152) Assume the role of a consultant to a small business owner who is about to conduct a job
interview for the first time. Identify the guidelines that will help him develop interview
questions. Also, explain the three phases of an effective interview.
153) To be effective, a small business leader must perform three vital tasks. List and briefly
explain these three tasks.
154) Explain the differences among job simplification, job enlargement, job rotation, and job
enrichment. Why should small business owners utilize these concepts?
155) 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.
156) List and briefly identify the five estate planning tools the owners of a family business
should consider.
157) Discuss the three options that entrepreneurs may consider when they sell their business to
insiders.
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 on 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.
158) 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 16-2: 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.
159) Carol calls you and announces her plans to retire within a year. What advice would you
offer her about a management succession plan?
160) What tools would you suggest to Carol to minimize the estate taxes involved in passing the
business on to Ralph and Cooper? Explain the advantages and disadvantages of at least three
choices and explain why you make the final recommendation that you do.
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.
161) Are job descriptions necessary in a restaurant?
162) Has Wallace waited too long to begin searching for employees?
163) Develop a list of interview questions to help Wallace select the right person for the
following jobs:
• Head chef
• Wait staff
• Dishwasher
• Host/Hostess
164) What criteria should Wallace use in selecting employees?
165) What would be the most effective way to recruit personnel for this type of business?
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.”
166) Is Norm Schultz correct in his attitude about workers not wanting recognition?
167) What do you think about Norm Schultz’s attitudes toward employees?
168) Would you like working for Norm? Why or why not?