MANAGING FAMILY BUSINESS -
{ A CRITICAL STUDY OF SIX FAMILY BUSINESSES }
Author: Prof. S. D. Bagade
Category: Human Resource Management
Abstract:
When family members work together, emotions may interfere with business decisions. Conflicts may arise as relatives see the business
from different perspectives. Those who are silent partners are likely to
judge capital expenditures, growth and other critical matters primarily. Those
engaged in daily operations are more likely to be concerned about transactions and
personnel matters. Obviously, there is potential for conflict. As there is a gap in
between expectations and performance, in some family businesses daily operations
are hampered by conflict; in others, the challenge.
A clear chain of command -- lines of authority -- for decision making. ! A clear plan to
accomplish goals and provide for orderly succession. ! Good communication among
family members and with non-family employees. These factors are important in a
family business because of the strong emotions that can arise and the confusion that
can occur in their absence. Rights and responsibilities are different at home than at
work, and it is imperative that family Language is personal, attitudes are subjective,
roles -- husband/wife, parent/child, family / relatives / in-laws -- are traditionally
defined.
