Exam 16: Building a Team and Management Succession

Chris openly shares the company's financial results with employees. This represents:

In job enrichment, ________ is the degree to which a job substantially influences the lives or work of others-employees or final customers.

Mini-Case 16-4: 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 situational interview gives the candidate a typical job-related situation to see how they respond.

Effective interviewers spend about ________ percent of the interview talking and ________ percent listening.

Questions like "What are you deeply passionate about?", "What can you be the best in the world at?" and "What drives your economic engine?" are important to define your ________, according to the work of Jim Collins.

Posting job openings on the Internet has proven to be:

Without proper estate planning, the heirs to a successful business may be required to sell it just to pay the estate tax bill.

An arrangement in which employees and/or managers contribute a portion of their salaries and wages, over time, toward purchasing shares of a company's stock from the founder until they own the company outright, is referred to as:

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

Leadership is:

Leadership gets a small business going; management keeps it going.

A leadership style in which a leader takes on the role of a servant first and the role of a leader second is referred to as a ________ leader.

The Equal Employment Opportunity Commission (EEOC) supplies employers with a list of questions it considers illegal in interviews.

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

To give the interviewing process more consistency, a business owner should develop a series of core questions and ask them of every candidate.

Mini-Case 16-2: Passing the Baton Carol Wingard started a small jewelry manufacturing company when she was in her late 20s, and has worked hard to build it into a highly successful family business. Now, 40 years later, she was "ready to sit down and enjoy life." Seven family members, including her two sons, Ralph and Cooper, work in the business. Ralph, with 30 years of experience, and Cooper, with 22 years of experience, are both vice presidents of the company. Carol has always intended to pass the business on to her sons, who together own 20 percent of the company's stock. However, she has always been too busy running the business to put together a formal management succession plan. For the past decade, many of the employees have whispered among themselves about who would be named president if Mrs. Wingard stepped down and exactly what would happen to the business. Now that she has decided to retire, Carol wants to begin developing a management succession plan. -Carol calls you and announces her plans to retire within a year. What advice would you offer her about a management succession plan?

The IRS permits annual gifts of up to $100,000 from a parent to each child per year to be exempt from federal gift taxes.

Entrepreneurs tend to rely more on nonmonetary rewards such as praise, recognition, game tickets, dinners, and others to create a work environment where employees take pride in their work, enjoy it, are challenged by it, and get excited about it.

Why is developing a management succession plan so important to the founder of a family business? Identify and briefly describe the steps of a successful plan.