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DIPLOMA SALON MANAGEMENT HAIRDRESSING
2011
Our thanks for the creation of this booklet to the hard work of Liz Tehan & Wendy Blair
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 1 of 148 TABLE OF CONTENTS
Lead and Manage People...... 10
Recruit and Select Personnel...... 12
Working in A Salon...... 14
Maintain Customer Relations...... 16
Salon Safety Management...... 18
Salon Supervision...... 20
Conduct Assessment...... 23
Deliver Training Sessions...... 24
1.1 Personal...... 26
1.2 Location...... 26
1.3 Financial...... 26
2.0 What is small business?...... 27
2.1 Strengths of a small business...... 27
2.3 Problems for small business...... 28
2.4 Planning for Small Business...... 28 2.4.1 The feasibility study...... 29 2.4.2 Starting up a new business...... 29 3.0.1 Creating a salon image...... 30 3.0.2 Staff Image...... 31 Do they look the part?...... 31
3.1 Salon Decor...... 31
3.2 Considerations for Salon Plans...... 32 For example :...... 32
Aesthetician services...... 32
Manicurist/ Pedicurist...... 33
There should be provision for an exhaust system to all, for the sometimes highly acrylic fumes associated with these services.....33
3.3 Laws and regulations...... 34 3.3.1 Statutory regulations...... 34
3.4 Registering your business...... 34
3.5 Insurance...... 34 3.5.1 Selecting the Right Insurance Policy for You...... 35 3.5.2 Impact of the GST...... 35 3.5.3 Evaluating the Policy...... 35 3.5.4 Main Insurance Policies...... 35 3.5.5 How Much Insurance Do You Need?...... 37 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 2 of 148 4.1 National OH&S Improvement Framework...... 38
4.2 National Standards...... 38
4.3 Duty Of Care...... 38
4.4 Benefits of a proactive approach include:...... 39
4.5 Hazards and solutions...... 39 4.5.1 What is a hazard?...... 39
4.6 Conducting a Risk Assessment...... 39 4.6.1 Hazard Identification...... 39 4.6.2 Risk Assessment...... 40 4.6.3 Risk Control...... 41
4.7 HAZARDOUS SUBSTANCES...... 42 4.7.1 DANGEROUS GOODS...... 42 4.7.2 HAZARDS In the workplace...... 43 Working Environment...... 43 4.7.3 checklist for identifying hazards in the working environment...... 43 4.7.4 GETTING STARTED WITH OHS...... 44 4.7.5 What is a Safe Work Procedure?...... 44 4.7.6 Why do you need them?...... 44 4.7.7 A Job Safety Check...... 44 4.7.8 How to Assess all Potential Failures and Exposures to Hazards...... 46
5.1 Customer Loyalty...... 47
5.2 Quality management...... 48 5.2.1 Continuous Process Improvement...... 48 5.2.2 Customer focus...... 49 5.2.3 Defect Prevention...... 50 5.2.4 Universal Responsibility...... 50
5.3 Techniques and Methodologies...... 50 5.3.1. Statistics for process control...... 50 5.3.2. Employee Involvement and Empowerment...... 50 5.3.3. Quality measurement systems...... 51 5.3.4. Problem solving...... 51 5.3.5. System Failure Analysis...... 52 5.3.6. Teams...... 52 5.3.7. Quality Function Deployment...... 53 5.3.8. Value Improvement...... 53
5.4 The importance of customer service...... 53
5.5 Retention Through Customer Service Marketing...... 55
Lectures / Appearances...... 55
5.6 Promotion of Professional Image...... 56
5.7 Service Enhancements...... 57
5.8 Frequent Buyer program...... 58
5.9 Frequent Referral Programs...... 59
5.10 Thank You Cards...... 60
5.11 Telephone Recalls...... 61 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 3 of 148 5.12 Service Phases...... 61
5. 13 Dealing With Complaints...... 61
5.14 Tips for long term Customer Retention...... 62
5.15 The Customers bill of rights...... 62
6.1 Mission Statement...... 63
6.2 Management Team...... 63
6.3 Market Analysis...... 63
6.4 Focus Group Interviews...... 64
6.5 Competitor Content Analysis...... 64
6.6 Key Informant Analysis...... 64
6.7 Target Market...... 64
6.8 The Right Product Or Service...... 64
6.9 Positioning your Business...... 65
6.10 Pricing Techniques...... 65
6.11 Setting Prices...... 65
6.12 Cost Approach to Pricing...... 66
Total Costs of Production Per Unit + Desired Dollar Profit Per Unit...... 66
6.13 Marketing Strategy...... 66
6.14 Risk Reduction Strategies...... 66 6.14.1 Same Product or Service in Changed Market...... 67 6.14.2 Same Product or Service in New Market...... 67
6.15 Where to find information...... 67
6.16 Observe Your Competition...... 68
6.17 Talk to your Suppliers...... 68
6.18 Talk to your customers...... 68
7.1 Managing Your Inventory...... 69
7.2 Successful Inventory Management...... 69
7.3 Computation of the Inventory Turnover Rate...... 69
7.4 Manual Record Keeping Methods...... 69
7.5 Using Computers in Inventory Management...... 70
7.6 Stock Control (Retail)...... 70
7.7 The Basic Picture...... 71
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 4 of 148 7.8 What Kind of Records?...... 71
7.9 The Model Stock List...... 71
7.10 Counting Stocks or Counting Sales?...... 72
7.11 If You Count Stock...... 72
7.12 If You Count Sales...... 72
7.13 Preventing Excess Stocks...... 73
8.1 MONITOR EXPENDITURE, PROFITS/LOSSES AND STOCK TURNOVER AGAINST BUDGETS...... 74 8.1.1 ACHIEVE OPTIMAL COST REDUCTIONS...... 74 8.1.2 CONTROLING BUDGETS and PROPOSING EXPENDITURE...... 75
8.2 MONITOR RECORDING SYSTEMS FOR SALES FIGURES, REVENUE AND EXPENDITURE...... 75
8.3 NEGOTIATE BUDGETS...... 76
8.4 POLICIES AND PROCEDURES IN REGARD TO STOCK...... 76
8.5 RECEIVING...... 76
8.6 Shrinkage...... 77 8.6.1 Stock losses may be caused by:...... 77 8.6.2 Stock surpluses may be caused by:...... 78
8.7 Waste and safety controls...... 78
8.8 Stock Security...... 78
8.9 METHODS OF STOCK MOVEMENT...... 80
8.10 POLICY FOR STORAGE AREA AND EQUIPMENT...... 80
8.11 POLICIES AND PROCEDURES IN STOCK CONTROL...... 80
8.12 STAFF POLICIES AND SKILLS KNOWLEDGE...... 81
8.13 When & how much to buy...... 81
9.1 Salon Staff Planning and Recruitment...... 82
9.2 What do I want the employee to do?...... 82
9.3 Why do I need a job description?...... 82
9.4 Who is my ideal applicant?...... 83
9.5 Are there any legal requirements I should consider?...... 83
9.6 Definitions: full-time, part-time or casual...... 83
9.7 Writing a Job Advertisement...... 84
9.8 Writing An Effective Job Advertisement...... 85
9.9 Should I respond to all applications?...... 86
9.10 Sample advertisements...... 86
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 5 of 148 9.11 Preparing For an Interview...... 87
9.12 Predicting Future Job Performance...... 88
9.13 Examples of behavioural questions...... 89
9.14 Conducting The Interview...... 89 9.14.1 How do I start the interview?...... 89 9.14.2 Interview tips...... 90 9.14.3 What do I need to know?...... 90 9.14.4 What information do I give to the applicant?...... 90 9.14.5 How do I close the interview?...... 91 9.14.6 After The Interview...... 91 9.14.7 OVERALL INTERVIEW EVALUATION...... 91
9.15 Making A Job Offer...... 91
9.16 Do I need to do a reference check?...... 91 9.16.2 How do I make the hiring decision?...... 92 9,16,3 Do I need to make an offer in writing?...... 92 9.16.4 What should a letter of appointment state?...... 92 9.16.5 Should I include a probational period?...... 92 9.16.6 Can I include a trial period?...... 93
9.17 Sample Resume Acknowledgment Letters...... 94
9.18 What about unsuccessful applicants?...... 94
9.19 Sample rejection letter...... 94
10.1 Why do employees sometimes perform poorly?...... 95
10.2 Identifying the problem...... 95
10.3They do not know what they are supposed to do...... 95
10.4 They think your way will not work...... 96
10.5 They think their way is better...... 96
10.6 They think something else is more important...... 96
10.7 There is no positive consequence to them for doing it...... 96
10.8 They think they are doing it...... 96
10.9 They are rewarded for not doing it...... 96
10.10 They are punished for doing what they are supposed to do...... 96
10.11 They anticipate a negative consequence for doing it...... 96
10.12 There is no negative consequence to them for poor performance...... 96
10.13 Obstacles beyond control...... 97
10.14 Their personal limits prevent them from performing...... 97
10.15 Personal problems...... 97
10.16 No one could do it – it’s unrealistic...... 97
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 6 of 148 10.17 How do I solve the problem?...... 97
10.18 How do I initiate discussions about my employee’s poor performance?...... 97
11.1 Management Responsibilities (pertaining to human resources)...... 98
11.2 Staffing...... 98
11.3 Management Responsibilities (pertaining to salon procedures and facilities)...... 98
12.1 What is induction?...... 100
12.2 Why is induction important?...... 100
12.3 Inducting and training employees...... 100
13.1 Adjusting Work Practices...... 102
14.1 How should you make these appraisals?...... 103
14.2 What is a performance appraisal?...... 103
14.3 How to appraise employees' performance...... 103
14.4 What is the purpose of a performance appraisal?...... 104
14.5 Conducting An Appraisal Interview...... 104
15.1 How do you get others to work for you?...... 105
15.2 What can you do to motivate employees?...... 105
16.1 DEFINING LEADERSHIP...... 107
16.2 LEADERSHIP QUALITIES...... 107
16.3 WHAT A LEADER IS NOT...... 108
16.4 BECOMING A LEADER...... 109
16.5 THE TRAITS OF A LEADER...... 109
16.6 The Traits of a Leader...... 111
16.7 VISION...... 111 16.7.1 DEVELOPING VISION...... 111 16.7.2 COMMUNICATING YOUR VISION...... 112
16.8 BUILDING CONFIDENCE...... 112
16.9 LEADERSHIP STYLES...... 112 16.9.1 RESULTS GETTER / DICTATOR...... 112 16.9.2 People Pleaser...... 113 16.9.3 The Professional...... 113
16.10 Developing your own Leadership Style...... 114
16.11 Develop a Fair, Management Style...... 114
18.1 Individual Goals...... 116
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 7 of 148 18.2 Have a job description...... 116
18.3 Have realistic expectations...... 117
18.4 Distinguish between formal and informal goals...... 117
20.1 Feedback...... 118
TIP...... 119
20.2 Rewards...... 119
20.3 Giving your team confidence...... 119
22.1 What does Total Quality Management mean?...... 120
22.2 Why have total quality management in a salon?...... 120
22.3 Implement a cyclical process of quality management and improvement,...... 121
22.4 Quality improvement principles...... 121
22.5 Methods of collecting information...... 123
22. 6 Developing operational strategies for quality improvement...... 123
23.1 Difficult Conversations...... 125
23.2 The New Bottom Line...... 126
23.3 Tomorrows Trends...... 127
23.4 Success through Goal Setting...... 127 23.4.1 Know What You Want...... 127 23.4.2 Create A Plan...... 127
24.1 The Human Touch...... 128
24.2 Don’t be Overly Critical...... 128
24.3 Let Them Fall...... 128
24.4 Be Available...... 129
24.5 Improve the Workplace...... 129
24.6 A Personal Interest in People...... 129
24.7 Be Open to Ideas...... 129
24.8 Identify your leadership style...... 130
24.9 Give It Away - Are you still making all the business decisions? Stop—and share them with your employees...... 131
24.10 How do you encourage your employees to “Go, team, go”?...... 131
25.0 GOLDEN RULES - TOP MANAGEMENT STRATEGIES OF THE PAST 20 YEARS AND WHAT STILL WORKS...... 133
26.1 Make people feel valued by:...... 134
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 8 of 148 26.2 Provide a challenge and scope for development by:...... 134
26.3 Recognise achievements by:...... 134
27.1 Commonly asked questions about Computers...... 135 27.1.1 Do I have to be an expert to use computers?...... 135 27.1.2 Can Computers do anything I can’t do?...... 135 27.1.3 How much is my time worth?...... 136 27.1.4 Don’t they cost a fortune?...... 136 27.1.5 But I’ll never use all the options...... 136 27.1.6 Why have a computer?...... 137 27.1.7 Hardware and its Functions...... 140
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 9 of 148 Module Name Lead and Manage People
Module No: 9748P
Module Purpose:
The purpose of this module is to provide the learner with the knowledge and skills required to lead and manage people in teams in a retail environment.
On completion of this module learners will be able to: . lead a team . develop and communicate team objectives . develop and improve work teams to maintain performance . employ self development strategies to monitor and improve performance . delegate responsibility and authority for nominated tasks to team members . consult with team members to reach decisions, and . support team members to achieve store plans and targets.
Module Assessment:
The assessment for this module is ungraded and recorded as PASS (UNGRADED) /FAIL. No marks are recorded centrally.
Your results will be reported as PASS (UNGRADED) /FAIL.
Because the assessment is ungraded it is not possible to obtain a graded result such as a distinction or a credit for this module.
All assessment events used to determine your result will be locally set and locally marked. (Grade Code 66)
In addition to an overall pass, you must pass each assessment event where there is a "yes" in the "must pass" column. Wgt Must Assessment Component Assessment Event Name % Pass CLASS P/F - NO MARK DEVELOP CONSULTATION PLAN 30 YES DEVELOP PERFORMANCE STANDARDS 40 YES IMPLEMENT PLANS 30 YES
Additional Assessment Information:
OCCUPATIONAL HEALTH AND SAFETY (OH&S)
The NSW OH&S Act 2000 and the NSW OH&S Regulation 2001 requires that both teachers and students take reasonable steps to control and, as much as possible, minimise risks in the classroom, workshop or workplace.
Your teacher will discuss with you the Occupational Health and Safety requirements and issues relevant to this module.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 10 of 148 Your teacher will discuss with you these OH&S strategies:
- Identify and report hazards in the classroom, workshop, or workplace - Devise measures to control or eliminate hazards and/or minimise risks - Observe correct and acceptable procedures when handling equipment and material
More About Assessment:
For information about assessment in TAFE please see "Every Student's Guide to Assessment in TAFE NSW" which is available on the TAFE Internet site at: http://www.tafensw.edu.au/students/guide/assessment_guide.htm.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 11 of 148 Module Name Recruit and Select Personnel
Module No: 9748T
Module Purpose:
The purpose of this module is to provide the learners with the knowledge and skills required to recruit and select personnel in a retail environment.
On completion of this module learners will be able to: . define future personnel requirements . determine job specifications . recruit staff . assess and select applicants.
Module Assessment:
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 12 of 148 The assessment for this module is ungraded and recorded as PASS (UNGRADED) /FAIL. No marks are recorded centrally.
Your results will be reported as PASS (UNGRADED) /FAIL.
Because the assessment is ungraded it is not possible to obtain a graded result such as a distinction or a credit for this module.
All assessment events used to determine your result will be locally set and locally marked. (Grade Code 66)
In addition to an overall pass, you must pass each assessment event where there is a "yes" in the "must pass" column.
Wgt Must Assessment Component Assessment Event Name % Pass CLASS P/F - NO MARK JOB SPECIFICATION 50 YES JOB INTERVIEW 50 YES
Additional Assessment Information:
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 13 of 148 OCCUPATIONAL HEALTH AND SAFETY
The NSW OH&S Act 2000 and the NSW OH&S Regulation 2001 require that both teachers and students take reasonable steps to control and, as much as possible, minimise risks in the classroom, workshop or workplace.
Your teacher will discuss with you the Occupational Health and Safety requirements and issues relevant to this module.
Your teacher will discuss with you these OH&S strategies:
- Identify and report hazards in the classroom, workshop, or workplace - Devise measures to control or eliminate hazards and/or minimise risks - Observe correct and acceptable procedures when handling equipment and material
More About Assessment:
For information about assessment in TAFE please see "Every Student's Guide to Assessment in TAFE NSW" which is available on the TAFE Internet site at: http://www.tafensw.edu.au/students/guide/assessment_guide.htm .
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 14 of 148 Module Name Working in A Salon
Module No: 9666D
Module Purpose:
This module is designed to accompany the following modules and provide access to the workplace: * Recruit and Select Personnel * Lead and Manage People * Salon Supervision * Salon Safety Management * Salon Customer Relations and Promotion
This module provides an opportunity for learners to integrate the skills and knowledge developed in other modules in this course with industry specific knowledge. Learners currently employed or with previous experience in the hairdressing and beauty industries are exempt from this module.
Specifically, the learner should be able to: * Evaluate the suitability and effectiveness of a range of management systems and strategies utilised in hairdressing and beauty salons * Evaluate OH&S policies and procedures utilised in hairdressing and beauty salons
Module Assessment:
The assessment for this module is ungraded and recorded as PASS (UNGRADED) /FAIL. No marks are recorded centrally.
Your results will be reported as PASS (UNGRADED) /FAIL.
Because the assessment is ungraded it is not possible to obtain a graded result such as a distinction or a credit for this module.
All assessment events used to determine your result will be locally set and locally marked. (Grade Code 66)
In addition to an overall pass, you must pass each assessment event where there is a "yes" in the "must pass" column.
Outcomes Wgt Must Assessment Component Assessment Event Name /Timing % Pass CLASS P/F - NO MARK REPORT 1,2,3 75 YES PRESENTATION 4 25 YES
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 15 of 148 Assessment Events - Additional Information
Event Name :REPORT For this report learners will be required to develop a plan to promote the salon or specific services to customers. In the report learners will need to:
* identify a particular customer group * describe how their needs were identified * describe how products and services were identified to meet these needs * develop a plan to promote these new products and services including a budget
Event Name :PRESENTATION For this report learners are required to make a short presentation (5 – 10 minutes) to the class on an aspect of customer relations and/or promoting the salon. Topics are to be negotiated with the class teacher.
Pass Criteria Defining the purpose of the presentation Researching and selecting material relevant to the topic Organising material Communication techniques Presenting material in a clear and sequential manner Keeping to the time allocated Use of electronic and other aids Responding to questions
Additional Assessment Information:
OCCUPATIONAL HEALTH AND SAFETY
The NSW OH&S Act 2000 and the NSW OH&S Regulation 2001 require that both teachers and students take reasonable steps to control and, as much as possible, eliminate risks in the classroom, workshop or workplace.
Your teacher will discuss with you the Occupational Health and Safety requirements and issues relevant to this module.
Your teacher will discuss with you these OH&S strategies:
- Identify and reporting hazards in the classroom, workshop, or workplace - Devise measures to control or eliminate hazards and risks - Observe correct and acceptable procedures when handling equipment and material
More About Assessment:
For information about assessment in TAFE please see "Every Student's Guide to Assessment in TAFE NSW" which is available on the TAFE Internet site at: http://www.tafensw.edu.au/students/guide/assessment_guide.htm.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 16 of 148 Module Name Maintain Customer Relations
Module No: 9666C
Module Purpose:
On successful completion of this module the learner should be able to meet the requirements of existing customers, promote the salon to new customers and introduce new products and services.
Specifically, the learner should be able to: * Monitor the requirements of customers * Match products and services to customer requirements * Promote the salon to customers * Speak to groups
Module Assessment:
The assessment for this module is ungraded and recorded as PASS (UNGRADED) /FAIL. No marks are recorded centrally.
Your results will be reported as PASS (UNGRADED) /FAIL.
Because the assessment is ungraded it is not possible to obtain a graded result such as a distinction or a credit for this module.
All assessment events used to determine your result will be locally set and locally marked. (Grade Code 66)
In addition to an overall pass, you must pass each assessment event where there is a "yes" in the "must pass" column. Outcomes Wgt Must Assessment Component Assessment Event Name /Timing % Pass CLASS P/F - NO MARK REPORT 1,2,3 75 YES PRESENTATION 4 25 YES
Assessment Events - Additional Information
Event Name :REPORT Event 1 Report For this report learners will be required to develop a plan to promote the salon or specific services to customers. In the report learners will need to: * identify a particular customer group, * describe how their needs were identified * describe how products and services were identified to meet these needs * develop a plan, including a budget to promote these new products and services * explain your rationale for choosing the particular strategies * outline how the plan will be evaluated
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 17 of 148 Event Name :PRESENTATION For this report learners are required to make a short presentation (5 – 10 minutes) to the class on an aspect of customer relations and/or promoting the salon. Topics are to be negotiated with the class teacher.
Pass Criteria Defining the purpose of the presentation Researching and selecting material relevant to the topic Organising material Communication techniques Presenting material in a clear and sequential manner Keeping to the time allocation Use of electronic and other aids Responding to questions
Additional Assessment Information:
There are two assessment events for this module. Event 1 is a report on developing a plan to promote the salon or specific services to customers. Event 2 is a verbal presentation to a small group.
OCCUPATIONAL HEALTH AND SAFETY
The NSW OH7S Act 2000 and the NSW OH&S Regulation 2001 require that both teachers and students take reasonable steps to control and, as much as possible, eliminate risks in the classroom, workshop or workplace.
Your teacher will discuss with you the Occupational Health and Safety requirements and issues relevant to this module.
Your teacher will discuss with you these OH&S strategies:
- Identify and reporting hazards in the classroom, workshop, or workplace - Devise measures to control or eliminate hazards and risks - Observe correct and acceptable procedures when handling equipment and material
More About Assessment:
For information about assessment in TAFE please see "Every Student's Guide to Assessment in TAFE NSW" which is available on the TAFE Internet site at: http://www.tafensw.edu.au/students/guide/assessment_guide.htm.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 18 of 148 Module Name Salon Safety Management
Module No: 9666B
Module Purpose:
Successful completion of this module will enable the learner to develop, implement and supervise salon occupational health and safety policies and procedures on an ongoing basis.
Specifically, the learner will be able to:
* Outline Occupational Health and Safety (OH&S) legislation and describe the roles and responsibilities of employers, management/supervisors, employers and the OH&S committee in the workplace * Establish and maintain procedures for identifying hazards, assessing risks and controlling risks * Develop, maintain and evaluate an OH&S system for the salon environment
This is a generic management module to be included in courses sponsored by Hairdressing and Beauty Therapy Programs. The material covered should be related to work practices in any area associated with these service industries, ie. Hairdressing Salons, Beauty Salons, Nail Technology/Artistry businesses and Reflexology and Therapeutic Massage Treatments.
Module Assessment:
The assessment for this module is ungraded and recorded as PASS (UNGRADED) /FAIL. No marks are recorded centrally.
Your results will be reported as PASS (UNGRADED) /FAIL.
Because the assessment is ungraded it is not possible to obtain a graded result such as a distinction or a credit for this module.
All assessment events used to determine your result will be locally set and locally marked. (Grade Code 66)
In addition to an overall pass, you must pass each assessment event where there is a "yes" in the "must pass" column. Outcomes Wgt Must Assessment Component Assessment Event Name /Timing % Pass CLASS P/F - NO MARK PRACTICAL - ASSIGNMENT 1-4 100 YES
Assessment Events - Additional Information
Event Name :PRACTICAL - ASSIGNMENT Practical report involving the development of a policy suitable for use in a salon. Scope The report will need to demonstrate an awareness of OH&S Legislation with special reference to * Coverage of OH&S Legislation
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 19 of 148 * Sources of Information re: OH&S * Specific OH&S Issues for Hair, Beauty and related industries
Additional Assessment Information:
In addition to the above events, the learner should be able to show evidence of knowledge of the following: - Knowledge of the provisions of relevant Occupational Health and Safety and First Aid regulations/requirements - Knowledge of relevant legislation and statutory requirements in regard to state and local Health and Hygiene requirements/regulations and Skin Penetration Acts - Procedures for use in situations which may include use of fire alarms, salon evacuation, illness or accident and for events likely to endanger staff or clients - Handling, storage, use and disposal methods for products including hazardous and non- hazardous materials and equipment and flammable substances - Safe use of electrical equipment - Handling procedures (including manual handling techniques and handling of broken or damaged equipment - Correct posture for relevant treatment procedures
OCCUPATIONAL HEALTH AND SAFETY
The NSW OH&S Act 2000 and the NSW OH&S Regulation 2001 require that both teachers and students take reasonable steps to control and, as much as possible, eliminate risks in the classroom, workshop or workplace.
Your teacher will discuss with you the Occupational Health and Safety requirements and issues relevant to this module.
Your teacher will discuss with you these OH&S strategies:
- Identify and reporting hazards in the classroom, workshop, or workplace - Devise measures to control or eliminate hazards and risks - Observe correct and acceptable procedures when handling equipment and material
More About Assessment:
For information about assessment in TAFE please see "Every Student's Guide to Assessment in TAFE NSW" which is available on the TAFE Internet site at: http://www.tafensw.edu.au/students/guide/assessment_guide.htm.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 20 of 148 Module Name Salon Supervision
Module No: 9666A
Module Purpose:
On successful completion of this module the learner should be able to supervise the day to day activities within the salon including induction of staff, maintaining a supportive working environment and supervision of human and physical resources. It should be noted that salon supervisors are not necessarily salon owners and may work within guidelines laid down by management.
Specifically, the learner will be able to: · Induct new staff member/s into a salon environment · Establish and maintain effective working relationships in the salon through appropriate leadership, support, communication and feedback · Supervise salon procedures including promotional activities and stock control
Module Assessment:
The assessment for this module is ungraded and recorded as PASS (UNGRADED) /FAIL. No marks are recorded centrally.
Your results will be reported as PASS (UNGRADED) /FAIL.
Because the assessment is ungraded it is not possible to obtain a graded result such as a distinction or a credit for this module.
All assessment events used to determine your result will be locally set and locally marked. (Grade Code 66)
In addition to an overall pass, you must pass each assessment event where there is a "yes" in the "must pass" column. Outcomes Wgt Must Assessment Component Assessment Event Name /Timing % Pass CLASS P/F - NO MARK REPORT 1-3 20 YES PRACTICAL AND OBSERVATION 1-5 80 YES
Assessment Events - Additional Information
Event Name : REPORT Written Report Complete an evaluation report on an induction system the learner has been exposed to in working life. This evaluation to be used to develop a new procedure for a salon, highlighting the positive aspects from past experiences and the modifications made to the negative experiences enabling the new system to work efficiently.
