Case Scenario: Island Beauty Cosmetics: Where Success is more than Cosmetic There are "rags-to-riches stories," and then there's Donna Scott, the CEO of the very successful Island Beauty Cosmetics Company, headquartered in Kingston, Jamaica. At age 42, in the early 1970's she became unhappy with the few opportunities that existed for women in business, and with only the help of a family member, she invested her life savings of US$10,000.00 in an existing cosmetic business that was failing and would eventually go out of business. Having studied entrepreneurship at university, she set out to turn the failing company around. At that time, the business operated only in Jamaica. Scott had a vision and a sense of mission for the company. "If a leader can make an appealing dream seem like it is tomorrow's reality, your employees will freely choose to follow," Scott said. She clearly communicated the company's vision and mission to the few employees at the time. Scott articulated that strategy for bringing that vision to life. She motivated them and helped focus their efforts. She inspired change in the entire organization and encouraged their input and participation. Some three decades later, this investment has grown into a giant corporation in the Caribbean with annual sales of over US$100 million and a sales force 10,000 strong throughout several islands. Not surprisingly, the woman behind this has been considered one of the best business leaders in the Caribbean. Scott was extremely confident of her team's capacity to carry out the strategy and achieve the goals of the organization. Many attribute this company's success in large part to Donna Scott's special touches. By giving her employees, who are mostly women, opportunities to succeed and recognizing their achievements. She celebrated successes and accomplishments. At the company's annual seminar in Kingston, for example, Island Beauty representatives are awarded such forms of recognition as cars, trips abroad, hotel stays, jewelry and lapel pins and ribbons denoting the achievement of various sales targets. These lavish forms of recognition are usually opulent events with much fanfare and excitement. One of the things Island Beauty Cosmetics executives pride themselves on doing is helping women become financially successful. "Give me a hard-working waitress and in a year, I'll turn her into a top-producing sales representative earning thousands of dollars," says regional sales director, Ann Simpson. A lot of representatives do extremely well and earn significantly more money during their careers. Scott and her executives challenged the representatives to reach their sales targets. They reviewed company performance on a quarterly basis. If targets were not being met, they helped them recognize problems and ways of solving them. Scott is recognized for her sincerity and concern for her employees' well-being. According to Gloria Campbell, a fairly new sales representative, she is surprisingly approachable. "Donna Scott calls you her daughter and looks you straight in the eye. She makes you feel you can do anything. She has a genuine concern for your welfare," remarked Campbell. When Campbell's son was ill, Scott called her several times to cheer her up. These expressions of personal interest are contagious. Many sales representatives treat their customers the same way - sending them birthday cards and showing them they're interested in them. This, they are convinced, sells cosmetics. Recognition from Scott is considered the ultimate form of recognition. What will happen to Island Beauty Cosmetics Company after Scott is gone? "There will be a flood of tears unlike anything you've ever seen," says one of the representatives. But no one can doubt that the company will continue without its charismatic leader - her legacy is too strong to ever vanish.

Question 1 [CLO 4] In the context of the trait theory of leadership, discuss why Donna Scott was so effective as a leader.

Question 2 [CLO 4] What did Donna Scott do, that makes her not only a charismatic leader but a transformational leader?

Question 3 [CLO 3] Employee recognition programmes can help to build loyalty and increase performance. Do you agree or disagree? Refer to the case where necessary. (8 marks)

Question 4 [CLO 3] How would you describe the job satisfaction levels of the employees at Island Beauty Cosmetics? Provide examples from the case to support your claims.

SECTION B: ANSWER ALL QUESTIONS

Question 5 [CLO 4] a) According to Stephen P. Robins, Author of the book Organizational Behavior, "groups and teams are not the same thing." With the use of definitions, make the distinction between the TWO (2) terms.

b) Explain THREE (3) major factors contributing to group cohesiveness and performance.

Question 6 [CLO 2] Briefly describe TWO (2) major theories of learning.

Question 7 [CLO 5] Your organization is planning on implementing a new machine, which would improve the performance of the staff. Explain THREE (3) strategies you would implement to reduce the possible resistance to the implementation of the new machine.