JournalofBusinessCasesandApplications
Bellas:acasestudyinorganizationalbehavior
BobbyMedlin
UniversityofArkansasFortSmith
ABSTRACT
Theprimarysubjectmatterofthiscaseinvolvesthejobsatisfactionandemployee
engagementofacompanysworkforce.Thecasedepictsanewgeneralmanagersconcernthat
theconstructslistedabovehavereachedsuchlowlevelsthatcriticalorganizationaloutcomes
arebeingnegativelyimpacted.Thecasealsoinvolvesacareerplanningdecisionmadebythe
principalcharacterinthecase.Itisdesignedtobetaughtinoneclasshourandisexpectedto
takeapproximatelythreehoursofstudentpreparationtime.
Studentsareprovidedwithamanagementscenariodescribingageneralmanagers
concernthatherworkerslevelsofjobsatisfactionandemployeeengagementhavedeteriorated
todangerouslevels.Studentsareprovidedwithsurveyinstrumentsusedtomeasureeachofthe
constructsplusresultsfromtheemployeesurveys.Inaddition,informationregarding
organizationalandindividualoutcomesisprovided.Studentsareaskedtoanalyzethedata,
drawconclusionsabouttheresults,andofferandsupportrecommendationstothegeneral
managerregardingwaystoimprovethesatisfactionandengagementofthecompanysw
orkforce.Studentsarealsoprovidedinformationregardingtheprincipalcharactersdecisionto
accepttheGeneralManagerspositioninthefirm.Studentsareaskedtoevaluatethisdecision.
Keywords:Jobsatisfaction,Employeeengagement,Decisionmaking
Note:Thisisafictitiouscasedevelopedforeducationaluse.Allstatements,names,numbers,
dates,etc.usedhereinwerecreatedforthepurposesofthiscaseandshouldnotbeconstrued
asfactual.
Bellas:acasestudy,Page1
JournalofBusinessCasesandApplications
CASEDESCRIPTION/SYNOPSIS
Theprimarysubjectmatterofthiscaseinvolvesthejobsatisfactionandemployee
engagementofacompanysworkforce.Thecasedepictsanewgeneralmanagersconcernthat
theconstructslistedabovehavereachedsuchlowlevelsthatcriticalorganizationaloutcomes
arebeingnegativelyimpacted.Thecasealsoinvolvesacareerplanningdecisionmadebythe
principalcharacterinthecase.Itisdesignedtobetaughtinoneclasshourandisexpectedto
takeapproximatelythreehoursofstudentpreparationtime.
Studentsareprovidedwithamanagementscenariodescribingageneralmanagers
concernthatherworkerslevelsofjobsatisfactionandemployeeengagementhavedeteriorated
todangerouslevels.Studentsareprovidedwithsurveyinstrumentsusedtomeasureeachofthe
constructsplusresultsfromtheemployeesurveys.Inaddition,informationregarding
organizationalandindividualoutcomesisprovided.Studentsareaskedtoanalyzethedata,
drawconclusionsabouttheresults,andofferandsupportrecommendationstothegeneral
managerregardingwaystoimprovethesatisfactionandengagementofthecompanysw
orkforce.Studentsarealsoprovidedinformationregardingtheprincipalcharactersdecisionto
accepttheGeneralManagerspositioninthefirm.Studentsareaskedtoevaluatethisdecision.
THECOMPANY
Bella'sisafullservicedayspaandhairsalonfeaturingawidevarietyofspatreatments
includingfullbodymassages,bodyscrubsandwraps,Europeanfacials,specialtymanicures
andpedicures,skintreatments,waxing,andcompletevarietiesofcuts,conditioningtreatments
andchemicalservicesforthehair.Exclusivelinesofhairandbodyproductsarealsoavailable.
