Beaubelle A Case Study in Organizational Behavior

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BEA0BELLE: A CASE ST0BY IN 0RuANIZATI0NAL BEBAvI0R

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INTRODUCTION
THE COMPANY
BEAUBELLE is a Iull service day spa and hair salon Ieaturing a wide variety oI spa treatments
including Iull body massages, body scrubs and wraps, European Iacials, specialty manicures and
pedicures, skin treatments, waxing, and complete varieties oI cuts, conditioning treatment and
chemical services Ior the hair.
BEAUBELLE continues to be committed to be the leader in providing holistic rejuvenation
through harmonious global partnerships and customer-Iocused innovation oI products and
services. BEAUBELLE is today represented in 30 countries and territories worldwide. In
Malaysia itselI, BEAUBELLE has 2 branches located in Kuala Lumpur city with its global
headquarters in Dataran Prima, Petaling Jaya, Selangor. BEAUBELLE stands Ior its strong and
driven missions:

O Product Mission: To provide holistic rejuvenation through health-giving, pampering and
solution-oriented products and services. We do this through our innovative embrace oI
nature and technology.
O Economic Mission: To build the brand with sustainable Iinancial strength and positive
growth through strategic branding, proIessional development oI our stakeholders and
harmonious relationships Ior long-term liIe rewarding partnerships.
O $0rvic0 Mission: Continuously strive to provide health-giving, pampering and solution-
oriented skin and body care spa services that will Renew, Relax, Rebalance and Revive
the body, mind and soul.


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COMPANY HI$TORY

BEAUBELLE was launched in 1995 to be the pioneer in providing holistic rejuvenation through
health-giving, pampering and solution-oriented products and services Ior the harmony oI body,
mind and soul. An impressive 200 products were initially launched to accentuate Ruby Siah, the
BEAUBELLE Iounder`s belieI that: 'LiIe`s true happiness achieved, when you have the
harmony oI body, mind and soul. True happiness will lead to both internal and external beauty!

Ruby was raised in Malaysia, a country where diIIerent races live together peaceIully, so the
notion oI harmonious living was inculcated Irom young. Inspired by her Iather who was a
successIul and righteous businessman, she decided to put her passion in beauty with the business
principals oI her Iather to Iound BEAUBELLE. But her intention wasn`t to create a replica oI
what beauty brands were already available, but one that would satisIy her belieI that true beauty
comes Irom body, mind and soul harmony. She believes in the holistic rejuvenation approach Ior
skin and body well-being.

A beauty expert since 1983, Ruby believes that every part oI the world has some beneIicial
beauty solutions Ior people. BEAUBELLE is a truly global minded brand embracing eastern and
western philosophies and this Iusion has enabled it to create an unsurpassed variety, depth and
breadth oI products. This east-west Iusion concept was successIully conceptualized in Malaysia
as it is a melting pot oI diIIerent cultures.

To put this unique concept into reality, Ruby collaborated with a panel oI scientiIic experts in
Switzerland to Iorm Beaubelle Advanced Dermocosmetic Research Centre S.A., which is the
custodian oI the BEAUBELLE products that are researched, developed and made in Switzerland.
Ruby practices a hands-on approach to selecting every ingredient, texture, smell, color and
presentation oI every product that BEAUBELLE ever launches as every BEAUBELLE product
is produced with love and care.


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EAUELLE OPERATION$

Ruby`s vision was to create a unique company that oIIered a complete array oI products and
services aimed at creating and maintaining healthy minds, bodies, and spirits. BEAUBELLE`s is
now more than a decade old, and Ruby takes great pride in knowing that her company has come
very close to completely IulIilling her vision. Ruby Iully recognized Irom the very beginning that
her business/managerial experience was very limited. She was also Iully aware that managing the
day to day operations oI her business had very limited appeal to her anyway. ThereIore her Iirst
critical decision was made three months beIore the salon opened - the decision to hire Lynne
Gibson as general manager oI BEAUBELLE`s.

