Question 1

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.

Accepted Answer

The answer of Why is developing a management succession plan...

Question 2

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 job ________ design strategy adds more tasks to a job to broaden its scope.

Accepted Answer

A) simplification 
B) enlargement 
C) enrichment 
D) rotation

Question 3

Interviewers should avoid asking job candidates questions based on hypothetical on-the-job scenarios and how the candidate would handle them because the Equal Employment Opportunity Commission considers such questions to be illegal.

Accepted Answer

A) True 
 B)False

Question 4

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 ________.

Accepted Answer

A) job sharing 
B) flextime 
C) flexplace 
D) job enrichment

Question 5

An arrangement under which employees work a normal number of hours with options regarding when they start and stop work is ________.

Accepted Answer

A) hoteling 
B) flextime 
C) job sharing 
D) flexspace

Question 6

Mini-Case 17-1: 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?

Accepted Answer

The answer of Mini-Case 17-1: Kansas Manufacturers and Assemblers
Rose Richardson...

Question 7

Leadership is an easy skill to learn.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not one of the vital tasks small business leaders must perform?

Accepted Answer

A) Hire the right employees to the team and constantly improve their skills. 
B) Create a culture for retaining employees. 
C) Plan for "passing the torch" to the next generation of leadership. 
D) Keep flexible and do not be concerned about preparing for the next generation of management.

Question 9

Although a small business manager must assume a wide range of ideas, tasks, and responsibilities, none is more important than the role of leader.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Management and leadership are essentially the same.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true regarding hiring mistakes?

Accepted Answer

A) Hiring mistakes are expensive. 
B) Companies' informal processes may lead to unpredictable outcomes. 
C) Small businesses are most likely to make hiring mistakes because they lack the human resources experts and the disciplined hiring procedures large companies have. 
D) All of the above

Question 13

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."
-________ is the distinctive, unwritten code of conduct that governs the behavior, attitudes, relationships, and style of an organization.

Accepted Answer

A) Organizational structure 
B) Company culture 
C) Hierarchy of command 
D) Formal organization

Question 14

Posting job openings on the Internet has proven to be ________.

Accepted Answer

A) a relatively ineffective method of recruiting 
B) a cost-effective method to attract candidates from other areas 
C) an effective method to attract candidates and is relatively expensive 
D) problematic for entrepreneurial businesses

Question 15

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 criteria should Wallace use in selecting employees?

Accepted Answer

The answer of Mini-Case 17-3: The Pride of Vicksburg
Wallace Fry...

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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.

Accepted Answer

A) True 
 B)False

Question 18

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."
-Company culture has a powerful impact on ________.

Accepted Answer

A) the way people work together in a business 
B) how people in a company do their jobs 
C) how people in a company treat their customers 
D) All of the above

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

A(n)________ interview is where the interviewer gives candidates a typical job-related situation to assess how they respond.

Accepted Answer

A) situational 
B) puzzle 
C) circumstantial 
D) exploratory

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

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.

Interviewers should avoid asking job candidates questions based on hypothetical on-the-job scenarios and how the candidate would handle them because the Equal Employment Opportunity Commission considers such questions to be illegal.

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 ________.

An arrangement under which employees work a normal number of hours with options regarding when they start and stop work is ________.

Leadership is an easy skill to learn.

Which of the following is not one of the vital tasks small business leaders must perform?

Although a small business manager must assume a wide range of ideas, tasks, and responsibilities, none is more important than the role of leader.

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

Management and leadership are essentially the same.

Which of the following is true regarding hiring mistakes?

Posting job openings on the Internet has proven to be ________.

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

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.

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

A(n) ________ interview is where the interviewer gives candidates a typical job-related situation to assess how they respond.