Introduction to Management: Rock Paper Scissors Salon Report

This report provides a comprehensive analysis of the management practices at Rock Paper Scissors, an Australian hairdressing salon. It highlights key issues such as low profitability and staff management problems, including lack of accountability and motivation. The report recommends implementing the competing values framework model and goal-setting theory to organize and control business plans effectively. It also emphasizes the importance of collecting customer feedback for retention and satisfaction. The report delves into management concepts, theories, and principles, including an examination of the PESTEL analysis and contemporary management challenges. Recommendations include improved financial reporting, development of a mission and vision statement, analysis of customer feedback, and performance measurement of staff. The report aims to provide insights into improving the salon's performance and addressing the challenges it faces in a competitive market.

Running head: INTRODUCTION TO MANAGEMENT
Introduction to Management
Name of the Student:
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Executive Summary
This present report highlights on the current management process of Rock Paper Scissor, which
is an Australian hairdressing salon. However, it has been received that low profitability and staff
management are the major issues of such organization that affecting the business. The staffs are
not accountable and responsible for their work. For this reason, motivation is required.
Application of competing values framework model and goal setting theory is effective for such
organization to organize and control their established plan. On the other hand, collecting
feedback from the customers will be helpful for such organization to satisfy their existing
customer as it is important for the customer retention.

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Table of Contents
1.0 Introduction................................................................................................................................4
1.1 Background............................................................................................................................4
1.2 Recommendations..................................................................................................................4
2.0 Management concepts, theories, and principles........................................................................5
2.1 Management concept.............................................................................................................5
2.2 Management theory...............................................................................................................6
2.3 Management Principle...........................................................................................................7
2.4 Model of management...........................................................................................................8
3.0 External environmental factors that affecting Rock Paper Scissors salon................................9
3.1 PESTEL Analysis..................................................................................................................9
3.2 Contemporary management challenges...............................................................................11
Conclusion.....................................................................................................................................12
Recommendations..........................................................................................................................12
References......................................................................................................................................14

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1.0 Introduction
1.1 Background
Management is the core area of a business, however; to achieve the business objectives it is
important to make a proper management structure. Employees should work in a coordinated way to meet
the organizational goal (Mendling et al., 2017). An integrating force is driven by the management to carry
out the organizational activities. This study deals with the case study of Rock Paper Scissor, which is a
popular hairdressing salon in Australia. However, this salon has started before 1 year and failed to
achieve profit. After that, the Fadi and Fatima Khan the owner of this salon has won a national
hairdressing competition, which is a big achievement of such organization.
This salon offers the service seen days in a week to increase their sales. However, in the recent
years, such salon has been facing some major problems. One of the most important is this salon has no
mission or vision statement while the owner wants to make their business innovative. Therefore, no
financial reporting is carried out on the monthly basis; as a result, the organization is unprofitable. On the
other hand, the staffs of such salon are not time punctual and they provide free haircut to their friends by
using the chemicals of such salon, which hampers the profitability of such salon. The owner is not able to
gather the customer satisfaction data, as a result, they fail to identify the reasons for which the existing
customers are unhappy. It is important for an organization to collect the feedback from their customers
regarding the service (Haddow, Bullock & Coppola, 2017). There is lack of tools to measure the
employee performance, which affects the business of this organization as well as their profitability.
1.2 Recommendations
Proper management of the financial report: In order to gain profit in a business it is important for
Rock Paper Scissors to manage their financial report on the monthly basis by collecting the bank

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statement, sales record, and customer data. This will be helpful for such organization to increase their
profit as this enables them to measure their profit and loss on the monthly basis.
Development of mission and vision statement: Establishment of the specific mission and the vision this
salon can improve their strategic planning. This will enable the owner to be more innovative in their
business.
Analysis of the customer feedbacks: Collecting feedback from the customers will be an effective
practice for Rock Paper salon. They can collect the customer feedback via online by creating their
company website. This will be helping them to retain their existing customers by meeting their current
demand.
Performance measurement of staffs: Performance measurement can be effective for such organization
to increase the efficiency of the staff. For this purpose, use of benchmarking based on the annual
performance of the staff will be beneficial to measure the efficiency of the staff.
2.0 Management concepts, theories, and principles
2.1 Management concept
Management concept refers to the proper management of a business including staff management,
financial management and customer management (Winata, 2017). In the context of Rock Paper salon,
they have been facing several issues in their business one of the most important is the staff management
and financial resource management. Effective delegation is required for such business. In order to
overcome the present issues establishment of the mission and vision is crucial for such organization. The
manager of a small business like salon needs to focus on the personnel management. They have to satisfy
their customers by resolving their service related issues. Planning, organizing, directing and controlling
are the four parts of business management (Lapoule & Colla, 2016). In the context of Rock Paper salon, it
is important for them to understand the concept of management and to carry out their business operation.

