SMALL BUSINESS NEWS _________________________________________ 
VOLUME 20, No. 9 * September 1995

======================== TOP OF THE MONTH =====================

Cayetano Doing What No Other Could Do
BYE BYE UNION DOMINATION IN HAWAII?

Only President Richard Nixon, a conservative, "anti-communist"
Republican, could have opened China and its communist regime to the
U.S. during strong anti-communist feelings in 1972; only liberal,
pro-union (union-backed), big government Democrat, Governor Benjamin
Cayetano could start the process to break up state government's
stranglehold, as well as the impact of the HGEA and other public worker
union domination in Hawaii during 1995.

It is unprecedented: the first multiple layoffs of state unionized
workers in Hawaii's history have been announced by Cayetano's
Administration. In a slug of irony, it is the union that coerced its
members and the public to support Cayetano's election last November,
(HGEA) that may be the first to feel the indignity of losing its
political grip on this State.

This could be a Labor Day like few others in Hawaii's past. If the
Administration stays the course and doesn't succumb to union pressures.
The winds of change are swirling; there may be hope yet that Hawaii can
reverse its anti-business climate and get back on the path to economic
prosperity. If the 40-year death grip on this State's economy can be
loosened.

Priority budgeting is coming to Hawaii. Privatization is on its way.
Smaller government is to be a reality. Hawaii's hostile business
climate may improve quicker than expected.

The unions may choose to attack Cayetano, but it is the arrogance and
avarice of union bosses, and their political cronies, not the rank and
file, that has brought this condition to the fore. Former Governor John
Waihee, another union creation, caused the fiscal and economic excesses
that brought this situation about; Cayetano, if he stays the course,
has the ability to steer the state in a new direction; one that will
ultimately benefit both private and remaining public sector employees.

___________________________________________________

Share N' Tell Business Forum September 20

INCREASE SALES, LOWER COSTS; SURF THE NET AND SATISFY CUSTOMERS

SBH Members and their guests will have an outstanding Share N' Tell
Business Forum program to choose from on Wednesday, September 20, from
10:30 a.m. to 1:30 p.m. at the Oahu Country Club in Nuuanu. (SBH's
unique Share N' Tells have been held from 1982 until 1995 at the Kahala
Hilton Hotel until its closure for major renovations and ownership
change at the end of January). SBH knows that members will enjoy the
beauty and fine service at OCC this month.

Please note, that because of the location, a maximum of 70 persons can
be accommodated and it will be first come, first served only. Advance
paid reservations required.

There are 8 outstanding table topics to choose from, each designed to
improve your business while lowering costs. Facilitator Cliff Slater
will help you determine where the edge of your business is, and how to
recognize signs that you're there. Additionally, there will be
marketing and sales assistance, tips to help you hire better employees,
how to improve your customer relations and business surf the internet.

SBH Share N' Tell Business Forums are designed to help you do more
business and solve problems. They represent one of your major member
benefits.

Members are encouraged to bring guests to this month's event.
Networking, business socializing and education are part of each SBH
Forum. But reserve now!

You can choose from among the following 8 table-topics (please list
both your first and second choices) and excellent business facilitators
on Wednesday, September 20 at the Oahu Country Club:

"Knowing Where Your Business Edge Is," Cliff Slater, Maui Divers of
Hawaii, Ltd.; "Customer Satisfaction: How to Train Your Employees"
Cindy Rasmussen, Worldwide Store Fixtures.; "Practical Tips for the
Sales Professional," Claude Doughtie, Kaeser and Blair, Inc.; "Meeting
Magic: How to Conduct a Successful Meeting," Pamela Gottlieb, Shared
Resources; "Motivating Your Sales Force," Bob Baer, Robert J. Baer
Marketing; "Marketing Your Business on the Internet," Robert
"Rabbett"Abbett, H-4, Hawaii's Data Super Highway; "Winning and
Collecting in Small Claims Court," Paul Swengler, The Law Book Store ,
and "An Alternative to Paying Income Tax" Dan Sumberaz, CPA, The Proper
Perspective CPA Services.

Members are also encouraged to utilize the SBH business exhibit tables
and to bring brochures, products, or complimentary items for other
members. There is no additional charge. It is a good opportunity to
host employees or business associates as your guest. A full luncheon
program with introductions of all participants completes the 3-hour
business Forum.
    
The cost of the SBH Share n' Tell Business Forum is only $25 and
includes the entire program, luncheon and parking. It will be a good
business investment.

