The responsibility of setting and adopting a feasible dividends policy within the organizational culture in the NSS organization lies upon Bob and Rex as they are the present Chairman and President of the Company.However, they do need to co-ordinate and communicate with various entities within the organization including the advisory board, auditors of the company and the family members of the organization who are shareholders and employees of the company.

The non-employee family members of the owners of the business must not be consulted in the process. They are not the stakeholders in the company and involving them will likely blur the relationship between family and business and this might prove to be counter-productive for the company.Method and specific policies for making dividend decisions:

The family members involved in the business must be clear and aware about the mission statement, core objectives, long term goals, short term goals, their responsibilities and goals and their extent of involvement in the affairs of the business. The extent of understanding issues and challenges of the company and the ability of the members to communicate and co-ordinate with other management functions should all account for making decisions on dividends for the family members.

The substance of the case study has revealed risks that the fifth generation of the family of the owners will likely see themselves as investors rather than the owners of the company and this is not a healthy sign for the management of the company. These individuals might cash out on their holdings upon seeing significant capital returns therefore, the management of the company needs to make some adjustments in this regard.

Question 3: Should there be a different set of benefits for non-family employees than those available to family employees?


The incentives that the management of the company offers to the family members and the non-family member employees who work for the company are allowances, bonuses, wages and some extra benefits in terms of vacations, car parking, special dining spaces and others.

These are the basic things in order to motivate and to create loyalty among the workforce that works for the business and most certainly providing these services and benefits to the non-family member employees of the organization will not harm the prospects or the interests of the business.

This will assist the management of the company in keeping the employees loyal with the company as they will see some scope and progress for themselves by remaining attached with the company.

The management of the company should also allow and encourage the other non-family senior management of the organization in buying limited stakes within the organization as it will assist in motivating them because they will consider themselves a part of the team and organization as part of themselves. This will also serve the interests and prospects of the business positively as it will refrain them from achieving dominance within the organization because the stakes will be limited however, it will still promote their motivation and dedication with the organization.


The case study reveals that both Mike and Grant experienced several issues in resuming charge as the vice-presidents of the company after Keith had resigned from the job.

The other challenge that they faced was that their abilities were questioned by various individuals as they lacked the knowledge and skills of their newer roles and most of the managers feared their job security after their arrival.

The other significant issue that they faced in this transition of their roles was that the managers were too dependent on the previous vice-president of the company. They were expecting a lot from both of them due to their historical dependency on the previous vice-president of the company.

Mike and Grant should concentrate and improve their skills and knowledge on all these addressed issues as it is crucial for them to become better leaders of the business. They will have to improve their communication and co-ordination skills with the other employees and managers of the company in order to become better vice-presidents of the business as communication with managers and employees is critical for effective management and control of the business.

They will also have to increase their management knowledge and know-how regarding the working and role of the vice-president of the company as it is something that they lack currently. The other critical change that they will have to bring in the workplace environment is to motivate the employees and managers of the company regarding their job security so that they are able to work in a relaxed and no-pressure environment………………

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