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Characteristics Utility Cyclists Queensland

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Management is the prime and the essential unit of the business that to certain extent determines the success of the business. Any lack or drawbacks in the management system can affect the organization as well as the profit of the same. In addition, the management faces various issues in the organization which needs the assistance of the management to resolve the same. However, the report is the presentation of the challenges faced by the management of the Rock Paper Scissors, one of the Australian hairdressing salons that are found to be having several management issues in the contemporary environment.

The salon was started by the Fadi and Fatimah Khan after Fadi won one of the major national hairdressing competition in Australia (RockPaperScissors Salon., 2017). The salon was established about one year ago and provides hairdressing service to the men, women and children. Despite having sufficient staff and necessary equipments, the salon has unfortunately never experienced a profitable outcome from the business. However, the loss of the salon has never been properly measured. The prevalent and primary challenge in the organization is the lack of strategic planning and the absesnce of the mission, vision and the value statement in the organization. This basic problem is leading the organization towards other issues like absence of proper business objectives, de-motivated staffs, no monthly financial reporting, no measurement of the employee performance, no proper record on customer satisfaction and the presence of the unethical practice in the organization.  



The issues that are apparent in the organization need to be resolved immediately in order to ensure profitability of the business. To resolve the issues the effective recommendations are:

The Rock Paper Scissors must design and implement the proper strategic planning in order to avoid the management issues in the organization (Barney, 2014). The strategic planning will include business objectives and the financial planning reporting stricture and process in order to ensure the measurement of the profit and loss of the organization. In other hand, the business objectives will provide the organization a clear and focused goal for the business.

The next recommendation refers to the establishment of the mission, vision and value statement in order to the add value to the business as well as effectively implement the strategic planning in the organization (Darbi, 2012). The effective strategic planning will help the salon to operate the business in a proper and structured way, which will reduce the issues and risk in the organization.

One of major challenges in the salon is the lack of the performance data of the staffs in the organization. The salon must implement strategy and the process to measure the performance of the staffs annually (Rothaermel, 2015). This measurement will also help the management to keep record of the any unethical practices by the employees along with the performance data.

The last recommendation is to the management for keeping and analyzing the customer feedback on their satisfaction by the service of the salon. Analyzing the customer feedback will help the salon to understand the performance of the salon and the room for development in the service (Bauer & Nanopoulos, 2014).

Management Concept, Theories and Principles:

The concept of the management entails proper handling and controlling of the all the resources in the organization and the understanding and resolving the issues emerged in the organization.  In other words the management can be signified as the skill of getting the things done. Therefore, an organization is based on the management system and the management is the primary and central unit for the organization to get the business operation of the organization and the staffs to be done (Hendry, 2012). The business operation of the firm is designed, controlled and managed by the management system. Moreover, the management is also responsible for the prevention and elimination of any challenges and hazards in the business operation of the organization. To certain extent, the management is of the firm is responsible for the profit and loss of the organization as the strategic planning of the management implies the effectiveness of the same on the business (Goetsch & Davis, 2014). In addition, the management is also capable of ensuring the sustainability of the organization. However, in short, the concept of the management denotes that an organization and its business is based on the management of the organization, as this the management works as the prime control unit for the firm as well as for its business.


Management Theories:

One of the major, effective and the essential theories of management is the goal setting theory. The goal setting theory is based o the performance of the staffs as well as the overall organization in terms of the business profit (Daley, 2012). In other way, the goal setting theory creates the basis of the organization for setting proper business goals and objectives for the firm’s business. This particular theory refers that the organization must set goals for ensuring the success in the business and therefore the objectives must be clear and precise. It is the responsibility of the management to set proper specific goals, which will be challenging as well for the organization. The criteria for setting goals are such because the more challenging the goal is the greater outcome it provides.

