Management Report: Analyzing Rock Paper Scissors Salon's Challenges

This report examines the management challenges faced by Rock Paper Scissors, a small-scale salon in Australia. The report highlights issues such as a lack of strategic and financial planning, undefined goals, and employee motivation problems. It emphasizes the need for applying management theories to achieve organizational success. The report recommends incorporating competing values for organizing, controlling, planning, and leading the salon. It addresses issues through recommendations based on management theories, principles, and models, covering topics like mission and vision statements, strategic planning, leadership, motivation, performance management, and innovation. Furthermore, the report analyzes the managerial environment, external factors, and contemporary challenges, providing a comprehensive overview of the salon's operational and strategic needs. The recommendations encompass the development of mission and vision statements, setting measurable objectives, implementing performance management systems, and utilizing key performance indicators to gauge financial performance, and adopting innovative strategies to foster growth.

Running head: INTRODUCTION TO MANAGEMENT
Introduction to management
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Management report for
Rock Paper Scissors
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INTRODUCTION TO MANAGEMENT
Executive summary:
Current report has been prepared for addressing various issues faced by Rock Paper Scissors
that is a small scale salon operating in Australia. Various issues are faced by this salon that requires
application of management theories for attaining organizational success. Approach incorporating
competing values would assist Rock Paper Scissors in organizing, controlling, planning and leading
for future growth, success ad sustainability. Issues are addressed by making recommendations based
on theories, principles and several models of management.

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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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1.0 Introduction:
1.1 Background:
Rock Paper Scissors is a hairdressing salon that has been established after one of its owners
won a major Australian national hairdressing competition. In the present situation, hairdressing
salon has been facing many contemporary challenges and lacks strategic and financial planning, does
not have defined goals and objectives, there are no mission and vision statements seeking to their
stakeholders. There has been no profit generation by salon since it has initiated its operations and
they seem possibly unprofitable.
In the present study, it is required to carry out the evaluation of strength and weakness that
would enable the execution of properly planned strategies. Documentation of policies is absent that
is leading to theft of properties by their staffs and staffs are highly demotivated and not punctual to
their duties. Salon does not have properly developed metrics and indicators for measuring customer
satisfaction and gauging financial performance (Baden & Higgs, 2015). All these have lead to
hampering the overall performance of salon its long-term sustainability.
1.2 Recommendation:
Proper management of salon by incorporation of management skills for handling human
resource and financials.
Formulation of mission and vision statements and setting goals with defined business
objectives.
Implementation of performance management for measuring employees performance
Development of key performance indicators for gauging salon financial performance
Development of techniques that would assist in recording customer data needed for
generating feedback on customer satisfaction and retaining them.
2.0 Management concepts, principles and theories:
Mission and vision statement:
Strategic planning of organizations should incorporate the formulation of mission and vision
statements as they help in creating a proper identification and their purpose for serving the
stakeholders needs. Rock Paper Scissors does not have any mission and vision statements that
would assist them in development of measurable objectives and gaols for gauging the success of
their developed strategy. Various stakeholders such as customer, investors, communities and
government are able to identify their role in organizational process with the help of formulation of
mission statement (Bala & Matsak, 2014). Mission statement of Rock Paper should be formulated
after core competencies identification that would provide them competitive advantage.
Recommendations:
Mission statement of Rock Paper and Scissors should be developed in such a way that it is
meaningful, coherent and concise and following points should be outlined:
Education, innovation, trust and development
Capabilities and business competencies
Purpose of business

