Management Report: Analysis of Rock Paper Scissors Salon's Issues

This management report analyzes the challenges faced by Rock Paper Scissors, an Australian salon owned by Fatima and Fadi Khan. The report addresses issues such as the lack of mission and vision statements, strategic plans, financial reporting, and employee motivation. It explores management concepts, principles, and theories, including mission statements, strategic goals, leadership styles, motivation theories (Maslow's and Alderfer's), and performance management. The report recommends the development of a mission statement, defined goals, team leadership, motivational strategies, performance management systems, and strategic and financial planning to ensure the salon's future success. The report emphasizes the importance of adapting management practices to the hairdressing salon's environment and addressing contemporary management challenges. The report also provides recommendations for improvement in various areas, including leadership, motivation, and financial planning, to enhance the salon's performance.

Running head: INTRODUCTION TO MANAGEMENT
Introduction to management
Name of the University
Name of the student
Term
Unit coordinator
Authors note

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INTRODUCTION TO MANAGEMENT
Management report for
Rock Paper Scissors
By
Employer’s name
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Date

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INTRODUCTION TO MANAGEMENT
Executive summary:
The report is prepared to address the ongoing issues faced by Australian salon that is Rock
Paper Scissors” that is owned by Fatima and Fadi Khan. Report is prepared for addressing
the management challenges faced by salon and providing recommendations that is based on
theories, models and management principles. Report makes extensive use of approach of
competing values that will provide assistance to salon in controlling, planning, leading and
organizing for ensuring growth, success and sustainability of salon in future.

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Table of Contents
1.0 Introduction:.........................................................................................................................3
1.1 Background:.........................................................................................................................3
1.2 Recommendation:................................................................................................................3
2.0 Management concepts, principles and theories:...................................................................4
Mission and vision statement:....................................................................................................4
Recommendations:.....................................................................................................................4
Strategy, goals and objectives:...................................................................................................5
Recommendations:.....................................................................................................................5
Leadership:.................................................................................................................................6
Recommendation:......................................................................................................................7
Motivation:.................................................................................................................................7
Recommendations:.....................................................................................................................8
Performance management:.........................................................................................................8
Recommendation:......................................................................................................................9
Incorporation of goal setting:.....................................................................................................9
Recommendation:......................................................................................................................9
Strategic and Financial planning:.............................................................................................10
Recommendations:...................................................................................................................10
3.0 Managerial environment in which hairdressing salon operates:........................................10
4.0 Priorities and process of managers of Rock Paper and Scissors:.......................................11
5.0 External environmental factors affecting hairdressing salon:............................................11

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6.0 Contemporary management challenges presented by issues faced by Rock Paper Scissors:
..................................................................................................................................................12
7.0 Conclusion:........................................................................................................................12
8.0 Recommendations:.............................................................................................................13
References list:.........................................................................................................................14

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1.0 Introduction:
1.1 Background:
Rock Paper Scissors faces some contemporary challenges arising from several
prevailing management issues. They do not have any mission statement, strategic plan and
goals that would make them sustainable in Australian contemporary environment. It is
impossible to gauge financial performance as there is no proper financial reporting and there
is not possible profit. Profit generations seem impossible and salon has not generated any
profits since it has initiated their operations and business activities. Salon needs to evaluate
their current position and determine various strengths and weaknesses that will assist them in
proper execution of strategies that would be planned (Hislop, 2013). Owner of salon is
seeking innovation that would contribute in maintaining long-term sustainability. Salon does
not have any written documented policies that are leading theft to their own property. In
context of addressing all the issues faced, below discussion has incorporated several aspects
of management.
1.2 Recommendation:
 Development and inculcation of management skills for managing the salon
 Developing leadership skills for handling employees and monitoring their
performance
 Performance measurement program that includes measuring employee’s productivity
and performance and boosting their productivity.
 Proper system of recording data such as number of clients served per day and data
relating t customer feedback
 Financial planning and adopting some financial indicators for gauging performance

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 Employing appropriate motivational theory for aspiring and motivating employees
2.0 Management concepts, principles and theories:
Mission and vision statement:
Rock Paper and Scissors currently does not have any mission and vision statements.
Such statements are considered crucial in the process of strategic planning. This is so because
the resin of establishment of business becomes clear to their stakeholders. One the reason
attributable to the fact that salon has not generated any profit is because of absence of mission
statements. It is stated as per the goal model that formulation of mission statements assist in
the establishment of strategies, objectives of business. Such statements assist individual such
as employees, customers and other stakeholders in recognizing themselves in the
organizational process. It helps in the specification of core structure on which the salon is
standing. Hairdressing salon should recognize their core competencies and then formulate
their mission statement (Combe, 2014).
Recommendations:
It is essential for Rock Paper and Scissors to produce an articulate, meaningful,
concise and coherent mission statement that should outline the following points:
 Focusing on constituents need
 Objectives, Trust and goals
 Essentials of sustainable requirements
 Quality service delivery
 Innovation and education

