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Business Practices - Mixing Business with Pleasure

The textbook questions posed by the student were:

1. Never mix business with personal matters "it just leads to damaged relationships, poor business decisions, or both." In what ways might this be a fair statement? In what ways is it unwise advice? Provide examples to support your views.

2. A fellow student says, "So, I'm not a good writer. But I have other places to put my study time. I'm a management major. I'll have secretaries handle my writing for me." Give this student your best advice, including the reasoning behind it.

Solution Preview

1. This is a fair statement in regards to equal treatment for all employees. Many organizations have nepotism policies; which prevent relatives and even those in romantic relationships from reporting to one another and have authority in the aspects of wages and working conditions. If a manager was interviewing three candidates for a promotional opportunity, one being his brother, and the job went to the relative - it is likely the other two candidates may feel the decision was tainted by the personal relationship. Even if the manager could justify why his brother was selected over the others, the appearance of favoritism could be extremely damaging for morale. ...

Solution Summary

This two-part solution discusses the pitfalls of mixing personal relationships with business transactions. Usually one or both suffer; personal relationships can be damaged and poor business decisions can be made. There are times when a close, personal relationship can benefit a business decision - it depends on the relationship and scenario. The second part involves a student opining he does not need to become a good writer in school because in his professional life, a secretary will do all the work. The analysis on this viewpoint is that any good leader must be a good communicator; both verbally and in writing. The solution is about 450 words.