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Management People & Organizations

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The Natural Beauty Shop was based on the principles that have been surrounded by doing no testing on animals, usage of only natural organic products and the ingredients which are supplied from the poor developing countries from various places like South America and Africa. The origin of the ingredients has been taken into considerations the products are not very cheap, but they are of extremely very good quality, which can be recycled and are sold with minimal packaging. In addition to these entire principles dollar, 3 from each product will be donated to the community initiative.

Growth was intense from the past three years for the Natural Beauty Shop soon it had to face some key problems with the management. Due to which the sales of the company have fallen to 51 person low and the reputation started to loose along with the quality of the products. These are some of the key problems that are being faced by the company for which appropriate solutions have been designed to protect the company from being at stake.

Some of the recommendations are provided in the report to the Natural Beauty Shop for reaching its reputation level to the public and to make profits and gains to never let her go off on the mission. Since her aim was to help the poor developing countries and to protect the environment.

Problem Identification and Analysis

Management will be having its own share of the rewards and the perks. The manager will be usually in the best position to influence the employees and to lead any kind of changes. Hence, in most of the organization’s manager has to be recruited by careful analysis of the internal and the externals strategies and the inbuilt personality. Here the issue is not that the internal process of the company is properly handled rather the recruiting process is not being followed correctly and is being broken in assessing their skills (Alexander, 2013). To make the hiring of the candidate successful, then the key factor is driving the constant communication with the individual. The most common misconception in the hiring process is that the urgency to recruit a person can lead to the sacrificing of the quality of the products, but if they are correctly managed and are properly prioritized then the management will not face the key challenges in their further processing (Bush & Middlewood, 2013).


The following are some of the key problems which are faced by the organizations and are found relevant to the case study the Natural Beauty shop include:

  • Recruitment: Any organization has to make perfect decisions while recruiting a person for any kind of position as it will affect the performance of the organization later. So here, in this case, the Natural Beauty Shop has chosen the new MD. Even after viewing many of the applications the senior management team finally got settled with the application of Tony Smith. This individual did not have any retail or the beauty experience before, but because of the high recommendation from the previous firm director to the recruiters as being the good accountant though Maggie was a bit hesitant, she was forced by the team to recruit. But later the company started experiencing the drop in sales and growth because of his strange behaviors and commercial business strategies. In this point of view, McClelland’s Theory of Needs can be related to the concept. As various personalities have to be managed by the MD which is not an easy task, but in order to motivate the people and give appropriate feedback the managing team should be perfect (Bennett & Dearden, 2014).
  • The performance problem of the employee is confronted- Dealing with the issues of performance of the employees is found to be the key source for the manager to face upon. While these problems are neither that easy nor hard to deal with. This can be related to the case study of the Natural Beauty Shop that recruiting Mr. Tony as the new MD by the senior management team (Cummings & Worley, 2014). The key problem is that Tony has started warning the employees officially who were underperforming. Though these employees were not able to reach their sales goals they are capable enough for getting the excellent reviews from the customers and appropriate in team engagement. As per the concept of McClelland’s Theory of Needs the employee has to be motivated for his best performance in the organization rather they are assessed on their underperformance and demotivating is being done.
  • Terminating the experienced employees: The organization should always retain the employees who are highly potential enough for improving the sales and growth of the company. Since they are worth, can face highly challenging environment and supports the company and finds a path for career development. But in relation to this case of Natural Beauty Shop, it started hiring the individuals externally from the high school and the young students who are inexperienced and work for fewer wages (Clegg, Kornberger & Pitsis, 2015). Hence, the internal process of hiring and promoting the employees has diminished. The workers who are more experienced have lost their working hours all of a sudden. Here Tony Smith strategies are similar to the McGregor’s Theory X and Y concept, but his works are more relevant to McGregor’s Theory X where for streamlining the business and for reducing the wastage on the organization he started supervising people at every step and threatened them by warning and gave no incentives or bonus for their work of success (Carroll & Buchholtz, 2014).
  • Exclusion of better opportunities: Any individual at some point have to move out of the comfort zone and has to acquire potentials for success in their career. So the assignments that are challenging and accepting new jobs have to be developed by the organization. In the case of Natural Beauty Shop, the program of career development pathways has been removed by the managing team (Fullan, 2014). This problem can be related to the concept of Maslow’s Hierarchy of Needs in which one of the needs known as self-esteem fits in this issue appropriately. As the employees should be given the opportunities for showing their abilities and skills in developing their career and how it can be useful for organizational success (Goetsch & Davis, 2014). In this report, the company has introduced the opportunity of career development program where it should rather encourage the individuals to participate and provided them with appropriate training.

Statement of key problems

The internal culture of the company the Natural Beauty Shop is driven by the personal values of Maggie. In addition to this, their managers of the firm are also encouraging so the family like work environment was maintained where everyone knows each other and the roles of everyone are understood by each other (Haeckel, 2013).  Intense growth has been seen in the past three years for the firm of Natural Beauty Shop which can be known from the expansion of its products to 300 and has opened 15 stores in and around Australia. Due to such growth and gaining of fame, Maggie has made a decision of setting up the new stores in the UK. So she has to hire the new Managing Director to supervise the operations in Australia (Kinicki et al., 2014).