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Strategy, goals and objectives:
Rock Paper Scissors does not have defined gaols and objective that makes it very
difficult for the stakeholders to recognize the reason behind the establishment of salon. An
organization is capable of experiencing growth and profits generation of it has appropriate
goals and has vigorous business strategies. However, it is said that setting of goals should bit
be done on prompt basis as this might lead to ineffective, inappropriate formulation of goals.
Hair dressing industry is regarded as highly fragmented that mainly caters diversified market
segments. Rock Paper Scissors service is catered to women, men and children but it has not
specified any customer centric service where the needs of customers are considered priority.
It does not include any professional quality services that are provided customers that will help
in attracting and retaining customers (Elliot et al., 2017).
Recommendations:
Hair dressing salon should evaluate their formulated mission statements by setting
appropriate goals. Setting of proper goals would serve as the foundation of Rock Paper
Scissors assisting them in measuring their performance that they are unable to do in current
scenario. Aim of organization should be to set measurable, specific, attainable, time bound
and relevant goals.
Salon should have defined goals and it is recommended to incorporate listed elements
in their goal settings:
 Developing indicators for gauging performance
 Setting target plan and accordingly taking actions
 Policy establishment
 Identifying strengths and weakness
 Budget development

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Leadership:
Management and leadership skills are considered essential for handling any changes
in growth of cultural diversity of employee and Australian society.
Rock Paper Scissors are lead by its owner Fadi and Fatimah khan and has 10 full hair
time dressers as their staffs. Staffs of salon are not performing effectively. Owners are not
actively engaged in managing daily operations of business and therefore, leadership as
regarded as critically important for the success and sustainability of salon. Leadership is an
articulation of mission of organization and helps in bringing major change in organization
(Korschun et al., 2017). If an organization is dealing with some trouble aspects resulting from
external environment, employment of appropriate style of leadership helps in dealing with
such situations and providing aspirations. Employees of salon are demotivated and they are
not punctual in their job. Leadership helps in inspiring and motivating employees and
objective accomplishment in innovative and creative ways. Contingency theory of leadership
is developed by Warren Schmidt and Robert Tannenbaum that make the identification of
seven major styles of leadership that leaders can choose from for managing the performance
of organization (Antonakis & House, 2013). There are different style of leadership that leader
can chose according to particular situation. Seven continuum styles have been developed
along with development of two leadership style that is participative and autocratic leadership
style. Behavioural leadership theories and team leadership styles helps in increasing profits
by managing performance of employees and their productivity. Team leadership helps
organization in improving employee performance, lowering turnover, low absenteeism and
generating employee satisfaction (Huppatz & Goodwin, 2013).

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Recommendation:
 Rock Paper should employ team leadership for motivating their employees for
increasing productivity and serving maximum number of clients for enhancing
performance.
 Employing contingency leadership styles and other seven style of leadership
according to particular situation of salon
 Encouraging participation and collaborative decision making
Motivation:
Staffs of salon are not motivated and are not actively involved in manage g and
handling their responsibilities. Furthermore, they don’t arrive at their work on timely basis
and hence they are underperforming. Rock Paper does not have any written policies that
make their staffs to provide services to their friends free of cost and by using salon chemicals.
It is of utmost importance for salon to motivate their employees. McCelland’s, theory of
needs depicts that there are there motives that drives the employee’s performance and these
includes achievement, affiliation and influence. Affiliation is concern about interrelationship
at work and desire to belong to some team. Influencing is about persuading other staffs to get
engaged in work and achievement is about setting goals, mastering tasks and finding
solutions. Manager of salon should recognize the needs that are of utmost importance to
organization and motivation. Maslow’s hierarchy of need theory assumes that there are five
needs that motivate employees within organization. Such needs are physiological needs,
social needs, safety needs, needs of self actualization and ego and esteem needs. Another
theory of motivational need is Alderfer’s hierarchy that incorporated three needs level that is
growth, relatedness and existence. Goal setting theory helps in specifying gaols and fixing