Lynne Gibson had served as the general manager oI BEAUBELLE`s since its inception. Prior to
taking this position, Lynne had worked at a major women`s clothing retailer, initially as a
management trainee and Iinally as a regional manager. She had been very successIul in
retailingbut the long hours plus the weekend demands had begun to take a toll on her personal
liIe. Lynne decided that this change would be a new challenge, and it would also enable her to be
more successIul in balancing Iamily and career. From day one, Lynne basically was involved in
or actually made all the managerial decisions at BEAUBELLE`s. Though Ruby was certainly the
lead player in strategic decisions, Lynn was the ultimate decision maker Ior anything operational.
BEAUBELLE`s began with six employees: Ruby, Lynne, three hair stylists, and one massage
therapist. A salary was oIIered with a promise oI 'as we grow and become more and more
successIul, I`ll make sure you`re rewarded Ior your contribution.

A year ago, Lynn Gibson decided to leave BEAUBELLE`s to pursue her Master`s degree in
education. As one who was not only resistant to and oIten paralyzed by change, this greatly
troubled Rubyso she managed to convince Lynn to remain as a consultant to the company
while working on her degree. Lynn`s new role was to oIIer input and advice on any and all issues
oI Ruby`s choosing.


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THE CURRENT $ITUATION

AIter 3 months, Ruby decided to hire Kris Jenkins as the new general manager oI
BEAUBELLE`s. Her career began as a hairdresser aIter Iinishing cosmetology school. Ten years
later Kris had completed her Business degree and was the store manager oI a national hair salon
that was located in a mall in a midsize southern city. Her ultimate goal was to own her own
salon-but she did not Ieel that she was yet prepared either Iinancially or Irom an experience
standpoint. ThereIore she was hoping to make a career move that would enable her to have direct
input regarding all top management decisions oI a salon. That was the primary reason that she
decided to take the General Manager`s position at BEAUBELLE`s.

However Kris realized that things didn`t appear nearly as ideal. She kept replaying three events
in her mind:

1. AIter the oIIer but beIore accepting the position, Kris had spent a weekend with Lynne
Gibson discussing a wide array oI topics regarding the company. BEAUBELLE`s
numbers had deteriorated dramatically in the past year. ProIits were down; absenteeism
was up; turnover, while not dramatic, was higher than it had been in the past two years.
And while no Iormal perIormance appraisals had been done in the past year, Lynne
provided her assessment oI the perIormance oI all BEAUBELLE`s key people. It was
clear that Lynne Ielt each was perIorming signiIicantly below their capabilities,
signiIicantly below previous levels oI perIormance. Following this discussions, a number
oI things stood out to Kris. First oI all, Lynne was very reluctant to criticize
BEAUBELLE`s employees. But between promises oI secrecy and reading between the
lines, it became quite evident that Lynne had serious concerns-and it seemed to Kris that
Lynne`s biggest Iear centered on Ruby. As their discussions continued, it became quite
clear that Lynne doubted Ruby`s ability to provide Kris the autonomy needed to
eIIectively manage BEAUBELLE`s. This appeared to stem primarily Irom two things:


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a) Ruby`s unexpected interIerence with only limited inIormation about the issues or
problems,
b) Ruby`s tendency to regularly monopolize the manager`s time on trivial or personal
matters thus keeping the manager Irom Iocusing on the needs oI the salon.

2. AIter the weekend with Lynne-but again beIore accepting the position-Kris spent three
days at the BEAUBELLE`s. She had stayed at the spa Irom opening to closing to visit
with all the employees. While the conversations had been pleasant, it seemed pretty
apparent that many, iI not all, seemed reluctant to be totally honest. Though none had
directly denigrated the company or the owner, body language and incomplete or evasive
answers had concerned Kris at the time. She couldn`t help but worry that the majority oI
BEAUBELLE`s employees simply did not Ieel good about their jobs or the company.