Scope: - introduction of new staff to other team members - clear explanation of salon policies and procedures 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 21 of 148 - roles and responsibilities of staff members according to salon policies - performance expectations - friendly approach - evidence of the knowledge and consistent application of salon policies and procedures and industry codes of practice in regard to salon supervision and staffing requirements - evidence of the ability to accurately interpret and consistently apply state and local statutory requirements/regulations including relevant awards/ agreements - demonstration of practical ability to induct new staff members
Event Name :PRACTICAL AND OBSERVATION Practical Performance and Observation - Develop a revised plan of operations for a task or tasks in a salon that is not functioning as desired. Deliver the plan to staff /or group and trial and observe the results and make adjustments as necessary.
Scope: * Adjusting work practices * Look at work practices to see if efficiency can be improved? - Who does the work? - How is it done? - Why is it done at that time? - Where is it done? - Could the work be done by anyone else? - Could the work be done in another way? - Could the work be done at any other time? - Could the work be done in any other place? * Determine changes in work procedures as indicated by evaluation of procedures * Provide training in changed work methods. * Test the work processes/procedures
Additional Assessment Information:
In addition to the above assessment events, the learner should be able to: . plan and organise. . identify correct technology to use, apply OH&S procedures/precautions. . negotiate goals and outcomes. . record and evaluate their progress. . work co-operatively and give instructions and respond to feedback. . perform tasks with accurate measurements and judgement. . adapt a range of processes to solve problems and outline process verbally. . be aware of their own rights and responsibilities and those of others. . use knowledge and consistent application of relevant national, state and local Health and Hygiene requirements/regulations and Skin Penetration Acts, and of a salon policies and procedures in regard to hygiene. . use knowledge and consistent application of safe work practices in regard to the provision of services, and safe use of product to Occupational Health and Safety regulations/requirements. . display the ability to consistently use effective questioning and active listening techniques to consult and negotiate with clients, identify clients requirements/needs and to ensure clients comfort and safety throughout the service.
OCCUPATIONAL HEALTH AND SAFETY
The NSW OH&S Act 2000 and the NSW OH&S Regulation 2001 require that both teachers and
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 22 of 148 students take reasonable steps to control and, as much as possible, eliminate risks in the classroom, workshop or workplace.
Your teacher will discuss with you the Occupational Health and Safety requirements and issues relevant to this module.
Your teacher will discuss with you these OH&S strategies:
- Identify and reporting hazards in the classroom, workshop, or workplace - Devise measures to control or eliminate hazards and risks - Observe correct and acceptable procedures when handling equipment and material
More About Assessment:
For information about assessment in TAFE please see "Every Student's Guide to Assessment in TAFE NSW" which is available on the TAFE Internet site at: http://www.tafensw.edu.au/students/guide/assessment_guide.htm.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 23 of 148 Module Name Conduct Assessment
Module No: 8390B
Module Purpose:
The purpose of this module is to train participants to conduct assessments in accordance with assessment procedure in a specific context.
Module Assessment:
The assessment for this module is ungraded and recorded as PASS (UNGRADED) /FAIL. No marks are recorded centrally.
Your results will be reported as PASS (UNGRADED) /FAIL.
Because the assessment is ungraded it is not possible to obtain a graded result such as a distinction or a credit for this module.
All assessment events used to determine your result will be locally set and locally marked. (Grade Code 66)
In addition to an overall pass, you must pass each assessment event where there is a "yes" in the "must pass" column. Wgt Must Assessment Component Assessment Event Name % Pass CLASS P/F - NO MARK EVALUATION OF ASSESSMENT CONDUCT 100 YES
Additional Assessment Information:
OCCUPATIONAL HEALTH AND SAFETY
The laws protecting the Health and Safety of people at work apply to students who attend TAFE Colleges, either part time or full time. These laws emphasise the need to take reasonable steps to eliminate or control risk at work (this includes a TAFE College). TAFE NSW has the responsibility for the control, and where possible, the elimination of health and safety risk at the college. You are encouraged to help in eliminating hazards by reporting to your teacher or other College staff, anything that you think may be a risk to you or other people.
Your teacher will encourage you to assist in hazard identification and elimination, and to devise control measures for any risks to yourself and other people that may arise during practical exercises. The OH&S Act 2000 and OH&S Regulation 2001 require that teachers and students take reasonable steps to control and monitor risk in the classroom, workshop or workplace.
Pre-requisites Information : PREREQUISITES are subjects which you must have successfully completed before you are allowed to enroll in this subject. Most subjects do not have prerequisites and you may enroll in them without having done any other subjects.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 24 of 148
Module Name Deliver Training Sessions
Module No: 8388C
Module Purpose:
The purpose of this module is to enable a person to be able to deliver training sessions as part of a training program.
Module Assessment:
The assessment for this module is ungraded and recorded as PASS (UNGRADED) /FAIL. No marks are recorded centrally.
Your results will be reported as PASS (UNGRADED) /FAIL.
Because the assessment is ungraded it is not possible to obtain a graded result such as a distinction or a credit for this module.
All assessment events used to determine your result will be locally set and locally marked. (Grade Code 66)
In addition to an overall pass, you must pass each assessment event where there is a "yes" in the "must pass" column.
Must Assessment Component Assessment Event Name Pass CLASS P/F - NO MARK LESSON PLAN PREPARATION YES THEORY TRAINING SESSIONS YES
Assessment Events - Additional Information
Event Name :LESSON PLAN PREPARATION Module Assessment Events
The assessment for this module will involve participants undertaking the following activities:
1. Design and conduct a training needs analysis. Evidence would need to include: information on how the target group was identified, how required competencies were determined, how the need for training was identified and verified, why there is a need for training as opposed to other non-training alternatives.
2. Design a training program to satisfy the identified need. Evidence would need to include: who was consulted, how training materials and resources were selected.
3. Prepare a session plan for a two hour theory session. You can present your session plan using any format you wish. Evidence would need to include: how the session plans meet the competency requirements and the needs of the trainees, how the learning resources and exercises were selected and how they will enhance the learning process. 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 25 of 148 4. The delivery of two training sessions: a skills session and a theory session The skills session should be 1/2 hour long and to group of between 2 to 5 participants. The theory session should be 2 hours in length and be presented to between 15 to 20 participants. Evidence would need to include observation of the sessions, how the session was relevant to the training program, how the effectiveness of the session was evaluated.
5. The planning, conducting and reviewing of the assessment events for the above training session. Evidence would need to include: how the context of the assessment was specified, how the assessment methods were selected, how the assessment tools were validated and ratified, how evidence was evaluated in terms of validity, authenticity, sufficiency, currency, and consistent achievement of the specified standard, how the assessment was conducted and feedback provided, and how the assessment was reviewed.
Additional Assessment Information:
OCCUPATIONAL HEALTH AND SAFETY
The laws protecting the Health and Safety of people at work apply to students who attend TAFE Colleges, either part time or full time. These laws emphasise the need to take reasonable steps to eliminate or control risk at work (this includes a TAFE College). TAFE NSW has the responsibility for the control, and where possible, the elimination of health and safety risk at the college. You are encouraged to help in eliminating hazards by reporting to your teacher or other College staff, anything that you think may be a risk to you or other people.
Your teacher will encourage you to assist in hazard identification and elimination, and to devise control measures for any risks to yourself and other people that may arise during practical exercises. The OH&S Act 2000 and OH&S Regulation 2001 require that teachers and students take reasonable steps to control and monitor risk in the classroom, workshop or workplace.
Pre-requisites Information :
PREREQUISITES are subjects which you must have successfully completed before you are allowed to enroll in this subject. Most subjects do not have prerequisites and you may enroll in them without having done any other subjects.
Recommended that participants have completed BSZ404A, BSZ405A and BSZ406A.
More About Assessment:
For information about assessment in TAFE please see "Every Student's Guide to Assessment in TAFE NSW" which is available on the TAFE Internet site at: http://www.tafensw.edu.au/students/guide/assessment_guide.htm.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 26 of 148 1.0 Introduction to Salon Management
Many people start up businesses each year for a variety of reasons, hoping to achieve success in one or many ways. Unfortunately, a lot of these businesses will fail. This is due in many cases to hasty, ill-informed or emotional decisions to go into business. All business decisions should be made on objective commercial principles.
To assist in the decision-making process about starting in business, the Business Entry Point found on the www. have compiled a series of questions in six categories: Personal; Location; Financial; Legal; Marketing; Growth.
Remember that these are only the basic questions to give you some guidance. By enrolling in this course you have taken the first step to becoming a successful business manager. You could also check out your ideas and theories with an experienced business adviser, accountant or bank manager.
1.1 Personal
Why do you want to start in business - are you really only buying yourself a job? If so, there are probably better ways. Do you have the necessary personal qualities and skills to succeed in business? Seek an unbiased opinion from a non-family business person. Have you had experience in the type of business you wish to run? If not, it is Advisable to work in the industry to gain this experience. Have you had any business management training? If you are reading this then you are likely to be already enrolled in management training. Have you good people skills and the ability to control staff? Can you relate professionally to staff who may be family members? You may need to discuss this with your family carefully before you commit yourselves to long hours working and living together.
1.2 Location
Do you know the preferred location and type of premises for your business? Remember, location is vital to a retail outlet and important to some service firms. Does your proposed location have easy access to all facilities that you will require? Think about parking, suppliers’ access and maintenance, for instance. Have you discussed with a solicitor the provisions of any lease that may have been offered to you? Do not sign any lease without reading all the clauses.
1.3 Financial
Have you estimated just how much it will cost you to set up in business? Remember the rental bond, fittings, stamp duty and other fixed costs. Do you know what the cost of running the business will be, eg electricity, insurance, telephone, rent, wages?
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 27 of 148 How much money can you put into the business? Remember that your ownership is the amount of your cash in the business, not the money you borrow. Do you understand where to get the finance you need and what the cost will be to borrow? Do not use short term finance to fund long-term assets. Can you afford to start in business, meet the business costs and support yourself until enough income is produced to do so? Check out your plans with an accountant. It may be some months before you can draw profits from the business. Have you discussed with an accountant the records you need to keep to maintain control of your business? The right record keeping system can save time and money when dealing with your accountant, the Tax Office and the Australian Securities & Investments Commission.
2.0 What is small business?
This question has been the subject of much discussion in recent years. Here is a popular definition from the Beddall Report 1990
A small business can be defined as : Being independently owned and managed Being closely controlled by owner/managers who also contribute most, if not all, of the operating capital Having the principal decision making functions resting with the owner/managers.
In terms of numbers of people, a small business is one which employs up to 20 people.
2.1 Strengths of a small business
Have you ever asked yourself how small business can exist side by side with larger businesses offering the same product or service? For example how can a small hairdressing salon manage to be profitable when it is located near a larger chain salon selling their services and products at a much lower price?
The answer to these questions lies in the four fundamental strengths of small business: It is personalised It is specialised It is convenient (local) It is flexible.
Let’s examine the hairdressing/ beauty salon. First of all it of offers personalised service. Each client is offered individual attention and staff are encouraged to call customers by name. The staff themselves wear name tags and often their relationship with clients develops to a first name basis.
Secondly the hairdresser/ beauty therapist is able to deal with the customers’ specific needs more effectively than a larger salon. This represents specialised service.
Thirdly, the hairdresser/ beauty therapist is usually located conveniently next to the larger chain store in a large shopping complex. Instead of being a disadvantage, this is an asset as customers can complete their shopping at one stop.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 28 of 148 Finally a small business can be much more flexible than a larger one. Due to the relatively small investment involved, the hairdresser can quickly respond to the market, extending and changing the product range to suit customer’s requests.
A small salon can concentrate these activities on one or more of these strengths. Frequently it will combine all for into its operations.
At the next opportunity, assess the small businesses in your local area. Compare the older, established businesses with the newer ones, the successful with the not so successful. How much of the four strengths do they display?
If you are already in business, or have a clear business idea, review your current or proposed operations. Are you capitalising on these strengths or is there room for improvement? Attention to these areas will ensure you attract and retain the most important customers of all- those who return on a regular basis.
2.3 Problems for small business
It is widely agreed that the major causes of small business closures are:
Lack of management skills on the part of the owner/manager Insufficient finance A failure to take advantage of assistance programs provided by government and private bodies
Some external factors are the hardest problem to deal with. There are many forces at play in the business world that the average small business has little or no control over.
Some external factors to keep your eye on include: Competition Seasonal conditions Interest rates Inflation Wages and employment conditions Availability of finance Consumer spending Taxation policy Currency fluctuations Government policy’s
2.4 Planning for Small Business
Planning is the process of looking ahead and anticipating events. It leads to a set of predetermined actions that will be put into effect to achieve a desired objective.
Planning helps you to work smarter rather than harder. It keeps you future –orientated and motivates you to achieve the results you want. Perhaps most importantly, the process of planning enables you to determine what commitment you are prepared to make to your business venture.
Planning significantly increase your chances of success. 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 29 of 148 Planning is an inexact science. Often it is necessary to make assumptions. This is because reliable information that would be useful may not be available.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 30 of 148 2.4.1 The feasibility study
This is a form of planning that examines: A new business idea Buying an existing business Acquiring a franchise Assess the introduction of a new product or service Consider expansion potential Identify new markets so you can diversify
Essentially what you are trying to do is to estimate how much, at what price, you can sell something and match this against costs to see how much potential profit exists. At the same time, you need to highlight other critical factors such as legal or financial restraints which may prevent you from proceeding with your idea any further.
The feasibility study is an initial form of planning which will lead to a more detailed business plan if the idea warrants it.
2.4.2 Starting up a new business
To determine the feasibility of starting up a completely new venture, you must gather information that will prove your idea is financially viable and that there is a profit to be made.
This will rely mainly on your understanding of marketing and your working knowledge of financial matters. The kind of questions you must answer include: What is the market demand and the need for this product or service? Can a market be created? What is the level of competition? Is the market growing, static or declining? What is the anticipated selling price? What are the costs involved? -to produce -to operate -to distribute - to market What could the business yield in terms of profit and is that sufficient reward? How much finance will be required and is it possible to acquire it? What legal requirements will apply? Is there any special experience or technical expertise required?
These are the same questions to be asked if you are introducing a new product or service, or looking to diversify. If the answers to these questions prove your idea has potential, you can then invest more time, energy and money in more detailed planning.
On the other hand, many an idea has been rejected at this stage saving the prospective small businesses owner a lot of money, time and heartache.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 31 of 148 3.0 Salon planning
The requirements of each new salon owner will probably differ when considering the layout of the salon and the size and proportions of working areas most suited to the desired salon environment.
There will be personal preferences which will indicate your individuality, but there are several principles of salon design, decor, layout and choices of equipment that must be followed to ensure that the salon is safe to operate and conforms to all legal requirements or statutory regulations.
You should work to a long range plan that will give you the option to refurbish your salon every five years. It has been shown that this can mean up to 20% more profit for you and it would be good planning to save 5% of your yearly income towards this refurbishing.
Before deciding on a salon image you need to consider the type of clientele you are trying to attract.
If the clients are of the type requiring a luxurious exclusive salon with a high degree of personal service, and they are prepared to pay the higher charges associated with such requirements, then the salon layout will be different to that found in salons that cater for a fast turnover of a larger number of clients. This type of salon is likely to be a more open one, where the clients move to various service areas.
For example: A shampoo section manned by a junior member of staff which is separated from chairs manned by the stylists and from a communal drying area. Or a pedicure is often completed in a private cubicle rather than in an open view.
The exclusive salon is more likely to provide a private area in which the complete range of services is available.
Having determined the type of clientele you want to attract then ask yourself the following questions: Is the exterior of your salon attractive, inviting and well maintained? Use the window space to lot the passer-by know who you are. Is your décor appealing to your target group of clientele (men, women, trendy, conservative, etc) Is your salon designed for efficiency? Do you make minor changes in your decor several times a year to keep the environment fresh and Interesting for clients and staff?
Pictures that hang on the wall for month after month are no longer noticed by regular clients or staff. So either change them or replace on a regular basis. That goes also for style books and magazines.
3.0.1 Creating a salon image
Image is what the salon industry is all about. When was the last time you seriously considered what kind of Image your salon is projecting to your clients and to the public at large? Is your salon inviting or intimidating, conservative or avant guard, fresh and exciting or tired and dull, warm or cold, chaotic or organised, amateurish or professional? 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 32 of 148 We've all heard the old cliché, "You can’t judge a book by its cover”. But let's face it, everybody does. If the packaging doesn't catch our interest, we simply don't bother to look inside. The same is true of your salon. Your technical skills may well be the best in town. But technical skills alone won't attract clients. You've got to get clients into your salon before you can demonstrate your skill.
It's easy to get caught up creating an image for your clients and forget about your own. Take a good hard look at your salon, as though you where seeing it for the first time, or stand in the centre of your salon and take photos north, south east & west. Then ask yourself - 'Is the décor outdated? Are there wires and cords dangling everywhere?
Does your salon look clean and uncluttered?" By projecting your best Image, your salon can attract more clients and Increase sales to existing clients.
3.0.2 Staff Image
Does your staff appear well groomed and dressed in a manner that appeals to your target clientele (trendy, conservative, etc)? Does your staff speak clearly and politely, especially over the telephone? Do their attitudes and behaviours reflect the desired image of your salon? Is your staff friendly, courteous and pleasant toward clients and co-workers? Do they seem energetic and enthusiastic about their work? Do they project self confidence and professionalism? Are your staff members sensitive to the needs of your clients? Do your staff members work well together as a team?
Do they look the part?
Do your staff portray the right image to your clients? They may look to you as a fashion leader and a trend setter. How well does that image come across as your clients see you in the salon on a daily basis? Does your staff really understand the importance of their appearance? Is their hair and make-up really appropriate? At your next staff meeting, ask each member of staff to rate his or her Image by answering the following questions.
i. Is your clothing fashionable and flattering? ii. Do you wear tastefully applied make-up that compliments your features? iii. Is your hairstyle fashionable, flattering and well kept? iv. Do you wear some form of hair colouring? All salon employees should promote your services by having them themselves. v. Are your nails well manicured? vi. Is your overall appearance neat and professional? vii. Do you project a warm, positive and professional attitude?
Study carefully the points made in the above section. Stand back and look at your salon and staff. Respond and do something about it – NOW!!
3.1 Salon Decor
The best possible use must be made of every inch of floor space and at the same time the salon must be easy to run and clean. It is advisable therefore, and will save money in the long run, to ask one or two good professional firms or shop fitters experienced in the décor and layout of 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 33 of 148 salons to submit plans an estimate. You can then select the scheme, which offers the most attractive and practical layout within the price range you can afford.
They would be under obligation to ensure compliance with the statuary and local regulations in respect of fire precautions, provision of entrances and exits, security of wiring etc. However before doing this you must have some plan as to hat type of salon business you will be operating.
3.2 Considerations for Salon Plans
When planning a new salon, changing or refurbishing an existing one, the following factors should be taken into consideration;
Number of Operators
You will have some idea as to the number of operators you will have on your staff. If you are setting up a new business, you may not start with all the staff that you hop to build up to, but have your plans well thought out so as to be able to accommodate your ideas as your business grows.
The average floor space for one operator is fourteen to sixteen square metres, ie 1.1 metre from the centre of the work station radial which includes:
operator's work area storage reception area a drying area retail
Type of clientele
As we mentioned in the previous unit, the type of clientele to be catered for is largely dependant on the social environment locally prevailing.
If the clients are of the type requiring a luxurious, exclusive’ salon with a high degree of personal service, and they are prepared to pay the higher charges associate with such requirements, then the salon layout will be different to that found in salons that cater for a fast turnover of a larger number of clients. This type of salon is likely to be a more open one, where the clients move to various service areas.
For example :
The exclusive salon is more likely to provide a private area in which the complete range of services is, available and may be performed by one highly qualified and experienced nail artist / hairdresser/ beauty therapist without the client leaving chair.
Aesthetician services A beauty therapist requires a much different layout with quiet surroundings, conducive to a restful atmosphere with more privacy (ideally a separate entrance).
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 34 of 148 Manicurist/ Pedicurist
There should be provision for an exhaust system to all, for the sometimes highly acrylic fumes associated with these services.
Floor Coverings
The floor covering you choose for your salon should be easy to clean and stand up to heavy wear.
Vinyl is ideal for all working areas and you are sure to find a pattern or style that blends with the salon decor. If you choose a light colour vinyl, try to do all colour work in one area, as staining can occur.
Vinyl floor tiles may be preferred for there are always parts of the floor surface that gets more wear and individual tiles can be replaced. A polyurethane coating over the floor surface to protect from heeled shoes can prove to be an advantage.
Ceramic tiles are also popular as they wear well, clean well and look good without constant polishing. Use a non- stain grout and a sealer to prevent staining.
Carpet for that extra touch of luxury the reception and drying areas could be carpeted but not the following:
avoid long shaggy types and choose a carpet with a short nap a solid colour carpet will show spots easily where a tweed type will not. Be sure that it is stain resistant and can be cleaned quickly-carpet tiles can be an asset in this situation so that replacement can be made in the high wear and tear areas. light and bright colours make the carpeted area look larger, the darker colours will make the area seem smaller.
Chairs
Chairs should be tested for comfort and for the quality of the upholstery. Those in the tinting section should be dye resistant or at least fitted with washable, dye-resisting, transparent covers. Adjustable chairs for height are the type most used now to suit both the client and the stylist. Where the client's feet do not reach the floor it is necessary to have a foot rest for comfort.
Benches
It is important for the benches, cupboards, shelves and drawers to be made of a material that is easily maintained and can accommodate your equipment adequately. Plan for each work station to be totally operable so that the stylist has all equipment that is required on hand. This will allow for a smooth and professional service for the client as well as making it easier and less tiring for your staff.
Electrical Outlets
These require careful thought so as to allow for more scope for your work stations. You should also plan for future requirements, if applicable, by the installation of an electricity board that meets the necessary council by-laws.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 35 of 148 Ventilation
This must be given attention the areas where the chemical work is carried out should have adequate air flow whether it be natural or artificial.
3.3 Laws and regulations
When opening or designing a salon there are specific laws and regulations that you need to abide by. When setting up your business you need to plan the salon to accommodate and comply with statuary and regulatory requirements pertaining to your business operations. For information contact your local council and Workcover NSW.
3.3.1 Statutory regulations
These are originated by the state and local Government, eg council, and are intended to ensure minimum standards of safety, health ' and hygiene for clients, staff and the general public.
Salons must be registered with local authorities (local council) and must be available for inspection.
Planning permission from your local council has to be obtained for all external structural changes.
Standards of cleanliness, safety, facilities and fire precautions, applicable to both private and public areas of the business premises, are laid down in Factories, shop and Industry Act 1962, and Occupational Health and safety Act. Contact Workcover to obtain a copy, for a small fee.
3.4 Registering your business
As a hairdresser salon you were required to register your business under the Factories, Shops and Industries Act, which is administered by the department of industrial relations. Since 1990 this is no longer a requirement, although it is still necessary to display the local Government Act 1993- No 30. Information can be obtained through Workcover. The contact numbers are contained within the ‘additional useful resources’ section of this module.
3.5 Insurance
It takes courage to go into business on your own. You must be prepared to take risks, but that does not mean you have to take unnecessary chances. Intelligent insurance is important; you work too hard in business to put it all at risk when an insurance policy with a reasonable premium can provide for emergencies and save a lot of grief.
There are many types of general insurance policies commonly used by small business. Few businesses will need all the policy types available and some will need more specialised policies. You should telephone at least three agents and get them to see you at your place of business or your home and have them make suggestions on the type of insurance you need.
You may wish to use the services of an insurance broker. They have access to insurance companies' products and are well versed in the needs of small business. The small fee charged may be offset by the time and money saved in getting the policy that most suits your needs. 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 36 of 148 3.5.1 Selecting the Right Insurance Policy for You Compare policies – get at least 3 quotes Check what is covered Check what is not covered When does protection commence? Note the conditions of the insurance Claims procedures
3.5.2 Impact of the GST
Policies sold after 1 October, 1 999 will have their premiums adjusted to reflect a GST component for that period covered by the policy after 1 July, 2000. If you intend to register your business for GST purposes, you may be entitled to claim an input tax credit for the GST included in your premium.
However, a special transitional rule applies for premiums paid before 1 July, 2003. This means that you will have to choose to either: i. claim an input tax credit on the premium and pay GST on any claim paid by your insurer; or ii. not claim an input tax credit on the premium and not incur a GST liability on any claims paid under the policy.
As the GST on any paid claim is likely to be much greater than the credit you would receive on the premium, it is strongly suggested that you seek independent advice in relation to the implications of GST on your business insurance.
3.5.3 Evaluating the Policy
Disclose to the insurer everything about your business that may be relevant and keep this information up to date. Otherwise your policy may be void. Before you pay the premium, you should: compare policies - get at least three quotes; look not only at the premium but also the no-claim bonuses/discounts available; cheek what is covered - look at the wording and definitions: check what is not covered - think of the worst case scenario: can it be covered'? when does your protection commence? (ie immediate cover or otherwise)? note particularly conditions of insurance related to the nature of your business: are some kinds of activity excluded? claims procedures - can you rely on straight forward and prompt service. ask others in similar businesses what their experience is: renewal conditions - are increases in value built in or do you have to declare any appreciation in asset values? look at whether the insurance company is well established and whether they are prepared to discuss with you your insurance needs without undue pressure to buy.
3.5.4 Main Insurance Policies
Fire Insurance - is designed to cover the building, contents and stock of the business against fire, lightning, storms, impact, malicious damage and explosion of boilers. The standard fire insurance policy covers the depreciated value of items insured at the time of the loss.
Business Interruption or Loss of Profits Insurance - this insurance provides cover if the business is interrupted through damage to property by fire or other insured perils. It ensures that anticipated net profit is maintained, pays employee wages and pays additional working costs if 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 37 of 148 alternative facilities have to be used. Payment of a claim under this policy is, however, conditional on the insured re-establishing the business.
Burglary Insurance - this covers theft of property and damage from burglars breaking in. It does not cover theft by shoplifter or staff and you cannot claim for inconvenience caused or profits lost due to burglary.
Worker's Compensation - this insurance is compulsory for all businesses employing staff. Workcover is the workers compensation system in New South Wales and is ministered by the Workcover Authority. Penalties for failure by employers to take out workcover compensation insurance were increased from 1 January, 1996, including the introduction of imprisonment for up to six months as a penalty option under Section 155 of the Workcover Legislation Act 1995.
