University Report: Management Analysis of Rock Paper Scissors Salon

This report provides a comprehensive analysis of the management practices at the Rock Paper Scissors hairdressing salon in Australia, which has been struggling despite having the necessary resources. The report identifies critical issues, including poor financial reporting, ethical concerns, lack of motivation, leadership problems, and the absence of strategic planning, goals, and vision. It explores management concepts like strategic planning, goals, motivation, leadership, performance management, and ethical practices. The report recommends strategic planning, clear goals, and objectives, a mission and vision statement, motivational strategies, effective leadership, performance management systems, improved financial reporting, and the implementation of ethical practices and innovation to address the identified shortcomings. These recommendations aim to enhance the salon's performance and profitability through improved management and operational strategies.

Running head: REPORT
Rock Paper Scissors and Management
Name of the Student
Name of the university
Author’s Note

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Executive Summary
The report describes the present situation of the Australian hairdressing saloon Rock Paper
Scissor that has been operating in the market for over one year. The analysis shows that the
business is failing in revenue generation in spite of having all the staffs and tools necessary. The
report identified several issues regarding management and ethics in the organization. Several
management strategies have been discussed in the report like performance management,
leadership, and ethical practices. The importance of goals and objectives is also stated in the
report. The report further states how these strategies can be incorporated. This shows that the
incorporation of these can potentially improve the current situation of the workplace. For
example, the ethical consideration can help in value creation and attract more customers that will
facilitate in revenue generation.

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Contents
Executive Summary.........................................................................................................................1
1.0 Introduction................................................................................................................................3
1.1 Background............................................................................................................................3
1.2 Recommendations..................................................................................................................3
2.0 Management Concept, Principles and theories discussed in this report....................................4
2.1 Strategic Planning..................................................................................................................4
2.2 Goals, Strategies, and Objectives...........................................................................................5
2.3 Mission and Vision Statement...............................................................................................5
2.4 Motivation..............................................................................................................................6
2.5 Leadership..............................................................................................................................7
2.6 Performance Management.....................................................................................................7
2.7 Financial Reporting................................................................................................................7
2.8 Ethical Practices.....................................................................................................................8
2.9 Innovation..............................................................................................................................8
3.0 Recommendation.......................................................................................................................8
3.1 Strategic Planning..................................................................................................................8
3.2 Goals, Strategies and Objectives............................................................................................9
3.3 Mission and Vision Statement...............................................................................................9

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3.4 Motivation............................................................................................................................10
3.5 Leadership............................................................................................................................10
3.6 Performance Management...................................................................................................10
3.7 Financial Reporting..............................................................................................................11
3.8 Ethical Practices...................................................................................................................11
3.9 Innovation............................................................................................................................11
4.0 Conclusion...............................................................................................................................11
5.0 Recommendation.....................................................................................................................12
References......................................................................................................................................13

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1.0 Introduction
1.1 Background
The Rock Paper Scissors is located in Australia that is currently facing management
issues in the contemporary environment. The report focuses on these challenges and the
recommendation provides recommendation from the analysis of the management issues
identified.
Fadi and Fatimah Khan are the founder and owner of this hairdressing saloon that was
established about a year ago. They planned of starting the saloon with after the hairdressing
competition took place in Australia, where Fadi won the first prize. This is a unisex saloon that
provides service to both men and women. Their saloon has all the facilities like staffs and
equipments that the customers look for in a modern hairdressing saloon (RockPaperScissors
Salon. 2017). In spite of having all these facilities, the saloon constantly failed to experience a
profitable outcome. A thorough research on the organization represents issues in the various
level of management. They are unethical practices by the staffs, lack of financial reporting in the
organization, lacks of motivation and encouragement in the organization, leadership issue and
absence of defective management, lack of performance evaluation, lack of goals and objectives,
absence of mission and vision statement of the business, and absence of strategic planning for
running the business. The business is failing to incorporate these factors which are why they are
unable to gain any advancement in their business.
1.2 Recommendations
The report will be addressing the identified issues in the management of Rock Paper and
Scissor. The report would provide an analysis of these issues and make recommendations to