Therefore, a leading recruiting company in Sydney was engaged in finding out the new MD for the Natural Beauty Shop Company. After reviewing several applications Tony smith was finally selected (Martin & Siebert, 2016). Though he has abilities in making the decision and for increasing the sales he did not have any experience from the beauty and the retail background. The two key problems that can be drawn from the case study are as follows:

  • Things started to change within a week Tony just began with the company. He made an announcement of his focus on streamlining the business and for reducing the wastage and unemployment throughout the firm. This was done for the saving of the maximum funding for expanding the stores overseas. He started getting ingredients from the new suppliers which were of low quality and sometimes it was watered down and it was more of chemicals in them (Rice, 2013). Further, the products that are developed newly had a very low quality when compared to the previous batches. Ultimately the number of complaints from the customers against the stores has increased and also on the social networking sites people started complaining. By this, the sales went down and the relationship with the supply management has diminished.
  • The other change that was made by Tony and which created the key problem in the organization is the removal of the pathways for the career development program. Other than this the employees were warned for their underperformance officially since most of the staff have not met their goals in spite their feedback from the customers being excellent and the perfect maintenance of team engagement (Schwalbe, 2015). Training related to non-product and the non-software has been stopped in order to reduce the costs. The team members from the head offices were told not to work in stores for any longer monthly as it was having an impact on their work performance and the efficiencies. E-business was started which has taken all the focus from the Australian business. This was done for reducing the face to face interactions with customers (Turner, 2014). As he felt that time spent by the sales staff with customers is a waste and is a reducing cost for the Natural Beauty Shop.

Generation & evaluation of alternative solutions

Identifying the problem is a major concern later it has to be evaluated with the range of solutions so that these problems are not recurring in the origination (Yoder-Wise, 2014). For the problems which have been discussed with respect to the case study in terms of management in the Natural Beauty Shop the following are some of the solutions which are suggested for their improvement.


  1. The process of recruitment should be simple, but it should be adding value. The area of the business has to be understood and the needs of hiring and on the same basis the search plan have to be designed. As in this case, the person did not have any experience in the beauty field.
  2. The initial screening of the candidate has to be performed by evaluating the credentials of the individual who has been selected. The multiple inputs are to be gathered from the pro recruiter.

The performance problem of the employee is confronted:

  1. The problems related to the performance can be prevented by inputting the practices of better selection and thereby the performance expectations are to be set. If the problem is identified, it has to be engaged with the feedback sooner and faster can get the changes in the behavior rather than warning them officially as in the case of Natural Beauty Shop.
  2. As soon as the work performance problems are seen in the workplace, they are to be confronted by giving them fewer tasks and slowly increasing their efficiency.

Terminating the experienced employees:

  1. In this case of Natural Beauty Shop, the new MD has started terminating the experienced employees for reducing the costs for the company and for expanding their stores worldwide. But that was not the appropriate solution rather if it was brought to the notice of Maggie then the sales growth would not have been affected.
  2. Maggie instead of trusting the new MD entirely she should have crosschecked his performance and the operations that were taking place in the Australia. The experienced employees if made an appeal to the CEO would have helped them to a greater extent (Van Wart, 2014).

Exclusion of better opportunities:

  • Removing the pathways for the career opportunities is an unethical behavior by Tony Smith. Rather the employees should have made a union and fight for their opportunity would have fetched them in a positive direction (Yoder-Wise, 2014).
  • Complaining the concerns with the higher officials regarding the disruptive behavior and how it is affecting the processes and operations of the organization and the consequences that are being faced can help them retain their jobs.


The Natural Beauty Shop which is reputed for the naturally made homemade beauty products is facing some of the key management problems due to which the sales and the growth of the company have fallen down literally. There are some recommendations suggested as the alternative solutions for the major problems that are being faced by the company. The credentials of the individual have to be evaluated as the initial screen and the one that is appropriate for the needs of the position and from the similar field are to be recruited to avoid any kind of discrepancies in the firm from an unrelated field. As per McClelland’s Theory of Needs, the personalities have to manage the entire organization.


According to the McClelland’s Theory of Needs, the implementation part should be taken care of. For example, the employees should be motivated by their performance and appropriate feedback upon which the training and the tasks set for their efficiencies should be described to them. The McGregor’s Theory X model discusses the inefficiency of the employees and here Tony was acting accordingly, where the alternative solution was found to be complaining to the CEO. As per the Maslow’s Hierarchy of Needs, the employee should be given opportunities for their career growth, but Tony has eliminated, such opportunities for reducing the expense in the organization. For this, the alternative solution was to raise a complaint against him to superiors.



Alexander, K., 2013. Facilities management: theory and practice. Routledge.

Bush, T. and Middlewood, D., 2013. Leading and managing people in education. Sage.

Bennett, N.J. and Dearden, P., 2014. Why local people do not support conservation: community perceptions of marine protected area livelihood impacts, governance and management in Thailand. Marine Policy, 44, pp.107-116.

Cummings, T.G. and Worley, C.G., 2014. Organization development and change. Cengage learning.

Clegg, S.R., Kornberger, M. and Pitsis, T., 2015. Managing and organizations: An introduction to theory and practice. Sage.

Carroll, A. and Buchholtz, A., 2014. Business and society: Ethics, sustainability, and stakeholder management. Nelson Education.

Fullan, M., 2014. Leading in a culture of change personal action guide and workbook. John Wiley & Sons.

Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper Saddle River, NJ: pearson.

Haeckel, S.H., 2013. Adaptive enterprise: Creating and leading sense-and-respond organizations. Harvard business press.

Kinicki, A., Williams, B.K., Scott-Ladd, B. and Perry, M., 2014. Management: A practical introduction. McGraw-Hill Education Australia.

Martin, G. and Siebert, S., 2016. Managing people and organizations in changing contexts. Routledge.

Rice, A.L., 2013. The enterprise and its environment: A system theory of management organization (Vol. 10). Routledge.

Schwalbe, K., 2015. Information technology project management. Cengage Learning.

Turner, J.R., 2014. The handbook of project-based management (Vol. 92). New York, NY: McGraw-hill.

Yoder-Wise, P.S., 2014. Leading and managing in nursing. Elsevier Health Sciences.

Van Wart, M., 2014. Leadership in public organizations: An introduction. Routledge.

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