Page 166 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Principles and Practices of Management

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First, they can hire offspring at an entry level in the company, as did Miles Ezell, Jr., and
his brother Bill, who own Purity Dairies Inc., based in Nashville, Tennessee. Three sons, a
daughter, and a son-in-law who joined the company now hold management positions, but
they started "small". "Because they came here directly out of college and hadn't worked
elsewhere first, they spent at least three years working in different areas, getting a feel for
them," says Miles. "They worked in some of the worst jobs, like cleanup detail in the milk
plant or in the garage, and they spent six months running milk routes." The Ezell offspring
never displaced another worker, and it became clear early on that favouritism was not
going to be a problem.
Wolfson agrees that children of founders or owners must learn the business from the
bottom up, even if they are assured of succession. "The second generation needs to show
some patience," he advises.

Mentoring can also help avoid destructive politics, as long as the mentor is not a family
member. A trusted or long-term manager can help acquaint the young person with the
company in an unobtrusive manner, sometimes even acting as a go-between with the
young person and other workers.
Referent power with the young family member can work both ways. The young family
member can work both ways. The young person may worry that his or her associations
with other employees are based solely on connections with the founding family. But in
other cases, it benefits everyone. Gray Langsam, president of Plaut & Stern Inc., a wholesale
meat company and meat packing plant in New York City, recalls positive relationships
with other employees, even though they knew his father was a company partner. They
watched him work his way up from the bottom and grew to trust him. "I would listen to
their suggestions and pass them along to my father," he says. "All that helped me ease my
way and break down any resentment the workers had at having the boss's kid in their
midst".
Hiring the kids doesn't have to be a disaster. It just takes good political strategies that
benefit everyone in the organisation.
9.5 Summary

Delegation is an essential element of any manager's job.
If used effectively delegation provides real benefits to every one involved.
Major indicator of justified use of power is delegation of authority by the management.

It is the process through which a manager gives authority to their subordinates in order to
accomplish certain assignments.
The work culture, which utilizes the delegation of authority, improves the job satisfaction
motivation and morale of employees.
Further it is helpful in satisfying the employee's need for recognition, responsibility
freedom and autonomy.
"Power" is the ability to affect change while "authority" is the right to make any given
decision.

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