3. Though she had spent a great deal oI time with Ruby, the aIternoon that she Iormally
accepted the job was critical in Kris`s ultimate decision to accept the position. Due to
numerous concerns that became evident while spending time with Lynne and employees,
Kris was leaning heavily toward declining the job oIIer. However, aIter respectIully
discussing these concerns with Ruby, Kris began to change her mind. Ruby addressed
each issue giving the impression that she recognized the problem and was willing to do
whatever it took to correct and improve both company and employee perIormance
including stepping away and giving Kris autonomy to make all operational decisions at
BEAUBELLE`s. At the end oI the day, she told Ruby she would take the position. Kris
was excited-she knew this would be a wonderIul career move-but also worried. Could she
really turn Bella`s around?


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CA$E ANALY$I$

BEAUBELLE had been well managed by Lynn Gibson with her extensive experience in
retailing. She started her career with her previous employer as management trainee until she was
promoted to be the regional manager. It has sparked Ruby interest to hire her as the General
Manager since she believed that Lynn has the capability to take care oI the business operation
and attract new business; as in this case inviting new customer entry to join or sign up Ior their
beauty package.

As the General Manager, she also served as the store manager oI its other location. Within her
store, a Retail Manager and a Service Manger reported directly to Lynne. Additionally, the Store
Managers at the other BEAUBELLE locations also reported directly to Lynne. Within each
store, individual store managers were the only employees serving in a supervisory position with
each being responsible Ior all daily operational issues oI his/her salon. All other
responsibilities/decisions Ior individual locations are Lynn`s. This includes all purchasing,
marketing, Iinancial, and human resource decisions. Individual store managers did have the
opportunity to oIIer inIormal input into hiring decisions Ior his/her store.

However, the problem begins when Lynn decided to leave the company; and Ruby hires Kris
Jenkins as her replacement. Kris Iinds that there are some problems with the staII where she Ieels
that the level oI satisIaction within the staII in both branches are very low which had led to
absenteeism, low eIIiciency and productivity, as well as high staII turnover rate. By accepting
the position, Kris Iirst task is to Iind the cause oI the problem and to correct it with suitable
solutions that would beneIit both employee and employers.


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CORRELATION ETWEEN 1O $ATI$ACTION AND EMPLOYEE ENGAGEMENT

Employees is said to be one oI the most important elements and primary Iactors that determine
the success oI an organization. This is especially true Ior service organizations that rely heavily
on their good behavioral employees to provide Iriendly and courteous services to their customers
in this competitive environment.

Job satisIaction reIers to 'a collection oI attitudes that workers have about their jobs. These
attitudes may derive Irom a Iacet oI satisIaction or as an overall aspect oI the job. It is very
important Ior an employer to know whether their employees are satisIied, because it is intuitively
believed that workers who are more satisIied will likely exhibit more positive Ieelings, thoughts,
and actions toward their job.

Job satisIaction is one oI the most researched areas oI organizational behavior and education. It
is perceived as an attitudinal variable measuring the degree to which employees like their jobs
and the various aspects oI their jobs (Spector, 1997). This is an important area oI research
because job satisIaction is correlated to enhanced job perIormance, positive work values, high
levels oI employee motivation, and lower rates oI absenteeism, turnover and burnout ( (Begley &
Czajka, 1993); (Tharenou, 1993).

In a diIIerent perspective, job satisIaction, according to (McCormick & Ilgen, 1985), is an
association oI attitudes held by an organization`s members. The way each employee responds
towards their work is an indication oI the commitment towards their employers. Many
employees are oI the opinion that downsizing; rightsizing and reengineering give employers an
opportunity to dispose oI those workers who are a liability to the organization.


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And according to the Institute oI Employment Studies, employee engagement or worker`s
engagement can be understand by a positive attitude held by the employee towards the
organization and its values. An engaged employee is aware oI business context, and works with
colleagues to improve perIormance within the job Ior the beneIit oI the organization. The
organization must work to develop and nurture engagement, which requires a two-way
relationship between employer and employee.`
Looking at how Employee Engagement` and Job SatisIaction` could works together, many has
said that overall employee satisIaction is visible in the level oI engagement that employees have
in their work. In other words, employee engagement was the ultimate expression oI employee
commitment, loyalty, morale and overall employee satisIaction. ThereIore organizations needed
to Iocus on how to improve employee engagement rather than on these other components oI
employee satisIaction.

