You Make the Call-Situation 3

question 36

Essay

You Make the Call-Situation 3
At age 63, Michael Lipper sold his firm to Reuters. His assessment of the sale follows:
One of the reasons we sold our business to Reuters was because we knew we probably couldn't manage the technology of the future by ourselves. Any entrepreneur who builds a business for as long as I have would be dishonest if he did not suffer a certain sadness [from selling]. If [Reuters] make a wonderful success out of this, there may be some ego pain. If they muck it up, they've damaged our name and hurt our people.
Lois Silverman co-founded CRA Managed Care (now known as Concentra Managed Care). When the firm went public in 1995, Silverman's stake was over $10 million. After taking Concentra public, Silverman gave up all involvement in day-to-day operations. Along with 12 other successful businesswomen, she formed the not-for-profit Commonwealth Institute, to help women entrepreneurs set up boards and secure capital. She also became involved with a newspaper called Women's Business. She later told this story:
The other day a man said to me on a golf course, "I hope I hit this ball, because since I've left my business, I don't know what to do with myself." And I said to myself, "I'm so lucky."

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Definitions:

Herzberg's Two-Factor Theory

A theory that distinguishes between motivators (factors that cause satisfaction and motivation) and hygiene factors (factors that prevent dissatisfaction but do not necessarily motivate).

Hygiene Factors

Factors related to the work environment that do not necessarily motivate employees if present, but can cause dissatisfaction if absent.

Job Satisfaction

A measure of how content an individual is with their job, which can affect their motivation, performance, and loyalty to the company.

Two-Factor Theory

A psychological theory proposed by Herzberg that suggests employee satisfaction and motivation are influenced by two factors: hygiene factors and motivators.