RONOLDO Case 6B

Ronoldo is a certified auto mechanic and he holds a Small Business Management certificate from a local college of applied arts. For six years he carefully saved his money towards buying his own garage. This became a reality with the recent purchase of Hal's Auto Repair.

Hal owned this successful business for thirty-five years and when his wife retired last year, he started making plans to sell the business and join her in retirement. Ronoldo heard that the place was for sale and entered into a long negotiation period with Hal. As part of the final deal, Hal agreed to stay on as an employee of the business for six months. For the last two months of this period, he would only work part-time as he eased into retirement.

Now, three weeks after taking over the business, Ronoldo is extremely concerned. The garage has four employees, other than Ronoldo or Hal: three mechanics and an apprentice. Every time that Ronoldo asks one of the employees to do something, they answer that Hal has already given them those instructions or that Hal has asked them to do something different. Twice, Ronoldo has gone looking for a mechanic, only to be told that Hal had given permission for that mechanic to leave early. And once, Hal sent the apprentice home at lunchtime due to lack of work. That day turned out to be one of the busiest.

Several times, Ronoldo has ordered parts for a job, only to find that double orders were delivered since Hal had ordered the same parts. A few times Hal has been talking it up in the office with people Ronoldo was never introduced to. He later found out that these were important customers. And now, today, Hal has gone home in a huff after finding out that Ronoldo plans to change the name of the garage. "Never would have sold it to you if I knew that's what you'd be doing," Hal shouted in front of the employees.

Ronoldo is considering his options.

1. What advantages could Ronoldo have expected from having Hal stay as an employee of the business? 2. What are the root causes of the current problems?

3. How could these current problems have been reduced?

4. What is the best course of action for Ronoldo to take now? Why?