Bellasalsofeaturesaretaildepartmentwhichspecializesinuniquecustomjewelry.Bellas
flagshipstoreandheadquartersareinacitywithapopulationofapproximately250,000people
inthesouthernUnitedStates.Italsohasspas/salonsinfourothersmallercities(allwith
populationsover40,000)inthesamestate.Lastyear,Bellaaveragedapproximately25
employeesperstore;annualsaleslastyearwereapproximately$3,000,000,adecreaseof12%
fromthepreviousyear.Thecompanylostmoneylastyearforthefirsttimesinceitsinitialyear
ofoperation.ThemanagementofBellasconsidersthefirmtobeaoneofakindestablishment
servingawidesegmentofthepopulation.ThesuccessandgrowthofBellashasfarexceeded
allIllaFitzgeralds(thefounderandownerofthebusiness)originalexpectations.
COMPANYHISTORY
ThecompanywasfoundedtwelveyearsagobyIllaFitzgerald,aformer
beautician/massagetherapistwhohadworkedinthesalonindustrysincefinishing
cosmetologyschoolatage21.SheusedanSBAloan,investmentdollarsfromfivefamilym
embers,andherpersonallifesavingstofulfillherdreamowningherownspa/salon.Hervisio
nwastocreateauniquecompanythatofferedacompletearrayofproductsandservicesaimed
atcreatingandmaintaininghealthyminds,bodies,andspirits.Bellasisnowmorethanadecad
eold,andIllatakesgreatprideinknowingthathercompanyhascomeveryclosetocompletely
fulfillinghervision.
Bellas:acasestudy,Page2
JournalofBusinessCasesandApplications
Illafullyrecognizedfromtheverybeginningthatherbusiness/managerialexperience
wasverylimited.Shewasalsofullyawarethatmanagingthedaytodayoperationsofher
businesshadverylimitedappealtoheranyway.Therefore,herfirstcriticaldecisionwasmade
threemonthsbeforethesalonopenedthedecisiontohireLynneGibsonasgeneralmanager
ofBellas.
LynneGibsonhadservedasthegeneralmanagerofBellassinceitsinception.Priorto
takingthisposition,Lynnehadworkedatamajorwomensclothingretailer,initiallyasa
managementtraineeandfinallyasaregionalmanager.BeforeBellas,LynneandIlla,whilenot
closefriends,werecertainlyacquaintanceswhohadgottentoknoweachotherprofessionally.
IllahadsharedherdreamwithLynneandhadoftentoldheryouknowwhenIdothisthing,I
wantyoutocomerunitforme.Lynneneverreallygaveitmuchthought,butwhenIllamadea
formaloffer,Lynnedecideditwouldbeagoodmove,professionallyandpersonally.Shehad
beenverysuccessfulinretailingbutthelonghoursplustheweekenddemandshadbegunto
takeatollonherpersonallife.Asinglemotheroftwo,Lynnedecidedthatthischangewouldbe
anewchallenge,anditwouldalsoenablehertobemoresuccessfulinbalancingfamilyand
career.Fromdayone,Lynnebasicallywasinvolvedinoractuallymadeallthemanagerial
decisionsatBellas.ThoughIllawascertainlytheleadplayerinstrategicdecisions,Lynnewas
theultimatedecisionmakerforanythingoperational.Bellasbeganwithsixemployees:Illa,
Lynne,threehairstylists,andonemassagetherapist.Allwerefriendsoracquaintancesofthe
owner.VerylittlerecruitingtookplaceintheinitialhiresbeyondIllaconvincingeachtocome
beapartofhernewbusiness.Asalarywasofferedwithapromiseofaswegrowandbecome
moreandmoresuccessful,Illmakesureyourerewardedforyourcontribution.
Ayearago,LynnGibsondecidedtoleaveBellastopursueherMastersdegreein
education.Asonewhowasnotonlyresistanttoandoftenparalyzedbychange,thisgreatly
troubledIllasoshemanagedtoconvinceLynntoremainasaconsultanttothecompanywhile
workingonherdegree.Lynnsnewrolewastoofferinputandadviceonanyandallissuesof
Illaschoosing.Priortothispoint,thebasicstructureofBellaswas:Lynnewasthegeneral
managerofBellasIncorporated;shealsoservedasthestoremanagerofitsflagshiplocation.
Withinherstore,aRetailManagerandaServiceMangerreporteddirectlytoLynne.
