Team based pay in the hair salon industry is the newest solution for compensating employees and increasing the overall performance of a salon. IT WILL NOT WORK. This article is a critique of this program and provides several reasons why this management style is ineffective for a salon.
In small business, control refers to the ability of the primary owner to exert his influence over the management and direction of the company. Often business novices confuse ownership with control; you may have ownership but it doesn’t mean you have control.
The majority of small businesses are owned by a single individual. An additional pool is family owned or controlled. The balance usually involves friends or relatives that are passive in ownership. These forms of ownership create some interesting shareholder dynamics and if not thought out, can create some legal and financial issues in small business when a life changing event occurs.