___________________________________________________


SBH SUES CITY OVER SECRET RAIL SETTLEMENT

Joining columnist Robert Rees and former City Council Chair Arnold
Morgado, SBH's Sam Slom, filed a lawsuit against the City & County of
Honolulu August 1, for the release of "secret" settlement details
between the City, and Oahu Transit Group (OTG), over the failed rail
transit scheme three years ago. Colleen Sakurai & Randall Sing
represented the Plaintiffs. OTG had sued the City for $19 million,
based on promises made by the City to OTG, and for money advanced for a
City-suggested "citizens group" pr scheme to drum up support for the
fixed rail construction project.

A Disputes Resolution Board in San Francisco ruled the City owed $9
million to OTG, but details were secret. Taxpayers stand to foot the
bill. Plaintiffs seek to make public all exhibits and testimony in the
matter.

___________________________________________________

Saturday, September 9
HARRY BROWNE TO SPEAK TO LPH

Best-selling author, ("How I Found Freedom in an Unfree World," "You
Can Profit from a Monetary Crisis"), economist, investment analyst and
lecturer, Harry Browne, will keynote the '95 Libertarian Annual
Conference, Saturday, September 9 at the Ala Moana Hotel, Plumeria
Room. The conference (4-9pm), program and dinner are open to the
public. Browne has announced he is running for President on the LP
ticket in '96.

Browne is the author of a new book, "Why Government Can't Work." He
will speak on that topic at the dinner portion of the program, at 6 pm.
Other local Libertarian business leaders will speak during the
Conference too.

Cost for the Conference is $25 in advance or $30 at the door (if space
is available). For information and reservations, call Dr. Blase Harris,
M.D. at 595-8261.

___________________________________________________

VISION 2000 HEALTH CARE CONGRESS MEETS SEPTEMBER 8

A community-wide effort to address health care issues related to cost
containment, while assuring health care access and quality are
maintained or improved, is the goal of "Vision 2000," a coalition of
community leaders. The Vision 2000 Planning Committee organized in
early 1994 and includes Small Business Hawaii. A permanent private
Hawaii Health Council will begin operating this month and includes
representatives from business, government and labor.

Vision 2000 will hold its Health Care Congress to review, amend and
adopt action plans involving many areas of health care and delivery
developed by the Planning Committee during the past 18-months.
Participants will have an active role in shaping the final adopted
policies.

The Congress will be held at the Sheraton Waikiki Hotel, Friday,
September 8, from 8 am - 5 pm. Many community speakers and health care
providers will take part including, Governor Cayetano and keynote
speaker, Dr. Gail Wilensky, senior fellow of Project Hope, an
international health foundation, and an internationally recognized
expert on health policy and financing issues. She will speak at lunch
on, "Inside Washington- -the New Republican Majority- Where Are They
Going?" It promises to be a thought-provoking update on the health care
issue.

The cost of registration is $50. For information, contact the 
Honolulu County Medical Society at 536-6988. SBH is participating 
in this event and urges business employers to do the same.

___________________________________________________

Nov. 3 at Hawaiian Regent
BUSINESS PLANNING FUNDAMENTALS

Wouldn't you like to learn more about sexual harassment laws,
occupational safety and health problems, the disability act and taxes
that can impact small businesses? The Chaminade University Tax
Foundation and Chaminade University of Honolulu are sponsoring
"Fundamentals for Business Planning,"a one-day seminar geared
specifically toward small businesses.

Join Roy M. Adams, attorney at Schiff Hardin & Waite of Chicago when he
does a presentation on, "Investment Driven Tax Planning;" Barbara A.
Petrus, attorney at Goodsill Anderson Quinn & Stifel of Honolulu,
covering "Sexual Harassment--- -Who's Sorry Now;" Greg S. Thorp with
the State Department of Labor and Industrial Relations speaking on,
"Safety and Health Programs: Can Employers Become HIOSH Proof?" and
Bruce M. Clark, president of Accessibility Planning & Consulting, Inc.
of Honolulu, discussing, "The Americans With Disabilities Act-
-Avoiding Litigation and Cost Containment." William S. Villafranco and
Peter DeLisser of Alpha Investment Management, Inc. of New York, are
the luncheon speakers.

For a brochure on this seminar, or more information, call June or Gail
at Chaminade University Tax Foundation at 946-2966 or fax 943-3140. The
special $50 SBH member rate is good only until October 15; thereafter
the fee is $95. Proof of current SBH membership required.