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objectives along with providing feedback for improving their performance. Under this theory,
performance is influenced by self efficiency and goal commitment (Northouse, 2015).
Recommendations:
 Some of the main motivational contributions to employee are the need suggested by
Maslow’s hierarchy and therefore, it is recommended to rock paper to employ such
theory of motivating employees and staffs.
 Employment of goal setting theory helps in aligning vision and mission of salon along
with attaining objectives.
 Salon can conduct any survey by framing questionnaires seeking them what are the
factors that motivates them most.
Performance management:
Rock Paper Scissors does not have any indicators for measuring performance of their
employees and they do not have kept any track of customer visit and number of clients served
by staffs per day. Furthermore, there is not any proper accounting system that makes
difficulty for gauging financial performance. Performance management is critical for any
organization as employees are indispensable part of any organization such as hair dressing
salon (Parmenter, 2015). Performance management will assist salon in ensuring whether
employees are fulfilling their responsibilities and living up to expectation of salon objectives.
Managing performance initiates with monitoring and development of required traits for
measuring their performance and rewarding them accordingly. Performance appraisal is the
method that can be employed by organization for motivating staffs for better productivity
(Shields et al., 2015).

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Recommendation:
 Employee involvement in the planning stage helps in developing appropriate way to
get the business done. This would prevent any type of communication gap along with
boosting confidence and morale of employees
 Evaluating performance of employees individually and issuing performance review3s
should be then policy of salon
 Monitoring employees productivity and progress should be done on regular basis
 Rewarding employees should also be the part of performance management program
that would helps in ensuring maximum profitability and optimum performance and
productivity.
Incorporation of goal setting:
Specification of gaols helps in fixing some of the issues faced by salon. It can be
observed from case study that there is no proper management of salon in all the aspects such
as customer, financial management and does not have any written policies that would prevent
employees from indulging in theft of property. Goals should be specified for each staffs and
monitoring helps in addressing the ongoing issues faced by salon (Wang et al., 2017).
Recommendation:
 Establishment of decisions making and inculcating the behaviours of achieving gaols
by each individual
 Generating internal focus of control
Strategic and Financial planning:
Financial reporting of Rock Paper is done on monthly basis and reporting is done for
bank statements, credit card statements and receipts. Accountant of salon is responsible for

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preparing balance sheet and profit and loss statement. It can be seen that there are no proper
financial planning. Financial planning is the back bone of any organization for carrying out
its operation profitably (Laing, 2014). Furthermore, all the competing values of organization
are incorporated in strategic planning. Importances of planning are needed to be realised by
hair dressing salon.
Recommendations:
 Developing financial indicators for gauging financial performance and reviewing
financial reporting on annual basis as well.
 Written policies establishment for protecting property of salon
 Determining the strength and weakness of salon
 Conducting evaluation of current scenario of salon
 Identifying link between financial decisions, investment and business performance
3.0 Managerial environment in which hairdressing salon operates:
Management of hair dressing salon is to be done in a very creative way for generating high
level of customer satisfaction. It intends should be to create a working climate that is conducive to
employee’s satisfaction and high degree of personal development. Working practices of salon
incorporates safe disposal of chemicals and not contributing to property theft by employees and
management training should be commended for employees to effectively handle the business.
Business management training is the emerging skill gap for salon along with talent retention. Process
of retention is to harness the potential to completely engage employee within the salon (Tourish,
2014).

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4.0 Priorities and process of managers of Rock Paper and Scissors:
Managers of Rock Paper Scissors are required to have the proper understanding and greater
knowledge of technology, financial matters, business planning and management of human resources.
It is of utmost importance for mangers to understand and have the skills of financial management that
relates to their business process and thereby helps in generating profitability and maintaining it.
Workforce of salon can be managed by inculcating human resource management skills and working
toward improving their morale and productivity and contribution to their social well being. For
operating profitably, there is need to have some requisite business skills. Proper documentation and
formulation of policies would guide and direct the employees to carry out their activities for
preventing them for property theft and unauthorized use of salon’s belongings. Therefore, it is
recommended to managers to develop management skills for addressing several management issues
faced by Rock Paper Scissors.
5.0 External environmental factors affecting hairdressing salon:
In Australia, there are no hair dressing salon in the industry having a dominant market share
and this industry has expanded over the past five years. Hairdressing industry in this country is
particular made of small and medium sized business (Schaltegger & Wagner, 2017). There are many
external that affects the operation of hair dressing salon and they are as follows:
 Technological advancement- There is increasing employment of information and
communication technology by the salon in their process of doing business. It involves text
messages confirmation and appointment of management software. All this impacts the
operations of hair dressing salon.
 Government policies- formulation of policies by government relating to operations of
business does have a considerable impact on salon business.
 Economic drivers- Structural shift in Australian economy has benefitted the hair dresser
industry. Sales of service and add on products of salon can be enhanced by adopting the