However, job satisIaction could also be achieved without going through the engagement process.
For example, an employee that is not engaged at work might very well indicate a high level oI
satisIaction with their organization. This employee is getting everything they wish: a steady
paycheck, beneIits, sick leave and paid vacation. Their actual contribution to the well-being oI
the organization in terms oI innovation, creativity and productivity is negligible. But they are
satisIied. (Koscec, 2003)

On the other hand a Iully engaged employee that is enthusiastic about their work is creative,
innovative and wants to contribute might indicate a lower level oI satisIaction with the same
organization, as the disengaged employee. (Koscec, 2003)


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WHAT DRIVE$ 1O $ATI$ACTION AND EMPLOYEE ENGAGEMENT?

There are many Iactors that could drive an employee to engage themselves or to put a Iull
commitment in their work. It is said that a committed employee will normally perIorm better that
those who did not. However, the strongest driver oI all is a sense oI Ieeling valued and involved.
This has several key components (Robinson D, Perryman S, & Hayday S, April, 2004):
O involvement in decision making
O the extent to which employees Ieel able to voice their ideas, and managers listen to these
views, and value employees` contributions
O the opportunities employees have to develop their jobs
O the extent to which the organization is concerned Ior employees` health and wellbeing.

According to the Top 20 Jobs in Canada survey, the top three drivers oI job satisIaction are:
corporate culture, the opportunity to use skills and the opportunity to learn. Financial rewards,
Ilexible work hours and stress level are the bottom three drivers.

(Sources: Statistics Canada`s Labour Force Survey January 2007)

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HOW TO IMPROVE 1O $ATI$ACTION IN EAUELLE?

The problem Iaced at BEAUBELLE can be considered as a severe case. An immediate action
should be taken when the company sales Iirst drops greatly. At this level, in order Ior Kris to Iind
the best measure on solving their problems, she needs to Iind out the reasons why those problems
arise. One suggestion is by running a survey on the employee satisIaction and their engagement
towards their daily task. She could include diIIerent types oI questions pertaining the level oI job
satisIaction such as, 'How satisIied are you with your current job?, 'Are you satisIied with the
promotional opportunities oIIered by BEAUBELLE?, or even a question on their satisIaction
relating to satisIaction towards their relationship with the supervisor and also Ruby as the owner.

On the other hand, Kris would also need to Iind the level oI job engagement by each employee.
She needs to know whether the staIIs are aware oI their job requirement. Did they understand
what they should do? Do they require more materials and training so that they could do their job
right? And what are the Iactors that might encourage them to really do their job at the Iullest?

Once Kris manages to assemble all oI the inIormation needed, then she could move to the next
step which is to suggest and implement the best measures to Ruby on improving their staII job
satisIaction.

The easiest way that Kris could suggest is by trying to change the staII attitude Iirst. One way is
they should consider organizing their work. Managing job satisIaction means managing
workload eIIiciently. The best way to do this is to make a 'to do list at the closing oI every
workday or at the beginning oI their work. It is good to make it a practice to write down
everything they need to accomplish in a list and arrange it in order oI importance. By doing this
way, when they sit down at their desk in Iront oI a blank computer and a clean desk, they know
what needs to get done. In terms oI the beauticians at BEAUBELLE, they could organize their
customer appointments according to status, membership, or even their age. It could help to
improve their work eIIiciency and also maintain their client level oI satisIaction since it is
important to have a HAPPY customer aIter receiving their services.