___________________________________________________

REDISCOVER HAWAII KAI

On Veteran's Day weekend, November 11- 12, Koko Marina Shopping Center,
Hawaii Kai Towne Center and Hawaii Kai Shopping Center will jointly
host a grand community-wide celebration to commemorate the long-awaited
completion of Kalanianaole Highway.

The two-day extravaganza, themed "Rediscover Hawaii Kai," will offer
lots of fun and exciting activities, food and entertainment for the
whole family. The event will celebrate the end of construction and
reintroduce residents and visitors to the many activities, attractions,
restaurants and shops in the Hawaii Kai area.

Over the course of the weekend, various events will be held
concurrently at all three shopping centers. Plans are being made to
provide a public ferry service across the Marina and ground
transportation so participants can conveniently enjoy all activities.
The goal is to create a thoroughly memorable experience unlike anything
previously done in Hawaii Kai.

The idea for the celebration began with Hawaii Kai resident Murray
Luther, who is spearheading the planning process. Luther is no stranger
to planning major public events. Before his retirement, he coordinated
two World's Fairs, in Seattle and Spokane, WA. Now, he's turned his
sights on creating a fitting celebration to rededicate Hawaii Kai, East
Honolulu's most vibrant community.

Organizers plan to sell buttons in a program similar to the HVB Aloha
Week Ribbon, to help defray the cost of producing the celebration.

The shopping centers are joined on the planning committee by
representatives of the State Department of Transportation, the State
Legislature, Hawaii Kai Rotary Club, Small Business Hawaii and the
Lion's Club.

___________________________________________________

WHITE HOUSE DELEGATES TELL ALL

The Women in Business Committee (WIBC) of the US SBA, in cooperation
with NFIB, Small Business Council and SBH, presented an August 16
breakfast meeting on the "Progress and Prospects for Small Business."
The Pacific Club Forum featured 8 of the 15 Hawaii small business
delegates to the recent (June) White House Conference on Small
Business. Local media coverage in June was inadequate.

The delegates reviewed key resolutions adopted in Washington and
delivered to the President and Congress. Members of the new
Implementation Task Force discussed follow up efforts to bring the same
initiatives to the state and county levels, and answered owners'
questions.

The delegation announced plans for a Hawaii Small Business Congress to
be held in Honolulu November 10-11, 1995.



====================== SMALL BUSINESS VIEWS ======================
  
By Sam Slom, President, Small Business Hawaii

Outrageous, is the only way to describe the excessive outpouring of
concern and media ink for the 600 public employees (out of a total of
68,000) given notice of possible layoffs-- the first such action since
statehood. The initial layoffs were of "vacant" positions. That's
tough. It is difficult for anyone to lose a job in tax hell Hawaii, but
where are all the tears for the thousands of private employees who have
lost their jobs, BECAUSE of the bloated State government payroll? And
where are the tears for the hundreds of job-creating, tax-paying
businesses that have gone bankrupt, shut down or forced to relocate to
the mainland because they could no longer afford to support the BLOATED
state government bureaucracy? Let's get our priorities straight. The
tears are for the death of the HGEA union stranglehold on our
government and economy. Boss Okata of the union had the chutzpa to
demand a GET tax increase to save the jobs of his union public
employees. "Union forever," has a different meaning in the People's
Republic of Hawaii. Public employees have gotten long notices of
possible layoff (90 days), extra help and training and continue to
receive benefits-- at taxpayer expense. None of this accrued to laid
off private sector employees. And the elaborate (and laughable)
"bumping process" is designed to protect those who have been in
government the longest -- the encrusted bureaucracy-- while removing
the newest, youngest and lowest-paid employees. You can't eliminate
just a few state jobs and hope for a major budget savings; especially
when you make it clear to the unionized workers, that they may be back,
just as soon as the economy improves or money can be found.

Desmond Byrne of Common Cause said it best: "the Governor's operating
on the problem like a surgeon who is not board certified."

The State Tax Department's recent get tough policies and raid on small
businesses, while continuing to make deals with bigger businesses (and
those that have been loyal Administration campaign contributors in the
past, is bogus. It took 9 special tax agents to strong arm their way
into a small business gas station to confiscate $800 in cash for
alleged back taxes owed from the bewildered owner while customers
watched. Book 'em, Dan-O.

