Managing close personal friends

Submitted by David Brown
in

 Our small company (26 people) recently encountered an interesting dilemma when one of our managers asked to manage a close personal friend. Until now, we hadn’t considered the ramifications of friends (or relatives) working for one another. Our company handbook is silent on the subject.

At first blush, it seems unwise to allow managers to supervise their close friends or relatives. But the MT O3 model seems to encourage the development of close relationships between managers and their directs.

At what point does a personal relationship transition from supporting the management process to interfering with it?