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strategy of providing unparallel customer services. Increasing competition is faced by hair
dressing salon.
 Growing population, high discretionary income and high demand of beauty services in
Australia.
 Trends- hairdressing business are significantly influenced by ongoing trend and ultimately
impacting the strategic planning of business (Lyons et al., 2013).
 Customer base- Sudden change in target customers would also impact the operations of hair
dressing salon.
6.0 Contemporary management challenges presented by issues faced by
Rock Paper Scissors:
Owners of salon might face many challenges due to several issues prevailing including poor
management skills. Some of the challenges are listed below:
 Challenge in maintaining competitive edge without having a proper strategic approach
 Challenge is gaining successful clientele and running successfully in event of economic
downturn.
 Rock Paper Scissors ability to adapt to requirements of clients and constant changes in
techniques and fashion.
 Challenge in terms of generating sufficient profits to become sustainable in growing
environment of hair dressing industry.
7.0 Conclusion:
From the above analysis of various aspects of management, it can be said that there
are several issues faced by Rock Paper Scissors. They have issues in several fronts such as
customer satisfaction, demotivated employees, not generating profitability and do not have
any strategic goals. Salon would be facing many challenges if they are not addressing such

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prevailing issues by incorporating various management theories to use it at their advantage.
Moreover, various external environmental factors of Australia would have an impact on salon
performance. However, such challenges can be addressed by formulation of strategic
approach for solving issues. This would help in maintaining their position in growing
environment of hair dressing industry in Australia.
8.0 Recommendations:
Recommendations to Rock Paper Scissors can be wrapped by suggesting them to
adopt various theories such as leadership theories, motivational theories and developing
mission statements and setting goal. Salon should have proper financial planning that would
assist them in gauging and measuring their financial reporting. Performance management
such as appraising employees and rewarding them by reviewing their performance would
help in motivating them to work more and improve their productivity. Therefore, adoption of
the above recommended strategies would help Rock Paper Scissors in managing their overall
performance and improving sustainability.
.

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References list:
Antonakis, J., & House, R. J. (2013). The full-range leadership theory: The way forward.
In Transformational and Charismatic Leadership: The Road Ahead 10th Anniversary
Edition (pp. 3-33). Emerald Group Publishing Limited.
Combe, C. (2014). Introduction to management. Oxford University Press.
Elliot, A. J., Dweck, C. S., & Yeager, D. S. (Eds.). (2017). Handbook of Competence and
Motivation: Theory and Application. Guilford Publications.
Hislop, D. (2013). Knowledge management in organizations: A critical introduction. Oxford
University Press.
Huppatz, K., & Goodwin, S. (2013). Masculinised jobs, feminised jobs and men’s ‘gender
capital’experiences: Understanding occupational segregation in Australia. Journal of
Sociology, 49(2-3), 291-308.
Kinicki, A., Williams, B. K., Scott-Ladd, B., & Perry, M. (2014). Management: A practical
introduction. McGraw-Hill Education Australia.
Korschun, D., Bhattacharya, C. B., & Swain, S. D. (2014). Corporate social responsibility,
customer orientation, and the job performance of frontline employees. Journal of
Marketing, 78(3), 20-37.
Laing, W. A. (2014). Small business environmental sustainability: Student-applied
practices. Journal of Sustainability and Green Business, 2, 1.
Lyons, G., Roberts, H., Palmer, A., Matheson, M., & Nixon, R. (2013). Hairdressers
presenting to an occupational dermatology clinic in Melbourne, Australia. Contact
Dermatitis, 68(5), 300-306.

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Maag, J. W. (2016). Behavior management: From theoretical implications to practical
applications. Cengage Learning.
Northouse, P. G. (2015). Leadership: Theory and practice. Sage publications.
Parmenter, D. (2015). Key performance indicators: developing, implementing, and using
winning KPIs. John Wiley & Sons.
Schaltegger, S., & Wagner, M. (Eds.). (2017). Managing the business case for sustainability:
The integration of social, environmental and economic performance. Routledge.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., ... &
Plimmer, G. (2015). Managing Employee Performance & Reward: Concepts,
Practices, Strategies. Cambridge University Press.
Tourish, D. (2014). Leadership, more or less? A processual, communication perspective on
the role of agency in leadership theory. Leadership, 10(1), 79-98.
Wang, S., Noe, R. A., & Wang, Z. M. (2014). Motivating knowledge sharing in knowledge
management systems: A quasi–field experiment. Journal of Management, 40(4), 978-
1009.

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