And State Consumer Protector, former Legislator and Judge, Russell
Blair, wants businesses to cease their "deceptive practices" of adding
the General Excise Tax (4%) to the final cost of sale items (because
the GET is not a sales tax but rather a gross income tax on the
seller). 'Course this flies in the face of previous IRS, state tax and
attorney general rulings and decades of accepted practice. Hey, Russ,
we could solve all our problems: ELIMINATE THE G.E.T.! As we in SBH
(and PBN's George Mason) keep saying: NO BUSINESS PAYS TAXES; ONLY
CONSUMERS PAY. So, it is the State that is deceptive in having
taxpayer-voters believe they don't have to pay taxes and that they are
entitled to a free lunch.

The State's frivolous lawsuit against State Farm Insurance, brought by
Insurance Commissioner, and former State Legislative Judiuciary
Chairman, Wayne Metcalf, is ludicrous and an insult to the First
Amendment. The independent hearing officer thought so too. These folks
in state Government obviously don't have enough work to do. (But
they're not on the list of layoffs).

I'm not a member of the Bumpy Kanahele fan club but I think he has
gotten a raw deal from the government. He was seized-- a "political
prisoner" he says-- and denied bail because he allegedly harbored a
(tax) fugitive and is a "flight risk." Flight risk? Murderers and
rapists here have more walking rights. Then, the government started
talking about guns, stashed weapons and militia in the "Nation of
Hawaii" in Waimanalo. Give us a break! Can we expect Janet Reno riding
in on a tank? The government's actions will only make Bumpy -- and
sympathizers -- stronger, and show government's paranoia concerning
sovereignty for all of us.

Who says there is no interest in Privatization here -- the daily media,
the HSTA? Reason Foundation's Bob Poole returns to Hawaii from Los
Angeles with William Eggers Tuesday, August 29 at the Pacific Club,
sooner than expected, because there is privatization in the air in
Hawaii.

Orson Swindle, who is now doing a twice daily 2-minute report on KHVH
radio (7:20 am & 5:20 pm) got mega media coverage on CNN during the
Ross Perot get together in Dallas. He also butted heads editorially
with liberal Michael Kinsley and the latter is bleeding. Swindle is
expected to retire Congressman Neil Abercrombie in '96.

Pacific Business News quotes a recent U.S. Bureau of Labor Statistics
study showing Honolulu rates next to last -- #99, LA is #100- in
employment growth from 1992- 94, and one of only 4 of the areas
experiencing a decline over the 3-year period. Happy Labor Day!
    
___________________________________________________

HOW ABOUT A SMALL BUSINESS UNION?
By Susan Kinsler, Aloha Indoor Tanning

After writing last month's article explaining why the Tax on the Tax
(that all small business owners must pay) is so unfair I was accused of
being incredibly naive by a very powerful man who's been around Hawaii
politics for years. I was told that in Hawaii the Unions control
everything. "If you want to run for office and you aren't a friend of
the Unions - you'll lose. Once in office - you won't want to do
anything that upsets the Unions for fear of not being re-elected. And,
if you have an idea you'd better get the approval of the Unions before
attempting to implement it."  He went on to state that that's why the
Tax on the Tax will never change. "Whenever the State needs money the
first thing that's ever done or thought about is raising the GE Tax.
The Unions don't care about the Small Business Owner. Small Business
Owners do not contribute to Union treasuries nor do they vote for Union
officials." I half heatedly listened not wanting to believe a word that
was said.

Then I read the next day's front page headline, "HGEA Chief Asks To
Save Jobs by Raising Tax..." The article went on to quote Russell
Okata, executive director of the 23,000 member Hawaii Government
Employees' Association. "Okata's proposals include: Increase the
state's 4% general excise tax an unspecified amount to raise at least
$30 million a year." Reading that article was a sobering experience. It
takes a while but I finally "get it." Mr. Okata has publicly declared
war on all Small Business Owners in Hawaii. It's us against them and
that's tragic. A true Civil War where family members must fight family
members for what family doesn't have a near and dear who's a government
employee and/or a small business owner? I for one hate to fight for my
rights while selling out the rights of others but that's the position
that Mr. Okata has put us all in.

In our effort to survive, we'll have to mention the obvious. How much
revenue for this almost bankrupt State are the government employees
responsible for? Just exactly how much money do they bring with them to
their jobs and then turn over to the State? Now, how much money does
the State receive from each Small Business Owner each month? If the
State were to raise the GE Tax, many of us would be forced out of
business. The how much revenue would the State receive? Hey Mr. Okata,
does the saying, "...biting the hand that feeds you" or "killing the
goose that lays the golden eggs" have any meaning for you? This is what
some call a "no brainer."