Personal Accident or Sickness - if you are self-employed or a subcontractor, you are not covered by workers' compensation insurance, it is particularly important for you to provide yourself with funds to compensate for loss of income because of illness or accident.
Fidelity Guarantee - this covers losses resulting from misappropriation by people who handle goods or cash (ie embezzling or stealing).
Money - covers loss of money being taken to and from the bank and whilst on your premises. It can be extended to cover money taken home overnight or deposited in a bank night safe.
Public Liability - covers your legal liability for compensation if someone who is not an employee or a family member (third party) suffers injury, damage to property or death as a result of your business operations, should you be negligent.
Electronic Equipment Insurance for Computers - computer insurance is designed to cover sudden and unforeseen loss or damage. It does not cover the cost of preventative mechanical maintenance or general wear and tear.
Machinery Breakdown - this policy is designed to cover breakdown of all mechanical and electrical plant and machinery at the work site. The policy can be extended to cover spoilage of foodstuffs consequent of such a breakdown.
Superannuation - it is now compulsory to provide for employee superannuation. The minimum level of contribution from 1 July, 1 999 is 7% of employees' gross income. For forward planning and budgeting purposes, it should be noted that the future rates of employer contribution are as follows:
Financial Year Rate After 2002 = 9%
Professional Indemnity - there is a growing trend for legal action to be taken against professional advisers for losses incurred as a result of following their advice. This insurance is not cheap, but it could be critical for people who work as consultants or who set themselves up as experts.
Product liability - this policy covers the damage caused to another business and for personal injury by the failure of your product or someone else's product you are selling.
That other product only has to be modified or assembled by you to be considered your responsibility. The damage claimed against you could be high if your product was a component in an expensive piece of equipment that failed due to your product. Sometimes you may be able to have your public risk policy endorsed to cover product liability.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 38 of 148 Partnership - it is wise for all partners to consider insurance on one another’s lives. The purpose of this type of insurance is to give the surviving partner protection against the demands of the deceased partners estate.
3.5.5 How Much Insurance Do You Need?
If you have to make an insurance claim, do you know how much it would cost to replace the assets? Many businesses ask financial disaster through under-insurance. People often misunderstand the terms of a replacement policy. A replacement policy aims to replace or restore property as new. These policies often have an upper limit on the amount payable and unless you are aware of this you could believe that you are better covered than you are.
Another term that is often misunderstood is the co-insurance clause. This means that if the sum insured in your property falls substantially below the full value of the property you are entitled to be compensated for only a proportion of the loss.
It is very important that you insure your assets for their replacement value in today's prices. If you're not sure of the replacement cost you may need the services of a qualified valuer to establish what your assets are worth.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 39 of 148 4.0 Salon Safety Management Each year a significant number of people die at work and many more are severely affected by work- related injuries and disease. Australia's performance in the protection of employees' health and safety leaves considerable scope for improvement: Workers' compensation records for 1996-97 show there were around 134,000 claims for work- related fatality, permanent disability or serious temporary disability, excluding work-related disease. However, more comprehensive data on Australian work-related injury and disease are required. Historical data on fatalities due to work-related injuries indicate that there are around 440 such deaths each year. Many of these fatal injuries are not identified by the compensation data. Attributable risk calculations, which have known limitations, put the estimated number of deaths per year from occupational exposure to hazardous substances at approximately 2,300. In the Australian workplace there are over 15 cases of serious injury occurring every hour, and there is at least one death per day - at a cost equivalent to five per cent of Australia's GDP. Poor performance on occupational health and safety places a significant burden on the Australian economy. The direct cost in terms of workers' compensation premium payments for 1996-97 was $4.9 billion, but the true cost is much greater. The total cost of workplace injury and disease in 1992-93 was estimated to be more than $20 billion. More than one million working weeks were lost in 1996-97 due to new work-related compensated cases reported in that year.
4.1 National OH&S Improvement Framework
The fundamental purpose of the national framework is to reduce the incidence of work-related injury, disease and death. To achieve this we need to establish clear national objectives and goals. The setting of OH&S improvement targets at the national level requires more careful consideration based on an examination of the experience of jurisdictions in setting targets and measuring performance against them.
4.2 National Standards
The National Commission sets OH&S Standards for hazards common to many industries and workplaces across Australia. These standards do not become law until they are adopted as regulations in each of the states and Territories.
4.3 Duty Of Care Each State and Territory has a principal OHS Act which sets out requirements for ensuring that workplaces are safe and healthy. These requirements spell out the duties of different groups of people who play a role in workplace health and safety. These requirements are known as the Duty of Care. Employers and employees and product manufactures all have a DUTY OF CARE.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 40 of 148 Employers must provide a safe and healthy work healthy work environment and a safe system of work. Employees have a responsibility to carry out their work in as safe a manner as possible. Suppliers and manufacturers have a responsibility to provide safe products as well as full and accurate information about the materials (MSD Sheets) and equipment they provide to workplaces.
4.4 Benefits of a proactive approach include:
Improves productivity and customer service. Investing energy into creating health and safety standards and a safe working environment gives your employees and customers confidence that your business is responsible and capable and that you CARE about them. Improves your overall business operating systems. When you start to examine job tasks to identify and control hazards you are indirectly improving your business processes as you will also have the opportunity to examine whether tasks are being performed with the most efficient use of time and resources. Improves your overall business image. Businesses underestimate the benefits of promoting good health and safety standards. For example your products/services displaying information regarding the extra efforts your company has taken to ensure a safer product/service.
Protects your business profits. Maintaining a safer and healthier workplace will save you the costs associated with work related injury/illness.
4.5 Hazards and solutions
4.5.1 What is a hazard?
A hazard is something that has the potential to cause harm. This harm can affect people, property and processes as follows: People - Injury, illness, death, psychological trauma; Property - Damage, contamination, theft and wastage; Processes - Work disruption and interruption to production.
4.6 Conducting a Risk Assessment
There are three essential steps which you should take to make sure that hazards in your workplace are eliminated or controlled: 4.6.1 Hazard Identification
Methods for identifying hazards in your workplace include:
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 41 of 148 History of injury and illness Examine the types of injuries and illnesses that are occurring in the workplace by asking your employees and reading through first aid reports and previous compensation claims.
Job Safety Checks Observing a job from start to finish and recording its steps gives you the opportunity to assess each step for potential hazards that may have been overlooked in the past. Employee consultation Ask your employees about health and safety concerns. Safety audits This audit would usually be conducted by external safety consultants and would result in a written report with recommendations for improvement. Insurance companies can also conduct safety audits prior to renewal of your insurance policies.
4.6.2 Risk Assessment
Once hazards have been identified you need to assess the risk. This is the likelihood of an injury or illness occurring from exposure to the hazard. When assessing risk there are several factors that should be taken into account. These factors include: Severity; Frequency; Intensity of the exposure. For example, the intensity, , frequency and duration of exposure to the suns harmful rays are factors when determining the risk of skin cancer.
Severity can be classified as: Minor injury with no time off work. An injury/illness resulting in time off work. An injury/illness causing a permanent disability or loss of body part or bodily function. An injury /illness that could cause death.
The overall purpose of the assessment is to determine priorities in risk control.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 42 of 148 4.6.3 Risk Control Once the hazard has been assessed control options for eliminating or reducing the risk of exposure to the hazard must be considered.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 43 of 148 4.7 HAZARDOUS SUBSTANCES A hazardous substance is any substance that has the potential to harm the health of people.
What Can You Do? Existing chemicals Identify which chemicals are hazardous by: Checking the Label - if there are safety and risk warnings on the container/label then the chemical has the potential to be harmful if not used correctly. All unlabelled chemicals are a risk and should be carefully disposed of, contact your local council about chemical disposal. Information - Contact the chemical supplier you obtained the chemical from and ask them to supply you with a material safety data sheet (MSDS). A MSDS is a chemical information sheet that must provide information about the health and safety effects of the chemical and safety precautions for its correct use and storage. It should also include first aid requirements. The supplier has a legal obligation to provide you with this information. Ensure that all employees who are using the chemical have access to the MSDS and receive training in its hazards and safe use.
4.7.1 DANGEROUS GOODS
Dangerous Goods legislation exists in all jurisdictions in Australia. Compliance is required with regard to the storage, handling, packaging and transportation of these goods in accordance with the National Code of Practice for the Transportation of Dangerous Goods by Rail or Road. (This is available from Australian Government bookstores.)
How do you know if a chemical is classified as a Dangerous Good?
Dangerous Goods will have an identifier on their label which is in the shape of a diamond. The diamond will have a Class number of 1 to 9. What is Occupational Overuse Syndrome? Occupational Overuse Syndrome (OOS) is also known as Repetition Strain Injury (RSI). It is a collective term for a range of conditions characterised by discomfort or persistent pain in muscles, tendons and other soft tissues in the back, neck, shoulder, elbows, wrists, hands or fingers. Who can it affect? OOS may affect workers in any occupation, particularly those doing tasks which involve: Repetitive or forceful movement of both arms; Maintenance of constrained or awkward postures.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 44 of 148 4.7.2 HAZARDS In the workplace
Working Environment The working environment includes the atmosphere, temperature and comfort, lighting, air quality, noise and the general surroundings. When any one of these working conditions is substandard they can affect health and safety. A brief overview of hazards relating to lighting and temperature and comfort follows. Some other information on the general working environment is provided in Safe Premises/Buildings in the Getting Started with OHS section. There is also a
4.7.3 checklist for identifying hazards in the working environment.
Lighting There must be levels of lighting sufficient for the work areas and tasks being performed. Too much and too little light can lead to: Eye strain; Headaches; Blurred vision.
Temperature and Comfort Uncomfortably warm or cold work environments can effect the comfort, concentration and productivity of employees. Factors which contribute to comfort include: Humidity; Air movement; Level of activity; Clothing.
Temperature controls can range from fans and blowers to air conditioning and heating systems. Optimal temperature is between 21 to 24 degrees Celsius. Environments that have extreme temperatures can harm health and safety generally and should be assessed so that adequate controls can be determined.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 45 of 148 4.7.4 GETTING STARTED WITH OHS
Safe Work Procedures can provide a written record of how a job is to be performed and what hazard control methods are in place.
4.7.5 What is a Safe Work Procedure ? A Safe Work Procedure is a written work instruction of how a job task should be conducted from start to finish. A safe work procedure should list:
A breakdown of the task into steps;
Controls to prevent injury and/or persons coming in contact with known hazards;
Tools and equipment required;
Information and training required.
4.7.6 Why do you need them? To use as a basis for training employees/contractors;
They can be used as a basis when checking that existing hazard controls are working.
How are they developed? A Safe Work Procedure should be born out of a Job Safety Check. The Job Safety Check outlined below is based on the principles of risk identification, assessment and risk control.
4.7.7 A Job Safety Check: There are five steps in the process of carrying out a Job Safety Check, they are:
Step 1. Observe.
Step 2. Record the sequence of basic job steps.
Step 3. Assess potential failures of each step with the worker.
Step 4. Suggest ways of eliminating the hazards.
Step 5. Make an efficiency check with another worker.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 46 of 148 Before conducting the Job Safety Check Jobs that should be subject to a Job Safety Check are those with high risk tasks. That is jobs with a history of injuries/accidents or with the potential to cause the most serious injuries. Choose the right employee to observe. This should be an employee with a good hands on experience and knowledge of job tasks being observed. You may need to observe more than one employee where the work is broken into different shifts.
How to record the sequence of basic job steps: Here is an example of the breakdown for the job of changing a flat tyre on a car.
1.Position the car and set brakes. 8. Remove wheel.
2.Block wheel. 9. Position spare wheel
3.Remove spare tyre and position it near by. 10. Fit nuts but don't fully tighten.
4.Position car jack. 11. Lower car
5.Remove hubcap and loosen nuts. 12. Tighten nuts
6.Jack up the car. 13. Replace hub cap.
7.Remove nuts. 14. Store jack and wheel
Note the following tips: Each step tells generally what must be done with no reference to how. No hazards are mentioned and no safety precautions are prescribed. That comes later. The job steps are described in order of occurrence. The description of each step starts with an action word, i.e. position, remove, tighten etc.
A common mistake made with Job safety Checks is to unnecessarily list a large number of job steps. For example: Park the car. Get out of the car. Walk to the car boot. Open the boot etc.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 47 of 148 4.7.8 How to Assess all Potential Failures and Exposures to Hazards
The following factors should be considered during the job observation: Is there exposure to noise, fumes, or dust? Can equipment fail in any way? Is the work physically arduous? Is the work made harder by external factors (climate, noise etc.)? Is the work made harder by the way it is organised (shift work, adequate rest breaks)? Is there enough space to move about? Does the body have to sustain awkward body postures, such as crouching, reaching overhead? Are there demands on vision, hearing and communication skills? Can the person be struck by or contacted by anything while doing this step of the job? Can the person strike against or make injurious contact with anything? Can the person be caught in, on or between anything? Do loads need to be lifted/or handled? Can the person slip or trip or fall? What level of supervision is required?
Are there any exposures to psychological hazards (such as dealing with public complaints/abuse, shift work, dealing with trauma)?
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 48 of 148 5.0 Maintain Customer Relations
5.1 Customer Loyalty "It takes a lot less money to increase your retention of current customers than to find new ones!" Strategise And Plan For Loyalty! Do you even have a specific plan for building customer loyalty? If you currently retain 70 percent of your customers and you start a program to improve that to 80 percent, you'll add an additional 10 percent to your growth rate. Particularly because of the high cost of landing new customers versus the high profitability of a loyal customer base, you might want to reflect upon your current business strategy. These four factors will greatly affect your ability to build a loyal customer base: 1. Products that are highly differentiated from those of the competition. 2. Higher-end products where price is not the primary buying factor. 3. Products with a high service component. 4. Multiple products for the same customer.
Market To Your Own Customers! Giving a lot of thought to your marketing programs aimed at current customers is one aspect of building customer loyalty.
Use Complaints To Build Business! When customers aren't happy with your business they usually won't complain to you - instead, they'll probably complain to just about everyone else they know - and take their business to your competition next time. That's why an increasing number of businesses are making follow-up calls or mailing satisfaction questionnaires after the sale is made. They find that if they promptly follow up and resolve a customer's complaint, the customer might be even more likely to do business than the average customer who didn't have a complaint. In many business situations, the customer will have many more interactions after the sale with technical, service, or customer support people than they did with the sales people. So if you're serious about retaining customers or getting referrals, these interactions are the ones that are really going to matter. They really should be handled with the same attention and focus that sales calls get because in a way they are sales calls for repeat business.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 49 of 148 Reach Out To Your Customers! Contact . . . contact . . . contact with current customers is a good way to build their loyalty. The more the customer sees someone from your firm, the more likely you'll get the next order. Send Christmas cards, see them at trade shows, stop by to make sure everything's okay. Send a simple newsletter to your customers-tell them about the great things that are happening at your firm and include some useful information for them. Send them copies of any media clippings about your firm. Invite them to free seminars. The more they know about you, the more they see you as someone out to help them, the more they know about your accomplishments-the more loyal a customer they will be.
Loyal Customers and Loyal Workforces Building customer loyalty will be a lot easier if you have a loyal workforce-not at all a given these days. It is especially important for you to retain those employees who interact with customers such as sales people, technical support, and customer-service people. Many companies give a lot of attention to retaining sales people but little to support people. I've been fortunate to have the same great people in customer service for years-and the compliments from customers make it clear that they really appreciate specific people in our service function. .
5.2 Quality management Quality is defined as meeting or exceeding the needs and expectations of the customer. Thus, the goal of a business should be to find out what the customer wants and then fine tune the process to ensure that they get it. The term 'customer' is used to include internal customers as well as external customers. Thus every work group has a customer - the person who receives their output. The core concepts are: * continuous process improvement * customer focus * defect prevention * universal responsibility 5.2.1 Continuous Process Improvement The first step in quality improvement is for people to look at their work in terms of being part of a continuous process. A process is simply a sequence of tasks which together produce a product or service. The best way to understand a process is to draw a flow chart showing all the steps. When you do this it is possible to visualise one's own work in terms of being a step in a process. Think about all the processes that occur in any given salon treatment.
Quality is defined as meeting customer needs. Therefore the way to improve quality is to figure out who is the customer and what they need, and then improve the process to fully meet this need. There are various techniques for doing this. They involve setting up teams to analyse problems with the process and implement solutions. Because the supplier is part of the process some techniques involve teaming with the supplier to improve the quality of incoming products. Continuous Improvement is the term used to describe the fact that process improvement takes place in incremental steps. It never stops. However good things may be, they can always be better. Continuous improvement is a relentless effort to add value for the customer.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 50 of 148 The steps in the Continuous Improvement process are to:
* select an improvement project with a specific goal * assign a team to improve it * define the process using a flow chart * define variability and problems in the process * find the root causes of the problems * recommend improvements * implement the improvements as a pilot project * measure the results * proceed to a final implementation * move on to the next problem. The continuous improvement process should be driven from the top, but implemented from the bottom. The selection of improvement projects needs a sharp focus. The problem areas must be prioritised, critical processes selected for improvement, and improvement goals set for the project team. This is a top down process. The problem solving and implementation is done by teams which include staff at the working level. This is a bottom up process which requires the involvement and commitment of the staff. There are various techniques which teams can use for their quality improvement work. Training must be provided so that the teams know how to use these techniques: * processes are described using flow charts * problem solving is done using system failure analysis, cause/effect analysis and brainstorming * customer needs may be defined using a Quality Function Deployment Matrix * processes are monitored using statistical process control techniques * inventory control and supplier management techniques are used to improve the inputs Staff who are assigned to project improvement teams need to understand how to use these techniques. Managers and supervisors need to understand these techniques too, because it is their job to facilitate and drive the quality improvement effort. 5.2.2 Customer focus Everyone has a customer. The external customer is the person who purchases the product or service. We also have to think of the internal customers. Internal customers are those who use what another group provides. This has quite profound implications. It means that every work group has to think about providing value to the people who use their product. This involves finding out exactly what the user needs and wants, and ensuring that the process provides it. For instance, the internal customers of a supplier inspection group will want to receive timely reports on supplier performance, early warning of potential delivery delays and helpful assistance in resolving problems with suppliers. They will also want to be treated with courtesy. The starting point for quality improvement is to determine the customer needs. When the needs are fairly simple, this can be done merely by talking to them. When one is dealing with an external customer and the product is very complex, the determination of the customer needs can be quite time consuming and requires a detailed analysis. Determining customer needs accurately is an important aspect of quality control. Obviously, it is less costly to rectify a mistake in defining customer requirements before a product is produced than it is
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 51 of 148 afterwards. So spending the time and effort to figure out the requirements correctly at the start is time well spent. 5.2.3 Defect Prevention Quality management is a philosophy that seeks to prevent defects in products or services rather than relying on inspection to sort out defects after they occur. Defect prevention saves money. Defect prevention is concerned with catching the errors as early in the game as possible or preventing them from occurring at all. 5.2.4 Universal Responsibility This concept deals with the fact that quality is not only the responsibility of the inspection department but is everyone's responsibility. Quality should be totally pervasive. Every work group in the business should be concerned with seeking ways to improve the quality of their own product or service.
5.3 Techniques and Methodologies There are a number of management approaches and techniques which have been developed to support these four core concepts. These are:
5.3.1. Statistics for process control. Quality control is based on using statistical analysis to measure and predict the performance of processes. Statistics is a fairly intimidating branch of mathematics that deals with variability. It is quite complex and very few people have training in the subject. However some of the ideas that apply to process control can be explained easily enough without resorting to the mathematics. Statistics deals with variability. It is used to predict and control the performance of a system based on measurements of the output from the system. Take a average time for a service and consider the variables like personal differences in the client or operator, required result, even environmental changes.
We can now use statistical methods to monitor and control processes. We do this by taking samples from the outputs, measuring them, plotting them and interpreting them to allow us to see whether a process is under control. It also provides indications about how it can be fixed, if necessary.
The crux of the approach is to keep the process under control so that defects do not occur or are at a minimum. Once the process is under control and the special causes have been eliminated, one can only make further improvements by improving the process.
5.3.2. Employee Involvement and Empowerment. The success of the quality management approach is dependent on having well trained and motivated staff and ensuring that their efforts are focused towards improving the systems that produce the products. Staff must be involved and empowered.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 52 of 148 Involvement means that management actively encourages involvement in running the operation and improving the processes. Empowerment is something more. It means that management recognises that when staff are given training and provided with the right information, they are in the best position to control their own work processes. This being the case, they should be empowered to do it. There are various techniques to solicit employee involvement. Suggestion schemes work well when they are well publicised and when worthwhile rewards are provided. The job design can be improved to be more satisfying. Continuous Improvement teams should include staff at the working level so that they become involved in the quality improvement effort. Empowerment means delegating control to the working level. This needs to be done gradually, as people get used to the idea and as they acquire the skills. Training is needed to provide staff with the skills to control their production processes, and to investigate and solve problems.
5.3.3. Quality measurement systems.
Measuring quality costs is important. There is an old adage that if you can't measure it you can't manage it. Measures of quality costs provide the information needed to analyse where the excess costs are occurring. You can then target improvement projects to reduce them. What is quality? Quality is an abstract concept. Most people know what it is when they see it, but it is difficult to define. When you go to buy a new car you look for certain features in the car, but you also want to be treated with respect. You want good service after the car has been delivered, and you certainly don't want the car to have defects. If all of your needs are satisfied you judge that you have received quality. Quality is more than meeting a product specification because a specification only provides a minimum set of requirements. Quality is being delighted that your expectations have been met and exceeded. How do you measure the cost of quality?
Businesses need to develop a range of measures that get a handle on various categories of quality costs. These include quality costs that show up before and after the product/ service has reached the customer. Various studies have estimated that the costs of poor quality account for anything from 15% to 50% of all business costs. Most businesses do not know what their quality costs are because they do not keep reliable statistics.
Quality costs include the costs of waste during production, the cost of reworking defective services, the cost of relacing products, and warranty costs. Quality cost are enormous and they must be measured if there is to be any hope of improvement. The information provided by a well designed cost tracking system enables management to focus their efforts on the high cost areas and to track how well the improvement efforts are going. Quality costs can be broken down into failure costs, appraisal costs and preventive costs.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 53 of 148 5.3.4. Problem solving.
Quality management depends on people having good problem solving skills. It is through the continuous process of identifying problems, and solving and implementing solutions that the business is improved. Problem solving consists of identifying the root causes of a problem and implementing actions to correct the situation. There is a simple four step approach to problem solving which can be applied to many situations: 1. The first step is to define the problem 2. The next step is to seek the root causes of the problem. There is a tendency to jump to the first cause that comes to mind. This is hazardous as it can focus on the wrong cause or simply correct a symptom. In many situations the root cause can be found by brainstorming. More complex problems require more sophisticated techniques, such as cause/effect diagrams or system failure analysis. 3. Once the likely causes of the problem have been found one should identify a variety of potential solutions and select the best to implement.
There is a ranking order for selecting solutions: the best solutions is one that eliminates the problem altogether, making the system foolproof in some cases the problem cannot be eliminated so one may relax the requirements when these solutions are not feasible the problem may be resolved by training personnel to control the circumstances that contribute to the problem a least preferred solutions is to resort to inspection and testing to sort good products from bad the worst solution is to use cautions or warnings of possible hazards 4. The final step in the problem solving sequence is to evaluate the effectiveness of the solution. This is done after it has been implemented to ensure that the solution really does work. It is also a learning experience for the organization so that people can learn from the successes and pitfalls experienced by others. 5.3.5. System Failure Analysis. The system failure analysis is a sophisticated approach to finding the root cause of failures in complex systems. A system may be a production service or a product that has failed. The analysis begins by identifying the failure symptoms.
The next step is to study each possible failure reason and to investigate the likelihood that it may have contributed to the problem. Team members are then assigned to investigate each potential cause more closely. There are various techniques that can be used: 'what's different' analysis identifies the factors that have been changed pedigree analysis examines the documents
hypothetical failure modes can be investigated by making special tests to The beauty of the failure mode analysis is that it offers a systematic method of determining all the possible modes of failure and investigating them to determine the most likely causes. 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 54 of 148 5.3.6. Teams. Teams are to be used for problem solving. Teams have a number of advantages over individuals. A properly constituted team has a much richer mix of skills to bring to bear on a problem. Most work processes cut across functional boundaries, so a cooperative effort is required to solve process problems.
Management needs to have a structured approach to problem solving. It is important to encourage everyone to suggest areas for improvement, especially at the working level. Staff are in a good position to see the problems and the improvement opportunities. 5.3.7. Quality Function Deployment. Process improvement begins by defining what it is that the customer wants and needs. In many cases this can be done by talking to the customer or doing a survey. Quality Function Deployment provides a systematic method for unearthing the customers' needs and expectations, making trade-offs when these needs are in conflict, and ensuring that the needs are effectively incorporated into the final product.
When used effectively, this method enables a business to bring a new product or service to market faster. The product will be more likely to hit the requirements of the target market, making it easier to build market share and stay ahead of the competition. Quality Function Deployment is a multi-disciplinary tool that requires marketing, design, production and sales to work together to ensure that the needs of the customer are deployed into the product design. 5.3.8. Value Improvement. Value improvement differs from cost reduction. Cost reduction usually results in cheapening the product. Value improvement is aimed at cutting costs while at the same time continuing to surpass customer expectations. It requires that one analyse the cost structure of the product or service, relate this to the customer requirements, and eliminate or reduce those costs that are unnecessary. There are two approaches to value improvement. The first is a simple one which is aimed at eliminating all the costs which are obviously unnecessary. The second is to make a systematic analysis of the entire cost structure with the objective of identifying and reducing those cost drivers that are not necessary.
In today’s volatile economy, providing excellent customer service can be the critical difference in your business’s success.
Customer service involves all the activities your business and your employees conduct or perform to satisfy customers.
5.4 The importance of customer service
Recall how you felt last time you had poor service. Describe the situation, what was said and how you felt. If you decided never to shop there again, what do you think it cost that company not to satisfy you and keep you as a customer?
Poor customer service is expensive. Good customer service is invaluable, and you can achieve in your company. As an employer you need to develop a customer service system and design and 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 55 of 148 implement customer retention programs that will maintain customer loyalty, thereby increasing the profitability that your customers will refer new buyers to your business.