Additionally,theStoreManagersateachoftheotherfourBellalocationsreporteddirectlyto
Lynne.Withineachstore,individualstoremanagersweretheonlyemployeesservingina
supervisorypositionwitheachbeingresponsibleforalldailyoperationalissuesofhis/her
salon.Allotherresponsibilities/decisionsforindividuallocationsareLynnes.Thisincludesall
purchasing,marketing,financial,,andhumanresourcedecisions.Individualstoremanagersdid
havetheopportunitytoofferinformalinputintohiringdecisionsforhis/herstore.Thesalon
managerssalariesaveragedapproximately$32,000annually.Threehadcollegedegrees,and
theyaveragedfouryearsexperience.Eachbeganasaparttimesalesclerk/receptionisteitherat
Bellasoratanothersalon.Bellasofferedabenefitspackagethatwasfairlystandardforan
organizationofitssize.Thisincludedhealthinsurance(ofwhichtheemployeessharedinthe
costofthepremiumswithIllasandLynnesbeingpaidtotallybythefirm)andretirement(in
whichBellasmademodestcontributions).
THECURRENTSITUATION
KrisJenkinsstartedherjobasthenewgeneralmanagerofBellasamonthagotoday.Her
careerbeganasahairdresserafterfinishingcosmetologyschool.Tenyearslater,Krishad
Bellas:acasestudy,Page3
JournalofBusinessCasesandApplications
completedherBusinessdegreeandwasthestoremanagerofanationalhairsalonthatwas
locatedinamallinamidsizesoutherncity.Herultimategoalwastoownherownsalonbut
shedidnotfeelthatshewasyetpreparedeitherfinanciallyorfromanexperiencestandpoint.
Thoughshehadlearnedmanyvaluablelessonsparticularlyindealingwithemployeeswhile
managingthefirminthemall,shherecognizedthatherexperiencewithexecutivedecision
makingwasverylimited.Thereforeshewashopingtomakeacareermovethatwouldenable
hertohavedirectinputregardingalltopmanagementdecisionsofasalon.Thatwastheprimary
reasonthatshedecidedtotaketheGeneralManagerspositionatBellas.Plus,hercareergoals
werealmostidenticaltothoseofBellasowner12yearsago.IllahadachievedexactlywhatKris
aspiredtoachieve.Also,heerbackgroundwasessentiallythesameasIllas.Krishad
discoveredanewrolemodel.Whatcouldbebetter?Theopportunitylookedideal.
AsKrissatatherdeskthismorning,thingsdidntappearnearlyasideal.Shekept
replayingthreeeventsinhermind:
1. Aftertheofferbutbeforeacceptingtheposition,Krishadspentaweekendwiththe
previousgeneralmanageroftenyears,LynneGibson(whonowservedasaconsultant
totheorganization),discussingawidearrayoftopicsregardingthecompany.Bellas
numbershaddeteriorateddramaticallyinthepastyear.Profitsweredown;absenteeism
wasup;turnover,whilenotdramatic,washigherthanithadbeeninthepastfiveyears.
Andwhilenoformalperformanceappraisalshadbeendoneinthepastyear,Lynne
providedherassessmentoftheperformanceofallBellaskeypeople.Itwasclearthat
Lynnefelteachwasperformingsignificantlybelowtheircapabilities,significantly
belowpreviouslevelsofperformance.Followingthesediscussions,anumberofthings
stoodouttoKris.Firstofall,LynnewasveryreluctanttocriticizeBellasemployees.
Butbetweenpromisesofsecrecyandreadingbetweenthelines,itbecamequiteevident
thatLynnehadseriousconcernsanditseemedtoKristhatLynnesbiggestfear
centeredaroundIlla.Astheirdiscussionscontinued,itbecamequiteclearthatLynne
doubtedIllasabilitytoprovideKristheautonomyneededtoeffectivelymanage
Bellas.Thisappearedtostemprimarilyfromtwothings:1.Illasunexpectedinterfer
encewithonlylimitedinformationabouttheissuesorproblems,and2.Illastendencyto
regularlymonopolizethemanagerstimeontrivialorpersonalmattersthuskeepingthe
managerfromfocusingontheneedsofthesalon.
