Case Six: Staffing A Small Business

CASE SIX: Staffing A Small Business

By Mike McLoughlin,
Youth With A Mission, Marketplace Mission
Visit the Scruples Small Business Forum at www.scruples.net for more information.

After working with Mark on the development of their budget, DJ was able to project an initial profit of $200.00 per month and in six months time that profit would increase as the business increased to $400.00 per month. With that profit projection DJ was able to provide Mark's return for his capital investment and he was also able to provide for his growing family now that Marlene was again pregnant.

DJ and Marlene moved onto Mrs. Muleko's property so that they could be near the business and supervise the five employees. After the first few months of operating the broiler chicken business, sales were going very well and DJ was experiencing only a few minor problems. However, one morning he went out to supervise the employees and found them sitting together around a fire. He asked them why they were not at their work and the senior employee, Jacob Mwamba, stated that the employees were not going to work anymore unless he paid a higher wage since they could see that the business was doing well. Jacob would never have dared to complain to Mr. Muleko because he knew that he would be immediately dismissed. Now that DJ was the boss, things had changed and Jacob felt the employees deserved a better wage. Mr. Muleko had always paid the workers the going market rate for farm labourers of $15.00 per month. However, DJ knew very well how difficult it was to survive on that wage. He also knew that some of th employees used to regularly help themselves to a few broiler chickens every month without Mr. Muleko knowing about it.

Case Problem:

Develop a proposed solution for DJ to present to his workers as a fair wage settlement.

a. What is a reasonable and fair wage settlement for his employees?

b. What additional benefits could he provide?

c. How could he improve the working conditions?

CASE SIX SOLUTION
A. What is a reasonable wage settlement?
Answer A: $20.00 now, $30.00 after 6 months
Answer B: $30.00 now (But can you afford it?)
Answer C: $25.00 now plus other benefits.
B. What additional benefits could he provide?
2 Bags of Corn Meal.			Bonus for Increase Profit
2 Chickens each/month.			Onsite Day Care for Children
2 Bars of Soap/month.			Medicine & Schooling for the Family
Gardening at the Plot.			Free Working Boots.
Free Fertilizer!			Free medicines
C. How could he improve working conditions?
Hold regular meetings with employees.
Open the books to employees.
Tell them what is going on & where money is going.
Develop personnel policies.
Proper job descriptions.
Regular performance appraisals.
Grievance procedure.
Ask them what needs improving & how to improve.

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