Question

Many small businesses begin as one‑person operations. Most small business owners put in extremely long hours and seldom take vacations. Although such firms later employ other workers, the management style and personality of the owner seem to be necessary to the survival of the firm. Here are some examples.

Ted and Ralph formed a partnership to operate a service station in a large midwestern city. Both were on the premises from 7 a.m. until closing at 8 p.m. Both were skilled at greeting the public, and they made many friends as business boomed. Although they maintained ownership of the station, Ted and Ralph began to spend time away from work, leaving capable subordinates in charge. But the firm just wasn’t the same without Ted and Ralph on hand, and business dropped. Ted and Ralph realized that to keep the station highly successful, they both had to be on the premises.

For many years, Mabel and Theo Harker operated Harker’s Cafe in a large city in the Southwest. Theo was the chief cook, and Mabel waited on customers who sat at the counter. Although they hired several other cooks and waitresses, Mabel and Theo were the stable core of the business. The two worked long hours, and business seemed to go more smoothly when the owners were there. Realizing how important they were personally to the success of the cafe, the Harkers never took a vacation and never left the cafe in the hands of the hired staff. Instead, in late summer and around Christmas, the Harkers closed down the entire cafe for a week at a time. Customers agreed that the place would not be Harker’s Cafe without Mabel and Theo.

1. Why does it seem to be necessary for the owner(s) to be on the premises all the time?

2. Can there be personality cults in small businesses? Is it possible for customers to create a personality cult around the owners of a business?

3. How might the owner go about reducing customers’ dependency upon the presence and/or personality of the owner and leading customers to depend more on the business itself?

Answer 1

It is necessary for the to be on the premises all the time as the presence of the owner creates a pressure on employees to work hard and to skip things or not to be rude or misbehave with the customers . When the owner is not present on the business premises the employees would have a sense of relief and have a conception that the owner is not present and we can do what we want to , noone is present to force us which sometimes led to small mistakes , dishonesty and many other factors which can affect the business in negative ways , u cannot neglect the fact as it is human nature. For example - When teacher is present in a class students always remain silent and complete their work without any problems but if the teacher leaves to class even for a minute students think themselves as free birds and they try to do things which affect the discipline of the school . Same happens in a business .

Customers feel they will get their order in the best form as the owner is present and he doesn't want to lose customers or reduce profit so the owner will force the employees to give the order in best way possible .

A personality cult means the way in which the leader controls the organization through force of personality and the control of communication channels. The negative effect of personality cult is that people rely on a single person so much that it becomes nearly impossible for them to work without his advice or instructions. This only works when a person is really smart just like some great business persons of this world.

It Is possible for customers to create a personality cult around the owners of the business and it even happens . Customers sometimes prefer to deal with the owner who is smooth to get better discounts rather than the owner who is hard to discuss with.

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