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Emphasizing on component needs
Sustainable requirements essentials
Strategy, goals and objectives:
Salon does not have established goals, objectives and plan that make it difficult for its target
market about its service specification and their cause of establishment. Any business needs to have
properly defined strategies, objectives and well set goals for generating profits and experiencing
growth. Nonetheless, goals should not be set promptly as this might lead to inappropriate and
improper goal formulation. Industry such as hairdresser intends to serve diversified market and
incapability of providing customer centric service as per target market would lead to downfall of
business. Foundation of salon would be incorporate in goals setting that will help in measuring their
performances (Huarng & Ribeiro-Soriano, 2014).
Recommendations:
Developing action plan for the target set
Establishment of properly documented and written policies
Budget development
Developing performance indicators
Strategic and Financial planning:
Rock Paper and Scissors does not have well defined strategic and financial planning that is
the reason behind their poor performance. A business is required to face the external and internal
environment challenges for experiencing prolonged sustainability. This particular hair dressing salon
does not have proper financial plan that is regarded as back bone of any business (Ehrhart, 2015).
Financial reporting of Rock Paper is done on monthly basis and the accountant is responsible for
preparing financial statements. It is required by salon to realize the importance of planning.
Recommendations:
Salon should establish the link between investments, financial decision and performance of
business.
Reviewing financial reporting and gauging financial performance by development of financial
indicators.
Preparing salon for any unanticipated issues of external environment in Australia
Determining weakness and strength of salon
Leadership:
Growth in employees and customer’s cultural diversity and ongoing changes in Australian
society can be dealt with management and leadership skills. Managers are required to provide
employees with sufficient training in skills of customer’s service and knowledge about products. It is
of utmost important for any organizations to employ the leadership style that is appropriate and is
suitable to deal with prevailing situations. A leader in any organization is required to be pragmatic
producer and deciding director who are concerned mostly with profitability of business and
productivity of employees as per rational goal model (Carnes et al., 2015). Depending upon situation,
different style of leadership can be appointed. Team leadership style and theories of behavioural
leadership helps in managing employee performance.

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Recommendation:
Depending upon salon situation, seven style of leadership and contingency leadership style
should be employed.
Salon should employ intentional change theory for driving employees and managers to
achieve vision of organization.
There should be encouraged and collaborative participation that would help in delegation of
tasks, sharing of responsibility, coaching and mentoring employees, reflective listening and
leading by example
Motivation:
Motivation creates employee engagement and job satisfaction and this would be built by
addressing extrinsic and intrinsic needs of employees. Staffs of rock Paper do not arrive timely and
they are not motivated and are theft to property of salon. Performances of employees are driven by
three motivational forces according to McCelland’s, theory of needs that involves influence,
affiliation and achievements. Influencing staffs for persuading staffs to engage with work and
creation of interrelationship is involved in affiliation that is also related with belongingness to team.
Achievement deals with finding solution to problems, mastering of tasks and goal settings ( Dunning,
2015). Furthermore, there are five needs that motivate employees within organization as per
Maslow’s hierarchy of need theory. Such needs are self actualization needs, social needs, ego and
self esteem, physiological needs and safety needs.
Recommendations:
Needs suggested by Maslow’s hierarchy are some of the contributors towards employees
motivation and for motivating employees, rock paper should employee such theory.
Factors that are considered most important for employees and that motivate them should
be employed by adoption of conducting survey using several questionnaires.
Focus of salon should be on motivating employees by focusing on creating job satisfaction
and building of a clan culture.
Performance management:
For any organization, programs of performance management is regarded as crucial and it
provides assistance for assessing whether employees are living up to expectation of objectives of
salon and whether their responsibilities and efforts are being rewarded. As observed from case
study, Rock Paper and Scissors does not have any method for tracking customer satisfaction and
records of customer satisfaction. There are no key performance indicators for measuring financial
performance and this makes it difficult for salon to keep a record of their performances ( Mangi et
al., 2017). Salon would experience increased productivity of the employees are rewarded by way of
performance appraisal.
Recommendation:
The development of appropriate ways for getting the operations of business done by
involving employees in salons planning stage of strategy formulation.
One of the parts of performance management program should involve rewarding employees
that would ensure optimum productivity and performance and achieving maximum
profitability.
Policy of performance management of Rock Paper Scissors should incorporate evaluating
individual employee performance and reviewing them.

