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The management of a corporation can determine whether the company succeeds or fails.
Leaders in positions of authority over the firm determine the enterprise's performance.
Poor management theories have an impact on a company's performance (Ghoshal, 2005).
Leadership management strategies should be thoroughly assessed.
If adopted without additional management practices, the Classical Theory of Leadership can lead to poor performance in certain firms.
Tony, a newly hired MD at Natural Beauty Store, attempted to execute changes in the organization using more classical thinking (Waring,2016). Workers were not happy with some decisions he made, and within a short period, the performance of the company declined. The workers would have been satisfied with the management if they were consulted. (Armstrong & Taylor, 2017). The report given was obtained from research conducted on the customers and the employees of the company. It includes the problem affecting the company, the worksheet of the problem, evaluation of possible solution, recommendations and implementation plan.
Natural Beauty Shop is involved in the manufacturing of natural beauty products that are animal test free and environmentally friendly. A company used to perform well due to its organization structure that was set up by Maggie. Due to its successful production of high-quality products, the CEO of the company decided to expand it to meet public demand. When the management changed, the performance significantly declined due to the type of leadership exhibited by the management. The leaders applied more of classical leadership, and they ignored the human social theory. This resulted in the weak performance of the company and effects of the leadership are investigated and report given as discussed below.
The problem with the natural beauty shop
there has been a production of low-quality products which emanated from poor management of the company.
Evidence from the case study that shows this is happening
Several television programs reported cases of fraud and lies from the company which led to Australian competition and consumer commission taking an initiative to investigate the matter. Maggie saw comments about the product from the beauty shop which was described as disgusting products which contained water as the main component. It was also said that the person in the store was only one who was fatigued and could not talk well to the customer due to the condition of being tired. The head of HR team called Maggie to tell her to go back home as they were suffering a shortage of workers in the store.
Effects of the problem to the organization
With negative feedbacks from the customer, the sales of the beauty shop would go down and reduce the profits made by the company. The goals of the business of donating towards community initiative will not be met. The trust of the organization by many people will go down due to the failure of making natural products.
Causes/sources of the problem
Hiring inexperienced people in the beauty shop contributed towards the failure of the company.
The managing director did not consult the other senior people in the company who had worked for the beauty shop before him for long. Additionally, Tony did not put into consideration the effects of his decision into the organization’s culture.
There has been a high turnover of employees within a period of four months in the beauty shop.
There is Poor communication within the organization among the workers.
The ingredients used are of low quality and sometimes they contain chemicals, and others have a large quantity of water.
Possible management theories that can explain organization’s problems
There are concepts of management that can be applied to account for this situation.(Handzic, 2017). Tony believed that the retail store team was not supposed to be given any reward because of reaching their goals since it was their work. Tony gave official warning to ‘underperforming’ people despite their positive reviews by the customers. Staffs in the head office team were banned from working in the store since Tony claimed that it was affecting their performance. Tony never considered what the other workers of the company said concerning decision-making. When Jack went to explain to him about the quality of ingredients from the new suppliers, he told him it was not his business. (Ghoshal, 2005). All the changes to cut cost done by Tony were based on his previous experience in accounting. His decisions were based on scientific analysis of the company sales performance. Tony ignored any suggestion from the other workers without considering the effect of his action on the culture of the natural beauty shop.
Generation and Evaluation of Alternative Solutions Worksheet
The problem with the natural beauty shop is there has been a production of low-quality products, which emanated from poor management of the company.
1. The company should employ someone with experience in the Natural Beauty Shop
2. The communication among the people who are in the Natural beauty shop should be enhanced
3. The low-quality ingredients should not be given priority; instead, the company should go for the ingredients that were natural contained no chemicals and did not contain high amount of water
4. While making a decision, all people who are working there should have an input in the decision
5. The company should increase the number of workers in the stores
Solution 1: The low-quality ingredients should not be given a priority instead the company should go for the ingredients that were natural contained no chemicals and did not contain a high amount of water.
This means that the firm should stop importing ingredients from Wallace’s contact and use the ingredients from overseas and third world community since they were of good quality. The supplies from Wallace's connections should be abandoned because they were compromising the quantity of the products. Products from the third world contained no chemical and hence environmental friendly. Using these supplies, which did poor communities from South America provide and Africa, facilitated the achievement of Maggie, which was giving back to the community.
Advantages of the solution:
1. The company will be able to produce high-quality goods that are natural environmental friendly.
2. The reputation of the company will be restored
3. The third world communities will continue enjoying the benefits of the company, which was Maggie’s aim.
Disadvantages of the solution:
1. The supplies from the third world communities and South America are more expensive compared to the ingredients that were introduced by Wallace.
Solution 2: The organization should change the work management
Explanation of the solution: This means that the working conditions of the organization should be reviewed. The number of workers should be increased. (Armstrong & Taylor, 2014). The rewarding of employees should be done to motivate them whenever they are working. Also consulting them during the time to make the decision would make them feel recognized by the firm. The director of the supply chain department should be a person who is well acquainted with the operations of the natural beauty shop.
Advantages of the solution:
1. This would ensure that all operations of the stores are well done, and workers are not overused.
2. Customers will be well attended due enough number of workers
Disadvantages of the solution:
Increasing the number of employees will lead to greater amount of money paid to the employee.
The company should improve the relationship between the senior managers and the rest of the workers. Good communication helps in team building. It easy to come up with a highly productive and efficient team if there is good communication between managers and employees (Rojas, Rojas & Villamizar, 2017). It is through good communication that workers will develop a positive attitude towards work and get the working morale (Rojas, Rojas & Villamizar, 2017). If the communication is poor in an organization, the workers will feel not satisfied, and they may fail to perform their duties.