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Next is to improve the staII relationship with co-workers. Peer coworker relationships reIer to
relationships between employees at the same hierarchical level who have no Iormal authority
over one another. The term coworker can reIer to any individual with whom one works
(including supervisors and subordinate employees). However, coworker relationships are oIten
assumed to reIer speciIically to relationships among peer employees. (Peer Co Worker
Relationship, 2008) It is important to have a good relationship with co-workers as it is belieI to
play signiIicant role in mentoring or motivating, exchanging useIul inIormation between each
other`s, and also to provide social support when someone need it. In other words it is good to get
to know the people you work with. This can be done by creating a mutual relationship with them.
For example, one can always invite his/her colleague out to lunch, share a joke or Iunny story
with them, or asking about their day, their Iamily or their hobbies. In the case that both oI you
share the same hobby; you can actually extend it to a out-oI-oIIice relationship. Forming healthy
Iriendships at work makes it much easier to enjoy your day spent in the oIIice, as well as to
resolve work conIlicts that may arise later on. However, there is always limitation on the stories
you share especially those regarding to your personal liIe. Even iI your colleagues are close
personal Iriends, try to avoid having personal discussions at lunch or aIter work. Especially iI
you're in crisis at home, you should leave your emotions at home. By doing this, you could keep
your Iocus on your work task and being able to complete it on time.

The next thing that most people always Iorget is they reIuse to give themselves breaks. Most oI
us nowadays live in a mindset thinking that we`ll accomplish more iI only they keep plugging
ahead. This is especially true to those dealing or involve in the servicing line. A good worker
should know how and when to get themselves a break. Forcing yourselI to work will not always
brings a good outcome, Ior instance, working in Iront oI a computer all day could strain your
eyesight. Even iI a hairdresser didn`t get a rest, the possibility oI her doing a mistake while
cutting a customer hair will not only caused the customer to get mad, but also there`s a
probability to get injured. Lacking oI break could also lead to job burnout.


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Looking at a broader perspective, as the management team or as the employer, Kris could
improve the job engagement thus the job satisIaction by adapting the PRIDE system. It is
believed that a leader can improve employee motivation and employee engagement within their
organizations by Iollowing this process (Smith, 2011):
O Provide a positive working environment
O Reward and recognition
O Involve and increase employee engagement
O Develop the skills and potential oI your workIorce
O Evaluate and measure job satisIaction
PROVIDE A POSITIVE WORKING ENVIRONMENT
O Job satisIaction begins by Iirst providing a positive work environment. Fran Tarkenton
says, to Iind what motivates people, 'you have to Iind what turns people on. This is the
most important Iactor in the process. A motivating working environment requires going
over and beyond the call oI duty and providing Ior the needs oI the worker.
O In the case oI BEAUBELLE, Kris should Iirst create or establish a positive and
proIessional salon environment. II the staIIs are not bonding, it could lead to a negative
and unproIessional salon environment Ior staII, our clients, and management. Everyone
in the salon should Ieel comIortable being there, even though they are only a client.
Generally, not any salon can experience long term growth, stability, and proIitability
without a team oI proIessionals sharing the same goals and vision. ThereIore it is
important to create a strong teamwork within BEAUBELLE environment, as it beneIits
them so much. Not only the management, each and every one in BEAUBELLE must take
part and contribute to a team environment by not only making the customers look good,
but also make them Ieel good about themselves.


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REWARD, REINFORCEMENT AND RECOGNITION
O Mark Twain once said, 'I can live Ior two months on a good compliment. Personal
recognition is a powerIul tool in building morale and motivation. A pat on the back, a
personal note Irom a peer or a supervisor does wonders. Small, inIormal celebrations are
many times more eIIective than a once a quarter or once a year Iormal event.
O Reward and recognition plays an important role in creating job satisIaction among
employees. It is said to be the best Iactor to motivate staII and to increase job
involvement. There are a number oI researches done to look at the relationship or the
eIIect oI giving reward and recognition towards creating job satisIaction; and it is Iound
that Ior most people, money is not a motivator. For them money is a de-motivator. This is
true because employer can`t pay people peanuts and expect the employee to stay
motivated. One way that Kris could do to is by creating a peer-recognition program. This
program is meant to recognize and reward employees Ior good work.