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Innovation:
One of the single most ingredients for the organization’s long-term sustainability is
innovation. Process of innovation at Rock paper Scissors would help in improving their existing
operations by developing, prioritising, testing and modifying them. It has been ascertained from
some precious research that there exist positive relationship between customer knowledge,
business growth and strategic planning with the implementation of successful innovation within
organization. Innovation strategy is regarded as significant for organization in hair dressing industry
because of rapidly changing customer style and preferences, shorthand product life cycle and
intense competition in Australian environment (Odumeru & Ogbonna, 2013). There are various
factors influencing innovation in salon business and in relation to this, few points are recommended
that would help in bringing innovation to business of Rock Paper.
Recommendation:
Employing participative strategy by encouraging a collaborative environment that will help in
creating new efficient process and several possibilities generation.
Change will be implemented in salon by incorporating change in financial, human resource
and marketing strategies.
There should be new logo creation along with business tag line that would impart proper
message to its target market
3.0 Managerial environment in which hairdressing salon operates:
Managers of hair dressing salon should have a priority of providing ongoing training to their
employees for strengthening their employee retention plan and recruitment strategies. Managers
are required to fulfil various tasks and skill development in planning and resource management. For
enabling hair dressing organizations to survive in era of current and future challenges requires
management training to commence at earlier stage of business. In small and medium enterprise,
business management training is related with emerging skills gap. Working climate of organization
should be conducive to high degree of personal development and satisfaction of employees.
Managerial skills should be related with harnessing of employees potential in the retention process
(Scott et al., 2017).
4.0 External environmental factors affecting hairdressing salon:
Over the past five year, there has been expansion of the hair dressing industry in Australia.
Operations of hair dressing salon is impacted by several factors that are listed below:
Economic drivers- Hair dressing industry has been benefitted from the Australian economy
structural shift. Salon needs to employ the strategy of providing customers with unparallel
services to enhance the selling of add on products and services of salon.
Technological advancements- The process of performing business in salon are impacted by
the rate of adoption of information and communication technology. Salon business requires
some of advancement such as text messages for service confirmation and management
software appointment (Lyons et al., 2013). Operations of salon are impacted by such factors.
Trends- Strategic planning of salon and the ongoing trends significantly impacts the
operation of salons.
Growing population- Increasing population in Australia has led to high discretionary income
increase in demand of beauty and hair dressing services.

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5.0 Priorities and process of managers of Rock Paper and Scissors:
It is essential on part of Rock Paper Scissors managers to have greater knowledge and proper
understanding of technology. They require possession of variety of skills for fulfilling wide range of
roles in small enterprise such as Rock Paper. Managers should have in depth understanding of
technology, financial matters, business planning and management of human resources. They are
required to have the skills of financial management for understanding the process of business that
helps would assist in profitability maintenances (Nahavandi, 2015). Knowledge of global economy is
also important for relating it to their businesses. Skills of human resource management are crucial
for managing the workforce and thereby improving their morale and productivity with diverse
needs. This will help in improving social well being of employees and individual customers. A long-
term approach is required for managers training in hair dressing industry relating to managing broad
areas such as finance and human resources (Kessler, 2017). Therefore, in light of various issues
presented due to internal and external factors, managers at Rock Paper Scissors needs to develop
such skills for effectively managing the salon business.
6.0 Contemporary management challenges presented by issues faced by
Rock Paper Scissors:
Issues faced by salon would lead to evolution some of the challenges that are listed below:
Salon would be facing challenge in generating profits for their business and creating obstacle
to their long-term sustainable development.
Lack of any strategic approach would lead to difficulties in maintaining competitive
advantage.
Challenge would be faced in terms of customer retention as there are no way of collecting
data and specific services for their target market.
Some of other challenge evolves from external environmental factors such as government
regulations seeking hair dressing industry and some environmental regulations.
7.0 Conclusion:
Analysis of the case of Rock Paper Scissors has helped in ascertaining the several issues faced
by salon that is mainly related with managing of human resources and financial planning. Issues have
been faced by salon on several other fronts such as customer retention, customer satisfaction,
impossibility of profit generation, lack of employee’s motivation. Report has addressed all the
prevailing issues by employment of several management theories and principles. There are many
contemporary challenges in Australian salon business environment that would be faced by Rock
Paper Scissors if they are not effectively developed internally. In all the lights of issues presented in
the case study, there is urgent need to employ appropriate goal, strategies and objectives.
8.0 Recommendations:
In nutshell, all the recommendations discussed above would lead salon to establishment of
their mission statements and formulation of strategic objectives and goals. Rock Paper scissors
needs to employ management theories that helps managers in inculcating several skills that is
urgently required to manage the business. Employment of Motivational and leadership theories will
help in addressing issues faced in front of managing human resources and customer retention and
satisfaction. Issues faced on financial front should be handled by framing financial planning that are
regarded as the backbone of any business. All the recommended points would help Rock Paper
Scissors to evolve as salon operating on small scale with its pre requisites to handle contemporary
challenges in Australia.

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