Exam 17: Building a New Venture Team and Planning for the Next Generation

A strong leader does not share aspects of his or her company's financial health, its future plans, or her vision for it with employees.

According to a survey by CareerBuilders, almost ________ of candidates either exaggerated or falsified information about their previous employment on their resumes.

Mini-Case 17-4: Plumbers Don't Want Recognition "If I ever went out to those guys and asked them if they wanted a little more recognition, they would laugh me out of the shop. People work for money." Norm Schultz had been a plumber himself for 18 years before he saved enough money to open a small plumbing contractor business. The men who worked for Norm knew what was expected of them - a fair day's work for a fair day's pay. "You don't need to tell a person that he or she is doing a good job; the person is either doing the work or not working for me!" Norm's son-in-law was taking a management course at a local college. When Norm asked him what he was learning in class, he told him the management of people. Norm was very emphatic about managing the plumbers who worked for him. "Tell an employee what you expect from the beginning. Watch to see if they perform the job properly. Treat your people fairly and never cheat them." Norm went on to tell his son-in-law that this was the way good managers did things. "Recognition won't put bread on the table." -Would you like working for Norm? Why or why not?

A leveraged buyout is an arrangement in which managers and/or employees borrow money from a financial institution and pay the owner the total agreed-on price, pro-rated over a seven-year period.

Studies comparing large companies to small ones have found that large companies' inability to react quickly is a major barrier to their growth.

To be effective, a small business leader must perform three vital tasks. List and briefly explain these three tasks.

Small companies are least likely to make hiring mistakes because most owners have developed clearly defined job specifications and job descriptions.

If a job candidate files charges of employment discrimination against a company, the burden of proof in the case falls on ________.

A job ________ identifies the duties and responsibilities of a position and its working conditions, while a job ________ identifies the qualifications required of the job candidate in terms of skills, education, and experience needed.

The majority of first-generation family businesses do not survive into the second generation.

Job enrichment increases the planning, decision-making, organizing, and controlling functions in a job.

Effective leaders know that what they do is more important than what they say because they set the example for their employees.

Because their companies are small, entrepreneurs need not develop the leadership skills managers in larger companies need.

A job description sets forth a job's duties and responsibilities; a job specification translates these duties into the qualifications needed for that job.

Mini-Case 17-3: The Pride of Vicksburg Wallace Fry had been a lover of good food from the time he was a child. The only son of wealthy Southern parents, he spent hours with his mother watching her prepare meals for the family and friends. By the time Wallace was in high school, he had already won a number of awards for his original recipes. After leaving Vicksburg, Mississippi, to attend college in the Midwest, Wallace returned home to what must have been an unbelievable graduation present. His relatives purchased an old paddlewheel riverboat and had begun initial preparations to have it moored permanently at the foot of the Vicksburg landing on the Mississippi River. Wallace was presented with a 50 percent interest in the restaurant named "The Pride of Vicksburg." The complete renovations and restoration of the beautiful old riverboat took an additional four months. Wallace was planning to have his new restaurant open for the spring tourist season. A number of regional magazines had already run feature stories on the project. With the opening one month away, Wallace decided it was time to staff the restaurant. -Develop a list of interview questions to help Wallace select the right person for the following jobs: ∙ Head chef ∙ Wait staff ∙ Dishwasher ∙ Host/Hostess

Mini-Case 17-3: The Pride of Vicksburg Wallace Fry had been a lover of good food from the time he was a child. The only son of wealthy Southern parents, he spent hours with his mother watching her prepare meals for the family and friends. By the time Wallace was in high school, he had already won a number of awards for his original recipes. After leaving Vicksburg, Mississippi, to attend college in the Midwest, Wallace returned home to what must have been an unbelievable graduation present. His relatives purchased an old paddlewheel riverboat and had begun initial preparations to have it moored permanently at the foot of the Vicksburg landing on the Mississippi River. Wallace was presented with a 50 percent interest in the restaurant named "The Pride of Vicksburg." The complete renovations and restoration of the beautiful old riverboat took an additional four months. Wallace was planning to have his new restaurant open for the spring tourist season. A number of regional magazines had already run feature stories on the project. With the opening one month away, Wallace decided it was time to staff the restaurant. -Are job descriptions necessary in a restaurant?

Mini-Case 17-3: The Pride of Vicksburg Wallace Fry had been a lover of good food from the time he was a child. The only son of wealthy Southern parents, he spent hours with his mother watching her prepare meals for the family and friends. By the time Wallace was in high school, he had already won a number of awards for his original recipes. After leaving Vicksburg, Mississippi, to attend college in the Midwest, Wallace returned home to what must have been an unbelievable graduation present. His relatives purchased an old paddlewheel riverboat and had begun initial preparations to have it moored permanently at the foot of the Vicksburg landing on the Mississippi River. Wallace was presented with a 50 percent interest in the restaurant named "The Pride of Vicksburg." The complete renovations and restoration of the beautiful old riverboat took an additional four months. Wallace was planning to have his new restaurant open for the spring tourist season. A number of regional magazines had already run feature stories on the project. With the opening one month away, Wallace decided it was time to staff the restaurant. -What would be the most effective way to recruit personnel for this type of business?

Today's workforce responds best to a leadership style based on instilling fear and intimidation.

Mini-Case 17-4: Plumbers Don't Want Recognition "If I ever went out to those guys and asked them if they wanted a little more recognition, they would laugh me out of the shop. People work for money." Norm Schultz had been a plumber himself for 18 years before he saved enough money to open a small plumbing contractor business. The men who worked for Norm knew what was expected of them - a fair day's work for a fair day's pay. "You don't need to tell a person that he or she is doing a good job; the person is either doing the work or not working for me!" Norm's son-in-law was taking a management course at a local college. When Norm asked him what he was learning in class, he told him the management of people. Norm was very emphatic about managing the plumbers who worked for him. "Tell an employee what you expect from the beginning. Watch to see if they perform the job properly. Treat your people fairly and never cheat them." Norm went on to tell his son-in-law that this was the way good managers did things. "Recognition won't put bread on the table." -The advantages of job rotation include ________.

Effective interviewers ignore candidates' nonverbal clues (i.e., body language)in interviews because they know that most candidates are so nervous that their nonverbal communication is meaningless.