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mitigate the problems. The provided recommendations follow and bounded by the principles,
theories and models of management that will support the business to gain control and generate
profit out of it. The proposed recommendations can be summed up as follows.
 The business requires a strategic planning to assess the business environment and the
contrivance of business objectives and strategies to overcome the issues in management
system
 Schemes related to the motivation have to be incorporated in the business for
encouraging the workforce. The business should follow Maslow’s motivational theory to
achieve the desired goal.
 An effective leadership is necessity and the owners need to hire an effective leader who
will contribute in directing and managing the issues that are present in current workplace.
The leader can also contribute in motivating the employees and help setting up the
workplace environment accordingly.
 Requires fresh up to date business plan that successfully communicate with the market.
 Incorporating the employee performance tool along with the financial monitoring tool for
keeping track on the identified issues.
 Set workplace ethics for creating value.
2.0 Management Concept, Principles and theories discussed in this report
2.1 Strategic Planning
It is an inseparable and one of the most important parts of organizational management.
The importance of strategic planning is irrespective of the size of the business. It helps the
company to set the priorities of the company and direct its strength and resources toward it for

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achieving the goal of success in the competitive market (Steiner, 2010). Rock Paper and Scissors
falls under the category of a small business and this can be a reason they have overlooked the
necessity of a strategic planning. However, on contrary of their viewpoint, the small-scale
businesses require more effective and correct planning to compete with the big brands operating
in the market (Poister, 2010; Skokan, Pawliczek & Piszczur, 2013). The case demonstrates a lack
of organized management in the business and requires strategy based planning to focus on their
goal and for value creation.
2.2 Goals, Strategies, and Objectives
Goals, objectives, and strategies are the first three things that an organization needs to set
prior to starting any business. Each one of the three has its own purpose in the process where the
goals classify the track for the organization that will help achieving the growth. Objectives on the
other hand set by the organization to mark the target that it desires to achieve over a certain
period. It can be like achieving certain number of customer base, customer loyalty through
providing certain services or can mark the desired expansion of the business. Whereas, the
strategies of an organization are formulated on the basis of goals and objectives previously set by
the company. Strategy of a company defines the way taken by the company to meet the
objectives. It involves target segmentation, market analysis, other marketing, and management
procedures that define the process of achieving the goals. With the reference of the company
under study, the company requires different strategy for dealing with the customers based on
their sex.
2.3 Mission and Vision Statement
The mission statement states the purpose and primary objectives related to the customers’
needs and team value. Besides, it identifies the process of reaching the position it desires to be.

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Vision statement on the other hand describes the position it wants to reach and communicates the
purpose and values of the organization to the customers. One can observe the present leading to
the future through the mission statement, whereas, the vision statement identifies the future. Both
of these statements helps the organization in identification of the hurdles in the system and
prescribes the method of overcoming them for successfully reaching their goal (Fuller, 2014).
These have to be aligning with the goals and objectives of the company so that it can
successfully communicate to the customers and the employees as well for creating brand value.
2.4 Motivation
Maslow’s motivation theory communicates the necessity of motivation in improving the
performance of the employees that results into the improvement of the organizational
performance. It is the responsibility of the management of the company to look after the
employees and keep them motivated. According to the theory, there are certain needs of every
employee working in any organization and the theory classifies them into five different stages to
form a pyramid (Jerome, 2013). This is the reason Maslow’s motivation theory is popularly
known as the need hierarchy theory. Maslow suggests the organizations to fulfill the needs of
individual worker in the organization to keep them motivated in the workplace by setting target.
This will direct the workers to express their full potential, as it will let them fulfill their needs
(Maslow, 2013). The motivation factors could also be dividing into extrinsic and intrinsic. The
extrinsic factors states the benefits and compensations offered by the company to its employees,
whereas, the intrinsic on the other hand is to make the workplace more attractive where the
employees will enjoy working. The intrinsic factors prove to have more profound effect than the
extrinsic factors as it provides job satisfaction.

