Innovation Capability and Business Performance †MyAssignmenthelp

Question: Discuss about the Innovation Capability and Business Performance. Answer: Imtroduction: The following report has been compiled by Management Plus consultant upon the request by Rock Paper Scissors. Rock Paper Scissors is an enterprise business organization that offers hairdressing services to clients that include children, men and women. The organization was started by the Fatima and Fadi Kahn couple. Though the organization was started a year ago, the organization has faced many contemporary challenges that affect the hairdressing business in Australia. Some of the problems that are identifiable from the business include the organization lack strategic plan that clearly outline the organizations vision, mission statement and goal, the organization has no clear motivation strategy, the organization lack customer feedback mechanism, there is limited employees performance evaluation mechanism and the business also lack proper record keeping or accounting strategy (Weber, Geneste Connell, 2015). The continuity and profitability of the business purely depend on changing some business practice through introduction of professional business practices. The structure of a modern or contemporary business needs to conform to some managerial concepts and theories that has been tested and proved working. Though the Rock Paper Scissors salon may seems to be small business there are some recommended practices based on the professional management practices that are healthy for the business. Some of these recommended management changes are discussed in detail below. The business being a small enterprise has no strategic plan that outlines the strategy for the business including the decision making direction and resources allocation. The organization need to develop its strategic plan that coincides with the strategy of the business since this will give the direction that also enhance the decision making within the organization. The strategic plan document contains the resource allocation procedures and marketing strategy that help in customer relationship. Rock Paper Scissors need to do the strategic planning that will assist the business have direction and gear towards achieving its preset goals. Approaching the contemporary business situation in the current business environment require clear set strategy and objectives to go about the hairdressing business (Allison Kaye, 2005). Vision, mission and core value statements The Rock Paper Scissors business lack vision, mission and core value statement that are the three important statements that guidelines for contemporary business. Vision legitimatize the business and the vision statement normally gives the aspiration for the organization. Mission statement on the other hand gives the mandate of the business and what the business intend to do within the hairdressing industry. Core value is also an important organization belief statement that explains the nature of the business and the culture of the business. Core value of the salon also will motivate staffs as they feel associated to some beliefs of the organization (Erica, 2012). Objectives and goals are two other areas that are not currently set in the salon. Objective and goals for the organization and the strategy highlight the aims of the business and how to make the business profitable. A good business objective gives the profitability and the aim of obtaining the business profit. Therefore the business needs to set objectives and the goals that will lead to the profit. The objectives and goals of the salon that will provide the direction that business follow towards profit making. This implies that for the salon to make profit this profit should be clearly set in the business strategy (Haines, 2004). The organization does not have corporate culture that spelt out the business beliefs and the culture. Corporate culture defines the manner in which the organization operates including the expected conduct of employees in the business. Customers can sometimes attracted to organization due to their level of corporate behaviors. Corporate culture also defines the dressing code and language that is used within the business. Corporate culture is also show the manner by which the organization relate to the clients. For instance, when the hairdresser is offering service to children, the corporate culture dictates the manner they treat client disrespectful of the age or gender. Therefore, it is recommended that the business should have clear written corporate culture and standard of operation (Alexander, Ryan Deci, 2000). Employee motivation is one aspect of current business that make the employees to perform better in any environment. Hairdressers at the Rock Paper Scissors salon shows discouraged and demotivated leading to late reporting to the premise. The morale of employees is normally attached to their performance or profitability at the workplace. One area of motivation that affect most employees according to Piers (2012), is job satisfaction and unattended to needs. Corporate culture and the business beliefs ensure that employees are in line with the business mandate and have job satisfaction. Motivation can also take the form of remuneration and rewards that the employee gets after offering services to clients. For instance, Rock Paper Scissors need to meet the financial need for hairdresser so as to avoid dissatisfaction among employees. Therefore, it is recommended that the business need to have strategy to motivate its employees to boost their morale and satisfaction (Alexander, Ryan Deci , 2000). Performance evaluation Rock Paper Scissors have no clear set performance evaluation strategy that will show the performance of each employee. Performance of employee corresponds to performance of the business. Motivated employees perform better and hence the profitability of the business. Performance management and evaluation helps the employees to be accountable and are geared towards the profit (Lorenzen, 2006). For instance, the organization can set the target for each employee that they need to attain in order to receive a certain reward. This will motivate employee to work harder toward the set objective. Setting standards for the business is another area that ensures that the business is performing. Performance appraisal helps the business to manage it performance since those high performing are rewarded according to their performance. Lastly, customer feedback also ensures that the business is performing since customers are also given opportunity to evaluate the business. It is recommended that the business need to set performance evaluation and management strategy that takes into account the customer feedback, employee performance and overall business performance (Kiechel, 2010). Record