The only logical solution to the almighty Unions in NOT to fight them -
but to JOIN them. Let's become a Union of Small Business Owners. As
EMPLOYEES of this State (tax collectors) who don't even make minimum
wage - we'd probably qualify. Then we could go on strike. What would it
do to this State if every Small Business Owner withheld their GE Tax
for ONE MONTH? What would it do to the Newspapers if every Small
Business Owner withheld their ads (display as well as classified) for
One Month? Do you think they'd start writing about us and our causes
and maybe even print some of our letters? Ignoring the White House
Conference on Small Business was shameful on their part. Let's show the
Okatas et al who really has the power. Let's prove that we're a force
to be reckoned with. Let's think UNION!

_______________________________________

HAWAII'S FI$CAL HEALTH by Fred Hemmings

The Honolulu Advertiser article by Bill Kresnak (July 30) regarding
the Fiscal crisis is indicative of the problem and the Advertiser's
complicity. I am not a trained journalist, but I do know that there are
two sides to the story and the media should be FAIR in reporting the
whole story.

In local politics I have heard said, even by reporters, that the
Republicans are irrelevant. Not so, though it appears the main stream
media is trying to make it so. Feelings aside, let's examine some
facts. First of all, I am grateful that at least there was an article
about where the deficit came from. Politicians who mess up sometimes
cover by saying "let's not play the blame game." If we are faced with a
government and economic crisis, we must find the cause and remedy. The
remedy being the side of the story the Advertiser failed to report.

Here are facts that may have been pertinent to the story: 1. Ben
Cayetano as a legislator and Lt. Gov. was a leader in creating the
budgets that are driving us bankrupt. Even A+ is not means tested,
costing many millions. I did offer an alternative called "parents
choice" that was means tested and run by the private sector via
vouchers. Check your files. 2. Ben Cayetano is making budget cuts
because he has to. Where was he when Republican legislators decried the
bloated budget that EXCEEDED constitutional spending limits? The
Democrats did knowingly circumvent spending limits. In some states that
alone would be a crime. 3. I did vote no against the bankrupting
budgets and the boondoggles such as the "Housing" initiative. The
Advertiser reported on it. 4. The current budget increases spending by
11% or $600,000,000 per year with no reform or "change" in sight. Ben
Cayetano is a big spender. Republicans voted NO. 5. No one has reported
that besides excessive spending that another reason for the deficit is
declining TAX revenues. Once again check the records, I voted against
Waihee and Cayetano TAX increases. I offered TAX cuts. Cayetano and the
Democrats are advocating tax increases to reduce the deficit, tax
increases on the poor I might add. Tax revenues are down because of
excessive taxes. Cutting taxes could increase revenues. Reagan and
Kennedy tax cuts did increase revenues to government in all levels of
income. Conversely, the "luxury" tax of the 1990 Fed budget destroyed
jobs and reduced revenue. 6. Every problem we are faced with is a
result of failed Waihee, Cayetano and liberal Democrat policy which I
consistently opposed and offered a positive alternative to. 7. I am
amused that you allow Ben to use terms "government is too big and
inefficient." Readers should recall Ben's "big and inefficient"
sheriff's dept. Are the same guys still there?

Now you are saying, who cares? I am out of office and no longer am
relevant. Not so; I am very active fomenting a conservative revolution
for Hawaii. The last election substantiates that 63% of the voters are
yearning for a change, an honest change will NOT come from Democrats
ideologically wedding to the government formula that has created the
problems.

The Advertiser endorsed and supported Waihee and Cayetano. Editors
should NOT interfere with fair reporting of the whole story concerning
Hawaii's government crisis. Who is speaking out for and leading the
conservative cause in Hawaii? Whether the liberals and some of the
media like it or not there is a conservative revolution going on
nationally. My intention is to have the same happen here.

Hawaii deserves to be liberated before Cuba.

_______________________________________

EMPLOYEE PERFORMANCE APPRAISALS

By Pamela Gottlieb, Shared Resources

Communication with employees enables them to do their jobs more
effectively. Part of this process, when used correctly, is the
Performance Appraisal System.

Appraisals should be used as a management tool to clarify mutual
expectations, maintain effort toward achieving set goals, set
objectives for the upcoming performance period and supply feedback to
the employee about their overall performance as well as performance in
specific areas. Regular feedback, good and not so good, is necessary to
develop and maintain productive employees. When reviewing the appraisal
with an employee, nothing indicated on the form should come as a
surprise tot he employee.

