GJ Company was founded by two friends, Gerry and James. It engages in administrative and sales functions of the business while Gerry the repair of automobiles. James handled the managed the shop. There are five mechanics in the shop who worked well under Gerry's supervision. Gerry encouraged a friendly atmosphere, allowing men to participate in deciding who would do a specific task on a given day. Everyone was satisfied because each was doing what he wanted them to do. Work was well done and always on schedule. However, a time came when there were a lot of job orders that could not be finished on time. James confronted Gerry and blamed the way he managed the five mechanics for the delays. He argued that Gerry should be more organized and efficient in the work processes. Gerry was also told to be more strict and less friendly to the mechanics. Gerry did not agree with James and decided to leave the partnership. James got a new manager, Carlo, to replace Gerry. Carlo set up work schedules and required the mechanics to follow the schedule without question. H assigned jobs to mechanics that made them wok independently of each other. He would constantly inspect the mechanics' work and make sure everyone is working. With the new manager, James felt certain that more work would be accomplished. However, there were more customer complaints for poor work quality. Delays still happen. A mechanic decided to quit and Carlo wants to fire another mechanic. What leadership styles are apparent in this situation and how do they differ from one another? What leadership styles do you recommend?

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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GJ Company was founded by two friends, Gerry and James. It engages in administrative and sales functions of the business while Gerry the repair of automobiles. James handled the managed the shop. There are five mechanics in the shop who worked well under Gerry's supervision. Gerry encouraged a friendly atmosphere, allowing men to participate in deciding who would do a specific task on a given day. Everyone was satisfied because each was doing what he wanted them to do. Work was well done and always on schedule. However, a time came when there were a lot of job orders that could not be finished on time. James confronted Gerry and blamed the way he managed the five mechanics for the delays. He argued that Gerry should be more organized and efficient in the work processes. Gerry was also told to be more strict and less friendly to the mechanics. Gerry did not agree with James and decided to leave the partnership. James got a new manager, Carlo, to replace Gerry. Carlo set up work schedules and required the mechanics to follow the schedule without question. H assigned jobs to mechanics that made them wok independently of each other. He would constantly inspect the mechanics' work and make sure everyone is working. With the new manager, James felt certain that more work would be accomplished. However, there were more customer complaints for poor work quality. Delays still happen. A mechanic decided to quit and Carlo wants to fire another mechanic. What leadership styles are apparent in this situation and how do they differ from one another? What leadership styles do you recommend?

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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