INVOLVE AND ENGAGE THE WORKFORCE
O People are more committed and have higher levels oI employee engagement when there
is a process Ior them to contribute their ideas and employee suggestions. This gives them
a sense oI ownership and pride in their work.
O Capturing employee suggestions and ideas engages and improves employee motivation,
creating a more productive and satisIying work environment. Yet many ignore the
untapped resource oI their employees who know their jobs better than any expert.


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DEVELOP WORKER`S SKILLS AND POTENTIAL
O Training and education motivates people and makes them more productive and
innovative. So do at BEAUBELLE, all beauticians must be given oI at least six weeks oI
training beIore they can provide services to the customer.
O There are many reasons training and development makes sense. Well-trained employees
are more capable and willing to assume more control over their jobs. They need less
supervision, which Irees management Ior other tasks. Employees are more capable to
answer the questions oI customers which build better customer loyalty. Employees, who
understand the business, complain less, are more satisIied, and are more motivated. All
this leads to better management-employee relationships.

EVALUATE AND MEASURE JOB SATISFACTION
O Continuous evaluation and never ending improvement is the Iinal step oI the PRIDE
system. Evaluation is a nonstop activity that includes a speciIic cycle oI steps Iocusing
on job satisIaction and employee engagement. The primary purpose oI evaluation is to
measure progress and determine what needs improving. Continuous evaluation includes,
but is not limited to, the measurement oI attitudes, morale, and motivation oI the
workIorce. It includes the identiIication oI problem areas needing improvement and the
design and implementation oI an improvement plan. Good organizations conduct a job
satisIaction survey at least once a year.
O Businesses have searched Iar and wide Ior the competitive advantage, the best equipment,
technology, or the latest business Iad. These provide only temporary solutions. The true
competitive advantage is trained and motivated people proudly working together Ior a
common purpose, contributing their vitality and energy toward the goals oI the enterprise.


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CONCLU$ION
The problem Iaced by BEAUBELLE might be caused by many Iactors; one oI it is due to
economic Iactor. Due to the economic downturn in the past Iew years, BEAUBELLE has
experienced decreased in their annual sales. Ruby Iaces the challenges oI maintaining the
company proIitability. However she miss-look at keeping their workIorce engaged and satisIied
with their jobs. This has caused many kind oI dissatisIaction among their workers. The Iacts that
Ruby Iail to improve job satisIaction among her employee had cause her losing their top talented
people to the competition. ThereIore it is important Ior Ruby and Kris to improve the level oI
satisIaction oI their employees in order to retain them.


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ILIOGRAPHY
(2008). Peer Co-Worker Relationship. Sage Publication.
Begley, T., & Czajka, J. (1993). Panel Analysis oI the moderating eIIects oI commitment on
satisIaction, intent to quit and health Iollowing organizational change. ournal of applied
Psychology, 552-556.
Koscec, M. (2003, January). A word about employee satisfaction. Retrieved November 27, 2011,
Irom Leadership Intelligence Inc Web site:
http://www.leadershipintelligence.com/news/A20Word20About.pdI
McCormick, E., & Ilgen, D. (1985). Industrial and Organi:ational Psychology. London: Allen &
Unwin.
Robinson D, Perryman S, & Hayday S. (April, 2004). The Drivers of Employee Engagement. IES
Authors.
Smith, G. (2011). How to Increase ob Satisfaction and Improve Employee Engagement.
Retrieved November 27, 2011, Irom High PerIormance Organization Blog:
http://www.highperIormanceorganization.com/2010/01/05/how-to-increase-job-
satisIaction-and-improve-employee-engagement/
Spector, P. (1997). ob Satisaction. Application, assessment, cause, and consequences. Oak:
Sage Publications, Inc.
Tharenou, P. (1993). A test oI reciprocal causality oI absenteeism . ournal of Organi:ational
Behavior, 269-290.

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