The saying goes "If you don't know where you're going, no wind is
favorable to you." This is also true of employee performance. If an
employee does not know what is expected, how can they be expected to
perform? Employees need and deserve to know how they're doing and what
they can do to improve their performance, as well as their
opportunities for advancement and salary increases.

The formal appraisal process also gives the manager the opportunity to
reinforce corrective actions, additional education or training needs
that may be required for the employee.

Following are ways that you can enhance your performance appraisal
system, making it an effective management tool.

* Appraisals should be conducted on a regular basis and at least once a
year. Quarterly or semi-annual appraisal allow for more communication
and opportunity for development.

* Appraisal forms should be simple and easily completed. If the forms
are cumbersome and difficult, they will not be utilized properly, if at
all. Everyone is trying to do more with less these days, so time must
be well spent.

* Appraisal forms should evaluate objective as well as subjective
performance qualities. Objective performance includes attendance and
punctuality, while subjective performance includes the ability to get
along with others.

* The appraisal forms should be directly tied to the individual's job
description. Areas that are critical to the successful completion of
duties associated with the position must be clearly defined. You
shouldn't rate someone's ability to get along with others if they never
have contact with other people.

* Schedule a time to review the appraisal with the employee in advance,
giving them time to prepare. Set aside 30 to 60 minutes of
uninterrupted time for this session. Set the employee at ease when you
begin. Employees are understandably anxious about this process,
especially if the possibility of a raise exists.

* All managers and supervisors who complete performance appraisals must
be trained in how the ratings work and what they mean. All department
and managers need to be consistent in their definition and application
of the ratings. A "4" must be a "4" in everyone's eyes. Inconsistency
in this area can be cause for lawsuits.

* Ratings and comments should be honest. Don't try to be nice to the
employee, as this is supposed to be an objective evaluation of the
employee's performance. Rating the employee higher than they are
actually performing can get you into serious trouble.

* Don't make promises that you can't keep. Don't tell the employee that
their promotional potential is a "10" if they don't have the skills or
training to be promoted. Instead, offer them concrete options and help
them to create a plan that will get them to the next level.

* Discuss the definitions of the ratings with the employee, giving
examples. It's important that you both have the same understanding of
the terms and expectations.

* Use examples to illustrate as many points as you can, both for what
the employee is doing right and what they are doing that needs
improvement. Use non-subjective language whenever possible. Instead of
saying "You're always late," state "You were late 14 times last
quarter."

* Focus on performance and behavior, not on the person. Human nature
dictates that if someone is "attacked," they immediately become
defensive. This atmosphere is definitely not conducive to improving
performance or employee relations.

* An average performer (not employee) should be rated as an average
performer. It is perfectly acceptable for a stellar performer to be
excellent, however, none of us are perfect. always strive to have at
least one area that the employee can concentrate on for improvement
during the next performance period. If an employee's performance is
sub-standard, be certain to document it, and focus them on the two or
three areas of greatest importance for immediate improvement. Too many
things to work on at the same time usually means that nothing gets
positively improved.

* End the performance appraisal on a positive note, even if the
appraisal has pointed out several flaws in the person's performance.
You want the employee in a state of mind that makes them want to get to
work on improving their performance.

* Your expectations must be clear, as well as the consequences of them
not being met. One of the worst things that can happen, should you find
yourself in a situation where you have to fire someone for poor
performance, is to have years of satisfactory performance appraisals in
the employee's file and the employee with no clue as to why they are
being let go. This is a breeding ground for lawsuits!

*  An effective instrument to facilitate communication and
understanding is an employee's self evaluation of performance. Most of
us tend to be highly critical of ourselves, and as long as the employee
must detail both their strengths and their and their weaknesses, this
process achieves its objectives. Let the employee let them tell you
where they want to go. By allowing the employee to take an active
rather than passive role in the appraisal process, confusion and
misunderstandings can be drastically reduced and the employee tends to
feel more a part of things and a stronger sense of commitment to the
company. Everyone wants to be listened to, including your employees. We
all believe that our comments and input are valuable and important.

A properly executed performance appraisal system can enhance employee
performance, increase vital communications, correct unacceptable
performance and provide you with a solid background for promotions,
raises and, when necessary, disciplinary action.

_______________________________________

EQUAL REGULATIONS AMONG THE TRADES.... NOT!

by Michele E. Harris, Licensed General Contractor 
President and P.R.M.E., Blue Moon Builders, Inc.

