Improving Employee Performance and Customer Satisfaction

The assignment focuses on providing solutions to improve employee performance and consequently, customer satisfaction. It suggests implementing a reward system to motivate employees, setting performance standards for evaluation, and emphasizing the link between employee performance, customer service, and customer loyalty.

MANAGEMENT REPORT

EXECUTIVE SUMMARY
It was found that Rock paper Scissors Salon is struggling with its working operations.
Certain problems were found in its functions of the salon due to which is it becoming hard for
the business to earn profits. It was found that no financial reporting was being done by salon on a
monthly basis. Absence of accounting books was making it hard to asses the financial condition
of hairdressing salon. Moreover, issues in the attitude of workers was identified. The workers are
indisciplined and are found to be unpunctual which distorts the shift schedule of the salon. Also,
certain recommendation regarding the problems faced by the salon are suggested in the
assignment.

Table of Contents
INTRODUCTION...........................................................................................................................1
2.0 Concepts, theories and principles of management.....................................................................1
3.0 Challenges faced by the Rock Paper and Scissors: ...................................................................3
4.0 Strategy to resolve the issues: ...................................................................................................4
4.1 Vision statement of Rock Paper Scissors salon................................................................4
4.2 mission statement of Rock paper Scissors Salon.............................................................4
4.3 Development of structure and rules..................................................................................5
5.0 Factors that impact the hairdressing salon.................................................................................5
CONCLUSION................................................................................................................................6
RECOMMENDATION...................................................................................................................6
REFERENCES ...............................................................................................................................8

INTRODUCTION
Management is the most significant factor for the successful running of a business. The
report will focus on Rock paper Scissors Salon. This report will discuss various principles,
theories and models of management that can be used by the hairdressing salon. It will discuss the
significance of the theories and principles of management (McNamara, 2015.). Moreover, it will
identify the various challenges faced by the business and suggest the actions which can be
followed to overcome the challenges. The report will also suggest recommendation which can be
used by the business to gain success.
Problem statement: The prime problem faced by Rock paper Scissors Salon is the absence of a
strategic plan. The lack of a strategic plan creates a higher degree of problem for the business as
absence of direction causes problem in working.
Purpose of report: 'The purpose of the assignment is to identify the problems faced by Rock
paper Scissors Salon and suggest a set of recommendation on the basis of strategic and
comprehensive thinking.'
Scope of work: 'This work on the report will benefit the working of Rock paper Scissors Salon.
This will help the management of business to develop a mission, vision and a strategic plan for
the business which will give it an aim and direction to work in.'
2.0 Concepts, theories and principles of management
Fayol's principle of management: The principles of management are considered as essential,
significant elements that are responsible for successful functioning of management. Prof. Henri
Fayol identified 14 important principles of management. He was of the opinion that these
principles 14 factors affect the working the mostly and are highly crucial in operation of
management. He established that a business entity must divide the work within the workforce.
Work must be divided into small tasks to be completed by members of the team. Owner of the
rock paper scissors must divide the work between the employees in a scheduled way. Moreover,
in an organisation or business the superior or owner must have authority on the subordinates and
they are responsible for the operations of the business. Owner of saloon should have an authority
over the employees and he must allocate jobs to them which will help him to create discipline.
The manager is responsible to ensure and develop morale among the employees. The owner must
1

encourage the employee and motivate them, this will help the employees to work harder, the
owner needs to initiate a better level of understanding in the salon.
Contingency theory: This theory of management is an important theory which suggests that the
managers must take decision within an organisation according to the current situation faced by
him rather than sticking to one kind of approach (Freeman, 2010). The manager of business
must take action on the basis of aspects which are related to current scenario. Owner of the salon
must use a leadership approach which democratic and work on building employees relations to
inculcate responsibility among the employees,
System theory: This theory studies that the ways in which the workers of an organisation are
effected by different systems and the ways in which systems are affected by workers. A system
is considered to be made of variety of parts that work together in the attainment of a goal.
System theory can be defined as wide approach that allows managers to examine patterns and
events of the premises. The system theory enables the mangers to coordinate a program which
helps them to achieve the goal of mission of the business.
Chaos theory: This theory of management suggests that the changes are constant. There are
certain events and situations which cannot be controlled by the managers. Chaos theory
considers the change to be inevitable and cannot be controlled by the managers. As the business
grows in size the factor of chaos increases and the risk of change also enhances (Easterby-Smith,
Thorpe, and Jackson, 2012). To avoid the phenomenon the company uses the technique of
employing more staff to facilitate the working which raises a demand for better structure. The
owner of rock paper scissor salon can use the theory to deal with the changes in the environment.
This will help the owner to deal with complexities in the business operations. With the growth of
business, the theory allows the owner to establish and develop a strong structure for the business
to support its activities.
Fayol's model: It is an effective model developed by Fayol which suggests the manager the steps
to coordinate the task of the business. The model allows the manager to operate the business in
an effect way and lead it to success.
 Planning: This step of the model suggest the manager to develop a plan for the business.
A plan is made up of various elements which provide a guideline to be followed by the
manager to attain success. Planning is strategic tool which incorporates forecasting of the
future situations and making of an action plan according to the situations that may rise in
2