The goal setting theory contains five principles that are deeply related to the Rock Paper Scissors. The first principle is the clarity, which refers to the clarity of the objectives of the firm. The salon does not have any clear goal. Therefore, the theory implies that the clarity of the goals will ensure the success of the firm. The second principle implies that the salon must take challenge in order to strengthen their success and profit rate. Similar to the challenges, the salon should be ensure commitment to its business goals and provide service accordingly. It is discussed that the salon does not have any measurement too for receiving feedback of the customers. The theory recommends that the management must start taking feedback of the customer in order to improve their service as well as the business.  Along with this the theory also refers to the goal setting of the firm in order to avoid the task complexity by the employees (Locke & Latham, 2013). However, this theory individually is not capable of removing the issues in the management system, but implementing this theory can resolve most of the issues predominant in the salon.

Management principles

Management remains as the technique of achieving goals and objectives effectively through and with the people. It also remains as the technique of designing and maintaining an environment in which individuals work together in groups to effectively and efficiently achieve the selected aims. As put forward by Giacalone and Rosenfeld  (2013)  principles of management referred to a fundamental truth and it develops the cause and effect relationship between two or more variables under given situation. Thus, management principles are the statement of fundamental truth based on the logic that provides the guidelines for managerial decision-making and action. The management principles indicate that the managers or the leaders are the critical part to obtain success in business. As put forward by Haddow, Bullock and Coppola (2017) the managers take responsibilities of all department of the organizations such as budgeting, designing, selling, financing, accounting and creating artistic presentation. Each employee working in the organization is affected by the principles of the management. The principle of management may include several elements and some sub-elements of organizational activities; however, in the case of Rock Paper Salon, the organization is in the need of implementing an appropriate organizational and management culture.

The organization suffered a great loss due to the poor organizational culture and leadership skills of the managers or the leaders. A skilled leader must have good communication skills to communicate with the employees and operate the entire organizational function. If the leader is not able to convey the messages to others, the organizational operation might not improve. The organization Rock Paper Salon is going through losses and the organization has observed poor productivity due to the absence of proper management. The performances of the employees have been affected, as the leaders do not hold any role in the operation. This means the organization did not follow the basic principles of management such as planning, controlling and organizing.  As the organization Rock Paper Salon does not have proper organizational goals, objectives, the employees do not feel motivated, and they do not implement their job responsibilities. In addition to this, the organization did not implement any managerial initiatives such as supervising the performance of the employees, analyzing the profit and loss statement, the organization did not even conduct an environmental analysis to learn about the market demands and competitor positions and other significant marketing elements (Jesuíno et al., 2016). Had the organization implemented an appropriate leadership skills and organizational culture, the organization would have been successful in leading the operation effectively.


Management models

The completing value framework theory developed and conducted on the major research indicators of effective organizations. On the basis of the statistical analysis of a comprehensive list of effectiveness, Quinn and Rohrbaugh founded two significant dimension underlying the conception of effectiveness. The first dimension of the model is associated with the organizational focus from an internal emphasis on the well-being as well as the development of people in the organization to an external focus on the well-being as well as development of organization itself (Lindquist et al., 2016). Another dimension differentiates the organizational preference for structure and it presents the contrast between the stability, control and flexibility (Ma, Kent, & Mulley, 2016). Hence, in the case of Rock Paper Salon, the internal emphasis should be on organizational internal development such as a positive organizational culture, enhanced employee performance and achievement of organizational objectives and goals.

On the other side, the external focus should be on the position of the organization in the market. This framework helps to determine the position of Rock Paper Salon considering the position of the competitors in the market. The second dimension is organizational preference for structure, which could determine the stability of Rock Paper Salon. This means here the organization needs to strengthen the market position by developing the quality of organizational performance. Moreover, the completing value framework, apart from these two quadrants, the framework presents four significant models for the organization. The first model is Human Relation Model, which focuses on the flexibility; hence, Rock Paper Salon could develop the flexibility by enhancing the performance of the organization and the employees. The second model is open system model, which deals with the flexibility and external focus; hence, the organization could pay attention to the market demands, available resource and market economy. Likewise, the rationale goal model deals with control and external focus and consider planning, goal setting, and productivity. Hence, Rock Paper Salon needs to develop its own goals and implement initiatives to achieve them. Lastly, Internal Process model pays attention to the control and internal focus, which Rock Paper could do by establishing an effective communication within the organization among the employees.