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In order to achieve the profitability, it is important for Rock Paper salon to develop strategic planning and
organize it properly. After the organization directing and controlling of the strategic planning is essential.
2.2 Management theory
Goal setting theory
Goal setting theory is one of the most important management theories that is applied by the
business organizations to meet the business objectives (Latham, Brcic & Steinhauer, 2017). Based on the
subsequent performance the organization sets their business goal and this is the key principle of the goal-
setting theory. An organization gets success by setting difficult goals rather than setting the easy goal.
However, the goal should be clear and specific for the organization. On the other hand, realistic and
challenging goal leads the organization to achieve greater outcomes from their planning (Neubert &
Dyck, 2016). Clarity, challenge, commitment, feedback and task complexity are the five principles of
goal setting theory.
In the context of Rock Paper Scissor, they have not any specific goal or mission. As a result, their
financial status of the business is not good. Hence, for this organization a clear and measurable goal is
required to lead their business to survive in the competitive market. Challenges are related with the goal
hence, for this salon, it is vital to take the challenges to achieve the success. Commitment is another part
of goal setting theory that enables this organization to share their goals with their staffs. Therefore, the
organizations can collect feedback from the customers by following such goal-setting theory. On the other
hand, the employees need to be sure to overcome the task complexity (Latham, 2016). In order to set the
goal, the owner of Paper salon needs to arrange a meeting and ask the supervisor to set the goal. Then the
supervisor will set the goal and tie it with the work unit of Salon. Then the staff is involved in goal setting
and reward will be provided to the staff based on their performance. After that, the specific areas are
highlighted and feedback should be collected to measure the efficiency of the goal.

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Figure 1: Goal Setting Theory
(Source: Latham, 2016)
2.3 Management Principle
According to the management principle, “leaders are the critical part to gain success in a
business”. In the context of Rock Paper salon, it is important for them to develop their leadership skills to
maximize the staff performance. An effective leader includes good communication skills in order to
communicate with the employees (Schaltegger, Burritt & Petersen) However, Rock paper salon has been
facing poor profitability and staff performance. For an organization, it is vital to measure the performance
of the employees and to motivate them to their work (Christopher, Laasch & Roberts, 2016). In order to
motivate the employees and make them punctual, an effective leader needs to establish an effective
communication with them. Therefore, the leader needs to encourage their employees in their work to
maximize the business profitability (Jesuíno, Torres & Teixeira, 2016). In the context of Rock Paper
salon, the employees are not punctual and demotivated. For this purpose, the leader in this organization
requires motivation. On the other hand, leaders of such salon need to be creative and trustworthy to
enhance the profitability of the organization. However, the owner of Rock Paper salon is not able to

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collect feedbacks from their existing customers regarding their demand. Hence, the establishment of
effective leadership the owner of such salon is able to deliver useful product information and collect
feedback from them.
2.4 Model of management
Competing Values framework
Competing values framework is a vital model of the management that is associated with the
organizational focus (Lindquist et al., 2016). However, it is crucial for an assignment to be adaptable,
flexible and controlled while establishing and organizing any specific objectives. In the context of Rock
Paper salon to control their business application of competing value frame model is important. This
model includes four quadrants with two dimension forms. Each quadrant consists of a major model.
Human relation model is the first model that leaves the special emphasis on the organizational flexibility
and human resource development (Newton & Mazur, 2016). In the context of Rock Paper salon, this
organization can control their business operation by maximizing their flexibility and developing the
human resources. Therefore, the open system model is another model of quadrants that focuses on the
flexibility and the resource acquisition. However, for the Rock Paper resource acquisition will be helpful
for them to control the financial status of their business.
Rational goal model focuses on the goal setting and planning to implement the goal (Wiersma,
2017). This will enable such organization to enhance their efficiency and staff performance. Next, the
internal process model includes internal focus, stability, and communication and information
management. This will help Rock Paper salon to make their organization more stable and establish an
effective communication with their staffs. However, by the application of competing values framework,
Rock Paper will be able to control their business planning and business operation.