2. AftertheweekendwithLynnebutagainbeforeacceptingthepositionKrisspent
threedaysattheBellas.Shehadstayedatthespafromopeningtoclosingtovisitwith
alltheemployees.Whiletheconversationshadbeenpleasant,itseemedprettyapparent
thatmany,ifnotall,seemedreluctanttobetotallyhonest.Thoughnonehaddirectly
denigratedthecompanyortheowner,bodylanguageandincompleteorevasiveanswers
hadconcernedKrisatthetime.ShecouldnthelpbutworrythatthemajorityofBellas
employeessimplydidnotfeelgoodabouttheirjobsorthecompany.
3. ThoughshehadspentagreatdealoftimewithIlla,theafternoonthatsheformally
acceptedthejobwascriticalinKrissultimatedecisiontoaccepttheposition.Dueto
numerousconcernsthatbecameevidentwhilespendingtimewithLynneandthe
employees,Kriswasleaningheavilytowarddecliningthejoboffer.However,after
respectfullydiscussingtheseconcernswithIlla,Krisbegantochangehermind.Illa
addressedeachissuegivingtheimpressionthatsherecognizedtheproblemandwas
willingdowhateverittooktocorrectandimprovebothcompanyandemployee
performanceincludingsteppingawayandgivingKrisautonomytomakealloperational
Bellas:acasestudy,Page4
JournalofBusinessCasesandApplications
decisionsatBellas.Illawasverypersuasive,andKrisdecidedtoreconsiderherdecision
todeclinetheposition.Attheendoftheday,shetoldIllashewouldtaketheposition.
Kriswasexcitedsheknewthiswouldbeawonderfulcareermovebutalsoworried.
CouldshereallyturnBellasaround?Andwouldshehavethefreedomtodoso?
Enoughreflection,Krissaidoutloud.Itstimetogetbusy.Shehadinfrontof
hertheresultsoftheemployeesurveyshehadconductedoverthepasttwoweeks.The
surveywasanattempttomeasurethelevelofjobsatisfactionandemployeeengagementofher
employees.Itwassimilartothesurveythathadbeenusedinherpreviousjob.Krishadbeen
involvedinimplementingchangesatherprevioussalonbasedonresultsofthesesurveys
changesthathadbeenquiteeffectiveintermsofimprovingoutcomes.Shewasoptimisticthat
someinsightsinthesetwoareasmightleadtothesamethingoccurringatBellas.(See
AppendixOne,EmployeeSurveyInstrument;SeeAppendixTwo,EmployeeSurveyResults).
Onthepromiseofanonymity,nonameswereattachedtoanysurveys;however,theaggregate
outcomes,whilethereweresomepositives,werequitetroubling.Whatdidtheyallmean?What
messageswerebeingsent?And,mostimportantlygiventhisinformation,whatshouldshedo
now?
INSTRUCTIONSTOSTUDENTS
1. Givenyourunderstandingofjobsatisfactionandemployeeengagement,
discuss/describewhyeachisimportantinorganizationalsettings?(Note:inadditiontoy
ourtextandclassdiscussions,additionalresourcesthatmightbeusefularelistedfoll
owingthequestions.)
2. Discuss/offerinsightsregardingtheresultsoftheemployeesurvey.Asyoustudy
theresults,whatstandsout?Whatconclusionscanyoudraw?
3. Offergeneralsuggestions/recommendationstoKrisJenkinsregardinghowto
improvethejobsatisfactionandemployeeengagementofBellasworkforce.Besure
todistinguishamongjobswhenmakingthesesuggestionsandrecommendations.
4. EvaluateKrisJenkinsdecisiontoacceptthegeneralmanagersposition.Given
theinformationavailable,didshemaketherightdecision?Whyorwhynot?
ADDITIONALRESOURCES
Bates,S.(2004),Gettingengaged,HRMagazine,Vol.49No.2,pp.4451.
Fox,A.(2010),RaisingEngagement,HRMagazine,Vol.55No.5,pp.3440.
