take into account environmental and situational
factors.
Recommendation:
 Hairdressers at Rock Paper should be encouraged to pursue hair dressing carrier rather than
performing their task as daily routine job.
 Delegation of weakest leadership skills by salon mangers for identifying the existing gap in
there.
 Rock Paper scissors should employ path goal leadership style that is one of the most suitable
leadership models to be incorporated in the management of salon given the current
scenario.
 Consultative decision making, participation and encouraging and collaborative participation,
sharing responsibility, task delegation and reflective listening should be adopted by manners
at salon.
Motivation:
Motivation is crucially important for getting task done by employees in efficient and
effective manner. Rock Paper employees are not motivated for performing their obligations and
damaging and causing theft to salon’s property. Motivation is required for increasing job satisfaction
and enabling a sense of achievement. There are three motivational factors that drive the
performance of employees according to McCelland’s, theory of needs that involves affiliation,
achievement and influence (Gladwin et al., 2015). As per Maslow’s hierarchy of need theory, there
are five motivational factors that involve physiological needs, self actualization needs, ego and self
esteem, social needs and safety needs.
Recommendations:
 Salon is required to develop an environment that encourages and motivated employees to
work.
 Rock Paper should make the employment of Maslow’s hierarchy that will drive the
employee’s performance if such needs are addressed.
 For setting challenge and specifying goal and objectives, salon should incorporate goal
setting theory.

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Performance management:
Management of performance of organization and employees is very essential for its
sustainability. Rock Paper does not have any want to measure employee performance such as there
is no track and records of number of clients served by them on each particular day. There are not
any developed performance indicators for measuring financial performance (Ramos et al., 2014).
Implementation the performance appraisal system would help in rewarding employees for the
efforts undertaken by them.
Recommendation:
 Individual hairdressers should be assessed by reviewing their performance and rewarding
them for their efforts.
 Execution of performance planning that leads to identification of key responsibilities of
employees.
3.0 Managerial environment in which hairdressing salon operates:
Skills development for managing resources and planning are required to be done by
managers at salon. Strengthening of retention and recruitment strategies is the priority of managers
for handling the current scenario. At the very initial stage of business planning and enabling hair
dressing salon to survive, management training is considered to be of utmost importance.
4.0 Priorities and process of managers of Rock Paper and Scissors:
In the era of technological advancements, managers at Rock Paper are required to have
greater knowledge and understanding of technologies. There is wide variety of small roles that
needs to be upgraded for skills enhancements that requires possession of such skills. For
management of Rock Paper, managers are required to have greater knowledge of financial,
operational, marketing and human resource management. Human resource management skills are
needed for addressing diversified needs and boosting employees’ morale towards attaining
organizational goals (Donaldson et al., 2014).
5.0 External environmental factors affecting hairdressing salon:
Some of the external environmental factors are listed below:
Government regulations- Hair dressing salon are required to adhere with regulations of
hair dressing establishments. They are required to comply with the requirements of code of practice
for skin penetration procedures. Any change in such regulations requirement would impact salon
operations (Donaldson, 2014).
Technological development- Information and communication technology influences the
rate of performance of salon. It is required by salon to adjust in current competing environment by
adopting the technological software’s that would ease the task of employees and assist them in
providing services efficiently.
Trends and fashion- Operations of hair dressing salon is considerably impacted by the
rapid changes in trend, tastes and preferences of customers.

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INTRODUCTION TO MANAGEMENT
Population- The demand of hair dressing and beauty services in Australia has been
increasing significantly with the increase in population that has the consequence of increasing
discretionary income.
6.0 Conclusion:
From the analysis of case study on Rock Paper Scissors, it has been ascertained that there
are many contemporary challenges that are faced by salon in present situation. Issues are mainly
related with financial and strategic planning that had adversely affected the overall performance of
organization. Salon is required to develop internally on several fronts such as management of its
employees, customers and other stakeholders for sustaining in this competitive environment.
Addressing such challenges and issues faced by Rock paper would help them in operating profitably.
7.0 Recommendations:
Report has displayed recommendations separately for each of issues presented and
discussed above. However, all the recommendations van be wrapped up by saying that Rock Paper
should employ relevant management theories and tools for dealing with present challenges they are
facing. Issues faced by organization in retention of customers and for handling demotivated
employees are dealt by employing the above recommended leadership and motivational theories.
Path goal theory of leadership is considered to be the suitable strategies for generating employee
satisfaction and motivating them leading to improved performance. Employment of management
theories would assist managers in developing appropriate managing skills for managing the salon in
the competitive environment.

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