the future. The owner salon can use this tool to schedule future actions which can be
taken in order to ensure the successful running of business.
 Organising: After the making of action, the next step is to organise the resources which
will be needed by the managers to complete the action plan (Bratton, and Gold, 2012).
The managers make efforts in organising the resources which will be needed for the
implementation of the made plan. The owner of the salon needs to organise and ensure
the availability of finance and workforce for the implementation of any plan.
 Commanding: The managers are the one that command the team to work. This allows the
team to complete the work on time. The manager is the commander of the work force and
is accounted to lead the team to success.
 Coordinate: This is the implementation of plan. The manager is responsible to coordinate
and allocate tasks to the workforce. This work is given by the manager in accordance
with the attributes of the staff. The manager must be aware of the abilities of the
employees and they must be allotted work in accordance with their attributes.
 Control: After that the work is allocated to the employees the manager should monitor
and control the working of the staff. This can be achieved by reviewing their performance
and providing feedback on the performance given by the employees (Smit, Cronje,
Brevis, and Vrba, 2011). This will help the workers to achieve better performance.
Fatima and Fadi, the owners of rock paper scissor salon can make use of this model to implement
a strategic plan. This will help them to grow their business and enhance their performance. The
can set an attainable goal of growing their business by 2% in the next year and make a strategic
plan to attain that goal.
The salon is lead and controlled by the Fadi and Fatima, they opened the salon last year and have
been running it since then. The hairdressing salon follows a timing schedule for opening and
closing, from Monday to Thursday the salon is open from 9 to 5 and Fridays they extend their
service hours from 9 to 9. And on weekends the Salon is open from 9 to 2. No proper planning
was done by them to open the salon, it was established the service shop without any strategic
planning.
3.0 Challenges faced by the Rock Paper and Scissors:
 Lack of planning: The salon lacks a crucial part of running a business. The Duo has no
strategic planning or objectives to support the operations of business. The business lacks
3

mission and vision statements and no specific goals have been targeted. Business also
misses the establishment of objectives. Lacking of these significant elements creates a
serious problem for the business as the entity has no direction to go into which creates
lack of enthusiasm among the owners (Rudani, 2013).
 Innovation: A business needs innovation to succeed in the prevailing market. Without
innovation the business will not be able to gain customers. Salon lacks innovative
approach which is keeping it behind from achieving success.
 Absence of books of accounting: No financial reporting has been done by salon on a
monthly basis. Absence of accounting books makes hard to asses the financial condition
of hairdressing salon. Only financial reporting done by the owners is recording of
receipts, credit card and bank statements annually, through which the accountant prepares
the profit and loss statement and balance sheet of the entity. This creates severe problem
for the business as without the assessment of the financial books, the owners are unaware
of the profitability of business. Which leaves them ignorant of the fact that business may
be in loss.
 The staff is highly demotivated and undisciplined: The employees are not willing to work
and do not show any responsibility towards their job. They are habitual of coming late to
work which creates problem in the scheduling of shifts. Moreover, they were noted to be
giving free services to their which is creating loss for the business (Williams, 2013).
 Customer satisfaction: Rock Paper Scissors lack any way of identifying customer
satisfaction. Which creates a loop in the system as room for improvement is never found.
Moreover, there is no adequate system to find out if the clients return after their first
service or not. No data is stored about the client's visitation to track brand loyalty and
client base (Rice, A.L. ed., 2013.).
 Performance measure: The owners have not set any specific standards for the services
provided by the staff. This creates a problem as the performance of the employees can
judged and also no limit has been set on the number of clients per shift for the employees.
4.0 Strategy to resolve the issues:
4.1 Vision statement of Rock Paper Scissors salon
A vision is highly important for any business as it provides the direction to the business
and helps it grows on a specific path. Rock Paper Scissors aims to start a chain of hairdressing
4

salons in the area. The vision is attainable by the business as the business seeks high level of
opportunity (Kobersy, and Et.al. 2015).
4.2 mission statement of Rock paper Scissors Salon
Mission statement of the business is to achieve its vision by growing rapidly. This can be
achieved by the business by reaching to its goals and objectives in the decided time.
 Goal of business: The salon's goal must be to provide high quality services at reasonable
prices to its clients.
 Objectives of company: The owners must focus on improving their customer base by
development of price effective strategy. Another objective of the company must be to
grow by 2% in the next year.
4.3 Development of structure and rules
The owners need to develop new set of rules for the employees to attain discipline in the
operations of business.
 Policy against free services to friends: The management needs to regulate a strict policy
against the free services provided to friends. The employees were seen to be giving free
haircuts to their friends on the expenses of salon which was creating loss to the business,
this must be restricted by the owners (Tzamaloukas and Et.al. 2013.).
 Schedule for employees: The management needs to control the schedule of employees,
they must monitor and control the staff and mark them responsible for late arrivals. A
strict approach must be used by owners to control the staff from coming late to work.
 The owners also needs to specify clear rules for number of clients to be taken by the
employees during one shift of work, this will discipline the employees and provide them
with target to be achieved in the given period of time.
 Standards regarding the performance must be set by the management and communicated
to the staff. This will enable the management to monitor and judge the performance of the
employees.
5.0 Factors that impact the hairdressing salon
The business is highly effected by the factors of macro environment. PESTEL analysis is
used to asses the impact of external environment on Rock paper Scissors Salon.
 Political factors: The salon is highly influenced by the government of Australia. The rules
and regulations changed by the government regarding the practices impact the working of
5