During decision-making, the employees should be consulted especially if they have worked for a relatively longer period in the company. This helps in improving the performance of the firm as workers would work hard to see that they succeed in their efforts (Bayraktar, Araci, Karacay, & Calisir, 2017). Consulting workers also help in team building since each employee is given a chance to communicate their views.
The company should employ people who have experience in natural beauty shop. Employing high school and college students would compromise the quality of goods produced. The company should hire employees who are experienced in the natural beauty products. They increases productivity and are more effective (Anitha, 2014).
The goal of this implementation is to help Natural beauty shop improve its production management.
1.2 System Overview
The management of natural beauty has lead low-quality production. The working environment for the company is not the way it should. Good management of work will help the company to restore its productivity. Getting the ingredients from the third world community like Africa and South America is of great help since these ingredients are of high quality. Getting the right person to manage the company will make its productivity improve.
1.3 Assumptions and Constraints
It will take a period of four months to completely change the management of the company and restore the reputation of the firm. The amount of money spent in paying the workers will be increased. There will be some money set aside for rewarding the workers pay the people who will be in charge of interviewing the new managing director.
1.4 System Organization
The new Managing director will be required to cooperate with the rest of the staff at all times.
The managing director will make necessary decision with assistance from other members of the staff.
The store manager will be evaluating the quality of ingredients before buying them from suppliers.
All the ingredients should meet the standards of those that were used by the company previously.
Face to face, time with the customers will be increased to ensure that all the questions are answered. This will involve people in the store department
2. Management Overview
The plan will involve hiring new managers who are well acquainted with operations of natural beauty shop. Interview will be conducted before hiring a person.
New managers of the company will be managing the company in such a way that the company will embrace unity and work together as a team. The decisions made by the company will be inclusive of other members of the company. Increasing the number of workers in the stores department and any other place if necessary will be highly valued. The workers will be given an opportunity to express their views about the working conditions. Giving back to the community will be highly valued and this will be facilitated by giving them the tender to supply the company with ingredients.
2.1 Implementation Description
The first thing to do is to employ another Managing Director of the company who will go through an interview and demonstrate his competence in managing a Natural Beauty Shop retail shop.
Other employees will be hired to fill the gaps in the stores. Training of workers will be done, and it should commence as soon as the company acquires new MD. The people who will be employed will be individuals with experience or ready to be trained and not high school students or college students. Workers will be rewarded for their good performance in the company.
2.2 Implementation Schedule
The first thing to be done is to terminate the services of Tony and Wallace from the organization
A committee will be chosen from the organization’s staff who will be involved in interviewing the new Managing Director.
Maggie should appoint one person from within the organization to be his assistant in managing the firm as they look for another MD.
The appointed committee shall outline all the requirements of the new MD based on operations of the organization.
After describing the requirements and qualifications, the company shall announce the job vacancy for new MD and other staffs through social media and the TV stations.
3 Implementation Support
3.1 Staffing Requirements
The people who will be appointed to the implementation committee are senior managers in the firm such as Jack
Other employees who have worked with the company since it started will be included in the committee.
3.2 Outstanding Issues
The challenge that may appear during the implementation is that the firm might lack people who are qualified for their vacant positions from outside the firm
The other members of the staff to be recruited may lack technical knowhow about the operations of the company, and this may call for more training time
Due to increased training time, the production of the company may shrink.
Maggie will be required to be present during the interviews to ensure that they hire competent employees and this will make her not to go back to the UK immediately.
3.3 Implementation Impact
Under new management, the third world community will get the supplying jobs.
The organization will be a learning environment, and all the workers will benefit from it.
The training of workers will enhance their competency and productivity in the firm
3.4 Performance Monitoring
After a period of two months, the performance of the company will be evaluated and compared to the current performance.
During the evaluation, number of workers will be requested to give their opinions about their duties they perform in the firm.
The products quality of the will be evaluated to check whether they meet customers’ needs.
4.0 Risks and Contingencies
If there is no person to fill the MD vacant position, the appointed acting MD will still continue acting until qualified person avails.
In case the firm is not able to raise money, it will borrow a loan to raise the money for the employees and buying the ingredients.
4.1 Acceptance Criteria
Once the committee is chosen, there will be an official meeting done to explain to workers reasons for the changes made by the company.
Maggie will interview the employees and evaluate their opinions with the appointed committee.
If there arises an issue from the workers, the designated committee will address it immediately.
The committee will convince the workers on the benefits of changing the management and working environment
Anitha, J. (2014). Determinants of employee engagement and their impact on employee
performance. International Journal of Productivity and Performance Management.
Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management
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Armstrong, M., & Taylor, S. (2017). Armstrong's handbook of human resource management
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Bayraktar, C. A., Araci, O., Karacay, G., & Calisir, F. (2017). The mediating effect of
rewarding on the relationship between employee involvement and job satisfaction. Human Factors and Ergonomics in Manufacturing & Service Industries, 27(1), 45-52.
Ghoshal, S. (2005). Bad management theories are destroying good management
Practices. Academy of Management learning & education, 4(1), 75-91.
Handzic, M. (2017). Knowledge Management Selection Model for Project Management.
In Knowledge and Project Management (pp. 157-179). Springer International Publishing.
Rojas, M., Rojas, M., & Villamizar, K. (2017). Eficom, Game Designed for the Analysis of
Effective and Efficient Communication Skills. In Advances in Human Factors, Business Management, Training and Education (pp. 1083-1090). Springer International Publishing.
Waring, S. P. (2016). Taylorism transformed: Scientific management theory since 1945. UNC
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