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.

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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.
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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

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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

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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.

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Locke,E.A.(1976),Thenatureandcausesofjobdissatisfaction,inTheHandbookof
OrganizationalPsychology,ed.M.D.Dunnette,RandMcNally,Chicago,pp.901976.

Tritch,T.(2003),Engagementdrivesresultsatnewcentury,GallupManagement
Journal,September11,p.4.

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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.

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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

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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

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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