Businesses that provide superior customer service can charge more, enjoy greater profits, and increase their market share.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 56 of 148 Activity: Write down a few reasons you think that people might stop doing business with you. After you write down a reason, describe what you could do to correct the problem. Reasons Solutions
Reasons that customers stop coming to you include: 1% die 3% move away 5% seek alternatives or develop other business relationships 9% begin doing business with the competition 14% are dissatisfied with the product or service 68% are upset with the treatment they have received 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 57 of 148 If you look at these percentages, you will realise that you have 96% control over the reasons why customers stop doing business with you.
Never take a customer for granted. Be grateful they have decided to do business with you and not a competitor. Work as hard as you possibly can to deliver more than they expect, and you will go a long way toward retaining your customers.
5.5 Retention Through Customer Service Marketing
Through good public relations you are able to introduce new clients to your salon as well as retaining those clients that you have. Public relations can be described as the advertising or promotion of the professional image of the salon without spending money.
Your business can go beyond customer service, increase customer retention and enhance marketing efforts all at the same time.
Here are 6 customer retention policies that are also good marketing strategies for your business. 1. Frequent buyer program 2. Frequent referral programs 3. Thank you cards 4. Newsletters / Personal letters 5. Telephone recalls 6. Customer special events (e.g. birthdays) 7. Lectures / appearances
News Editorials
Your salon could be featured in the newspaper or feature columns of fashion magazines, beauty articles or community papers. Maybe your salon could offer it services to worthwhile community projects, or maybe it has been involved in local fashion parades etc.
Newsletters
Newsletters are a great way to keep customers informed of what is going on in your business. You can tell them whatever information you need them to know. It is a good way to introduce new services and special events that you have running. News stories could cover new fashions, use of the latest technology, acquisitions of new business, moving place of business, promotions or winning an award of some kind. When preparing news stories, follow accepted simple rules: Type written Double spaced Sentences no longer than three lines Paragraphs no longer than three sentences Each article approximately 150 words in length Include pictures or photographs Include the salon name, address and phone number
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 58 of 148 Lectures / Appearances
Nail or beauty care discussions for various target groups eg, schools, clubs and disabled groups.
5.6 Promotion of Professional Image
This could be described as the first impression that you present to your clients. The provision of first class nail services in hygienic surroundings by highly skilled operators who take pride in their work and interest in their clients.
The nail artist and the salon need to cultivate a sense of rapport with the client through salon image and first impressions. You can do this through: salon appearance appearance of staff staff attention to clients efficiency of staff interaction technical expertise follow through( recommendation of home care products) effective use of the telephone efficient use of appointment book use of effective communication skills
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 59 of 148 5.7 Service Enhancements
Offering your customers value added service means giving the customer more than they expect.
An example of a value added service is the concept of the ‘bakers dozen’, you pay for 12 bread rolls and receive 13. This is their attempt to compete by providing value added service. Sometimes you can charge more for value-added service, because customers will pay the added price just to receive quality service.
What types of service enhancements can you provide?. List your service enhancements and why they would interest your customers.. Be specific when you list the benefits, as these become excellent marketing and advertising messages.
Current Service Service Enhancement Benefit
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 60 of 148 5.8 Frequent Buyer program
Frequent buyer programs are similar to airline frequent flyer programs. You are rewarding those customers who buy from you regularly. When designing a frequent flyers program for your salon be sure that it is easy for all your regular customers to benefit.
Activity: List the services that your salon offers. Then write down the number of reward points the customer will receive when she purchases each service. Hint: give each customers 1 point for each dollar spent in the salon.
Service Points
E.g.: Buff and Paint 18 points
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 61 of 148 Now you need to list your ‘rewards’, that is the services you offer and the amount of points required to receive this service for free.
Service Frequent Points Required e.g. French Polish 45 points
5.9 Frequent Referral Programs
This is where your clients recommend your services and products to other friends and colleges. Thus also known as word of mouth advertising.
A lot of your business relies on referrals. You should reward the people making referrals to you. Your rewards help to reinforce their behaviour, thereby creating a positive cycle and a mutually beneficial relationship. The best way to use a frequent referral reward program is to develop it in levels. When somebody refers more than five people, do something special for that person. Then start the referral reward program all over again.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 62 of 148 Example
Number of Referrals Reward Recommendation
1 Thank you card 2 Telephone call 3 Flowers 4 Small Gift (under $10) 5 Gift Certificate (dinner for 2)
Activity: Develop your own reward recommendations.
Number of Referrals Reward Recommendations
1
2
3
4
5
5.10 Thank You Cards
A simple and effective customer retention technique is writing a thank you card and sending it to someone who has bought something from you. (If you do not want tom write out a card to every customer , then have your cards pre printed.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 63 of 148 5.11 Telephone Recalls
Telephone recalls work well in any type of business. You can call customers a day in advance to remind them of their appointment.. Orr if they have not been in for some time , you can call them to see how they are doing and inform them of a reason to come in now to do business with you.
5.12 Service Phases
There are five phases of service that nail artist’s needs to consider when dealing with effectively with customers. These are: 1. Greeting Smile. Use the customer’s name. Be happy to see them. Assess the client’s personality type.
2. Assessment of the clients needs. Consult with the client, listen attentively and establish trust.
3. Agreement Tailor proposed service to the clients needs and then gain the client’s agreement
4. Delivery of Services Deliver the services, give the client more than they expected. In doing this it reinforces the clients trust with you and your salon.
5. Completion Seek the feedback from the client regarding their satisfaction and anticipate the clients future needs.
5. 13 Dealing With Complaints
Customers who complain feel annoyed, cheated or victimized. They also feel that their situation is the most important in the world. Understand these feelings and treat your customers accordingly. Dissatisfied customers tell up to 20 friends that they are unhappy with the way you do business. However if you resolve their problems 505-74% of these customers will do business with you again.
Here are a few tips on handling customer complaints: 1. Apologise First and foremost, say you are sorry for the inconvenience the customer has experienced. A sincere apology usually defuses the customer’s anger.
2. Urgent restatement Restate the problem as the customer described it to you and make certain that you fully understand what the customer means. Let the customer know that you will do everything possible to solve the problem.
3. Empathy Make certain that you communicate clearly to the customer so that they understand that you know how they feel. Do not patronise. Use statements like “I can see why you’re upset”, “I understand how you feel”.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 64 of 148 4. Restitution Here is your chance to make points. Not only will you take immediate action to resolve the customers complaint, you will go a step further. Tell and show them that you will make it up to them in a special way. You may have to provide a free gift for their troubles, or you may have to offer a service at a discount price. Whatever you do, look at it as adding value rather than spending extra money.
5. Follow up Be sure to find out if your customer is satisfied. You can do this by asking a simple question or two at the end of the recovery process. “Have we resolved your complaint to your satisfaction?” “What else may we do for you?” After a few days you may also like to send a letter.
5.14 Tips for long term Customer Retention
Call each customer by name Listen to what each customer has to say Be concerned about each customer as an individual Be courteous to each customer Be responsive to their individual needs Know your customers personal buying histories and motivations Take sufficient time with each customer Involve the customers in you business. Ask for their advice. Make customers feel important. Pay them compliments
5.15 The Customers bill of rights
The customer has a right to the following: Professional, courteous and prompt service Your full and undivided attention each time they choose to do business with you. Quality products and services Fulfillment of their needs. Competent, knowledgeable and well trained staff Appreciation from you and your staff for pat and future business.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 65 of 148 6.0 Marketing Success
Good customer relations are a result of a good marketing program. This involves a set of key activities that, if executed properly, will unlock the door to higher profits. Key activities include advertising, promotions, product or service packaging, discounts, new products and distribution. These activities usually involve a variety of personnel (representing different business functions), or a few people wearing a variety of hats. Everyone involved in implementing the marketing program must have a clear and consistent understanding of the intent and objectives, for greatest success.
The most effective way of insuring that each contributor is directing his or her efforts appropriately, is good communication. One form of that communication is a thoroughly documented, clearly worded, and properly formatted marketing plan.
Of course, this is one of those clichés that is easy to say, but not so easy to accomplish. Most of us are not professional writers, nor do we have an MBA degree. A marketing plan must consider the ability of the enterprise, the capabilities of the offering(s), the needs and accessibility of the market, the implications of environmental factors and the strength and likely reactions of the competition. Integrated into all of this must be strategies for pricing, promotion and distribution. So where do you start, how can you be sure that all of the right issues are addressed, and how do you put it all together into a readable document?
6.1 Mission Statement
A mission statement is a goal to develop a product of service being the premier, or optimum that it can be. A creation for distribution and consumption by: Providing samples and demonstrations at no cost Giving consumers the chance to experience a superior product Giving small product companies the chance to distribute their products, increasing their exposure through professional recommendation Creating a service that is superior to any other within a demographic area.
6.2 Management Team
A management team that has, or develops, the skills to succeed in running an innovative, market- driven company comes from a combination of good business training and a strong connection with its market.
A business plan, developed and monitored by a strong management team, provides a blueprint for the launch and growth of the selected business. It will also serve to demonstrate the operational and financial viability.
6.3 Market Analysis
Research to study and determine the consumers’ likes and dislikes of products or services in the hair and beauty industry. The result should demonstrate that consumers place “look, comfort, fit, 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 66 of 148 and feel" as important characteristics. Other important criteria in the study include "suit active life- style", "has performance advantages", and "fashion".
6.4 Focus Group Interviews
To better understand the criteria used by consumers, focus group interviews can be conducted. Analysis of the focus group protocols provided a rich qualitative assessment of consumer decision behavior in this product category.
6.5 Competitor Content Analysis
Content analysis is employed to systematically and objectively identify the specific content (i.e., the features and/or benefits) or other business services and products.
6.6 Key Informant Analysis
Informal discussions give access to the findings of the primary research and market experience. These discussions confirmed what had been derived from the focus group interviews, and the competitor content analysis.
6.7 Target Market
It was necessary to identify clients that may be interested in the salon techniques and services. Preliminary analysis of local residents identifies the type of client that would most likely use the product or service. A market profile typically uses primary and secondary sources to answer key questions about a potential market. A profile is a picture or an outline. Information that makes up the social profiles of the people in your target market is called demographic information, and includes:
Age, usually given in a range (20-35 years) Sex Marriage/partner status Location of household Family size and description Income, especially disposable income (money available to spend) Educational level, usually to last level completed Occupation Interests, purchasing profile (what are consumers know to want?) Cultural, ethnic, racial background
6.8 The Right Product Or Service
What are your customers' needs? What do they expect to get when they buy your product or use your service? The right product is the one that best fits their requirements.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 67 of 148 People who eat in restaurants want more than a good meal. They might expect quick service, a reasonable price, a vegetarian menu, a children's menu, entertainment, a drive through window, or to identify with a trendy crowd. It becomes a difficult and probably unprofitable venture trying to satisfy everyone's needs.
If you have identified your customer and listed their expectations, you can design your product or service around their requirements.
The more you fulfill your customer's expectations, the better the quality of your product. Think of your product or service as more than just what the customer's pays for. When you are planning your business consider how the whole transaction meets the customer's needs.
6.9 Positioning your Business
Positioning refers to the image customers have of your business. The goal is to create a business image that enables you to position your business in such a way that, in essence, it acts as a natural magnet for your intended customers. A number of factors often look for include:
Price (i.e. cheapest price, fair price, price for quality, etc) Assortment Parking Service Sales personnel Quality Fashion Convenience Location Atmosphere
Your overall position should emphasize those areas that your customers value most and those, which make you different from your competition.
6.10 Pricing Techniques
The importance of pricing can not be understanding as incorrect pricing can often result in the failure of a business. New businesses often make the mistake of either charging too little or too much for their product or service. So to help you avoid making one of these mistakes, the following section will outline some of the guiding principles of price determination.
Price is a key part of marketing. Setting prices is called Pricing
6.11 Setting Prices
Prices for products and services can be set by pricing to the market, pricing to your costs, and rule of thumb pricing. New business people with little experience may set an initial price based on the market, and then as experience grows, reset prices according to costs. These two aspects of price what is acceptable to the market, and what costs are—must both be considered. In addition, effective pricing depends on the business goals of your company: do you want to maximize profits
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 68 of 148 or are you aiming for high growth in sales? The choices that a business ultimately makes about its markets and sales make a big difference in pricing.
NOTE: Be careful about under pricing in order to compete or make sales. Use competitor’s prices to establish the price range for similar products or services but don’t under price’ if your true costs are higher, your final prices will have to be higher.
6.12 Cost Approach to Pricing
Price must cover all costs of good/services sold, including production costs of supplies, materials, fixed overhead or fixed costs as well as supplies and materials. Use this simple formula in setting a price (per unit): Total Costs of Production Per Unit + Desired Dollar Profit Per Unit Businesses can set different profit rates, for example 15% profit on supplies and materials, 20% profit on labour/ time, and 25% profit on overhead. These more complicated approaches to pricing usually emerge in response to the special needs of a particular business.
If your research reveals that similar products or services are available on the market, at a cost much lower than what you could offer, you may have to either adjust your profit margin, the return you expect, or decide to provide enough specialized service or selection so that the market will pay the extra. Alternatively, you may be forced to conclude that you cannot afford to make this item or provide this service and look for something else to do.
NOTE: Remember to cost materials at the level it costs to replace them NOT at original prices; include salaries as a business expense; include interest in your business cost calculations “Rules of Thumb” in Setting Prices. Some types of businesses charge prices according to certain “rules of thumb”. For example: price is always twice labour plus materials, or twice materials plus labour depending on which is higher; price is always materials and labour plus 20% for fixed costs, plus 25% for profits. Calculating actual costs is the only proven way to make sure your prices cover your costs.
6.13 Marketing Strategy
Personal selling of the technology could be the chosen strategy. Promotion and advertising are also strategies to consider.
6.14 Risk Reduction Strategies
Risks that may threaten the viability of any business operation. The following summarizes the main risk reduction strategies implemented: Investigate all the possibilities of the products that you will recommend Establish good salon policies Maintain training and product awareness Keep a close watch on competitors
If you are re-marketing your Product or Service, your focus will be on the elements of your strategy that affects your marketing mix:
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 69 of 148 Pricing and its impact to both your competitive position and to the perception and benefits offered to your prospects and customers. Distribution and/or delivery of the product/service and its impact to your enterprise and your prospects/customers. Promotional efforts and their fit with your product/service and your prospects.
6.14.1 Same Product or Service in Changed Market. If you are re-marketing your Product or Service, your focus will be on the elements of your strategy that affects your marketing mix; Pricing and its impact to both your competitive position and to the perception and benefits offered to your prospects and customers. Distribution and/or delivery of the products/service and its impact to your enterprise and your prospect/customer. Promotional efforts and their fit with your product/service and your prospects.
6.14.2 Same Product or Service in New Market. You may be acquiring a new business and need to perform due diligence or you might be taking a hard look at your business to find areas for improvement. The characteristics of the prospect and their likelihood of purchase. Cost and benefits factors of the product/service in relation to the market needs and the other available solutions. Your ability to develop and deliver the product and/or service. The price, promotion and distribution/delivery factors. Both the direct competition and those offering alternative solutions. The environmental factors that may provide opportunities or threaten your efforts. Your basic strategy for establishing and maintaining a competitive advantage.
6.15 Where to find information
In most cases business information can be gathered at no charge. The following are sources of information on your industry.
Competitors
Neighbouring business
Sales representatives
Trade suppliers
Business friends and associate
Chamber of commerce/Board of Trade
City or Municipal Hall
Local government Agent’s office
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 70 of 148 Downtown business associations
Trade associations
Shopping centre developers
Newspapers, radio and TV
Internet
Various directories
Bookstores
Trade publications
Advertising agencies
Post Office
Phone book, Yellow Pages
6.16 Observe Your Competition
Get out on the street and study your competitors. Visit their stores or the locations where their products are offered. Analyze the location, customer volumes, traffic patterns, hours of operation, busy periods, prices, quality of their goods and services, product lines carried, promotional techniques, positioning, product catalogues and other handouts. If feasible, talk to customers and sales staff.
Consider how well your competition satisfies the needs of potential customers in your trading area. Determine how you fit in to this picture and what niche you plan to fill. Will you offer a better location, convenience, a better price, later hours, better quality, and better service?
6.17 Talk to your Suppliers
Conversation with your suppliers can tell you a great deal about how your industry works and what trends are taking place in your market. They may be able to tell you valuable information about pricing techniques and mark ups, about the fastest moving lines and why they are selling, and why some competitors are successful. (They can also provide you with information about credit terms.)
6.18 Talk to your customers
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 71 of 148 Conversation with your customers or potential customers can give you insight into what their needs are. They can indicate what they look for in your industry, what they think of your competition, what price they might pay and what level of service they like. Surveys and Focus Groups represent more formal ways of getting insight from your customers.
7.0 Stock Management For Salons
7.1 Managing Your Inventory
"Inventory" to many business owners is one of the more visible and tangible aspects of doing business. Raw materials, goods in process, and finished goods, all represent various forms of inventory encountered in an organization. Each type represents money tied up until the inventory leaves the business as a purchased product. Likewise, merchandise stocks in a retail store contribute to profits only when their sale puts money into the cash register.
In a literal sense, inventory refers to stock of anything necessary to do business. These stocks represent a large portion of the business investment and must be well managed in order to maximize profits. In fact, many small businesses cannot absorb the types of losses arising from poor inventory management. Unless inventories are controlled they are unreliable, inefficient, and costly. In attempting to control inventories, managers usually lean towards keeping inventory levels on the high side, yet this greater investment (given a constant amount of profit), yields a lower return on the dollar invested. This is one of the contradictory demands made upon the manager with respect to keeping inventory, others include:
Maintain a good assortment of products - but not too many; Increase inventory turnover - but only at a good profit level; Keep stocks low - but not too low; Make volume purchases to obtain lower prices - but don't overbuy; and Get rid of obsolete items - but not before their replacements have taken hold in the market
7.2 Successful Inventory Management
Successful inventory management involves simultaneously attempting to balance the costs of inventory with the benefits of inventory. Many business owners often fail to appreciate fully the true costs of carrying inventory - which include not only direct costs of storage, insurance, taxes, etc., but is also the cost of money tied up in inventory. And it is often not realised that small reductions in inventory investment may result in large percentage changes in the company's total cash position. For example, one reward of improved inventory management may be an increase in working capital without the necessity of having to borrow money.
7.3 Computation of the Inventory Turnover Rate
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 72 of 148 One commonly used, simple measure of managerial performance is the inventory turnover rate. This value gives a rough guideline by which managers can set goals and measure performance, but it must be realised that the turnover rate varies with the function of inventory, the type of business, and how the ratio is calculated (whether on sales or cost of goods sold).
7.4 Manual Record Keeping Methods
At a very basic level, business inventory records provide the information needed to make decisions about inventory management. But the number and kinds of records maintained, as well as the type of control system needed, depend upon the type and size of inventory. In very small businesses where visual control is used, records may not be needed at all or only for slowly moving or expensive items. But in a larger organization where many items from various suppliers are involved, more formal inventory records, are appropriate. In such a case, regardless of the type of records maintained, the accuracy and discipline of the recording system is critical. It is important to remember, however, that in many cases attempts to improve management and reduce costs fail, not simply because of insufficient records, but rather because of inaccurate and carelessly recorded inventory data.
Many small manufacturers, wholesalers, and retailers with relatively few items in inventory use manual inventory control system. They use card records, inventory tags and accounting data to capture the information necessary to establish economic order quantities, order points, and other parameters for effective inventory control. However, as the number of item, supplies, and general importance of inventory increases, it is often desirable to consider use of a computerized system for inventory control.
7.5 Using Computers in Inventory Management
Today, the use of computer systems to control inventory is far more feasible for small business than ever before, both through the widespread existence of computer services organizations (listed in the yellow pages of many telephone directories) and the decreasing cost of micro computers. Often the justification for such a computer-based system is enhanced by the fact that company accounting and billing procedures can also be handled on the computer.
Most computer manufacturers offer free, written information on the inventory management systems available for their computers. In addition, computer service companies often have material readily available describing the use of their particular computer "software" programs for inventory management. These companies provide a good source of information on general descriptions of particular inventory management techniques, as well as help on specific inventory management problems.
Whether a manual or computerized inventory management system is used, the important thing to remember is that inventory management involves two separate, but closely related elements: the first is knowing what and how much to order, when to order and what price to pay; the second is making sure that the items, once brought into inventory, are used properly to produce a profit.
7.6 Stock Control (Retail)
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 73 of 148 Stock control is necessary if the retailer is to offer customers a balanced assortment. A system need not be elaborate. It should enable the retailer to determine what needs to be ordered on the basis of: (1) what is on hand, (2) what is on order, and (3) what has been sold.
Maintaining effective control over stock is important in all kinds and sizes of retail operations, but it can be critical in a small one. At best, the owner-manager of a small retail store flirts with loss when stock becomes unbalanced.
The type of merchandise you handle will largely determine the kind and amount of paperwork needed for effective stock control. For example, control of perishables - such as in a delicatessen - requires no paperwork. Stocks are controlled visually. Many deliveries - such as milk and bread - are daily, and others are frequent. In addition, the supplier's route people have a self-interest in helping keep stocks fresh. But even so, the owner-manager may need some sort of reminder - perhaps a note on the calendar - to make periodic checks. The important thing is to watch for changing customer demands requiring changes in your purchases.
The situation is different, though, with parts inventory in a service operation and with sizes and styles in an apparel store. For example, the owner-manager of a shop that specializes in motor tune-up may keep track of the parts used every day with little effort. But what about those used only once a month? Some sort of record is necessary if the right parts are to be on hand when needed.
In shoes, ladies ready-to-wear, and other soft goods stores style, color, and sizes complicate the problem of stock control. A great deal of paperwork may be necessary in order to serve customers properly and to prevent over or under buying.
7.7 The Basic Picture
The owner-manager of almost any store can sketch the basic picture of stock control. It involves four facts: (1) what you have on hand, (2) what you have on order, (3) what you have sold, and (4) what you need to order. But whether or not these facts are used to achieve effective control is another story. A memory lapse on any of them can mean being out of stock or overstocked on an item, a style, a color, or a size.
7.8 What Kind of Records?
Stock control records help prevent memory lapses. They estimate the need for carrying details - especially on style, colors and sizes - in one's head, a trying task. They provide a container into which the owner-manager can deposit details.
The kinds and number of control records which an owner-manager uses depend on the amount of details that are needed. Stock control systems may be achieved either by counting stock or by counting sales. Either way, a model stock list is required.
7.9 The Model Stock List
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 74 of 148 A model stock list is the first step in setting up a replenishment system for merchandise that involves styles, colors and sizes. You prepare a list of all the items you want to control.
The list should include "model stock" quantities. These quantities are the amounts needed in order to maintain an "in stock" position for a certain period - usually a number of weeks. You can use a simple formula to determine the period of time to be covered by the model quantity. It is: Reorder Period + Delivery Period = Number of weeks.
Suppose that you order shirts every 6 weeks and delivery from the vendor takes 2 weeks, your number of weeks to be covered would be 8 (reorder period of 6 weeks + delivery period of 2 weeks = 8 weeks). Suppose further that you sell an average of 10 shirts a week. In this example, you would need 80 (10 x 8 weeks) to maintain the stock of shirts.
When size is a factor, as in shirts, the necessary size run should be noted on the model stock list. You know from experience which sizes of an item are best sellers, which are medium sellers, and which are low sellers. Best selling colors can also be noted.
Some model stock lists - women's clothing, for example, - include a special section. This section is called maintained selection items. Its purpose is to flag items that change with the fashion. The term, "maintained selection items," implies groups of items which can be substituted for each other. Girls' blouses provide an example. When they reach the reorder point, you may need to order a new style to replace the old style. Examples of the selection item groups are infants' wear, and children's wearing apparel.
Merchandise of the selection type should be listed on the reorder records in groups by classification, item, and price. Such a listing will insure stocking a given price line at all times with proper merchandise. At the same time, it provides a record of the sales activity on the individual style.
7.10 Counting Stocks or Counting Sales?
You can count stock on a periodic basis or you can count it daily by counting sales. Counting is the basis for getting the information necessary for effective control. Which is best for your situation depends on the kind of merchandise you carry and the amount of work involved for you and your salespeople. Your goal should be to use a method which will provide up-to-date information at the most economical cost.
7.11 If You Count Stock
Your situation may lend itself to counting the stock on a periodic basis. If so, you would use what is called "the rotated method" and record the information on cards.
In the rotated method of stock control, you use rotated unit control cards. The format varies according to the kind of merchandise, but the kind of information is the same. With such a card, you keep track of an item, such as shoes by listing: (1) what is on hand, (2) what is ordered, (3) what has been received, and (4) what has been sold. Once every 2 weeks, the stock is counted to determine how well an item is selling.
If sales are dragging, you may decide to close out the item. If sales are normal, you would order fill-ins. On the other hand, the stock count and other information on the card may reveal that sales
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 75 of 148 are greater than activity on the sales floor has indicated. If so, your decision may be to increase the filling order and plan to promote the item.
The principle behind the rotated method is:
Old Inventory + Purchases - New Inventory = Sales. In this formula, you can substitute the word "disappearance" for the word "sales". Disappearance represents shoplifting, inaccuracies in counting inventory, and sales.
7.12 If You Count Sales
The other method for controlling stock is the “perpetual method”. In it, stocks are calculated from the store's recorded sales.
If you use this method, you have to keep track of sales when they are made, on an item basis. The owner-manager with a fairly large sales volume should check the possibility of using a computer service center to count sales and create up-to-date stock records. Such data processing may be more economical than maintaining the records manually.
Even when electronic data processing is not used, cash register tape may be such a device for capturing the needed information. If a sales count is needed on only a few items, you could check the possibility of using your register to get the information. For example, "Key A" might stand for one item number, "B" for another, and so on.
Sales slips provide another device for recording the item sales. Still another is the price ticket which can be detached when the item is sold. Whether the information comes from register tape, sales slips, or price tickets, it has to be related to your stocks, specifically to particular classes of merchandise. The best way is to summarize the information and post it daily to your stock records.
These up-to-date stock records provide the information you need for ordering fill-ins. You review them on a periodic basis - once every 2 weeks, for example - and reorder as needed. One disadvantage is that errors can creep into the posting of the daily sales. However, adjustments can be made through a physical count of stocks every so often.
If you have only one or two items that need unit control, you might want to work with price tickets. At the time of the sale, detach the ticket and file it for later posting on your record. The balance on hand after the posting will determine what you need to reorder.