keeping is another area that makes the business realize the its objective or goal. Accounting records are good for the current business since it can be used for fiscal purposes and evaluation of achievements. It is evident that the business does not have any accounting record that can show the progress or profitability. Moreover, the business is unable to evaluate its performance in terms of profits made over the last one year. Taxation is normally based on the accounting records over specific period of time. In addition, accounting records are also used when evaluating the creditworthiness of the business. It is therefore recommended that the business need to keep financial records and ideal finance record keeping require application of information system. Information system is current contemporary record keeping tool that is portable and accessible for future use (Haines, 2004). The Rock Paper Scissors also lack customer satisfaction mechanism that brings back the feedback. Customer feedback is a critical issue in the current contemporary Australian business environment. This is because most customers need to be involved in the decision making to improve the business performance. The level of satisfaction among customers is one of the areas that is used to evaluate the performance of the business since the happy customer will always come back to the business for service while an unhappy customer is equally detrimental to the business. According to Taherparvar, Esmaeilpour and Dostar (2014), a good feedback system helps in retaining clients or improving the level of service provision. Rock Paper Scissors need to focus on customers feedback as one way to evaluate its performance. This should also include suggestions that also from customer on the areas that need improvement and this will make those customers to come back for an improved service (Cornish, Raube nheimer McGreevy, 2016). Contemporary business environment require high innovation and sustainable service delivery. Salon services in the contemporary business set up require high innovation for survival since the business. For instance, the salon needs to come up with an innovative way of delivering services to customers (Ford, Steen Verreynne, 2014). This can take the technological direction where the business can apply technologies to connect and offer services to clients. Since the salon uses many different chemicals to offer services such as haircut to customers, disposing this chemicals need high sustainable practice that has minimal environment destruction. The sustainability responsibility of the business makes the salon to care for both society and the environment as primary mandate. The salon needs to bring innovative ideas that also factor in the sustainability of the business in the current market (Terziovski, 2012). Management concepts, principles and theories discussed in this report There are many management concepts, principles and theories that assist in the business management and can help in the management of Rock Paper Scissors. The performance of the Rock Paper Scissors can be evaluates as presented by the systems theory that asserts the workplace and the relationship between employees and the system. According to Deslandes (2014), the current contemporary business situation especially in Australia requires proper understanding of the hairdressing industry in order for the business to survive. After the development of the vision and mission of the organization, the manager will need to coordinate activities in Rock Paper Scissors coherently. Leadership is management concept that needs to be applied within the Rock Paper Scissors. The organization lacks proper leadership structure that spelled out the relationship between different people within the organization (Melo, Silva Parreira, 2014). Leadership according to shows the direction and is also needed for decision making within the organization. Management without clear leadership structure and leaders has limited profitability and may run into losses. Moreover, leadership roles make it easy for the organization to respond to any external environmental situations that require leaders to make a decision (Gomez-Mejia, Balkin Cardy, 2008). Management functions are also an important management concept that is also essential for Rock Paper Scissors. Management functions such as controlling, coordinating and organizing are some management function that needs to be clearly defined and assigned to specific management. Currently, Rock Paper Scissors does not show any clear management functions and this is evident in the organizations inability to organize services. The staffs instead give some service to their friends that remain unaccounted for (Griffin, 2014). Corporate social responsibility and corporate governance are two management concepts that are also vital in the management. The corporate social responsibility highlights the social responsibilities of the salon to the society. Corporate governance gives the structure of the management of the business that also gives organization hierarchy (O'Donovan, 2006). Currently, the salon has no clear organizational structure that clearly indicates the chain of leadership in the organization. According to Modaff, DeWine and Butler (2011), the business in the contemporary society needs to understand their corporate role or responsibility towards the society. Conclusion In conclusion, Rock Paper Scissors is a business in the contemporary business set up is facing managerial challenges. The salon shows minimal management functions, the business has no strategic plan, corporate culture, no objectives or goals, staff motivation, record keeping, staff performance evaluation, innovation and customers feedback. There are other managerial concepts, principles, and theories that need to be applied in the management of the Rock Paper Scissors. Based on the current business environment, operating salon business need high management since the business should be transformed using modern managerial practices. The Rock Paper Scissors need to constitute a good managerial system exhibiting all the managerial functions in professional, ethical and leadership manner putting into consideration all the stakeholders and their role in decision making. Recommendations Considering the current management practice and the challenges that the business faces some recommendation are necessary. Firstly, it is recommended that Rock Paper Scissors should put in place proper management structure with all functions. Secondly, the business needs to adopt various managerial concepts and principles suggested in this report for professional management practice. Thirdly, the business also needs to develop and implement a strategic plan that has a strategy to make a profit. 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