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2.5 Leadership
Leadership is the primary criteria for an organization to succeed. No proper style of
leadership is absolute in gaining organizational success as the leadership changes the atmosphere
of the workplace. However, certain leadership proves to be useful in certain workplaces. For
example, the transformative leadership proves to be the best in motivating the employees in the
corporate and private sector. Whereas, the autocratic leadership is required in the military for
achieving success (Lidow, 2014). Hence, selection of accurate leadership is necessary for the
success of the organization.
2.6 Performance Management
Performance management includes the tracking of performance of the employees
working in the organization. It is an important part of the organizational management and
monitored by the manager or the owner of the organization. It will enable the authority to track
individual performance and help determining the necessary steps required to improve the
individual performance gain improvement in overall organizational performance (Buckingham &
Goodall, 2015). It is directly related to the motivation and leadership of the organization as
proper leadership can motivate the employees and address the issues for extracting optimum
performance from the employees.
2.7 Financial Reporting
Financial reporting or budgeting is an integral part of business strategy of any
organization. It will help them to track and control the investment in the business and the
outcome received from the investment. An annual budget will also facilitate in determining the
sectors where more investment is required (Thesis, 1937). This will direct the cash flow in the
business and provide details for managing the investment.

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2.8 Ethical Practices
At present times, the government has made it mandatory for every organization operating
in any industry to include CRS policy in their strategy. It is the ethical practices of the
organization. It also facilitates in value creation for their product by considering the
organizational responsibilities towards the society (Crane & Matten, 2016).
2.9 Innovation
It is mandatory for every organization to have an innovation strategy in order to maintain
the sustainable growth and to compete in the competitive market. Companies can achieve
competitive advantage in the target market segment by introducing innovation in their business
model that will differentiate their business from other similar organizations operating in the
market (Ngo & O'cass, 2013).
3.0 Recommendation
3.1 Strategic Planning
The management issues identified in Rock Paper Scissors has to mitigate with proper
implementation of strategic planning. It will help the organization in maintaining a proper track
and facilitate in addressing the future risks that might come. Some of the steps in hand can be
recommended for the selected organization in the process that are:
 Identification of the current issues
 Identify the strength and weaknesses of the organization
 Set the priorities of the issues according to their intensity
 Make strategic planning for addressing the issues in order

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 The plan should be focusing on the strengths to improve the situation and address the
weakness and develop accordingly
Proper implementation of the above mentioned steps will help the Saloon to overcome
the strategic issues present in the organization and gain strategic improvement necessary for
generating profit from the business.
3.2 Goals, Strategies and Objectives
As identified in the previous section, the organization is lacking a clear goal, objective
and strategy for their business. It is necessary for the organization to identify these and
incorporate them in the business. It has to be formulated prior to setting the various strategies
needed in the organization as the strategies will aim to address the goal and objectives for
making profit in the target market segment. This process will involve market investigation using
various tools available for market analysis. The SWOT analysis, porter’s five force model and
7Ps of marketing will help the company to identify the market situation and clear the path of
selecting goals and objectives for the company.
3.3 Mission and Vision Statement
As the business under study is a small one, it is important for them to clearly state an
effective mission and vision for their business. It will enable them to focus on their target and
operate accordingly. Besides, these statements will also help in communicating the value
creation and value proposition to their customers and the major stakeholders of the organization.
Moreover, a strong mission and vision statement can also facilitates in motivating the employees
and provide energetic work atmosphere that will improve the organizational performance.

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3.4 Motivation
Considering the present workplace situation in the organization, the company requires to
incorporate various intrinsic and extrinsic factors to motivate their workforce to increase the
organizational performance. They can utilize different motivational theories proposed by
Maslow, Hertzberg or Alderfer for preparing their motivational strategies.
3.5 Leadership
The importance of effective leadership in the organization is inevitable. Rock Paper
Scissors has a clear deficiency in effective leadership that needs immediate attention of the
owners. They are failing in leading the organization. Hence, it will be wise for them to hire a
manager with transformative leadership skills to address the issues in the organization. The
leader has to address several issues ranging from motivation, finance, and strategy formulation to
making ethical consideration in the business. It is recommended for the leader to consider the
Taylor’s four management principles to bring change and have effective management in the
organization.
3.6 Performance Management
It will be the manager’s responsibility track and manage the performance of the
employees. Motivation can only increase the employees’ performance, but it is important to
make note of the performance to understand the development achieved. It helps in defining every
aspect of the employees’ involvement with the organization and its outcome in process. This
process starts from the day the employee start working in the organization and end when they
take a permanent leave form it. It helps in differentiating the performer from the rest and also
tells who is lacking in their performance. Following this tracker, the company can set the