The principle behind the perpetual method is:
Old Inventory + Purchases - Sales = New Inventory.
7.13 Preventing Excess Stocks
In a small store, preventing excess stock serves two purposes. One is the maintenance of a balanced assortment which allows the store to serve customers. The other is the assurance that an excessive amount of working capital is not tied up in merchandise.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 76 of 148 Open-to-buy is the key to keeping stocks in line. “Open-to-buy” is the amount of merchandise (in units or dollars) that you need to receive into stock during a certain period.
The period may be the selling season that is customary for a certain line of merchandise. Or it may be a time-span that is set by the owner-manager to fit his or her particular situation. A side benefit from stock control records is that they are helpful in delegating work. They provide concrete tools which you can use in training an employee to care about details, such as counting stock.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 77 of 148 8.0 Salon Retailing
Retail stores like any other business are always looking at ways to increase profits (or decrease losses!). The control of budget is therefore imperative. These days employees at all levels are expected to share the goal of minimising costs. People in supervisory and managerial roles are required to devise, monitor and control budgets.
8.1 MONITOR EXPENDITURE, PROFITS/LOSSES AND STOCK TURNOVER AGAINST BUDGETS
Most companies would agree with the saying, “When you fail to plan, you plan to fail.” Planning is an essential ingredient of successful commercial activity, and budgets are one form of planning. Like all plans, budgets use data and assumptions to make projections. For your projections to be realistic, your data needs to be correct and your assumptions need to be based on valid indicators. Once budgets are set, it is imperative to regularly measure and control actual income and expenditure to ensure that budgets don’t blow out.
Budgets are a mine of useful information to help you make decisions about the future.
8.1.1 ACHIEVE OPTIMAL COST REDUCTIONS
Put simply, to increase profits you need to generate more income or reduce costs. More income can be generated by using strategies such as:
increasing sales volume introducing a better product mix or, very rarely, increasing sales price.
Cost reductions need to be implemented without jeopardizing the quality of your product or service. A loss of quality will inevitable lead to a loss of customers, so you can see that the exercise of cutting costs needs to be carried out very carefully. Company standards need to be spelt out and adhered to. Before considering reducing costs, it is important to consider all the costs involved in your enterprise.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 78 of 148 Consider your business and list as many direct (eg. Retail bags, appointment cards) and indirect (eg. Rent, mortgage etc.) costs as you can think of.
DIRECT COSTS INDIRECT COSTS
8.1.2 CONTROLING BUDGETS and PROPOSING EXPENDITURE
Regardless of whether stores use computerised or manual record keeping systems, they need to keep records on the same kinds of information. But just keeping records is not enough – the records need to be monitored and maintained to ensure that they are useful, up-to-date and providing all the information that is needed.
8.2 MONITOR RECORDING SYSTEMS FOR SALES FIGURES, REVENUE AND EXPENDITURE
A retail enterprise’s financial record keeping systems are vital because they: Show results of past performance Help assess present and future business potential Provide evidence for a company’s credit rating Provide information for required government documentation Provide data to compare with other retail firms
Given the importance of these five functions, it’s imperative that the record keeping systems are monitored to make sure they actually do provide the information required in an efficient and accessible way. Every sale is recorded many times – first, at the point of sale and then it becomes part of more cumulative sales figures, such as daily sales and monthly sales figures.
Expenditure is made at different levels in the company and therefore recorded in different accounting records. For example, salon fittings for your work area may come out of your equipment budget; products on the other hand, will come out of the stock budget.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 79 of 148 8.3 NEGOTIATE BUDGETS
At higher levels of store management you will be involved in negotiating budgets. To be prepared to negotiate your budget submission you need to:
Consult all relevant staff during budget preparation Enter the negotiations in a spirit of compromise Be aware of the overall store policy and objectives Be able to explain all your justifications in a clear and persuasive manner Have fall back positions prepared Seek clarification promptly when areas of uncertainty or disagreement occur
8.4 POLICIES AND PROCEDURES IN REGARD TO STOCK
As a manager of a store you have responsibilities with regard to the receipt of goods from suppliers, the dispatch of goods, preventing shrinkage, controlling waste and safety, and ensuring safe storage. It is likely that your store has some policies and related procedures for you and your staff to follow relating to these responsibilities.
Procedures are usually implemented when a manager of a store realises that something is not functioning in the way that it should or wants to ensure everyone knows how to function in a way, which helps customers and the store. After investigating the reason for the inaccurate results of work completed, the reason behind the error is often staff not following an existing procedure or not having a procedure to follow at all. It is essential that all staff have a clear understanding of what is expected of them and can follow prescribed procedures. It is essential that managers provide those procedures.
Store policies provide a framework for procedures which feed into staff job performance. Procedures are useful because they minimise variation in the way tasks are performed, regardless of who does them. They allow the quick pinpointing of problems and responsibility. The receipt of goods from suppliers is one of the most fundamental parts of the retail operation, and as such it is imperative that you know your staff are following procedures or that you can implement changes if necessary, as procedures may go out of date.
An integral part of stock management is the control of merchandise coming in and going out of your store. An example of a typical receiving and dispatch procedure.
8.5 RECEIVING
Receiving procedures should at least provide for the following: Goods are in fact for your store Goods have been ordered Goods received agree with both order and invoice in quantity, description and quality.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 80 of 148 Goods are not signed for before they are thoroughly checked If invoice is not received with goods, there must be provision made to process it in the correct manner when it is received. Goods are correctly ticketed and immediately placed on the selling floor, OR Sold goods allocated for earliest possible delivery. Any damaged or incorrect goods are rejected or arrangements made for immediate repair or replacement, depending on circumstances and invoice – delivery slip retained by supplier to be marked accordingly. Any stock to be held in reserve to be promptly ticketed after inspection and carefully stored to avoid damage. Ensure that reserves are organised so that the oldest items will be drawn first.
Some form of Daily Goods Received record to be kept and processed to store office with all relevant invoices or delivery dockets. Receiving area to be kept clear at all times and rigid security adhered to so that earlier deliveries are not accessible to be stolen by a dishonest driver arriving with a later delivery.
8.6 Shrinkage Shrinkage or stock loss is a part of the retail trade that is financially disastrous, and procedures should be implemented at all levels of the company to minimise shrinkage. The type of loss the store may suffer will vary depending on the nature of the goods you carry. As a manager it is your task to ensure that staff really understand the consequences of stock loss to the store, the customer and to themselves to make sure that they stringently follow procedure in regard to this area. As a manager, what can you do to implement these procedures?
Communicate with your staff individually or as a team, emphasising the importance of accurate stock control. Do this without threatening their jobs, but at the same time highlighting the consequences of stock loss.
Conduct periodic staff skills and knowledge sessions, or implement a “buddy” system where staff check each other’s knowledge.
8.6.1 Stock losses may be caused by: Pilferage (by staff and customers) Unrecorded discounts and markdowns Dissipation of gross profit not budgeted for – for example, incorrect mix of business Damage resulting in markdowns – unrecorded Careless quoting of prices resulting in lower gross profit than budgeted for Merchandise on loan unrecorded
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 81 of 148 Merchandise out for repair unrecorded Invoices not processed (previous stocktaking) Errors in invoices not “picked up” Sales dockets not processed Invoices paid in error Incorrect costs on tickets Errors on stock sheets – additions, extensions, quantities, etc. Stock missed when taking physical count Credits passed, but goods not received Bookkeeping errors and omissions Incorrect cut off points on receiving and dispatching Incorrect treatment of undelivered sales
8.6.2 Stock surpluses may be caused by: Invoices not taken up (and transfers in) Credits not passed for goods received back Bookkeeping errors and omissions Overcharges Errors on stock sheets (overstated) Sold goods taken into stock in error (and lay-bys) Incorrect cut off points on receiving and despatching Incorrect treatment of undelivered sales
8.7 Waste and safety controls Waste and safety controls are also important parts of the store’s inventory system, and as a manager you are responsible for the implementation of the associated procedures and ensuring that your staff follow them. Safety applies both to staff and goods, and your OHS guidelines will specify procedures to follow in relation to staff safety. Safety of stock and wastage of stock also fall under the banner of stock loss, and as manager it is your responsibility to ensure minimal loss of any description.
8.8 Stock Security
A major factor in the control of inventory is ensuring that all aspects of security are well controlled. For the protection of staff, as well as your merchandise, ensure security is tight in your store.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 82 of 148 Laxity in this area is unfair to staff because, apart form providing unnecessary temptation, innocent staff can wrongly be suspected when cash or merchandise is missing.
You should establish and lay down procedures to cover the following:
Shop stealing – The main aim is prevention. Help people to overcome weakness and temptation rather than play detectives and kid yourself you can catch them all.
Staff Pilferage – Cash or Stock – No less of a problem and the methods used are too many to list, but obvious examples are: Theft from cash register. A special procedure should be evolved for point of sale operations Wearing stock out the door Collusion with carriers on merchandise pilferage Falsifying dockets and delivering to an accomplice = Sizeable price cutting to friends and relatives Arranging driver deliveries from suppliers against false dockets
Other aspects that need attention are: Receiving and despatching Goods taken without full payment Cheque and credit card handling Returns from customers and to suppliers Repairs to manufacturers (and returns) Opening and closing the store, including alarms, safes, offices, reserves, Staff parcels and staff purchases Staff entrances Receiving area security – back door security during daytime Reserve area(s) security Handling and storing any information of a confidential nature Fire drill, including use of extinguishers, evacuation procedures, etc. Burglary or smash and grab Armed hold up Injury or illness to staff or customers Regularity of banking and night safe procedures Method of transporting cash to the bank Insurance aspects and requirements Safeguarding of keys, registering key holders with police, fire brigade Night lighting and setting alarms (if any) merchandise in windows overnight Air conditioning and other heating, cooling or staff amenity appliances Staff wages and valuables = Inspection of staff bags
Point of Sale – the procedure should include: No staff to register own purchases Register operation, mode of sale, regular clearing, balancing float (in and out), voids, refunds, credit cards, cheques, exchanges, all forms of dockets, inserting now rolls, etc. Closed off at all times when not in use and under surveillance Security of keys Minimise staff using registers Shorts and overs procedure
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 83 of 148 The good manager is always security conscious and there is no doubt that staffs appreciate the need for tight security. People prefer to work in efficient operations rather than sloppy ones and again good security benefits everyone - staff, customers, management and owners alike .
8.9 METHODS OF STOCK MOVEMENT
A constant activity in any retail outlet is the movement of stock, be it interdepartmentally, from store to store or from supplier to retailer. When stock is being moved it has to be done in the most efficient way possible and within the bounds of store policy, always considering the costs involved.
Costs may be incurred from transportation itself, or in a secondary way by loss of patronage if your store is consistently missing stock or if stock movement is causing major disruption to the running of the store. As manager it is your responsibility to the owner and to the customer to ensure that stock is always moved efficiently. You have to delegate tasks knowing who is accountable for each part of a job, and feeling confident that staffs are undertaking their tasks efficiently.
8.10 POLICY FOR STORAGE AREA AND EQUIPMENT
The storage area of your store is usually out of sight of the customers, and so may be thought of as less important than the shop floor, but this is a misconception as the storage area contains the store’s assets, the stock that is yet to be sold, and its safety and maintenance should be at the forefront of the manager’s priorities.
Think about the storage area in your store, and not just the back dock, but the global storage areas like top shelves, cabinets, the back room and so on. Are these areas in disarray because they are seen as less important than the floor? The store policy is sure to cover the storage area as far as maintenance and safety, and as manager you should be making sure this policy is implemented. Think about issues such as breakage, damage, casual deliveries that end up on the floor in the store, leaving goods on the floor, theft and so on. If these sorts of things occur in your storage area then the store policy is not being followed and this needs to be rectified.
8.11 POLICIES AND PROCEDURES IN STOCK CONTROL
To communicate the policies and procedures to your staff, you need to have a full understanding of what they mean, why you have them and the benefits of their enforcement to both store and customer.
Stock control is the monitoring and management of the amount of stock either on the selling floor, or in storage at a given time. It is very important that it is accurate because stock is the single largest asset that a retailer owns. Stock control assists the retailer in many areas of their business allowing them to assess the performance of products, monitor shrinkage, maintain stock condition, monitor customer preferences and maintain stock security.
The primary purpose of effective stock control management is to increase the profit of the store. Calculating the profitability of the stock you are carrying is a task that is the manager’s responsibility, and the policies and procedures that you follow to accomplish this task will vary depending on the type of store in which you work, and the methods that you follow.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 84 of 148 In order for inventory management to be as accurate as possible, somebody needs to be responsible for setting sensible policies, establishing guidelines for inventory levels and ensuring that control systems are functioning properly.
8.12 STAFF POLICIES AND SKILLS KNOWLEDGE
There are many ways of conveying inventory and stock control information to your staff: Group or individual training sessions Video or printed information distributed A self-paced manual A “buddy” system of sharing information
As a manager, monitoring the store procedures in relation to controlling stock levels is also a vital part of your job requirement. If a procedure is not being followed, or is inappropriate, it may also become necessary to implement new procedures.
You need to make plans to monitor the amount of stock coming in and leaving the store.
8.13 When & how much to buy
Before determining how much to buy and when, we must set about compiling a Merchandise Plan.
In preparing such a plan we need to take into account: Planned sales for the period under review (say, 6 months) Planned reduction – i.e. markdowns, discounts, stock losses, etc. Planned inventory Planned purchase Merchandise plans should be done firstly by TOTAL STORE and then broken down to major departments and/or merchandise classifications. They should be compiled by DOLLARS and by UNITS to ensure individual lines address the correct price points in line with our perceived segment of the market – for example, if we only calculated DOLLARS, we could end up with less UNITS if we selected price points above our planned market segment.
To effectively make these calculations, the various classifications would have to be broken sown into sub-classifications involving such aspects as SIZES, TYPES, USAGE, BRANDS, etc.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 85 of 148 9.0 Salon Staff Planning and Recruitment
9.1 Salon Staff Planning and Recruitment Hiring an employee is truly making an investment in your business. When you hire someone to work for you, you will invest time, money, training, and trust. If you do it right, your business can move forward much faster than ever before; if you do it wrong, not only can you lose your investment, but you can be subject to lawsuit that can cause you to lose much more. When most people think of hiring an employee, they tend to think only of classified ads and interviews. But there’s much more to successful hiring than that. Its an important process with serious implications for the future of your business, and you should put in the time to examine your needs to hire and recruit in systematic, legal way.
START BY:
Defining The Job
By defining the requirements of the job and creating a profile of the type of person who will do the job successfully, you are more likely to hire the right person for the job. Below are some guidelines to help you gain a clearer understanding of the tasks and responsibilities of the job and your ideal applicant.
9.2 What do I want the employee to do?
The first step is to think about the job and the type of person needed to fill it. Ask yourself the following questions: Why do I need a new employee? What duties do I want this employee to perform? How does the employee perform these duties? How will I know when the job is complete? Where is the job located?
Your answers will help you to define broadly the tasks and responsibilities of the job and identify the skills and experience required to successfully perform these duties. This then forms the basis of a job description/
9.3 Why do I need a job description?
A job description covers the objectives, tasks, activities, responsibilities and accountabilities of a particular position. While state awards may provide pay rates and employment conditions, a job description will make your interviewing more effective and help you to hire the right applicant for the position. A well-prepared job description will give you guidelines for selecting applicants and a clearer understanding of your expectations. It also gives your new employee a clear understanding of what is expected of him or her.
What should I cover in a job description?
A job description should cover all relevant information about the job, including: A job title which clearly describes what the employee is to do in the job 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 86 of 148 An overview of the position which outlines the key objectives and main functions Reporting relationships, such as the employee’s supervisor and any position which might report to the employee A prioritised list of tasks and responsibilities, including details of a typical day’s work Possible career progression, criteria/timing of performance overview Work location and any travel required Total remuneration package, including base salary, superannuation, bonuses, and commissions.
9.4 Who is my ideal applicant?
The job description defines the requirements of the job. The next step is to create a profile of the ideal applicant by considering the personal qualities needed to perform the job successfully. This includes: Qualifications, for example, HSC, trade certificate, TAFE certificate or diploma, university degree Skills, such as typing speeds; communication and organisational skills, such as ability to work in a team, solve problems, use technology, and handle customers Required experience Personal attributes including ability to work under stress, maintain confidentiality, adaptability and flexibility.
You will then need to decide what criteria are essential and what are desirable. The essential criteria are then used in your job advertisement.
9.5 Are there any legal requirements I should consider?
Consider whether you are offering the new employee a full-time, part-time or casual position. The legal requirements for taxation, superannuation and insurance vary in relation to the different basis of engagement.
Some jobs are covered by awards the agreements, others only by minimum conditions of employment.
9.6 Definitions: full-time, part-time or casual
Full time employee – an employee who receives full weekly wages and conditions. The number of hours worked by a full-time employee is set by an award, enterprise agreement or a contract of employment.
Part-time employee – an employee who works a regular number of hours each week but less hours than full-time employee works. A part-time employee receives a flat hourly equivalent of the normal full-time rate (sometimes little extra). A part-time employee generally receives all, or most of the benefits of a full-time employee but on a proportional or “pro-rata” basis.
Casual employee – an employee who works on an hourly or daily basis and would be paid an extra loading on top of the normal rate to compensate for the lack of usual benefits such as sick leave and paid public holidays. Casual employee – normally receives a loading of between 15% and 33.3% above the normal full- time hourly rate. Casual employee also usually receives an extra amount equal to a further 1/12 of the casual hourly rate to cover pro rata annual holiday pay. 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 87 of 148 Some awards specify the minimum number of hours for which a part-time or casual employee must be paid per day. The employment of casual may be restricted to engagements, for example, of less than five days duration. Other awards allow casual employees to be engaged to work full-time hours indefinitely. Since the definitions of part-time and casual employment vary between one award and another, it is essential to check the appropriate award for details at the time of engagement.
9.7 Writing a Job Advertisement
A job advertisement needs to provide enough information to attract the right type of applicant and be specific enough to discourage unsuitable applicants from applying for the job. This section provides some useful tips to maximise the effectiveness of your job advertisement.
Do I need to advertise?
You can recruit new employees in many other ways than advertising in a local or daily newspaper. Other ways are: through a recruitment or personnel agency; through the Commonwealth government Job Network (previously the CES); trade journals; advertisement signposted in the local area or your premises and word of mouth. There is nothing wrong with any of these methods, as long as you still interview the prospective employee and give him or her a clear understanding of what will be expected of them.
How can I attract the right applicants?
A successful job advertisement will: Stimulate the applicant’s interest and present a positive image of your business Create a desire to apply based on the information provide about the job Generate enthusiasm about the job Motivate applicants to apply.
Ultimately, the success of an advertisement is measure by the suitability of the applicants rather than number of applications.
What information should I include in the job advertisement?
Screen your applicants and encourage suitable applicants to respond by providing the following information: Job title Nature of work offered Required experience Skills and qualifications Essential personal attributes Brief description of your business Salary and any other benefits
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 88 of 148 How can I encourage a response?
Maximise the response to your advertisement by making it possible for your applicant to contact you easily. At the end of your advertisement give the applicant appropriate contact details. For example, “like to know more? Then contact Mary Smith on telephone 5555 5555 or write to XYZ Pty Limited at 77 Anywhere Street, Hometown with brief personal resume.” Don’t forget to include your business name and full name of the contact person or the complete street address. Encouraging telephone enquiries about the position is a good way to screen applicants. Effective telephone screening can enable you to obtain enough information to determine whether the caller satisfies the essential criteria for the position. If you specify a contact person, make sure that the person clearly understands the position and is available to respond to any enquiries. Also inform your receptionist and other relevant staff that the advertisement is running so that they can handle the response.
9.8 Writing An Effective Job Advertisement
Here are a few simple tips to make your job advertisement more effective: Speak directly to your potential applicants by using word “you” as this will personalise the advertisement and make it more relevant to them Quote a salary or a salary range to help filter out unwanted responses Provide enough information to help potential applicants decide whether the job is suitable for them. Use your job description to include required skills, qualifications and experience and any desired attributes. Don’t use too many words Don’t make the job into something that it isn’t as this will attract applicants who are not suited to the position.
What can’t I say?
Equal Employment Opportunity ( EEO ) law prohibits advertisements that indicate an intention to discriminate on the grounds of: Sex Marital status Pregnancy Race Ethnic or ethno-religious background Disability Age Homosexuality Transgender status
It is also against the law to discriminate against a person on the ground of trade union activity. This information is very important.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 89 of 148 9.9 Should I respond to all applications?
How you treat all the applicants can influence their impressions of your business. Though it may seem time consuming, acknowledging, all applications with a brief letter or card will help create a positive image of your business.
9.10 Sample advertisements
Secretary A bright, energetic person is required to assist in our busy accounting office. You will enjoy a lot of variety, direct client contact and have the opportunity to progress within our company. You will have a minimum typing speed of 50wpm, a sound knowledge of a range of software packages including spreadsheets and enjoy working as part of a team. Salary to $30,000. Please call Alison Lu on (02) 5555 5555 or post your resume to the Human Resource Manager, Accounting Partners, Level 1, 28 Market Street, Hometown.
Motor Mechanic Smith Service Centre requires a qualified motor mechanic. You should be self-motivated, able to work as part of a team and possess good communication skills. Transmission experience an advantage. An attractive salary package is available, depending on skills and experience. Telephone Allan Smith on (02) 5555 5555 after 10.00am weekdays.
Shop Assistant The Special Cake Shop, a leading retailer of quality cakes and pastries, requires a part-time shop assistant for three days per week, Mon, Tues, Wed 8am-5pm. Previous retail experience is essential. This is a busy and varied position for a responsible person with excellent people skills who can work under minimal supervision. Please telephone Sue Andrews on (02) 6581 0011 or post your resume to PO Box 80, Hometown.
Salesperson Due to recent expansion, Widgets Pty Limited is seeking a high-motivated sales person. Extensive experience in managing existing clients and developing new business is required. You will possess a strong work ethic and excellent communication skills. As well, you will have a proven track record in negotiating and closing sales. Remuneration is designed to attract top applicants and combines salary, commission and car allowance. Telephone Vazu Natah on (02) 5555 5555 or fax your resume to (02) 5555 5553.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 90 of 148 9.11 Preparing For an Interview
Preparation is the key to a successful interview. By taking the time to prepare, you can evaluate applicants more objectively and more accurately assess how they will perform the job. This section answers some common questions about preparing for an interview.
Who do I interview?
Once applications have been received, you will usually need to create a short-list of applicants. Through your job description and ideal applicant profile you have already defined the essential desirable criteria necessary to perform the job successfully. Compare each application to these criteria. Divide your applications into three piles labelled: “yes”: those which satisfy all essential and desirable criteria “maybe”: which meet the essential but not the desirable criteria “no”: those that do not meet essential criteria.
In considering applications, you cannot discriminate against applicants on the basis of their sex, marital status, pregnancy, race, age, ethnic or ethno-religious background, disability, homosexuality or transgender. Notify unsuccessful applicants, preferably with some explanation as to their unsuitability. This can be done either at the time the person is eliminated or once interview have been completed.
How many applicants should I interview?
There is no “right” number of applicants to interview. Your decision will depend on the type of job, number and quality of applicants and how much time you have. One option is to call in a larger number of applicants for the first interview and then create a short-list for second interviews.
How many people should interview the applicants?
It largely depends on the size of your business but it is a good idea for at least one other person to interview the applicants with you. It could be your business partner, your spouse, the supervisor of the position you are interviewing for or any individual you feel will help you make an informed decision.
What should a job interview achieve?
A job interview is an opportunity for you to evaluate the applicant’s ability to do the job and satisfy your requirements. At the end of the interview you should be able to:
evaluate the applicant’s personality, appearance and attitude confirm and expand upon the details provide in the application form or resume obtain a clear indication of the applicant’s normal job behaviour and relate it to the job description assess the likely future job performance of the applicant, compared to other applicants. 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 91 of 148 At the same time, it is a chance for the applicants to see whether your business and the job opportunity satisfy their needs. The applicants will want as much information about the position and your business as possible so that they can make an informed decision whether the job is right for them.
What can I do to prepare for an interview?
There are a number of preparations that you can undertake to ensure that your interviews run as smoothly as possible: Contact the applicants, advise them where to come, whom to ask for and whom to contact if they are unable to attend Let your receptionist know the names of the applicants and interview times Provide a reception area where applicants can wait in comfort Organise a quiet and comfortable room for interviewing Schedule enough time for each interview so that you are not rushed Ensure that you are not interrupted during the interviews Prepare your questions beforehand so that you can ask similar questions to all applicants as this makes comparison easier and lessens the possibility of discriminatory treatment. Review the applicant’s resume or application form before each interview. Addressing these details will reassure the applicant that you are taking the interview process seriously and that the applicant matters as an individual. It will also enhance the image of your business.
9.12 Predicting Future Job Performance
Behavioural questions probe for specific examples of an applicant’s behaviour in past situations which are similar to situations that will be found in the new job. The applicant’s answers can help you to assess how an applicant will perform on the job. Using your job description, create question which relate to the job’s key duties.
Consider how you want the employee to perform these duties so that you can determine the behaviours that you want the employee to display on the job.
Devise questions which focus on specific work-related situations to find out whether the applicant has displayed these desired behaviours.
The applicant’s answers need to include an example of a specific work-related situation, the applicant’s action in that situation and the outcome of the action. Where the applicant has not been confronted by situations similar to those found in the new job, the questions can be formulated as situational questions, where the applicant is asked how they think that they would respond in certain situations.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 92 of 148 9.13 Examples of behavioural questions
A shop assistant: tell me about a time when you had to deal with an angry customer. What did you do? What was the result?
A receptionist: give me an example of a time when you had to deal with a number of tasks at once. How did you do it? What was the outcome?
A team player: tell me about a time when you had to deal with conflict in a team environment. How did you deal with it? What was the result?
What other questions should I ask? There are a number of other questions you might ask to gain a better understanding of the applicant’s personality, skills and experiences including:
How would you describe your personality?
What do you consider to be your greatest achievement?
What are your strengths/weaknesses?
How have you tried to develop your skills?
Give me an example of your ability to manage or supervise others?
What makes this job appealing to you?
What are you looking for in a business?
What is your long-term career objective?
What did you like/dislike about your last job?
9.14 Conducting the Interview
If the interview is conducted appropriately, you will be able to assess which applicant has the knowledge and skills required to do the job. Here are some handy hints to assist you. Who can work under minimal supervision.