This state has made it their business to regulate just about every
vocation. The intent of this is often debated (and questioned; Thank
you Mr. Rowland--see SB NEWS, August, 1995), as the pros and cons of
licensing are numerous and considerable. Whatever the reason,
government regulation of vocations should allow for equity between
trades, as it would be unreasonable and unfair to consistently hound
one profession more than another... or is that the case now?

Our leaders missed the boat, and likely without accident. Take a moment
to look in the white pages of your phone book under the Hawaii State
Government; DCCA (page 8). There is one highly influential vocation not
regulated by our state. They wield more power than any of the other
listed professionals; when your doctor is no help, you will seek aide
from this service. Yet they are precluded from accountability to the
public and our government.

Why? Perhaps because they make up the majority of our governing body.
Maybe since they know (and can manipulate) the rules better than the
rest of us they consider themselves above public reproach.

Who belongs to this elite group? Attorneys. And because they claim to
oversee themselves (via the Bar Association) they are absolved of
accountability to the public.

I have been blessed with talented and attentive legal representation;
and have not found need to file a complaint against a legal practice. I
know of others who have suffered from legal malpractice and it seems
the only avenue for solving this is filing a lawsuit. Convenient, isn't
it? Unregulated and undaunted by RICO, attorneys collect fees to
"reprimand" colleagues.

Any other industry would love to be responsible for their constituents.
There are associations in almost every profession that are operated by
leaders in that trade. The ABC, BIA and GCA are three examples in the
Building Community. Trade associations are more likely better equipped
to regulate and reprimand professionals within their field of
expertise. And they probably wouldn't charge $200+ an hour to pursue
questionable activity.

According to the DCCA, the courts regulate and reprimand attorneys.
However, the "District Court Information Specialist" does not take
complaints and/or inquiries regarding attorneys and will direct your
call to the American Bar Association. I doubt that the ABA is an
uniformed of industry standards and practices of attorneys as RICO
officials are when they investigate complaints against other vocations.

Let's even up the playing field. Make all vocations equally accountable
to the state or grant each trade the freedom to regulate their
colleagues.

_______________________________________

HOW TO PUBLISH YOUR BOOK by Rich Budnick, Aloha Publishing

Have you always wanted to write a book? People respect authors.
They'll look up to you as an expert on the topic you have written
about. Furthermore, it gives your business credibility and sales
potential that you can't buy with any amount of advertising. That's
good news for entrepreneurs. Not only will you attract attention with a
book publicity, but you can use your book as a "thank you" gift to
encourage business with current and future customers. Today, thanks to
computer technology and desktop publishing, thousands of people are
enjoying the dignity of being called "author". If you've got a book
inside you that's anxious to be published, then join the crowd, as
several SBH members have done. Most people write a book for one of
three reasons:

1) they write for love of the subject, without concern for earning
profit; 2) they want to make a lot of money writing about a subject
they think will sell; and 3) a combination of a desire to write for
love and profit.

Some people have called me Hawaii's most successful self-publisher.
I've written and published three books which have sold 24,000 copies,
including a former #1 Hawaiian best seller. More than that, I've taught
others the lessons I've learned and helped many people experience the
joys of publishing. Some authors choose to find a publisher, while
other prefer to self-publish. If you decide to find a publisher, you
may have to find an agent first, or your manuscript will be returned
unopened or unread. On the other hand, fussy editors commonly nit-pick
numerous changes on every page of your book. The publisher pays for
your book printing, and you wait for a year or longer for your book to
be printed. Then you sit back and wait for the royalties, which usually
don't amount to much. Most mainland publishing firms won't support your
book with an advertising or publicity campaign unless they think your
book is likely to sell tens of thousands of copies. For 90% of all
authors, this sad truth is a bitter pill to swallow. So...if you're
going to do all the marketing and publicity yourself, why not
self-publish? Self-publishers control the entire process. You hire
someone to layout your book, hire a printer, and bingo, 6-8 weeks later
your books arrive. Now the real work begins with marketing your book
for sales. Don't lose sleep waiting for book reviews that may never
come. If you've invested a year or two of your life and $3,000-$20,000
in researching, writing and printing your book, you must learn how to
gain news attention without relying on book reviews. Bookstore sales
are directly dependent on newspaper and TV stories about your book. You
must recognize the news value of your book, and maximize every
opportunity to sell to carefully targeted audiences. The odds are, you
may sell 1,000 - 5,000 copies of your book. Few books sell 10,000
copies unless you have a topical book, you know how to obtain
publicity, and you have an exceptional marketing plan. If your tropical
book has a national audience, then you have a good chance to sell 5,000
or more books. I've counseled authors who know their subject, but need
help in developing an attention-getting cover (the most important part
of your book), sell a news worthy ideas to a reporter, create a direct
mail list of potential book buyers, and develop an effective marketing
plan. You've got to know your audience, then seize every opportunity to
inform them about your book. If there's a book inside you: write it,
publish it, and sell it!