Harter,J.,Schmidt,F.,andHayes,T.(2002),Businessunitlevelrelationshipbetweenemployee
satisfaction,employeeengagement,andbusinessoutcomes:ametaanalysis,
JournalofAppliedPsychology,Vol.87No.2,pp.268279.
Judge, T., Thoresen, C., Bono, J. , and Patton, G. (2001), The jobsatisfactionjo b
performancerelationship:aqualitativeandquantitativereview,PsychologicalBulletin,
Vol.127No.3,pp.376407.
Bellas:acasestudy,Page5
JournalofBusinessCasesandApplications
Locke,E.A.(1976),Thenatureandcausesofjobdissatisfaction,inTheHandbookof
OrganizationalPsychology,ed.M.D.Dunnette,RandMcNally,Chicago,pp.901976.
Tritch,T.(2003),Engagementdrivesresultsatnewcentury,GallupManagement
Journal,September11,p.4.
Bellas:acasestudy,Page6
JournalofBusinessCasesandApplications
APPENDIXONE:EMPLOYEESURVEYINSTRUMENT
EMPLOYEESURVEY
ThepurposeofthisistodeterminejobsatisfactionandemployeeengagementofBellas
employees.Pleasetakeafewminutestocompleteandreturnthesurveyform.Yourresponsesare
anonymous.Thankssomuch.
Whichofthefollowingbestdescribesyourcurrentemploymentstatus?
_____Employedfulltime(30ormorehoursperweek)
_____Employedparttime(lessthan30hoursperweek)
Whatisyourcurrentjobtitle?___________________________________________
Howlonghaveyouheldyourcurrentposition?___________
Whatareyourmonthlyearningsreceivedinyourcurrentposition?$_______________________
JobSatisfaction:Pleaseindicatetheextentthatyouagreewiththefollowingstatements(1=
StronglyDisagree,7=StronglyAgree)
1
Iamverysatisfiedconcerningpromotional O
opportunities.
Iamverysatisfiedwithmyrelationship
withmysupervisor.
Iamverysatisfiedwithmyrelationship
Iamverysatisfiedwiththeowner.
Overall,Iamverysatisfiedwithmy
jobsatisfaction.
IamverysatisfiedwiththeworkIdo.
withmycoworkers.
EmployeeEngagement:Pleaseindicatetheextentthatyouagreewiththefollowingstatements(1
=StronglyDisagree,7=StronglyAgree)
1
O
2
O
3
O
4
O
5
O
6
O
7
O
Atwork,Ihavetheopportunityeveryday O
Iknowwhatisexpectedofmeatwork.
IhavethematerialsandequipmentIneed
todomywork.
todowhatIdobest.
Bellas:acasestudy,Page7
JournalofBusinessCasesandApplications
Iregularlyreceiverrecognitionandpraise
fordoinggoodwork.
Mysupervisorcaresaboutmeasaperson. O
Theownercaresaboutmeasaperson.
Thereissomeoneatworkwhoencourages O
mydevelopment.
Atwork,myopinionsseemtocount.
Themissionofthefirmmakesmefeel
myjobisimportant.
Mycoworkersaredoingqualitywork.
Ihaveabestfriendatwork.
Someoneatworkregularlytalksto
me
aboutmyprogress.
Inthepastyear,Ihavehadopportunities
atworktolearnandgrow.
Bellas:acasestudy,Page8
JournalofBusinessCasesandApplications
APPENDIXTWO:EMPLOYEESURVEYRESULTS
SalonManagers:
JobSatisfaction:(1=StronglyDisagree,7=StronglyAgree)
MeanScore(roundedto
nearestwholeamount):
IamverysatisfiedwiththeworkIdo.
Iamverysatisfiedconcerningpromotionalopportunities.
Iamverysatisfiedwithmyrelationshipwithmysupervisor.
Iamverysatisfiedwithmyrelationshipwithmycoworkers.
Iamverysatisfiedwiththeowner.
Overall,Iamverysatisfiedwithmyjob.
5
2
2
5
1
3
EmployeeEngagement:(1=StronglyDisagree,7=StronglyAgree)
MeanScore(roundedto
nearestwholeamount):
Iknowwhatisexpectedofmeatwork.
