Exam 16: Building a Team and Management Succession

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.

In job enrichment, ________ is the degree to which a job gives a worker the freedom, independence, and discretion in planning and performing tasks.

A company's culture manifests itself in ________.

Leadership deals with doing things right; management deals with doing the right things.

What criteria should Wallace use in selecting employees?

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?

Cora arrived at work at 7 a.m. today, and she will get off at 4 p.m. so that she can watch her son's soccer game. Her office mate, Emma, is not a "morning person" and usually arrives at the office at 10 a.m. and gets off at 7 p.m. Their company uses ________.

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

In the breaking-the-ice phase of the interview process, skilled interviewers often use the job description to explain the nature of the job and the company's culture to candidates.

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

Mini-Case 16-1: Kansas Manufacturers and Assemblers Rose Richardson always knew that if she could land a major order for her firm, she could prove its quality to the industry. Kansas Manufacturing and Assemblers was a job shop manufacturing and assembling operation specializing in fast turnaround projects for manufacturers with orders in excess of production capacity. Each job Rose's firm did was a special order. In September, a major appliance manufacturer approached Rose and inquired about her ability and willingness to manufacture and assemble a new appliance. This order could mean a very substantial profit for the firm, as well as recognition throughout the industry. Rose was asked to undertake a project that would require a 100 percent assignment of the firm's personnel for seven months. In addition, any slight modification in design or material would require overtime. If this job went as most, changes could be expected. On this short notice, it would be impractical for Rose to hire additional personnel because it takes weeks, even months, to learn the necessary skills. Rose faces an interesting dilemma: If she doesn't take the job, it may be years before another one of this magnitude comes along; but if she takes the job and then fails to deliver on time, or fails to meet the quality specifications because of her overworked employees, her reputation will be hurt for years. Rose sees this opportunity as a crossroads in the firm's history, but knows that she must gain the full and unquestioned support of the employees if the project is to be a success. -If you were Rose, how would you go about gaining the commitment of your employees to a project that will last a full seven months and will likely require each person to work overtime and weekends and to forgo vacations for the duration of the project?

Mini-Case 16-3: 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?

Which of the following is not a recommended guideline for developing questions to ask candidates in job interviews?

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 hedgehog concept, according to the work of Jim Collins.

The concept of empowering employees is based on the principle of job enrichment.

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

The advantages of job rotation include ________.

Effective interviewers skip the breaking-the-ice phase of a job interview and immediately start asking candidates tough questions so they can see how the candidates respond under stress.

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

Which of the following best represents the three phases of an effective job interview?