9.14.1 How do I start the interview?
Welcome each applicant warmly and introduce yourself and the other interviewer. Try to establish rapport with the applicant and create a friendly atmosphere. This may be done by referring to the person’s interests or background. Wait until the applicant appears relaxed before moving on to the main part of the interview. Begin by outlining the approach that you will take to the interview. Ask the applicant’s permission to take notes. This will help you to review your opinion more objectively and not rely on your memory to assess the applicant’s performance.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 93 of 148 Help the applicant to relax by starting with questions that can be easily answered, for example, “Perhaps you could give me a brief outline of your work history”.
9.14.2 Interview tips Ask one question at a time Use simple and appropriate words to make the questions easy to understand Use open-ended questions which allow applicants to express themselves Avoid leading questions which imply the correct answer Let the applicant do most of the talking and listen carefully to the applicant’s responses Respond to the applicant’s answer with interest to show that you are paying attention If answers are vague or avoid the question, probe the more specific and accurate information Probe for details where information seems inconsistent or unfavourable as this will help applicants to clarify points, often to their advantage. Keep the conversation under control and don’t let answers become long-winded Ask to see any qualifications, certificates, special licences or other essentials required for the position.
9.14.3 What do I need to know?
By the end of the interview you should be able to assess: Whether the applicant has the knowledge required to do the job based on answers to technical questions or examples of previous work Whether the applicant is able to do the job by asking questions related to the applicant’s results and achievements in previous positions Reasons for any gaps in work history The applicant’s strengths and weaknesses, including how the applicant has dealt with any mentioned weakness.
Look for negative factors such as undue criticism of former employers or frequent changes in jobs. Avoid unfavourable reactions to answers and refrain from making criticisms and jumping to conclusions. Fear of rejection may lead to the applicant providing answers, which will please the interviewer rather than honest information.
9.14.4 What information do I give to the applicant?
Give a detailed description of the job, based on your job description. Outline the current tasks and explain how the role will develop in the future. Cover the duties, reporting relationships and conditions of employment. Encourage questions and take the time to ensure that the applicant fully understands the job requirements. As good applicants are in short supply, you will need to promote the benefits of the job to attract the right person. This includes your business, location, fringe benefits, training and opportunities for career development. The best applicants want a job that satisfies his or her needs, not just financial compensation.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 94 of 148 9.14.5 How do I close the interview?
Ask whether there are any further questions. Give the applicant the opportunity to express interest in the position. explain whether you intend to hold a further round of interviews. Advise when the applicant can expect to be notified about the outcome of the interview. Their references are to be checked, ask the applicant whether they have any objections and ensure that the applicant has nominated referees. Close the interview in a decisive and friendly manner and see the applicant out.
9.14.6 After The Interview
Immediately after each interview, review your notes and compare them to your assessment criteria. Consider dress, overall presentation, personality, attitude and other relevant factors. Rate the applicant’s performance on a scale of one to ten. Review these grades once you have completed the initial round of interviews as this will make your selection more objective.
9.14.7 OVERALL INTERVIEW EVALUATION
9.15 Making a Job Offer
When you make the job offer, it will be the first contact your prospective employee will have with your business. It is essential that this contact gives the employee a favourable impression. It is also your first opportunity to ensure that your new employee understands what will be expected of him or her.
9.16 Do I need to do a reference check?
A reference check will help you to verify the facts given at the interview and gather more information about the applicant’s performance and behaviour at work. While applicants will usually be able to supply favourable written references, it is preferable to talk to referees directly. Request a number of referees to obtain a range of perspectives and ask permission to contact them. Some applicants may be unwilling to nominate current supervisors as referees for valid reasons. If this is the case, discuss the matter with the applicant and seek alternative referees. These could include previous supervisors, suppliers, clients or customers. Prepare a list of question to ask each referee so that you can compare responses. Reassure referees of confidentiality and keep accurate and objective records of the telephone conversations.
Questions to ask during a reference check
Ask for information about: Experience gained including dates of employment, promotions and training actual job title, responsibilities and duties.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 95 of 148 Skills and abilities Relationship with supervisors, peers, and subordinates Performance, attitude and motivation Attendance records Strengths and weaknesses Reason for leaving and whether the referee would rehire Anything else you should know about the applicant in making an employment decision.
Often, the information you collect will either consolidate your decision or eliminate the applicant from contention. However, some employers refuse to give reference checks and will only confirm the applicant’s dates of employment and the position held.
9.16.2 How do I make the hiring decision?
After carefully assessing the information you have gathered against each of the selection criteria, you are ready to make your decision. To decide as objectively as possible, keep in mind your job description and ideal applicant profile. Your aim is to match the applicant to the job. Review all information, including the application or resume, notes made during the interview, reference checks and any other documentation. If appropriate, involve the new employee’s supervisor in making the final decision. The time taken to make this decision will vary from job to job. However, allowing the decision to “drag on” generates a poor impression of your business and may give preferred applicants time to accept other job offers.
9,16,3 Do I need to make an offer in writing?
You can make an offer of employment over the telephone, but always confirm your offer in writing. This forms the basis of the new employee’s contract of employment. The successful applicant should accept your offer by signing a copy of the letter of appointment and returning it to you before commencing employment.
9.16.4 What should a letter of appointment state?
Details of the position Award coverage, if applicable and a summary of the award conditions Wages or salary and any other benefits Commencement date and, if the job is for a fixed term, the finishing date Any special terms or conditions of employment, such as dress requirements The length of any probationary period to ensure that the probation is agreed to and signed by the employee Who to contact when reporting to work The letter should be friendly, welcoming and easy to understand.
9.16.5 Should I include a probational period?
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 96 of 148 A probationary period can help to eliminate potential dismissal problems if the employee is not suited to the job. A probationary period allows you to assess the employee’s performance and personality on the job. To maximise the effectiveness of the probationary period, review the employee’s performance with the employee both during and at the end of the probationary period.
9.16.6 Can I include a trial period?
You can have a “trial period” provided that the person is paid for any work they do. It is against the law to have a trial period without paying the person for any work they do. The trial period should not last longer than one or two periods and you should explain the prospective employee exactly what behaviour and skills you will be looking for. Also, tell them how long the trial period will last and when you will give them a decision.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 97 of 148 9.17 Sample Resume Acknowledgment Letters
Dear [Applicant] Thank you for submitting your resume to XYZ Corporation. A representative will review it immediately and notify you of an interest to further this process. Thank you for your interest in XYZ Corporation. Sincerely, XYZ Corporation Staffing
Dear [Applicant] Thank you for your interest in the job we have posted. We have received your resume and have forwarded it to the appropriate hiring manager. He or she will be in contact with you if your qualifications meet the position needs. In the meantime, you can look up other opportunities in your field at www.XYZCorporationWebSite.com Kind Regards. XYZ Corp. Staffing.
9.18 What about unsuccessful applicants?
Don’t forget to write to unsuccessful applicants thanking them for their application and remember to return any original documents they have provided. This is basic courtesy plus good public relations. You can use a standard letter to notify all unsuccessful applicants. An example is shown below:
9.19 Sample rejection letter
Dear (first name) Thank you for your recent application for the position of (job) We received a large number of applications for the position and the overall standard was very high. After careful consideration, we regret to advise you that your application has not been successful on this occasion. However, we are happy to keep your application on file, should a suitable position arise in the near future. Thank you for your interest in the position and we wish you every success in the future. Yours sincerely (sign the letter personally)
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 98 of 148 10.0 Managing poor performance?
This section covers two essential aspects of managing poor performance: identifying the problem and assisting an employee who is not doing well. There is no easy answer to rectifying poor performance but if you can identify the problem you are then much better placed to solve it.
10.1 Why do employees sometimes perform poorly?
There can be many reasons why an employee may be performing badly, both personal or work- related. It may be surprising to realise that these reasons usually concern factors related to the design of an employee’s job and the tasks they are required to perform. As an employer, this is good news because you can usually provide the solution quickly and simply. Some commonly occurring causes of poor performance can be one, or a mix, of the following:
your employee doesn’t know what to do – meaning there are unclear or misunderstood expectations about goals and standards (or no standards have been set) the job is poorly designed so there is a mismatch between your employee’s capabilities and the job he or she is required to do your employee doesn’t know how well or badly they are doing because there is no counselling or feedback on their performance your employee does not have the knowledge or the skills to do the job expected of them eg. A new recruit, change of duties, a new task etc lack of personal motivation, low morale in the workplace and/or poor work environment your employee may have personal problems such as stress, family problems, health problems or substance abuse problems such as drugs, or alcohol.
10.2 Identifying the problem
The following performance list should assist in identifying what problems are affecting your employee and what to do about them. They do not know why they should do it It is important for employees to know WHY they are doing a task and what they are being paid to do. If they do not clearly understand the answers to both questions, you might face a poor performance issue. Before you put people to work, let them know why they should do the things you pay them to do. They do not know how to do it. Don’t assume what an employee knows without checking first. If you want someone to do something ask them to describe what it is they are doing or give them a chance to demonstrate it .
10.3They do not know what they are supposed to do
Some employees may have an unclear or poor understanding of the specific tasks they should be doing.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 99 of 148 For example, they know they are supposed to do something but don’t know when to begin, or what the finished product looks like. Ensure you are specific about your standards and expectations.
10.4 They think your way will not work If an employee really thinks your way will not work, you must get them to express that opinion so that you can deal with it before the work begins. You need to sell your idea – simply telling them may not be effective.
10.5 They think their way is better You need to identify this issue when assigning a task, ask your employees for their ideas on how it will be done and seek their reasons for tackling the tasks differently.
10.6 They think something else is more important Some employees simply do not understand the comparable priority of the many tasks assigned to them or are unclear about your priorities. The problem is not that they are not working, they are simply working on what they think is important. Label the work according to its priority when it is assigned, but make sure that every task is not a first priority task.
10.7 There is no positive consequence to them for doing it You need to deliver rewards for the performance you expect. Verbal feedback about work well done is the least expensive method, and highly effective.
10.8 They think they are doing it If employees do not get timely and appropriate feedback, they will continue to do the work the way they have always done. Employees need ongoing information and an answer to the question “How am I going?”
10.9 They are rewarded for not doing it If employees only receive attention when they are performing poorly, you may just be reinforcing the poor performance, not eliminating it. Your attention becomes the rewarding consequence.
10.10 They are punished for doing what they are supposed to do For example, if an employee makes suggestions at meetings and is given extra projects to carry out the suggestions, they will probably stop making suggestions. To reduce this risk, remove the punishment or provide a reward to balance the punishment.
10.11 They anticipate a negative consequence for doing it It is important that people understand the ground rules for operating – that it is OK to have opinions, questioning and feedback are encouraged.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 100 of 148 10.12 There is no negative consequence to them for poor performance Failure to take appropriate action to correct performance problems sends a message that poor performance is tolerated.
10.13 Obstacles beyond control There may be obstacles due to lack of resources or conflicting directions. Listen, get involved and investigate.
10.14 Their personal limits prevent them from performing Many people fail to perform because they were not taught how to do it.
10.15 Personal problems Listening and linking employees into other agencies that can help them deal with the problems is a key role you can perform.
10.16 No one could do it – it’s unrealistic This is a training issue. You should provide training and practice opportunities to help them perform.
10.17 How do I solve the problem?
You can’t solve the problem by yourself. It is something you and your employee must solve together. The first step is to talk to your employee and get his or her agreement that a problem exists. This may involve some discussion and persuasion on your part. Then once you both have agreed on what the problem is, you can both discuss strategies to solve the problem. If you don’t adopt this method of solving the problem together, your employee will probably feel “blamed” or “chastised”. If your employee feels he or she is being blamed, then it likely poor performance problems will continue.
10.18 How do I initiate discussions about my employee’s poor performance?
You should have some private discussions with your employee about the problem. It should be in a comfortable, non-threatening environment and take place at a time when neither of you will be interrupted.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 101 of 148 11.0 Salon Supervision and Motivation
Supervising people is both a skill and an art. It is a skill because the basic theories about motivation, communication and conflict resolution, leadership, performance counselling and so can be learned. The art is how you adopt and adapt this knowledge and put it into practice in your own unique way.
11.1 Management Responsibilities (pertaining to human resources)
Every business, regardless of its size, must look after its most precious resource: people. Human resources are there to ensure that the organisations human resources are managed and cared for in the best possible way. Here are just a few human resource responsibilities:
11.2 Staffing
Forecasting future staffing needs Recruiting staff Induct new staff Handling redundancies, retirements and terminations Implement and monitor work methods and procedures Discipline procedures Conditions of employment Equal Opportunity development Develop and maintain staff rosters Maintain records of work done as required by salon management maintain personnel records of staff (including daily attendance records) Appraise staff performance against agreed criteria Resolve disputes between team members Provide advice to management as necessary Advise staff on matters relating to clients and services Inform employees about salon activities monitor, review and improve work methods where necessary Human resource management should aim to develop policies regarding all of these matters. Policies provide guidelines for dealing with employees at all levels. They outline how matters affecting employees of the business should be handled.
11.3 Management Responsibilities (pertaining to salon procedures and facilities)
Salon supervision also relates to salon procedures and facilities. These areas are covered in other modules that you have completed. Manage quality control (8338Q) Stock management (8338J) 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 102 of 148 Promote and implement salon health and safety policy including regular inspection of salon fittings and equipment for faults and required repairs (8338S) Supervise and participate in promotional activities (8338H)
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 103 of 148 12.0 Inducting new staff
An employee who "starts off on the right foot" and who is kept on track through systematic job training is likely to become a valued contributor to your business’s success. Since you have gone to the trouble of recruiting and selecting an employee, it is your responsibility as a supervisor to ensure that each new recruit becomes the able staff member you need as quickly and efficiently as possible. This is why induction and training are important.
12.1 What is induction?
Good induction is more than just introducing a new employee to his or her job and work mates. It is the process by which you help a new employee into a job, a work team and an organisation as smoothly as possible. It involves making a person feel welcome and important. It is a way helping people find their feet. It means anticipating all the questions which a new person might want to know the answers to when they would know who to ask or if they don't feel confident enough to ask.
12.2 Why is induction important?
People are an organisation's most valuable resource and they deserve to be carefully introduced to their new jobs. At some time during the first days of employment, new recruits need to be told something about organisation's history, what its products or services are, its employment benefits and activities, the way the organisation is structured and the how the new recruit will fit in, rules and regulations and any special duties and responsibilities involved in the job.
Just as a new employee is often employed on a probation or trial, employers are also on trial. New employees will determine within the first few weeks whether the job and the organisation live up to expectations. If not, they will soon seek other employment that meets their expectations.
12.3 Inducting and training employees
Most employees who leave their jobs do so in the first three months. Studies have shown that a large proportion of them do so because of poor induction rather than poor selection. Attitudes and expectations are shaped during the early days, as a good supervisor, it is your responsibility to see that induction training is properly carried out for each, employee who joins your business. Some of the advantages that come from good induction are listed below.
Good induction helps give new employees a favourable impression of the organisation and contributes to their overall enthusiasm for their new jobs. Thus it can be an important factor not only in reducing labour turnover and employee dissatisfaction but also in developing good morale. Induction gives you, the supervisor, the opportunity to establish a good working relationship with the new person and lets you explain the person's job in relation to
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 104 of 148 others in the organisation. Company rules and regulations can be explained carefully, thereby minimising subsequent misunderstandings.
A good induction helps remove the uncertainty that everyone has in going to a new place of employment. As you probably remember from your own experience, the first few days in new surroundings are often anxious ones.
Induction can also reduce the time spent ineffectively by new employees by providing a sensible program to follow during the first few days on the job. Neither too much nor too little, both of which can be frustrating and destroy confidence will be attempted if a well thought-out induction program is followed.
Induction to a business should include the following: General background information about the organisation - its history, structure, products, competitors, promotion opportunities, scope to acquire new skills Introduction to lines of communication, both formal and informal General industry information Information on the overall working environment of the business Details of relevant awards and agreements, systems of pay, superannuation Sources of advice and assistance within the organisation Organisation policy on smoking, alcohol, misconduct, holidays, what to do if you're injured, late or ill A tour of the business- other departments, main functional areas Health and safety requirements of the job and the department Hours of work, breaks, finishing time Time-keeping and recording procedures need Security systems; for example, fire drills, fire warden, location of extinguishers Amenities - washrooms, lockers, canteen, cafe bar, car park The work layout Review of job description Introduction to work mates Outline of training to be given Pay - how and when the employee is paid, pay rates, deductions Everything about the employee's job - what tools, equipment and supplies
13,0 Costing Services
To ensure that all expenses are covered as well as profit made, it is important to cost all of the services that you carry out in your salon. To determine a cost for a service you need to take the following things into consideration: Materials (retail prices for materials used) Overheads Labour (use hourly rate) Profit margin
When considering service costing, profit margins and or increase in prices, ask yourself the following questions
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 105 of 148 Can the service provided by the salon be improved upon or added to so that takings are increased? Is the buying and use of stock as efficient as it could be? Can expenses be trimmed without sacrificing efficiency?
13.1 Adjusting Work Practices
Look at work practices to see if efficiency can be improved. Consider the following questions Who does the work? How is it done? Why is it done at that time? Where is it done? Could the work be done by anyone else? Could the work be done in other ways? Could the work be done at another time? Could the work be done in any other place?
Determine any changes in work procedures if indicated by evaluation of work procedures. Provide your staff with training in changed work methods and finally test the new procedures and processes that are in place.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 106 of 148 14.0 Performance Appraisals
Like it or not, as a supervisor, you will be called on to evaluate the performance of employees for various reasons. It may be for a promotion, to identify training and development needs, for a pay increase or even for retrenchments.
14.1 How should you make these appraisals?
When you use a formalised system of appraisal, you are being fair and consistent as well as showing your interest in each employee's training and development. Using a formal approach, you observe a person’s work behaviour and skills, discuss these with the employee! Through an appraisal interview and record these observations along with other information such as an assessment of potential for future promotions and areas for further training and development. So important is this evaluation of employees that most major organisations now regularly conduct some formal system of employee performance appraisal.
14.2 What is a performance appraisal?
A performance appraisal consists of a systematic evaluation employee's work performance and potential. Typical areas of ass include: quality/ accuracy of work quantity of output ability to make decisions job knowledge technical and job-related skills attendance and punctuality ability to work as a member of a team future potential/ promotability ability to work in other areas training and development needs
14.3 How to appraise employees' performance
These assessment areas will differ from organisation to organisation and from job to job, according to the requirements of the job, the department and the organisation. Performance appraisals are made on an annual or six-monthly basis or, monthly or even weekly. They should be carried out by an employee's immediate supervisor and in many organisations they are reviewed by the supervisor's manager.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 107 of 148 14.4 What is the purpose of a performance appraisal?
The purpose of a performance appraisal is to discuss performance and plan for the future - not punish for mistakes, make someone feel bad or provide a "short, sharp kick in the pants". Unfortunately, too many performance appraisals end up this way.
Performance appraisals should be two-way discussions. They provide a formal arena for each employee to sit down and discuss their job with their supervisor. In this way, communication channels are opened and working relationships strengthened. Each has a chance to discuss how they see the employee's job and the supervisor's job in relation to it. This ensures that both are "speaking the same language" and holding the same realistic expectations. It also provides a chance to "get things out in the open" and discuss any small but nagging doubts, questions or irritants.
Performance appraisals also provide a review function, where employee and supervisor sit down and take a serious look at the previous period and job performance. What was done particularly well? What needs improving? What skills or behaviours need strengthening? What mistakes were made and what can be learned from them? This review function also gives supervisors an ideal opportunity to recognise good work and thus increase an employee's motivation.
And perhaps even more important, performance appraisals provide a chance to look towards and plan for the future. What training will the employee benefit from? What new goals or targets will be worked towards? What additional or delegated duties would provide increased job development or job satisfaction? Where would the employee like to see the job going? Their career? What other jobs in the organisation interest them? This is the supervisor's golden opportunity to ensure that the employee is dear about future job performance requirements and is motivated to work towards them.
14.5 Conducting an Appraisal Interview
Here is a summary of points to consider when conducting an appraisal interview: What do you need to know from the employee? Attitudes and feelings about their job Ambitions, aspirations Successes Expectations of job, work, rewards Views on any job changes Self assessment of performance Main problems faced How can you be of more help as a supervisor What does the employee want to know from you? Clarification, job targets, responsibilities Objectives, standards, targets Recognition of good work Constructive criticism and help with problem areas.
Ideally what you should agree together. Targets for the next review period 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 108 of 148 Action plan for future development Any training needs How you will help, what support you will provide An overall assessment of performance
It is important to keep any promises or agreements you have made during the appraisal.
15.0 Motivation
Supervisors need to ensure that a job gets done. To do this well, they need to promote a climate in which people can be become motivated. To learn how to motivate others we need to understand something about what makes people tick. There are three relevant questions to motivation. What are people’s basic needs? What do they need to perform their work? What happens if these needs aren’t met?
15.1 How do you get others to work for you?
Motivation comes from within, your job as a supervisor is to get workers to do things in the best interests of your business because they want to do them. Successful supervisors are people who can provide their employees with the opportunity to achieve personal goals and satisfy their own needs while at the same time gratifying the organisations needs - that is, getting the job done.
Research clearly indicates that most employees want their motivation needs met at work. Basically most people want the following things: Clear standards and objectives Adequate job training Supportive supervision Feedback on performance Opportunities for advancement Being treated as a worthwhile individual Safe and healthy working conditions
15.2 What can you do to motivate employees?
Treat employees as individuals- everyone likes to be treated as an individual not a number. Be genuinely interested in your employees. They are individuals with feelings and opinions. Take the time to talk through ideas with them. Make the work interesting- Many jobs are boring. As a consequence, employees sometimes lack interest and motivation. Lack of job interest can lead to all sorts of problems. Providing variety, interest and challenge can be difficult but the benefits from increased motivation are great.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 109 of 148 Provide growth opportunities- The opportunity to grow will motivate many an employee. It may mean letting the employee learn a more difficult job, encouraging someone to go to night classes or delegating some of your tasks to give a person a chance to broaden their knowledge and kills. Promote participation in decision making – Everyone likes to be in on what is happening, This will help them to feel part of it and more loyal towards the business. Invite employees to contribute in the decision-making and the commitment from them will be greater. Promote co-operation and team work- knowing that they belong and are vital members of the team does much to help satisfy employee needs. The basic mate- ship system encourages one person to help another. This sort of teamwork needs to be promoted in any workplace where there are groups of employees. Seek and give feedback – talking openly and honestly with your staff promotes feelings of trust and confidence. Give feedback about how they are doing, the progress they are making and any problems that are cropping up. Ask them to evaluate your progress. Listen to your staff – Try to understand what they are saying and make constructive comments about their ideas. Being listened to makes people feel important and also more willing to listen to what you have to say. Be sincere with praise – Genuine praise and recognition for a job well done is always appreciated. Be sure to keep praise justified. An employee knows the difference between a good job and a mediocre one. Resolve conflict- with good judgement, understanding and openness, conflicts can be resolved. Focus on solving the conflict to everyone’s satisfaction. Set a good example – Don’t ask anyone to do something you wouldn’t do yourself. Insist that the staff follow the rules as you do.
Motivating means getting people to do something because they want to do it. It is a major part of a supervisor's job. We have seen that motivation comes from within and is based on certain needs being met, or rewards obtained, in accordance with a person's expectations. So, in a sense, supervisors cannot motivate anyone. What they can do, however, is provide the conditions or the environment in which motivation can take place.
If you want your staff to be motivated to do that little bit extra, to go beyond the bounds of their job contracts, you will need to provide something in return. You will need to treat each person as an individual. You will need to get to know each member of your staff. You will need to ensure that each person clearly understands the goals and standards your requirements. You will need to open up channels of communication and work out, from the things people say and do, what their individual needs and wants are.
Then you can try and provide them with the means to satisfy their needs and show them that the rewards they are looking for are attainable through good job performance. You will need to match the job to the individual as much as possible. When work provides the opportunity for people to satisfy their needs, they will be motivated.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 110 of 148 16.0 Effective Salon Leadership
16.1 DEFINING LEADERSHIP
When we think of successful, high profile leaders, we think of people such as General Colin Powell, who led the American forces during the Gulf War; or Bill Gates, the Harvard dropout who founded Microsoft and became the richest man in the world.
Leaders are able to define a goal, persuade others to assist in achieving that goal, and lead their teams to victory. Leadership is crucial to managers in the business world. There is not one single definition of leadership. Understanding this is the first step toward becoming an effective leader. Some common definitions or beliefs about leadership include the following: A leader is the appointed head of a group, team, or organisation. A leader is a charismatic person who is able to make good decisions and inspire others to reach a common goal. Leadership is the power to communicate assertively and inspire others. Leadership is the ability to influence others. All of the definitions agree on one common fact: Leadership involves more than one person.
You cannot be a leader without a group of people following your direction and putting their trust in you. Remember, as a leader you have a responsibility to your employees. The title "Boss" or "Manager" does not automatically make you a leader.
16.2 LEADERSHIP QUALITIES
A leader is someone who inspires, who makes decisions that affect the business in a positive way, and who can pull together a diverse team to work toward a common goal. But if all managers are not leaders, what are the qualities that set leaders apart?
To be a good leader you need to develop the following qualities:
Knowledge: A leader must know the details of the business and use them.
Trust: Don’t micromanage. By peering over employee’s shoulders you will create an atmosphere of mistrust.
Integrity: Be trustworthy. Follow through on promises.
Standards: Lead by example. Act in the way you would like your employees to act.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 111 of 148 Decisiveness: Leaders are valued for their decision- making abilities.
Assertiveness: Your assertiveness can and must represent the employees who have put their trust in you.
Optimism: Be realistic but not fatalistic. Your employees may soon lose confidence if they are constantly confronted with pessimism or negativity from you. Situations aren't always ideal, but as a leader you're expected to find the best way to turn the situation around. Figure it out and concentrate on the positive.
Results: A leader has a track record of solid decisions and outcomes to point to. If you've been managing for some time, try to compile a list of successful decisions and events that you're responsible for. Not only can you point out these successes to others, you can use them to build your own confidence in your abilities.
Vision: A leader is expected to set goals that will guide an organisation in a specific direction. A leader must think broadly and far into the future to set those goals and help the team grow in the right direction.
The appearance of power: You must give off the aura of power in your dress, carriage, and surroundings.
