Chapter 8

Question 1

On what basis can you recruit people?

Answer 1

Fulltime/ Part time
Regular hours/ Shift work
Fixed wage, Salary /Commission/ Piecework

Question 2

What is the issue with job descriptions in small companies?

Answer 2

tasks; duties change day-to-day

Question 3

What can a small start-up company do to hire if short in cash?

Answer 3

incentives:

target linked bonuses, shares, options

Question 4

What is sweet equity?

Answer 4

reflects cash, intellectual property or time & effort someone brings into company
(SH agreement)

Question 5

What are shared cognitions and why are they important?

Answer 5

shared goals
effective communication & transfer of knowledge of e.g. founders
helps to reach consensus if people have different functional backgrounds

Question 6

What are the 2 major sources of conflict in a team?

Answer 6

relationship conflict: never beneficial, bad spirit & impact on performance

task conflict: may be productive & beneficial

Question 7

What can a firm do instead of relying on professional advisors (accountants, lawyers, business consultants)?

Answer 7

• Approach Board of directors
• Different form of partnerships
• Equity investors

Question 8

What benefits (beside advice) may professional advisorrs bring?

Answer 8

• add creditability to management

- can motivate equity providers to invest

Question 9

Why is are Accountants important as professional advisors?

Answer 9

produce financial plan
produce regular financial statements
access to industry norms
financial administration may be subcontracted

Question 10

Why is are Lawyers important as professional advisors?

Answer 10

advice on legal requirements of setting up/running a business
safeguard business idea
help set up contracts

Question 11

Why is are Business consultants important as professional advisors?

Answer 11

advice on marketing & strategic planning
help with business plan
specialist advice on specific industries

Question 12

What is most important for entrepreneurial team effectiveness?

Answer 12

how the team functions & commitment to overall team

Question 13

What are the 3 personal orientations by Beblin?

Answer 13

Thinking orientation
People orientation
Action orientation

Question 14

Plant: What personal orientation & characteristics?

Answer 14

Thinking oriented

• major source of new ideas: creative often unorthodox
• distant, uncommunicative, impractical ideas

Question 15

Monitor-Evaluator: What personal orientation & characteristics?

Answer 15

Thinking orientated

• teams rock: introvert, strategic, sober, explore all options analytically, barely wrong
• lack drive & don’t inspire

Question 16

Specialist: What personal orientation & characteristics?

Answer 16

Thinking orientated

• main source of technical knowledge/skill
• single minded-self starting, dedicated
• contribute to narrow front

Question 17

Coordinator: What personal orientation & characteristics?

Answer 17

People orientated
teams natural chair: mature, confident, trusting
-clarify goals, promote decision making, strong interpersonal skills
-perceived as mainpulative

Question 18

Team-Worker: What personal orientation & characteristics?

Answer 18

People orientated

• mild, social, aware of problems, harmony
• don’t make decisions quickly & effectively

Question 19

Resource investigator: What personal orientation & characteristics?

Answer 19

People orientated

• fixer: extrovert, many contacts
• undisciplined, lose interest quickly

Question 20

Shaper: What personal orientation & characteristics?

Answer 20

Action orientated

• self-elected task leader: extrovert, dynamic, like discussions, pressure
• may bully, not always liked

Question 21

Completer Finisher: What personal orientation & characteristics?

Answer 21

Action orientated
always worry & make sure things get finished
-have plan about timeline, details, errors
-cannot let go & don’t delegate

Question 22

How may the prototypical entrepreneur be defined according to Beblin?

Answer 22

mix of

Plant: creative “idea person”
Shaper: full of drive & energy
Resource investigator: exploring opportunities

Question 23

Which team member should be recruited first?

Answer 23

1) Implementer
2) Completer-Finisher
3) Team worker… to work under them

Question 24

What has to be considered when building a cohesive team?

Answer 24

building consensus while balancing multiple viewpoints
too focus much consensus: slow decision making
Entrepreneur: build strong relationship with team