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appraisal for the good performers and motivate who is lacking. Rock Paper Scissor should also
incorporate these steps.
3.7 Financial Reporting
This refers to the budgeting of the company. The company has to make annual budget for
the business to track the investments over various sectors and the revenue generated. This will
help Rock Paper Scissor to identify the sectors where more investment is required and where
they can minimize their investment to have better outcome.
3.8 Ethical Practices
Corporate Social Responsibility policy is required in Rock Paper Scissors for creating
value and communicate value proposition to their stakeholders. It will also facilitate in
motivating the workers. Their CSR policy should address the environmental degradation and
conduct their business accordingly. For instance, the saloon can promote reduction of water
wastage as a start of consideration of CSR.
3.9 Innovation
It is required for the business to incorporate innovative model in their business model to
operate in the competitive market. The company is required to recognize the cost structure and
revenue streams and make comparison between them to understand the requirement of the
business. The integration model can help Rock Paper Scissor to continuously supervise the
business model and increase revenue generation.
4.0 Conclusion
The above discussion identifies that the size of the organization is of little importance in
the case of management. Both the large and small scale business organization requires strategic

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planning, motivation, ethical consideration, performance management, appropriate leadership
and other management aspects. It does not means that the small business requires little strategic
planning or set less impressive goals and objectives. However, the small businesses require
working on these factors more efficiently to get a desired outcome and compete in the market
challenging the big brands operating in the target market segment. Some of the strategies are
recommended for the organization under study that has the potential to improve the situation and
generate revenue for the business. Though the business is a startup and only completed their one
year of operation, proper implementation of the recommendations will help them to reach the
breakeven point faster than the present rate of growth.
5.0 Recommendation
Modifications that are required in the business are discussed in the section 3 of the report.
It identifies the sections where the company requires implementing strategies.
They are:
Strategic Planning
Goals, objectives and strategies
Mission and Vision Statement
Ethical Practices
Performance management
Financial reporting
Motivation
Leadership
Innovation

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References
Buckingham, M., & Goodall, A. (2015). Reinventing performance management. Harvard
Business Review, 93(4), 40-50.
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Fuller, D. (2014). Mission Statement Alignment: Guiding Ministries toward a Strategic Culture
Focused on the Great Commission.
Jerome, N. (2013). Application of the Maslow’s hierarchy of need theory; impacts and
implications on organizational culture, human resource and employee’s
performance. International Journal of Business and Management Invention, 2(3), 39-45.
Lidow, D. (2014). Startup leadership: how savvy entrepreneurs turn their ideas into successful
enterprises. John Wiley & Sons.
Maslow, A. H. (2013). A theory of human motivation. Simon and Schuster.
Ngo, L. V., & O'cass, A. (2013). Innovation and business success: The mediating role of
customer participation. Journal of Business Research, 66(8), 1134-1142.
Poister, T. H. (2010). The future of strategic planning in the public sector: Linking strategic
management and performance. Public Administration Review, 70(s1).
RockPaperScissors Salon. (2017). Rockpaperscissorssalon.com. Retrieved 2 October 2017, from
http://rockpaperscissorssalon.com/
Skokan, K., Pawliczek, A., & Piszczur, R. (2013). Strategic planning and business performance
of micro, small and medium-sized enterprises. Journal of Competitiveness, 5(4).
Steiner, G. A. (2010). Strategic planning. Simon and Schuster.
Thesis, E. L. (1937). The beginning of business budgeting. The Accounting Review. 12(1), 43-55

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