company. The change in tax rates and other policies effect the working of salon as when
tax rates are people find the prices high Wisner, Tan and Leong,2014).
 Economic factors: The economic condition of the country moderately influence the sale
of services offered by the salon. When the economic conditions are weak people still are
willing to take haircuts, though it effects the salon as some people may not be able to
afford the services and decide to switch the salon.
 Social factors: There are frequent changes in the trend of society regarding the hairstyles
and other services. Business needs to be aware of the changes in trend and change
accordingly or this will affect the customer base of the business.
 Technological factors: Rock Paper Scissors salon is highly affected by technological
factors as salon is dependent on technology and any change in technology demands
advancement in technology of the salon (Akkerman, Farahani and Grunow, 2010.).
 Ecological: Salons are under instant pressure from the government and other pressure
groups to do business in a sustainable way. Rock paper Scissors Salon uses of products
which do not affect the environment and use less water and electricity.
 Legal factors: Change in laws by the government instantly effects the working of salon.
The salon is highly effected by the laws of Australia. The use of product which do not
harm the skin of the people, Rock paper Scissors Salon uses products which are natural
and does not harm the skin of user.
CONCLUSION
The report concludes that Rock paper Scissors Salon is facing difficulty in their business
operations. Salon is facing several challenges in the operations which is creating hindrance in the
growth of the company. Absence of financial recording is creating critical damage to the
business as owners are not able to asses the financial condition. This creates a serious issue as
they are not aware of the profitability and financial status of business which leads to non
awareness of the situation. The employees are also not willing to work as they are demotivated
which depletes the performance of the salon. It was also concluded that salon does not have a
proper strategic plan, absence of mission and vision lead to lack in direction of the business
which loses path for the business and the employees feel demotivated. Fayol's principle and
model was included in this report and it was concluded that with the use of the model and
principles the business can improve its performance.
6

RECOMMENDATION
 The owners need to start recording financial transactions on monthly basis, this will help
them find their position at the end of the year. Also, they will be able to prepare for the
future with the help of financial statements.
 The management needs to start making plans for the future, this will help them to grow
with a strategic approach.
 The management should set attainable and measurable objectives for the business to
achieve. This will help the management to measure their performance and rectify the
errors which are being made by them.
 They must develop reward system for the employees, this will motivate them to work
harder which will improve their performance and the clients will be satisfied by the
services which will promote loyalty. This will also increase the customer base of the
company.
 They must set standards for the performance of the employees which will help them to
judge the performance, and the management can find which employees are not working
according to the standards.
7

REFERENCES
Books and journals
Akkerman, R., Farahani, P. & Grunow, M., (2010). Quality, safety and sustainability in food
distribution: a review of quantitative operations management approaches and
challenges. Or Spectrum. 32(4). pp.863-904.
Bratton, J. & Gold, J., (2012). Human resource management: theory and practice. Palgrave
Macmillan.
Easterby-Smith, M., Thorpe, R. & Jackson, P.R., (2012). Management research. Sage.
Freeman, R.E., (2010). Strategic management: A stakeholder approach. Cambridge university
press.
Giacalone, R.A. & Rosenfeld, P. eds., (2013). Impression management in the organization.
Psychology Press.
Jones, G., & George, J. (2015). Contemporary management. McGraw-Hill Higher Education.
Kerzner, H. (2013). Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Kobersy, & Et.al. (2015). The system of the methodological principles of management of
enterprise development. Mediterranean Journal of Social Sciences, 6(3 S4), 25.
McNamara, C., (2015). Historical and contemporary theories of management. Retrieved. 4(20).
p.2015.
Rice, A.L. ed.,(2013). The enterprise and its environment: A system theory of management
organization (Vol. 10). Routledge.
Rudani, R.B., (2013). Principles of management. Tata McGraw-Hill Education.
Smit, P.J., Cronje, G.D.J., Brevis, T. & Vrba, M.J. eds., (2011). Management principles: A
contemporary edition for Africa. Juta and Company Ltd.
Tzamaloukas & Et.al (2013). Principles of management of severe hyponatremia. Journal of the
American Heart Association, 2(1), e005199.
Williams, C. (2013). Principles of management. South-Western Cengage Learning.
Wisner, J. D., Tan, K. C., & Leong, G. K. (2014). Principles of supply chain management: A
balanced approach. Cengage Learning.
8