IhavethematerialsandequipmentIneedtodomywork.
Atwork,IhavetheopportunityeverydaytodowhatIdobest.
Iregularlyreceiverrecognitionandpraisefordoinggoodwork.
Mysupervisorcaresaboutmeasaperson.
Theownercaresaboutmeasaperson.
Thereissomeoneatworkwhoencouragesmydevelopment.
Atwork,myopinionsseemtocount.
Themissionofthefirmmakes mefeelmyjobisi
mportant.
Mycoworkersaredoingqualitywork.
Ihaveabestfriendatwork.
Someoneatworkregularlytalkstomeaboutmyprogress.
Inthepastyear,Ihavehadopportunitiesatworktolearn
andgrow.
2
4
4
2
4
2
2
2
4
5
3
1
2
HairStylists:
JobSatisfaction:(1=StronglyDisagree,7=StronglyAgree)
MeanScore(roundedto
nearestwholeamount):
IamverysatisfiedwiththeworkIdo.
Iamverysatisfiedconcerningpromotionalopportunities.
Iamverysatisfiedwithmyrelationshipwithmysupervisor.
6
3
3
Bellas:acasestudy,Page9
JournalofBusinessCasesandApplications
Iamverysatisfiedwithmyrelationshipwithmycoworkers.
Iamverysatisfiedwiththeowner.
Overall,Iamverysatisfiedwithmyjob.
5
1
3
EmployeeEngagement:(1=StronglyDisagree,7=StronglyAgree)
MeanScore(roundedto
nearestwholeamount):
Iknowwhatisexpectedofmeatwork.
IhavethematerialsandequipmentIneedtodomywork.
Atwork,IhavetheopportunityeverydaytodowhatIdobest.
Iregularlyreceiverrecognitionandpraisefordoinggoodwork.
Mysupervisorcaresaboutmeasaperson.
Theownercaresaboutmeasaperson.
Thereissomeoneatworkwhoencouragesmydevelopment.
6
6
6
2
4
2
2
Atwork,myopinionsseemtocount.
Themissionofthefirmmakesmefeelmyjobis i mportant.
Mycoworkersaredoingqualitywork.
Ihaveabestfriendatwork.
Someoneatworkregularlytalkstomeaboutmyprogress.
Inthepastyear,Ihavehadopportunitiesatworktolearn
andgrow.
4
5
4
2
4
SpaServiceEmployees(MassageTherapists/Estheticians/NailTechnicians):
JobSatisfaction:(1=StronglyDisagree,7=StronglyAgree)
MeanScore(roundedto
nearestwholeamount):
IamverysatisfiedwiththeworkIdo.
Iamverysatisfiedconcerningpromotionalopportunities.
Iamverysatisfiedwithmyrelationshipwithmysupervisor.
Iamverysatisfiedwithmyrelationshipwithmycoworkers.
Iamverysatisfiedwiththeowner.
Overall,Iamverysatisfiedwithmyjob.
5
2
2
5
1
3
EmployeeEngagement:(1=StronglyDisagree,7=StronglyAgree)
MeanScore(roundedto
nearestwholeamount):
Iknowwhatisexpectedofmeatwork.
IhavethematerialsandequipmentIneedtodomywork.
Atwork,IhavetheopportunityeverydaytodowhatIdobest.
6
5
5
Bellas:acasestudy,Page10
JournalofBusinessCasesandApplications
Iregularlyreceiverrecognitionandpraisefordoinggoodwork.
Mysupervisorcaresaboutmeasaperson.
Theownercaresaboutmeasaperson.
Thereissomeoneatworkwhoencouragesmydevelopment.
Atwork,myopinionsseemtocount.
Themissionofthefirmmakesmefeelmyjobisimportant.
Mycoworkersaredoingqualitywork.
Ihaveabestfriendatwork.
Someoneatworkregularlytalkstomeaboutmyprogress.
Inthepastyear,Ihavehadopportunitiesatworktolearn
andgrow.
2
5
2
2
1
5
6
5
2
4
Bellas:acasestudy,Page11