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Figure 2: Competing value framework
(Source: Wiersma, 2017)
3.0 External environmental factors that affecting Rock Paper Scissors salon
3.1 PESTEL Analysis
Several external factors are associated with the business of Rock Paper Scissors salon. Hence, the
pestle analysis will be effective to understand the external environmental factors.
Political factors
Australian political environment is stable, which is essential for a business to run in this country
(Gray, Harymawan & Nowland, 2016). However, Rock paper is an Australian hairdressing salon thus
stable political environment of such country enables this organization to get a good market to carry out

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their business without any legal obstruction. However, the stable political business environment makes a
smooth way for any business in this country.
Economic factor
Australia has high GDP in the recent years that brings opportunity for the investor in this country
(Uddin, 2016). On the other hand, the property prices are high in Australia, which may affect the
business. In the context of Rock Paper salon, it is a small business and unprofitable. Thus high property
price may affect the business of such organization, as it is difficult for this organization to establish their
store in a high traffic area. However, it is important for the business to establish their business in the
populated area. In Australia, the high traffic areas are Brisbane and Perth where the property price is high.
Thus, it is hard for Rock Paper salon to buy properties to expand their business, as it is a startup business.
Social factor
Upper class, middle class, and the working class are the three main categories of the social life in
Australia (Ma, Kent & Mulley, 2016). However, people are faster in their life. Demand is changing in the
market. Hence, such changing demand in Australian market will give an opportunity for Rock Paper salon
to innovate new service in their business. People are more advanced and sensitive to their look. This big
factor leads this hairdressing organization to expand their business in the Australian market.
Technological environment
New technology is involved in creating new service or product. Australia is technologically
advanced. Australian science and technology support the emerging technology in Australia (Boer &
Gruber, 2017). The owner of Rock Paper wants to be innovative. Hence, utilization of the modern
technology will lead this organization to improve the service quality, reduce the cost and make the
business more innovative. The Australian government provides support to the research and development
institutes of Australia that is helpful for the organization.

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Legal factor
Maintenance of the legal laws in Australia is important to carry out a business in Australia
without any legal issues (Allen, 2017). On the other hand, legal changes in Australia may affect the
business of Rock Paper salon. As a result, they may force to change their operation process.
Environmental norms
Environmental laws should be followed properly by the organization in order to get the
environmental sustainability (Giacalone & Rosenfeld, 2013). In Australia Rock Paper salon needs to
follow Environmental Protection Act 1974 to maintain the sustainable development.
3.2 Contemporary management challenges
Political environment often resists the business organization to innovate new things. However,
according to the changing demands of the customers, the hairdressing salons need to keep with the
modern trend. For this purpose, they innovate new things in their business (Wilkinson, Wood &
Demirbag, 2014). This is often restricted by the government rule of Australia in context of Rock Paper
salon. Another management challenge is to compete with the large and popular brand. However, the staffs
are not efficient in Rock Paper salon thus it is difficult for them to compete with the rival organization in
the Australian market. On the other hand, the staffs are demotivated in this organization that may cause
the high turnover of the employees. However, often the employees are not able to cope with the emerging
technology as a result they demotivated and leave their job (Giacalone & Rosenfeld, 2013). Retention of
the existing clients and searching the new customers is another major issue of the management system of
Rock Paper salon. However, it is often difficult for such organization to flexible with the growing demand
of the people and to satisfy them, which affect the business.

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Conclusion
The entire piece of study focuses on the management process of the Rock Paper Scissor.
However, this is a startup organization with low profitability. This organization has no specific mission or
vision that is the major weakness of such organization. However, there is no financial statement on
monthly basis, which affects the economy of the organization. Therefore, the staff does not follow the
discipline that affects the profitability of the organization. It has been found that existing customers of
such organization are not happy and the owner is not able to understand the current demand of the
customers. For this purpose, the feedback collection from the customer is necessary. However, effective
leadership is crucial for this salon to improve their staff performance. Therefore, competing values
framework and goal setting theory are applicable in this situation as these are beneficial for this
organization to plan, organize and control their business. It is important for Rock Paper salon to measure
their employee performance to understand the position of their organization. On the other hand, the
external factors like political, economic, environmental, legal and technological are also addressed in this
study. The stable political environment of Australia gives the opportunity to such organization to enhance
their business in this country. On the other hand, the high price of the property in Australia affect the
business of such organization, as it is a small business thus expanding high cost in establishing the store
in high traffic area may affect the profitability.
Recommendations
It is recommended for the Rock Paper salon:
To chose an ideal location for the business: However, it is important for the salon to establish
their store in high traffic area to gather customers. In the context of Rock Paper salon selection of
the proper area will be helpful for their business to enhance the customer numbers.