External environmental factors affecting the operation of Rock Paper Scissors Salon

Political Factor- As put forward by Sinnott et al., (2012), the political environment in Australia is stable, which certainly provides significant business opportunity for the businesses. The people in Australia prefer the current trends; thereby, if Rock Paper Salon improves its quality of service, it could establish its operation without any obligation.

Economical Factor-The economic state of Australia is stable, the growing GDP in the nation brings the opportunity for business (Barnes & Hunt 2013). However, it has also been observed that the price of property in Australia is high, which could affect the business operation. To deal with such issue, the firms could focus on the large populated areas such as Tier I and Tier II cities, where the demands of services may be high; thereby, the cost can be managed.

Social Factor- It has been observed that upper class, middle class as well as the working class are the three major categories of social life in Australia (Januchowski-Hartley et al., 2012). However, people adapt to the recent trends and culture. The market demands change on a frequent basis, therefore, the opportunities arise for business.

Technological Factor- As put forward by Hatfield-Dodds et al., (2015), Australia is technologically developed and people are used to the advancement and innovation of technology. This means the organization Rock Paper Salon could use the modern technology and speed up the operation.

Legal Factor – The governments of Australia are very strict and concerned about the implementation of trade regulations (Coumarelos et al. 2012). Non-compliance to regulation could certainly affect the business.

Environmental Factor- Under the legal framework, the organizations also need to follow the environmental laws related to protection of environmental laws. The organization needs to follow Environmental Protection Act 1947 to sustain in the market (Sahlqvist & Heesch, 2012)

Management challenges and issues

The major significant challenges, the organizations could face in Australian market is the dynamic market environment and dynamic economical state. The market demands changes on a frequent basis; therefore, any short-terms plans developed by the organization might not provide the expected outcome. Hairdressing Salon should pay attention to the recent trends of the market to lead the operation. However, Rock Paper Salon falls under small and medium size organizations; thereby, the sudden downturn in the demand of service or in the economy certainly remains as the significant challenges for Hairdressing Salon.  On the other side, the internal environment of Rock Paper indicates that employees are not skilled enough to attract and retain the customers. The employees need proper training in terms of skills development but due to the absence of such enhancement programs, the staff of Rock Paper Salon is not able to cope up with the competition. Moreover, as the organization lack proper organizational culture and style, the customer retention has been a significant issue for Rock Paper Scissor



The paper completely focuses on the organizational management of Rock Paper Scissor. It is observed that organization Rock Paper Scissor is small organization with limited profitability and strength. The firm does not have proper mission and goals, which would have helped the organization to lead the operation towards the desired direction. Such negligence also affects the employee performance because the employees are not serious about their work and the importance of organizational growth. Thus, the organization first needs to develop proper organizational goals and then based on competing value framework it could implement the strategies. In addition, the political and economical environment of Australia is stable, which remains as the significant opportunity. Nonetheless, the cost of property in Australia is significantly high and this could be a challenge for a small organization when it wishes to expand.


Selecting a proper location- The organization Rock Paper Scissor needs to choose a proper location where the population is high, as crowded market certainly increases the demand of services. The organization could focus on the Tier I and Tier II cities in Australia.

Provide appropriate training for the employees- To meet the customer demand and maintain the quality of services, the organization needs to enhance the skills and knowledge of their employees. This could be done by providing the staff with weekly training.

Social media platforms- Australia is technologically advanced and people have access to social media tools such as Facebook, Twitter, YouTube and others. The social media platforms could help the firms to promote its business and reach the wide market.



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