Editor's Note: SBH member Budnick has written and published three
books: Hawaiian Street Names, Maui Street Names, and Stolen Kingdom. He
teaches book publishing workshops and provides consultations about book
publishing. You may call him at 395-1161.

_______________________________________

IS AT-WILL EMPLOYMENT AT RISK? by Kawika Holbrook, ALTRES Inc.

It was once a cornerstone of free-enterprise philosophy. Today it is
almost dead.

Until the early '80s, most states recognized the common-law doctrine
known as "employment at will." The "at will" principle held that
someone could be fired for a good reason, a bad reason, or no reason at
allas long as the firing wasn't discriminatory or doesn't violate a
collective bargaining agreement.

By 1989, however, courts in 45 states accepted several theories that
eroded the "at will" rule, giving rise to claims for wrongful
termination. Among them was the "implied contract" exception, which job
rights may be inferred when no explicit contracts exists. Sometimes
rights are construed from poor language in employee handbooks. Calling
workers "permanent employees" is an example juries often hear.

There is no federal wrongful-termination law, so fired employees bring
action in state courts, often adding on a discrimination claim. In
fact, multiple charges are the norm. Rarely do claimants sue for
discrimination alone. They also sue for battery, for negligent hiring,
for negligent retention, or intentional infliction of emotional
distress. All of these have unlimited punitive and compensatory
damages. And they can be brought against companies and individuals
alike, so managers' personal assets are now fair game.

Have a labor attorney review your company policies, procedures and
handbooks. And be wary of companies that promise to absolve you of
termination liabilities. The only way they can do that is if they hire,
employ and fire the people you manage.

Kawika Holbrook researches employment issues for Honolulu-based ALTRES
Inc. ALTRES employs workforces at thousands of companies nationwide.


_______________________________________

HAWAII'S LEGISLATORS BENEFITTED FROM MILWAUKEE CONFERENCE
by State Senator Whitney Anderson (R)
 
As one of the legislators who attended the Annual Meeting of the
National Conference of State Legislatures I would like to take this
opportunity to respond to the criticism voiced about this trip. During
my years in the Legislature I have attended a number of these Annual
Conferences because they afford those of us who represent the most
isolated of the fifty states an opportunity to learn. We gain a great
deal of valuable information from the lectures, forums and
presentations and from our discussions with legislators from the other
states on how they are dealing with basic problems that are common to
us all. In addition, this time we were able to consider the ways in
which the various state governments are approaching the question of the
new Federal-State relationship under the present Congress, most
particularly "block grants". The inter-change of ideas and views is a
positive contribution to our ability to deal with the issues that
Hawaii faces.

Because of our distance from the mainland it is difficult for us to
attend the many regional conferences and workshops that the NCSL offers
during the year. Therefore, this Annual Meeting is our best opportunity
to keep abreast of current activity in the rest of the country. This is
most definitely a "working" meeting and one or two legislators could
not possibly cover all of the material presented. While there I
attended meetings that covered Model Legislation for Domestic Violence,
Federal Wetlands Regulation, Deficit Reduction and Federal Agricultural
Program, Unfunded Mandates and Federal Tax policy Affecting the States,
How shall Privatization be Evaluated?, Fundamentals of Sound State
Budgeting Practices, Guarding Against Domestic Terrorism, Building a
Re-Employment System, Ending Domestic Violence, among others.

I find it disappointing that the leadership of our political parties,
the Administration and the news media are reluctant to defend the
participation of legislators from both political parties in this
meeting when they are aware of the benefits that accrue to the
legislative process. We cannot practice a policy of ethnocentrism in a
world that is becoming more and more interdependent.

Finally, I hope that both the House and Senate leaders will designate
individuals to work on bringing one of the NCSL Annual Meetings to our
Convention Center. The attendance of over five thousand would be a real
contribution to its success and would introduce Hawaii to attendees
from all parts of the mainland.

__________________________________________

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