16.3 WHAT A LEADER IS NOT
A leader is not merely the manager who sits in the corner office, the person who controls quitting time and pay checks, or the person who can hire and fire people. Managers in this day and age must be flexible and willing to adapt to an increasingly more demanding and younger workforce that question’s authority.
Technology companies have taken the lead in showing that a less autocratic chain of command can produce phenomenal results. Companies such as Bill Gates' Microsoft boast of campus-like atmospheres where permissiveness is no longer the exception, but the rule.
As a leader, you should avoid the following:
Micro-management: You might be keeping too close an eye on your staff or handling too many of the responsibilities in your business yourself. Are you viewed as overbearing?
Closeness: Steer clear of getting too close to your staff. You are a leader not your employees' best friend. It's hard to criticise or chastise someone you view as a friend, and even harder for that employee to see the criticism as unbiased.
Temper. Put your negative emotions aside. We're all human, but as a leader you must avoid negative outbursts or personal attacks on co-workers.
Arrogance: You are not a supreme deity. Remember that you wouldn't be a leader without a staff. Avoid autocratic behaviour. 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 112 of 148 16.4 BECOMING A LEADER
Some people would have you believe that the best leaders are born that way, and that if you weren't captain of the pre-school debate club, you're out of luck when it comes to the ability to be a leader. Many of the best leaders, however, will point to the fact that they were "C" students, sometimes as late as college. Usually there was a defining event or person in their lives that gave them the confidence to step out of the pack and start leading it. For you, that moment has arrived. Now you must fortify yourself with knowledge and start thinking like a leader. The ability to lead is not something you are born with, but something you can develop over time.
16.5 THE TRAITS OF A LEADER
POSITIVE THOUGHT, POSITIVE TALK
It isn't often that you hear a Rugby League -winning coach quoted before a grand final saying, "Well, I don't think we can win, what a long shot. If we do, no one will be more surprised than me."
Sports teams have made a science of practising positive thought and positive talk. You're more likely to hear that coach say, "We know it's going to be hard, but we know we can do it. We're a first-class team, and this year the players have really honed their skills. It shows in their play." Positive thought and positive talk are integral to thinking and functioning as a leader. You must learn to face head-on your fears about competition, your abilities, and the abilities of your team or group. Only then can you begin to win and to raise the quality of your team's work to a higher level.
POSITIVE THOUGHT
Just like the coach of a winning team, you've got to visualise yourself winning. Visualising the win will help you to take the right actions to achieve the outcome you want.
Beware of negativity. Negative thoughts will undermine your leadership qualities. Minimising negative thoughts and talk will help you to think and appear more like a leader. For example, avoid deprecating yourself in thought and talk with negative statements like, "I know nothing about this," "I'm so stupid," or "My opinion probably doesn't count”
For example, Dave's group was assigned the high-profile project of redesigning a large part of his company's Web site. Dave had no experience in Web site design. He privately told a trusted friend outside the company that he wasn't sure he could accomplish this task because he had no idea where to begin.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 113 of 148 Dave's friend, a practitioner of positive thought, told Dave to think again. He reminded Dave that he had five staff members who were skilled in HTML and Web design. He also reminded Dave that his background was in designing magazine layouts, at which he had been extremely successful.
Dave agreed, completed the project successfully, and ended up winning an award for the site's design. Here are some key steps in thinking positively: 1. Break a given problem down to its most basic components and deal with each separately. 2. If you deem something as a negative, figure out why: Lack of experience? Past failure? 3. Figure out what you can do to increase your chance of success. For example, if your concern is lack of experience, could you take a class or ask a colleague to help you learn about a particular topic or procedure? 4. View each challenge thrown your way as a chance to lengthen your list of successes. 5. Visualise yourself winning. In the example above, Dave could have thought, "I need to redesign this Web site. I've never done this before, but I've had similar experience and I'm eager to learn. I've got a talented staff, and I know we can do a great job."
TIP Visualising yourself winning does not have to apply to a specific situation. If you're new to leadership or striving for a leadership position, concentrate on your assets. You might think positively by saying to yourself, "I know that I am capable of being in a position of greater responsibility. I'm smart, have the right experience, and have great people skills."
POSITIVE TALK
Positive thought will help you visualise successes and increase your chance of success. To project that same confidence in your own ability and the abilities of your group, however, you must also engage in positive talk. To refer again to the example of the Rugby league-winning coach: Not only did the coach feel that his team could win, but he was also quoted in the press as saying his team was going to win, and saying exactly why they were going to win.
Besides the obviously positive effect his words will have on his own coaching and his players' morale, he also inspired confidence in the team's owners and, the most important bosses of all, the fans.
As a leader of a team, group, or organisation, you must learn to develop and regularly use positive talk. Positive talk is key to helping your group visualise a win.
When Dave's team heard they were going to redesign a high-profile area on the company's Web site, Dave wasn't the only person who was initially doubtful about their chances for success. The team members themselves were unhappy at having a different kind of work introduced into their routine. Although the team was skilled in HTML they felt they had enough to do with merely updating the site
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 114 of 148 content daily. One team member even said to the others, "I don't know why they asked us to do this. This is really going to be awful."
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 115 of 148 16.6 The Traits of a Leader
After Dave began thinking positively, he addressed his team's misgivings by saying, "I know this is a new challenge for us, but we're going to do this project and we're going to do it on schedule and make it the best site redesign this company has ever seen. This team has more combined Web experience than any other group in this company. We've been given the chance to set the pace, not just keep up. Let's get to work," Dave's confidence in his team's abilities not only flattered his group, but it made them realise they could do more than they previously thought. Dave made it sound as if it was a given that the redesign would be successful and that it would be because of their contributions. Dave also inspired the same confidence in his superiors when they asked how he felt the project was progressing. Instead of saying that his team was trying to figure out the redesign, Dave said, "I have to admit this project was a new challenge for my group, but my team loves a new challenge and thrives under pressure. Thanks for the opportunity to showcase my group's abilities."
16.7 VISION
Another important leadership trait is vision. An argument could be made that it is impossible to be a true leader of a group, organisation. company, or industry without having vision.
Vision is closely allied with positive thought and positive talk, but involves taking that positively to the next level.
Visionary leaders are often noted for innovations within an organisation or industry. For example, Bill Gates is considered a visionary for anticipating that the personal computer could be an indispensable part of every household and then developing the products to make it so.
A leader's vision is extremely important because it gives people something to strive towards and a view beyond the present, into the future of the organisation.
16.7.1 DEVELOPING VISION
To develop your own vision, try the following exercises: Start with your aspirations. What are your aspirations? Is there some particular concept, process, or product that you want to develop? Do your research. Compare your ideas with others in your field by studying books, trade magazines, and Web sites.
Spend some time thinking about your business. What could you do to improve the business? What is the single biggest hurdle to success in your unit or the organisation as a whole?
Think about possible and necessary improvements. What can you do to improve the organisation or unit? Think about both the short term and the long term. This
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 116 of 148 will enable you to set short-term and long-term goals to take steps toward real- ising your vision.
Think about do-ability. Are your goals realistic? If your vision points to goals that seem unattainable, is there a way to break down the vision into a simpler form? Use your intuition. Does your vision make sense?
16.7.2 COMMUNICATING YOUR VISION
Sharing your vision with others, be it your team or your superiors, is an important aspect of leadership. By sharing your vision with your team, you'll let them know they have a manager who is thinking of the organisation's future, as well as theirs. By sharing your vision with your superiors, you'll let them know you are an innovative thinker who is not content with the status quo.
16.8 BUILDING CONFIDENCE
Confidence in yourself will be bolstered by both positive thinking and by the process of formulating your vision. Self-confidence, however, tends to be the result of measurable success. To build your self-confidence, you might make a list of your assets and past successes, no matter how small they were. Some assets you might list are education or specialised training, the ability to communicate well with others, or a great sense of humour.
16.9 LEADERSHIP STYLES
Just like fingerprints no two people lead in exactly the same way. Depending on the group you have to lead, you may adhere stringently to the rules of one kind of leadership or can combine aspects of different styles. Here are several to get you started:
16.9.1 RESULTS GETTER / DICTATOR
Only cares about money, sales, results, payments and himself Only sees staff as a way of obtaining results Keep decision making and most critical knowledge to themselves Lays down the law and expects individuals to perform without questioning his or her authority Believe that knowledge is on of the keys to power. For this reason they will only give out small bits of information on a needs to know basis only. Mistakes aren’t tolerated
Why use this style?
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 117 of 148 The dictator is particularly effective when a group has got out of hand and is making little or no effort to actually work. In such cases a dictator can provide a wakeup call to team members that they are each individually responsible for carrying an equal share of the teams weight.
Disadvantages of this style
Can be hard for both the leader and the employees. The dictator is not known for creating a creative, trustworthy work environment. The team often dislikes the dictator. Because there is a lack of input by the team, team members may not be able to perform to the best of their abilities.
16.9.2 People Pleaser
Wants people to like / approve of them by being nice and treating team member nicely Gives team everything they want Leader becomes just another group member Doesn’t necessarily pull any more weight than the rest of the team All group members are involved in any decision making process Team sets goals for the business All group, members have a shared responsibly for the results and consequences of the groups actions.
Why use this style?
This style works best with a small group of experienced or talented individuals. Trust, honesty and belief in the staffs abilities are the key ingredients to making this style work.
Disadvantages of this style
This style of management can be very rewarding as you are not only leading but you are interacting with the group. However, becoming extremely close with an other team members and forming friendships can sometimes prove difficult when tricky decisions such as dismissing an employee need to be made.
16.9.3 The Professional
Strives to keep the group well informed Holds regular staff meetings Encourages staff participation Recognises the value of debate and competition Encourages staff to participate in setting new directions for the business Although the leader encourages participation, they will ultimately make the final decision Concentrates on standards of achievement and performance challenges Aims high and expects staff to do the same.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 118 of 148 Why use this style ?
This style works best when you are leading a highly innovative staff that still needs direction.
Disadvantages of this style
Can be particularly draining. You are responsible for the vision and the means of accomplishing the mission.
16.10 Developing your own Leadership Style
To determine which style of leadership will work best for you, make two lists: one with your natural leadership traits and one with the goals you need to accomplish within your group.
On the first list, you might include things such as sense of humour, ability to easily communicate, commanding presence, or innovative visionary. When your list is complete, try to see which style of leadership is most closely matched to your traits. You might use that style of leadership as a starting point.
On the second list, compile the goals large and small that you'd like to accomplish with your group or organisation. What are the hurdles to those goals? Is your staff ineffectual or just in need of intellectual stimulation? Leadership style is not determined only by you, but also by the group that you are charged with leading. You are not a leader if there is no one following you. Be sensitive to the unique challenges the individuals in your group face.
Above all, there are some traits that are always important in a leader, regardless of his or her style: fairness, integrity, honesty, and caring.
16.11 Develop a Fair, Management Style
Establish staff personnel policies (involve staff input) but avoid being too rigid Allow for individual problems Be truthful Be consistent Be fair Ensure that specified conditions of employment entitlements are maintained Use open communication with staff (communicate salon objectives/ performance expectations) Be consistent in approach to employee absenteeism, discipline, etc Take an interest in individuals personal problems within reason (not job related) Treat all employees fairly re: incentive schemes, occasional treats etc. Take care never to arouse employee's suspicions/mistrust (never make unrealistic promises) Praise staff publicly and try to distribute praise equally
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 119 of 148 Discuss grievances and criticisms privately and only with relevant staff Actively solicit ideas but explain if and when ideas may be unworkable Respect valid differences of opinion Admit own mistakes (encourages others to do so as well) Keep employees up to date with changed/new plans (prevents rumour and encourages involvement/enthusiasm) Promote good training (not too much in staff free time) Encourage staff and assist them to take responsibility for their own self development
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 120 of 148 17.0 TEAM Management
As a leader it is your job to have a vision for you work team and a plan on how to accomplish this vision.
This involves the setting of realistic and achievable goals for your team. Each goal needs to have: Have purpose Benefits Results.
By determining goals you are ensuring that team members are actively focussed towards targets. It also encourages individuals to take responsibility for themselves.
18.0 THE MEASURE OF SUCCESS
Any industry has measures of success-. If you're a sports team, you have a record of wins and losses. If you are a media company, you have your ratings in relation to other media companies. If you are a sales team, you have sales figures. Don't keep the measures of success a secret from your staff. Hold regular meetings to let them know how successful their work is and what they'll need to do to improve their standings.
TIP Give your staff the benefit of knowing your organisational goals through a mission statement or by sharing your unit's metrics with them. Remember that they can't do what you want until they know what you expect.
18.1 Individual Goals
To function as a unit your staff must be aware of the organisational goals. However, your people must also have visual goals. Goals give a way to measure an individual's performance compared to other members and against his or her own past performance.
Here are some rules for goal setting that you should know before having the first meetings with your staff.
18.2 Have a job description
The most important aspect to goal setting for individuals is to make sure they have a job description. It sounds simple, but many organisations don't think giving employees clear and detailed job descriptions is a priority; instead, they expect employees to figure it out on their own. This can result in lost time while an individual
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 121 of 148 18.3 Have realistic expectations.
Make sure the goals you set for an individual are realistic. For example, Ken asked Sandra to write a 200-page report by the end of the week. This was an unrealistic goal.
Be specific when assigning goals. The method of measurement must be clear. For example, Charles asked Amy and Chris to each create 10 Web pages for the company site. Amy finished her portion of the pages in two weeks, whereas Charles finished only half of his work by then. Charles should not be penalised because a time limit was not set.
To take this one step further, Amy may have seen time as the most important factor in the assignment, whereas Charles may have considered research and well-rounded pages to be the top priority. You must be as specific as possible when assigning goals.
18.4 Distinguish between formal and informal goals.
There are several types of goals for individuals. It must be made clear whether a goal is formal or not and whether a specific reward is tied to the accomplishment of that goal. For example, are the goals written on paper and tied to a yearly review, or are the goals more abstract? An abstract goal might be asking an employee to casually learn more about a given aspect of the business.
Although goals can go a long way toward keeping your staff on track, mistakes will be made. Practice tolerance. Employees can often lea just as well from their failures and mistakes as they can from their successes.
19.0 Fostering Teamwork
Goal setting can help an individual to realise a higher level of personal achievement. You should place an equal emphasis on encouraging teamwork within a group.
A healthy level of competition is good and can keep employees striving to do a better job. Taken too far, however, that competition can become a detriment as the various individuals that make up the whole fail to pull in the same direction.
To encourage and cultivate teamwork within a group, a leader might do the following:
Build trust among staff members Encourage honesty and the open expression of opinion among group members.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 122 of 148 Reward people who contribute to the team A leader might make a point of the importance of teamwork in an individual's evaluation. Let employees know that they are not only judged on personal achievement, but also on their ability to sacrifice personal glory for the greater good of the unit. Use terms like "we" and "us" when referring to your group's work as a whole. This will reinforce the idea that they were an integral part of your unit's performance.
Hand pick your team Nothing encourages teamwork like actually handpicking a team. Choose members of your group who you think could potentially work well together and assign a joint project to them.
Meetings One way of fostering team work is to keep staff well informed on things that relate to work performance and morale. Here are some points on holding a meeting: Prepare an agenda prior to the meeting. Give it to staff and invite them to add any other topics they would like to discuss Encourage all group members to participate in discussion Adhere to the stated agenda objectives Conclude meetings and try to make decisions within the meeting itself.
20.0 FEEDBACK AND REWARDS
Although feedback and rewards are two different aspects of reacting to your employees' work they are often tied together. For example, after landing a major new account, Jennifer's boss told her that not only was he pleased with how she performed, but that she would be receiving a bonus for her good work. Both feedback and rewards give employees a sense of how well they've done their jobs in the eyes of their manager and the organisation.
20.1 Feedback
Feedback is vital to the health of a unit. A leader must communicate feedback effectively to a staff in order to get desired results and improved future performance.
As a leader and manager of people, you'll be required to give both negative and positive feedback. Both are necessary, although positive feedback may be the easier of the two to communicate.
Positive feedback should be given when an employee is performing a task fight, innovating with success, or surpassing previous performance. Be sure to give feedback that specifies exactly what was good. Avoid generalizations such as, "You're doing a great job." They may not sound 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 123 of 148 believable, and they don't really let an employee know what he or she is doing right.
Negative feedback is also integral to moulding or changing a group or individual's performance. Again, make sure that you are specific about undesired actions on or behaviour and avoid criticizing a person's personality traits.
TIP You may also want to solicit feedback from group members. This will help in promote a good work atmosphere and let employees know value their opinions. You should also draw a clear line between formal and informal feedback. Formal feed back is in the form of written yearly review gauging an employee's performance. Informal feedback most often takes the form of comments for example, telling an employee he did a specific task and how. You should try to give both positive and negative information often to keep your employees working in the desired man
20.2 Rewards
Rewards for desired performance can take many forms. Feed back, rewards are how you let an employee know they have done something right.
Rewarding desired performance can motivate a group. Rewards make extraordinary individual efforts and worth it for your staff.
Promotions: When an employee consistency performs to the standard you have set and beyond, you might consider offering a promotion
Raises: Raises are the most common form of regarding an employee.
Bonuses: A bonus can be in the form of money or rewards such as holidays etc
Fame: Complimenting and prising a staff member in front of the entire team.
Increased trust: You might like to reward employees with increased trust e.g. handling the money at the end of the day, managing the salon when you are away.
20.3 Giving your team confidence
An important part of your team’s performance level is their level of confidence. You as a leader can help the team develop confidence through the following measures: Take ability as a given. If you are convinced that someone can do a job but they are unsure of their own abilities, verbally acknowledge your confidence in their abilities. Give compliments. Compliment employees on a job well done.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 124 of 148 Assign confidence building projects. Assign smaller projects that will stretch a team member’s responsibly a little bit at a time. Reinforce confidence. Back up your confidence within the group by offering rewards. Acknowledge a winning tea. Let your employees know they are part of a winning team.
21.0 Professional Development
As a leader it is your responsibility to ensure the ongoing professional development and training amongst your team. Benefits of training include a more highly skilled and confident team. Training should be based on the needs of the business as well as the needs of the employees. A happy and content staff member filters through to the clients. Chances are if your employee is happy, they will try their best at work and treat your clients well.
22.0 Total Quality Management
22.1 What does Total Quality Management mean?
'Quality' is determined by the customer and is a moving target - measures your product against the customer's requirements, which can vary depending on who the customer is and current environmental factors.
'Quality Management' is measuring how the features of your product/service meet the customer's needs now and in the future. It also means ensuring that your, product is free of waste deficiencies and variation - involves planning, control, assurance and improvement
'Total' means: all products all processes all people all levels
'Total Quality Management' means adopting quality improvement strategies at all stages of service/production, involving all levels of staff so that customer satisfaction is constantly monitored and improved.
22.2 Why have total quality management in a salon?
Total Quality management s about meeting the customers needs. Remember that a business is not a business without a customer. Everyone in a salon serves a customer. Serving a customer can include selling a product, giving advice or administering a service.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 125 of 148 Clients who feel appreciated, understood and well served will respond with repeat bookings, additional service/product purchases and recommendations of services to their friends and associates.
Good service leads to more successful operators and businesses. It means monetary rewards as well as personal fulfilment. It should not be demeaning or have negative effects on staff morale. Establishing 'rapport' with the client (putting yourself in their place and treating them as you would like to be treated) is the basis of good service.
22.3 Implement a cyclical process of quality management and improvement,
To determine any changes that need to be made in the salon you need to implement a cyclical process of change. ie,
Evaluate feedback for required changes
Implement change
Evaluate feedback for required change
Monitor results of changes through feedback
22.4 Quality improvement principles
Quality initiative comes from and must be supported by top management, in the case of owning your own business, this means you.
People work within systems, which need to be recognised, and understood - to change/improve the system we need understanding, agreement and co-operation from ALL workers involved.
Q. What are the 'systems, involved in each salon service, eg. manicure? Who is involved in that system?
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 126 of 148 All systems vary in some way. For quality control, you need to be able to measure that variation.
Q. What aspects of your salon services are likely to show variation?
Everyone serves a customer - even the next step in the process is a customer who determines the quality of the service/product they receive.
Q. How does each person 'get it right' for the next customer at each stage of service?
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 127 of 148 Improvement should be plan driven (proactive) rather than event driven (reactive) ~ prevention is better than cure Improvement should be a way of life. EVERYONE within the organisation should strive for continuous improvement by constantly seeking better ways. Total involvement means better 'ownership, of responsibility for client satisfaction and greater readiness to improve performance.
Quality management should involve objectivity when involving the system for faults, measure effectiveness of the system with facts and data. eg. system causes of client dissatisfaction, eg. human error, Poor quality materials, special causes for client dissatisfaction, cg. outside influences
Quality does not cost ~ it pays. Reduction in system variation, elimination of waste and improved customer satisfaction actually lowers costs, therefore increases profit margin.
To determine how to collect data and how to relate it to improvement planning it is a good idea to involve all of your staff. Questions to consider include: Which part of the system needs improvement? How can the salon implement-improvements? (consider incentives for employees) How do we find out which part of the system to improve? How do we implement improvements? Can we do anything about outside influences ? (often we can)
22.5 Methods of collecting information
Methods of collecting the above information include: the use of surveys and other feedback mechanisms informal discussions client meetings focus groups Investigation of client complaints Sales to contact ratio
22. 6 Developing operational strategies for quality improvement
Specify responsibilities for output quality management Analyse performance data to establish causes in performance deviations Assess whether changes to operational strategies/corrective action are required
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 128 of 148 Develop quality criteria/performance criteria to meet client requirements and business standards - Use a structured innovative approach to respond to changing client, requirements (implement a quality improvement cycle) Keep all staff involved and informed (record goals and strategies) Trial and monitor the effects of proposed changes Review/evaluate against quality criteria Develop improvement strategies based on review findings Record proposed changes to facilitate future planning
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 129 of 148 23.0 Maintain Salon Success
This module will assist you to analyse the need for personal skills needed to be a good manager. To understand how to set personal goals to improve management, communication and consultation. To learn to work ‘smarter’ not ‘harder’ through time management and delegation.
This module is closely linked with previous modules, Client Relations, Staff Supervision and Motivation, Quality Management and Leading and Managing Others.
You should by now have worked out what you position is and what your duties are. The goals that you have set for yourself should be achievable and realistic as are those you have set for your business and your staff.
As you develop your management ideas and succeed with your targets you will need to check that these achievements have been made with the acceptance of others and the feedback you get from others will help you to improve future performance and help you to strive for higher goals.
Accepting responsibility for you actions is sometimes hard, as a manager you will have to make some tough decisions. As a small-business owner, you'll encounter situations (if you haven't already) that will test your integrity. Perhaps you're faced with the temptation to tell "little white lies" to customers to make a sale. Or maybe it's a tendency not to be up front with your clients and suppliers.
Before you get tempted by these situations, think first about the impact those actions will have on your staff. These days, your choice of how to take care of business affects the length of time your employees choose to work for you. Today's employees are looking at the virtue and character of their leaders. They want to know that the leadership has integrity. Be careful not to get into arguments with suppliers, employees and business partners, this will get you nowhere.
23.1 Difficult Conversations
It was first though that there would be eight or 10 or 12 kinds of difficult conversations, like asking for a raise, giving negative feedback or talking with a spouse about money. But what was found is every difficult conversation has the same underlying structure. So the same things get us stuck in every difficult conversation and the same simple things can actually help the conversations go much more productively.
Difficult conversation is really three conversations happening at once. The first is what can be called the “What Happened?” conversation and that’s the most obvious—when we’re arguing about who’s right, who’s to blame and what’s motivating you. Were you trying to annoy me, were you trying to undermine me, what are your intentions?
But beneath that, and maybe more important, there are two things going on. The second conversation is what we call the “Feelings” conversation, which asks questions about what to do with all of these strong feelings you have, especially in a business context where you’re supposed to check your feelings at the door. And what do you do if they start to get angry or cry. We often make the mistake of trying to exclude feelings from the conversation when often feelings are at the heart of the difficulty. How we’re each feeling treated is really the issue. 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 130 of 148 So then the third conversation is the “Identity” conversation. Often what makes us anxious about these conversations is what the situation seems to say about you. If I’m asking [to raise my fee for a client], it’s not the money that’s on the line, it’s my self-esteem or my self-image. Or [if you think,] “I’m not the kind of person that hurts someone’s feelings,” that’s going to be a real problem if you need to give negative feedback or fire someone. So often what’s getting us stuck is something in our own identity conversation.
Difficult conversations “are not about what is true, they are about what is important.” Difficult conversations almost never occur around questions that have a right or wrong answer.
Sometimes the conversation you need to have isn’t a conversation with another person, it’s a conversation with yourself in which you need to let go of what we call the “either/or” identity. Either I’m competent or I’m completely incompetent. If I made a mistake, then that’s a disaster because now I’ve totally redefined myself.
So one thing to accept is that, whatever your description is of the kind of person you are, sometimes it’s not true. Everybody makes mistakes. Everybody is sometimes less generous, competent, ethical, loyal, responsible or thorough than they would like to be. So accepting that and accepting responsibility for the things you wish you had done differently can actually mean you don’t have to have the conversation at all. Or that if you do have the conversation, you’re much better grounded because you’ve already accepted those things.
As a small business manager you may need to seek help from other areas. You have learnt in pervious modules that there are various government and private areas that have been set up to assist the small business manager.
These include State Government departments such as Department for Women, Small Business Association, A.P.F.A.(Australian Professional Fingernail Association), ABTA (Australian Beauty Therapy Association), local Chamber of Commerce groups, Apex, Lions and other community groups. Within the industry you will find support for the manufactures and suppliers and also from fellow work associates.
23.2 The New Bottom Line
Wouldn't it be great if you could give your business the gift of a magnificent and promising future while also discovering a way for all your employees to be satisfied? You can--with a little work. Boosting your business and satisfying employees means changing the way you do business. It means implementing a broader approach that builds on the foundation of an effective organisation--namely, its mission and values.
Rather than focusing solely on results, winning companies first emphasise values--the beliefs and attitudes that you, as the business owner, have about your employees, customers, quality, ethics, integrity, social responsibility, growth, stability, innovation and flexibility. Managing by values--not by profits--is a powerful process that will set your business on the path to becoming a successful company.
You have become aware of the need to establish many plans and policies for you salon and to maintain the results of these plans you will have to be aware of their performance. A regular check to match salon performance to your targets is needed and an open mind to change or restructure the salon policies will keep you aware of the business results and salon direction.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 131 of 148 23.3 Tomorrows Trends
While management is undoubtedly evolving and new ideas often have merit, too many new ideas introduced too quickly can be harmful. When you go from one idea to another, your work force quickly becomes jaded. Workers may not take your ideas seriously if every month you introduce something new.
Identifying what you want is the first step towards getting it. It focuses your attention and gives you a criterion for making decisions. In business, this is essential. Setting and accomplishing goals keeps businesses moving in the right direction.
23.4 Success through Goal Setting
People everywhere whine and wonder why they're not more successful. Why didn't I make that sale? Why wasn't I promoted? Why won't she/he go out with me? Before we try to provide some answers, let's go back a few steps.
Did you establish a plan or take any steps to attain those goals? Or were they just dreams? This is what distinguishes the winners from the losers.
23.4.1 Know What You Want
Identifying what you want is the first step towards getting it. It focuses your attention and gives you a criterion for making decisions. In business, this is essential. Setting and accomplishing goals keeps businesses moving in the right direction.
23.4.2 Create A Plan
Once you've identified your specific goals, don't keep them to yourself. You need to write them down and share them with the people who can help you accomplish them. The long-term goals should be broken down into several sections, allowing you to intermittently check on their progress.
You should also try to anticipate obstacles and develop plans for dealing with them. Be Specific The more precisely you define your goals, the easier it is to achieve them. Do you want sales, profits, or new products? Or all three? And if you say you want to make a profit, you also need to determine how much profit. If you don't make your goal specific, you'll never know if you've achieved it. Name The Time Specific time frames also need to be established. You should determine not only where you want to be, but also when.
You should be checking at least every quarter of the stage This will give you time to make whatever adjustments are necessary to make the goal. Create your own system of checks and balances. Make It A Habit The more familiar this process becomes, the more likely you are to apply it to both your personal and professional life. And, as you accomplish more and more of your goals, you'll soon realise you're no longer one of the whiners. You've become a winner!
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 132 of 148 24.0 Eight Ways to Improve Your Managerial Skills
Each year, thousands of people make the switch from staff to manager. And, although many of us look forward to the change, we find it frustrating once we get there. When we were staff, we were rewarded for our technical skills and labours--in direct proportion to what we accomplished.
But now, as a manager, our success is measured not by our own output but by the output and productivity of the people we supervise. And that sense of not being in direct control can be a frustrating feeling. Fortunately, working with others--and getting them to give you their best--can be just as rewarding... once you get the hang of it.
Here are eight tips that will help you to manage and to guide your people more effectively.
24.1 The Human Touch
The most valuable qualities you can develop within yourself are patience, kindness, and consideration for other people. Although machines and chemicals don't care whether you scream and curse at them, people do. Your staff are people, first and foremost-- with families and friends, likes and dislikes. People with feelings. Respect them as people and you'll get their respect and loyalty in return. But treat them coldly and impersonally and they will lose motivation to perform for you. Corny as it sounds, the Golden Rule--"Do unto others as you would have others do unto you"--is a sound, proven management principle. The next time you're about to discipline a worker or voice your displeasure, ask yourself, "Would I like to be spoken to the way I'm thinking of speaking to him or her?" Give your people the same kindness and consideration that you would want to receive if you were in their place.
24.2 Don’t be Overly Critical
As a manager, it's part of your job to keep your people on the right track. And that involves pointing out errors and telling them where they've gone wrong. But some managers are overly critical. They're not happy unless they are criticising. They rarely accomplish much or take on any- thing new themselves, but they are only too happy to tell others where they went wrong, why they're doing it incorrectly, and why they could do the job better. Don't be this type of person. Chances are, you have more knowledge and experience in your field than a good many of the people you supervise. But that's why the company made you the boss! Your job is to guide and teach these people--not to yell or nitpick or show them how dumb they are compared to you. Successful managers encourage their people instead of criticising them. "Forge their mistakes, and zero in on one small thing they do right. Praise them and they'll do more things right and discover talents and abilities they never realised they had.
24.3 Let Them Fall
You've got to let your people make some mistakes. Does this shock you? I'm not surprised. Most workers expect to be punished for every mistake. Most managers think it's a "black eye" on their record when an employee goofs. But successful managers know that the best way for their people to learn and grow is through experience--and that means taking chances and making errors. Give your people the chance to try new skills or tasks without a supervisor looking over their shoulders-- but only on smaller, less crucial projects. That way, mistakes won't hurt the company and can quickly and easily be corrected. On major projects, where performance is critical, you'll want to give as much supervision as is needed to ensure successful completion of the task.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 133 of 148 24.4 Be Available
Have you ever been enthusiastic about a project, only to find yourself stuck, unable to continue, while you waited for someone higher up to check your work before giving the go-ahead for the next phase? Few things dampen employee motivation more than management inattention.
As a manager, you have a million things to worry about besides the report sitting in your mailbox, waiting for your approval. But to the person who wrote that report, each day's delay causes frustration, anger, worry, and insecurity. So, although you've got a lot to do, give your first attention to approving, reviewing, and okaying projects in progress. If employees stop by to ask a question or discuss a project, invite them to sit down for a few minutes. If you're pressed for time, set up an appointment for later that day, and keep it. This will let your people know you are genuinely interested in them. And that's some- thing they'll really appreciate.
24.5 Improve the Workplace
People are most productive when they have the right tools and work in pleasant, comfortable surroundings. Having the right equipment is equally important. Be aware that you may not be the best judge of what your employees need to do their jobs effectively. Even if you've done the job yourself, someone else may work best with a different set of tools, or in a different setup because each person is different.
If your people complain about work conditions, listen. These complaints are usually not made for self-gain, but stem from each worker's desire to do the best job possible. And by providing the right equipment or workspace, you can achieve enormous increases in output...often with a minimal investment.
24.6 A Personal Interest in People
When is the last time you asked your secretary how her son was doing in Little League or how she enjoyed her vacation? Good salespeople know that relating to the customer on a person- to- person level is the fastest way to win friends and sales. Yet many technical managers remain aloof and avoid conversation that does not relate directly to business. But just as a salesperson wants to get to know his customer, you can benefit by showing a little personal interest in your people their problems, family life, health, and hobbies. This doesn't have to be insincere or overdone just the type of routine conversation that should naturally pass between people who work closely.
If you've been ignoring your employees, get into the habit of taking a few minutes every week (or every day) to say "hello" and chat for a minute or two. If an employee has a personal problem affecting his mood or performance, try to find out what it is and how you might help. Send a card or small gift on important occasions and holidays, such as a 10th anniversary with the firm or a birthday. Often it is the little things we do for people that determine their loyalty to you.
24.7 Be Open to Ideas
You may think the sign of a good manager is to have a department where everybody is busy at work on their assigned tasks. But if your people are merely "doing their jobs," they're only working at about half their potential.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 134 of 148 A truly productive department is one in which every employee is actively thinking of better, more efficient methods of working ways in which to produce a higher-quality product, in less time, at lower cost. To get this kind of innovation from your people, you have to be receptive to new ideas; what's more, you have to encourage your people to produce new ideas. Incentives are one way-- you can offer a cash bonus, time off, a gift.
But a more potent form of motivation is simply the employee's knowing that management does listen and does put employee suggestions and ideas to work. The old standby, the suggestion box, is another time-tested method. And when you listen to new ideas, be open-minded.
Don't shoot down a suggestion before you've heard it in full. Many of us are too quick, too eager, to show off our own experience and knowledge and say that something won't work because "we've tried it before" or "we don't do it that way." Well, maybe you did try it before, but that doesn't mean it won't work now. And having done things a certain way in the past doesn't mean you've necessarily been doing them the best way. A good manager is open-minded and receptive to new ideas.
24.8 Identify your leadership style
The four styles of leadership are: Directing Coaching Supporting Delegating.
Followers have four corresponding development levels: Enthusiastic beginner Disillusioned but learning Cautious but capable Self-directed achievers.
The matching up, and interplay of the four leadership styles with the four levels of follower development determines effectiveness and results.
Followers with high competence and high commitment (the high achievers) respond well to a delegating style because they don't need much support. Conversely, a new employee who is committed but lacks competence needs a directing style to learn the ropes. Managers should learn how to use the four core leadership styles, and then become more skilled in goal setting, observing and monitoring performance, and providing feedback on results.
Key #1: The commitment of senior management. Benefit: It rallies the troops, ensures the full participation of the whole organisation, and demonstrates management's desire to change.
Key #2: Talk the same talk. Benefit: Meaning and understanding come out of shared symbols. The Situational Leadership model is easy to understand, flexible, and can be adapted to many different environments and personalities.
Key #3: Integrate the new values into the culture. Benefit: The learning curve continues to go up as the new skills are reinforced and have a long-term presence in the culture
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 135 of 148 24.9 Give It Away - Are you still making all the business decisions? Stop—and share them with your employees.
You don’t have to hire the new salesperson—your salespeople can. Assign existing salespeople to the job. Include staff to create the job specification, review resumes, hold interviews and make the final recommendations. A manager need not get involved until the salary negotiation.
This is a perfect example of bottom-up management. This highly empowered style of running a business gives the responsibility for making significant decisions to people who would otherwise wield little influence in a business. Employees are better motivated and their skills are more fully utilised at bottom-up firms, experts say.
24.10 How do you encourage your employees to “Go, team, go”?
The idea of working in a team-based environment can strike fear in the heartiest and most energetic of workers. But when you have a complex customer service challenge or marketing campaign that needs contribution from others, a good team can come up with a successful plan that never could’ve been implemented—much less conjured—by one person alone. So how do you create and manage successful teams?
Work areas are getting much more complex and customers are demanding products faster with higher degrees of quality, and one person just can’t do it all. So we need to communicate across areas of expertise, and become more team-oriented.
There are some times when it still makes sense to use a traditional approach, so I don’t advocate teams being the answer for all situations.
What are the characteristics of a good team? The first is that the team has to have clear goals. What makes a team different from just a group of people in a room is that when a team meets in a room together or comes together virtually, it’s to accomplish a specific goal. A well-functioning team, an extraordinary team, knows what that goal is, both in the long term as well as the short term.
The team isn’t just dependent on one person; everyone takes responsibility for being in the team, for sharing the team functions, for helping each other without being asked, for offering help. I also believe in open and clear communication, from both the speaker’s side and the listener’s side, and in providing feedback. You also need to create an environment that allows for participation and where people can say what needs to be said.
Effective decision-making comes from the use of several different ways to make decisions. If one person has all the information and the project has a short-term fuse, then one person can make that decision but then let everybody else know. Or maybe we use the standard of the democratic vote: Let’s all vote by raising our hands. There might be some issues where it’s absolutely important that there’s a consensus and everyone can live with it and support it. Or maybe it might be that we need a unanimous decision. Or maybe sometimes the team leader or a team member can just delegate it and say, “Here, just handle it.” So it’s about using an appropriate range of decision-making behaviours.
Another element is valuing diversity—that the team appreciates each other’s strengths and differences. People don’t look at things the same way, and that’s important because if we all 01535338fba2705d9d5f92e6849bc248.doc Version5 Page 136 of 148 looked at something the same way, why have a team? Paralleled along with that is that conflict is managed constructively and not shied away from. The team recognises that conflict is part of the process because it’s a way for teams to express and clarify issues.
The last element of teams is what is called a cooperative climate. People on teams don’t have to love each other, but they should at least like or respect each other and recognise that they can do better together in a team than by themselves.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 137 of 148 25.0 Golden Rules - Top management strategies of the past 20 years and what still works.
1. TQM: King of the Hill TQM can affect almost every area of a firm's operations, but it rests on one principal idea: It calls for continually improving quality by using statistical measures to track both problems and the results of efforts to fix those problems. It helps many businesses greatly cut costs by, among other things, reducing waste and scrap while boosting customer satisfaction. The TQM approach is a marked contrast to the traditional method of using post- production inspection to catch errors.
2. Reengineering Business process reengineering, or BPR, has already had such a major impact that most experts consider it a leading idea of the past two decades. Reengineering calls for making major changes to a business's fundamental operations, with cost reduction as the primary goal. Because these changes often call for reducing the number of workers, it's closely associated with ideas like downsizing and rightsizing. Reengineering's main appeal rests in its ability to provide companies with a quick way to control costs. Recently, BPR has been widely criticised as a short-term way to boost profits by gutting a company's work force. "Corporate anorexia" and "hollow-shell corporation" are two newly coined terms referring to companies that have trimmed so many workers, they have lost essential functions. Yet BPR has also produced some remarkable success stories. The ability to coexist with TQM may explain much of BPR's rapid rise in influence and popularity, and suggests it will remain influential for some time.
3. Empowerment Handing employees the power to make decisions and rewarding them for making the right ones has proved one of the toughest pills for managers to swallow in recent years. Perhaps that is what has saved the idea of empowering employees from the kind of overexposure that characterises other trends and kept it, after more than a decade of considerable prominence, still on a growth trajectory. Empowerment and related ideas such as participative management have the dual goals of reducing costs and improving quality. Placing responsibility for many decisions in the hands of production workers, customer service personnel, and others who formerly took orders from managers does this. The result is less need for overhead-gobbling middle managers and more relevant decisions. Not surprisingly, empowerment is popular with employees. Among other things, it is said to boost job satisfaction, reduce absenteeism, lower turnover and even improve workplace safety. These advantages alone may drive the concept for years to come.
4. Teams Today, people who supervise the work of others are as likely to be called team leaders or project heads as managers or executives. It's all due to the phenomenal popularity of self-directed teams, teamwork, cross-functional teams and other ideas associated with the practice of organising groups of workers to achieve a common objective. Teamwork is central to other major trends, such as quality management and empowerment, because it aids communication, improves cooperation, reduces internal competition and duplication of effort, and maximises the talents of all employees on a project. But it's only in the last decade or so that attention has been focused on the
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 138 of 148 team itself as a vital management tool.
26.0 "HOT TIPS" LEADERSHIP METHODOLOGY FOR MANAGERS
26.1 Make people feel valued by: Regularly monitoring and appreciating each subordinate's work. Sharing an interest in whatever workers hold important. Creating a good working environment by being approachable. Ensuring all workers understand the importance of their contribution to the team's objectives. Ensuring everyone understands the functions of the organisation and the role that each worker's efforts play in its success.
26.2 Provide a challenge and scope for development by:
Setting targets, after consultation, and reviewing them at regular intervals. Providing relevant training--where appropriate, by using people to train others in the specialist skills they may have. Arranging any necessary internal and external contacts. Restructuring or grouping tasks to use people's skills to the fullest. Rotating jobs to broaden experience. Providing scope for individuals to take greater responsibility. Training thoroughly at least one assistant. Soliciting ideas and suggestions; encouraging listening; delegating and allowing staff to make decisions and to implement them.
26.3 Recognise achievements by:
Praising and communicating individual successes. Reporting regularly to the team on team progress. Holding regular meetings with each individual to monitor and counsel progress.
Although much exchange of feedback takes place within appraisal systems, reinforce it well on a day-to-day basis by using time-targeted reminders.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 139 of 148 27.0 Computers In Salon Management
A computer can help you manage your business better by giving you faster access to more accurate information. It is a simple task to rearrange or analyse information once it is in the computer. This allows you to extract exactly that information which is pertinent to your problem.
You may ask 'What does this have to do with the average small salon business owner?' The era of the computer world is advancing so rapidly, that today you may feel that the computer does not fit into your salon and running of your business but tomorrow it will be a necessity and a normal item of equipment in which to invest. A computer is the perfect tool for working with information .Fifty years ago a business might have employed a small army of clerks, accountants to process facts and figures and pass them around an organisation. Today's technology can do the same kind of work faster, more efficiently and, when wisely chosen and properly installed, more cheaply.
Until recently, the small business operator did not need to think about computers. They were the domain of large firms because of their size, complexity and cost. But all that has changed! The benefits of computers are now available to small firms
The hairdressing and beauty industry are slowly beginning to realise a computers full potential and benefits to salon owners.
The aim of this subject is to inform you of the varied uses of the computer in the salon, and in so doing, allow you to maintain effective and efficient running of your business. I believe, however, it is necessary for you to become familiar with computer jargon, even if at a very abbreviated level. This will assist you in understanding the computer functions and the software available for salon use.
27.1 Commonly asked questions about Computers
27.1.1 Do I have to be an expert to use computers?
NO! You don’t have to know the operation of the EFI system to drive a car. You simply get in, turn the key, press the accelerator and steer. Similarly, a computer with the right software doesn’t require expert knowledge to operate.
27.1.2 Can Computers do anything I can’t do?
NO! If you had the time and inclination you could do all the reports, stock control and promotions a computer does but it would take a very long time.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 140 of 148 27.1.3 How much is my time worth?
Most salon owners would spend a minimum of three hours per week doing basic performance reports for staff and salon. A substantial number of salon owners also do this on Sundays or their day off. If you were only worth 12 per hour it would pay for a computer system with these three hours per week.
27.1.4 Don’t they cost a fortune?
When you compare the costs in your salon like rent, wages, advertising, overheads etc the price of a computer is a very small part and it keeps track of many parts of the business.
27.1.5 But I’ll never use all the options.
True, most software will have many options you wouldn’t use; however as you gain more experience your needs and ideas change. Another reason is that packages try to include as many options as possible to cater for the many ways that salons operate. The options you think are useless might be invaluable to another salon and vice versa. But that isn’t to say that all software is the same and will do what you want! In fact it they vary widely. The major aspects when considering software can be classified into two areas.
1. How easy is it to use for you and your staff. Even if the software can print money it's worthless if you can't use it. There must be very simple methods of doing day to day things but it must also allow you to do more complex things as your experience improves. Remember that training and support is a major consideration.
2. What does the software do and how? Check what it does and doesn't do and why. For example can it handle cash register, client cards, reports, bar-coding and appointment books? It is very easy to be bamboozled by all the things software can do but be very careful that it is ,appropriate, useful, practical and offers value for money . It is always best to check with other users of the software.
Software for salons can be broken up into three main types:
Software specifically written for your salon: This is a very expensive method and generally available only to large organisations.
Software packages specifically written for salons:
Generally most professionals recommend this as being the way to go. The costs are substantially less than the first option. There should be a large number of users for a couple of years so there would be experienced support and knowledge from more than just one person, upgrades are relatively cheap and bugs should be scarce.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 141 of 148 A combination of a number of general packages on the market:
This option would sometimes be less expensive than the options above. Normally this route is taken when a friend or relative is going to write a program for you for a cheaper price. It generally entails putting together a number of general packages on the market, for example: till program + client database + word processor, etc. The main problems here are that it's a 'one off' for the person setting it up and will all areas talk to each other. Training and support, both initially and in the years to come are a major concern.
27.1.6 Why have a computer?
The means by which a computer can help you include:
Bookkeeping.
Computers are perfect for bookkeeping. They do not make mistakes with calculations, they can keep years of information in a small space and they produce useful summaries of trading results very quickly and easily. Well known packages such as MYOB and Quicken offer very good value for money, and can provide all that small business needs for its books.
A typical Package includes: A sales ledger, where sales are noted A purchase ledger, where outgoings are listed A cash book, which lists cash transactions Invoice printing Cheque printing Analysis tools that show which products and services sell well The ability to calculate and print GST returns
Cash Register
Cash registers can be attached to your computer system
Inventory System
A computerised inventory system can tell you when to order more stock and the most economic quantity to order. This may allow you to reduce your stock-on-hand and still meet customer demand. An analysis of your suppliers may indicate that you can buy in larger quantities from fewer suppliers in order to take advantage of greater quantity discounts.
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 142 of 148 Sales Management
Sales management provides a historical analysis of your business by employee and product or service. Tracks your staff’s productivity and enables you to pinpoint who is selling or doing the most services in the salon.
Mail Merge Facilities
Mail Merge facilities allow you to print personalised letters automatically when provided with a list of client names and addresses. This could be useful for client birthdays, newsletters or special promotions.
Publicity
Computers can be used for simple publicity promotion of your salon. Flyers and posters may be developed for your business through the use of simple word processing programs. For the more advanced there are Desktop publishing packages available which enable you to develop a range of special effects, such as a block of text across different areas on a page, or complex pictures and backgrounds.
Transferring Money – Online Banking
A useful tool that has appeared relatively recently is online banking, which connects a business computer to a banks computer through a telephone link. The service can be used to check balances, pay bills and make many standard bank transactions. Statements can be printed out directly.
Record cards
Computers are a good way of recording client’s names and addresses and the services they have had each time they have entered the salon.
Appointment Book
Computers enable you to keep appointments electronically, without the use of a traditional appointment book
Payroll Facilities
01535338fba2705d9d5f92e6849bc248.doc Version5 Page 143 of 148 These should be able to produce various employment related forms, deal with overtime, holiday pay, sick pay, superannuation and taxation, all at the flick of a button!
Internet
Internet usage has exploded in the last few years, and this alone makes it something for a business to consider. Many businesses, both large and small now use electronic mail (email), which is often a more successful way of communicating. There is no extra cost for sending messages overseas and, when compared to a fax, the savings are considerable The internet also provides a chance to discuss business with people involved in related work, and to find inspiration for new business ideas. Businesses are also able to access up to date information on taxation, OH&S issues etc
Messages and faxes
If a computer has a modem fitted, it will be able to send and receive fax transmissions without using any paper. A word processed document can be ‘printed to the modem instead of to a printer, and the message will be faxed to a remoter fax machine or another computer in the usual way.
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27.1.7 Hardware and its Functions
It is not necessary for a small business manager to be concerned with the technical complexities of computers. What is necessary; however, is a basic understanding of the functions of a computer and how they can be utilised in your business.
Essentially, the computer has four functions: Input Processing Storage Output
The machines which perform these functions are called hardware. Central processing unit (CPU)
The real power of the computer is its ability to process complex calculations in a fraction of a second with absolute accuracy. This function is done by the central processor. It can sort information, move it from one place to another, summarise information, analyse information or verify information quickly and with little effort.
Where it may take you days to analyse information by hand, the computer can do the same job in minutes.
The central processing unit is the heart of the computer system and it is the toughest element to evaluate. Unless you have considerable computer experience, the technical specifications will be practically meaningless so we will look at factors that we can evaluate without a great deal of technical background.
Growth capacity
Even if you do not expect rapid growth, most small business operators would expect to add more applications once they become comfortable with a new computer. As your computer grows with you, be sure that you can add terminals, storage capacity, or perhaps a new printer without discarding the current system.
Bits and bytes
A bit is the smallest unit of information that a computer can recognise and a byte is usually the equivalent of a single character such as a, b, c or 1, 2, 3. A byte is made up of a series of bits and a useful rule of the thumb is that the more bits to the byte, the more powerful the computer.
Small business computers can be 8-bit byte or 16-bit byte machines, obviously the latter having a bigger capacity, and some expert advice could assist you to decide which is the one for you. Main memory size
The main memory is used to store the computer program files and the data which is currently in use. The size of the main memory can be an important limiting factor when you are determining the type of applications that you can run on a particular computer. The size of the memory is measured in kilobytes. One kilobyte is 1 024 bytes and is written as 1 K or 1 Kbyte and this is enough space for about 200 words. A megabyte, or Mbyte is a million bytes.
Most small business computer systems have a minimum main memory of 256 000 (256 K) bytes and manufacturers are now offering micro-computers with over 1 000 000 (1 m) bytes of main memory.
Reliability
A small business computer system may be running four to six hours per day so make sure that the machine you are buying is solidly built and has a reputation for reliability.
Input and output devices
Input and output devices are considered essential components of a small business computer system.
An output device is essentially a stand-alone printer. An input device will include a visual display unit (VDU) combining a television screen (monitor) with a keyboard.
Pick a visual display unit that can display at least 24 lines of 80 characters and a full size screen. Some systems offer a variety of colour and graphic capabilities but be sure you need these features if you are paying extra for them.
The keyboard layout should be similar to a typewriter keyboard. A separate calculator keyboard, called a numeric pad, can increase your productivity significantly when you are working with numbers. Inexpensive printers cost under $500, and they print between 50 and 100 characters per second. Most printers have an 80 character width although some go to 132 characters wide. If you need particularly good print quality, you will have to pay more for it; also determine whether or not you will need any special forms.
Can you use continuous stationery or will it have to be fed in sheet by sheet? Will you need multi-part forms, or forms that are tractor fed (with sprocket holes on the side of the forms)? Go over these requirements carefully because they may determine the type of printer for you.
Storage devices Computer storage devices store information in much the same way as a filing cabinet stores pieces of paper. The computer can retrieve information at electronic speeds and it can store vast amounts of information in a tiny space. Disk storage capacity is referred to in terms of characters or bytes. The two types of disk storage that you should consider are floppy disks and compact hard disks.
Floppy disks/ CD’s/ USB memory drives These store data on an external source. They offer essentially unlimited storage capacity in the sense that you can have as many external storage files as you want. These storage drives vary in size and some are limited to the amount of information they can hold.
Hard disk
If you need more capacity, now or in the future, consider using a hard disk.(also known as the C drive) a small business can reasonably expect to fit all of its data and application programs on a single hard disk.
The cost difference between external disks and hard disks is significant, but the gain in speed, efficiency, and storage capacity of hard disks can more than offset the added cost. Most small business computers are sold with a hard disk, CD rom and floppy disk drive. New applications are constantly being introduced to improve the storage facilities and now provide systems with the capacity to store many various program features.
Software and its functions
Software is the computer program and instructions given to the hardware to perform its functions. It is classified into systems software and application software.
System software
System software controls the operation of the computer system itself (referred to as the "operating system). It monitors and coordinates the various components of the computer to make sure that each is doing its part exactly in conformance with the computer program. The software is supplied by the computer manufacturer along with the equipment.
The systems software available is an important limiting factor on which application software you can use. Application software is usually written for a particular operating system and may not be available to you if your microcomputer uses a different operating system. Application software
Application software is the key to getting the most out of your small business computer system. The successful operation of the computer system, and in some cases the successful operation of the business, is directly related to the quality and suitability of the application software.
There are two ways to obtain application software: develop it specifically for your business. This means that you will need to specify your needs exactly and then contract a software consultant to write your program. purchase standard software packages
There are some excellent standard packages available that are user friendly programs designed for people with no specialised computer training.
When you sit down to use the program a question will appear on the screen asking you what you would like to do along with a "menu' of possible responses. You select an answer and then the next question comes up prompting you forward through the application program.
There is usually a 'help' response that will allow you to back up, step by step, if you get confused. The screen will also tell you when you have made a mistake and how to correct it.