Developing Academic Skills for Business and Management - Literature review Example

Developing Academic Skills for Business and Management Developing Academic Skills for Business and Management Challenges facing Family Businesses in Asia Introduction Family businesses define a remarkable percentage of businesses in Asia, especially in countries such as China, India, Hong Kong, and Korea (Law, 2011). Economists have highlighted that the Chinese economy and the immense e growth that has occurred in the recent past depends on the success of family businesses. According to Townley (2000), unlike family businesses in other regions, Asian family firms are highly influenced by the Asian conservative culture. This means that children in the family do not overtake business leadership from their parents. Moreover, the protocol of making decisions in such family businesses is defined by cultural values. Notably, business practices in Asia are highly influenced by their conservative culture. Notably, family businesses have contributed to the rapid rise of economies in that region. Chrisman and his colleagues (2009) assert that although family businesses have been successful in the past, the business front is changing, and such businesses need to adopt modern models of governance is they are to prove successful. The article authored by these researchers presents a model of eight steps, used in the succession planning process of family business. Currently, family businesses in Asia are facing critical challenges that are likely to determine the future of the Asian economies. This extensive literature review will consider some of the challenges faced by family businesses in Asia. Researchers such as Ye, Parris, and Waddell (2013) who carried out an exploratory study of establishing succession in Asian family business have highlighted that family businesses in Asia rely on family capital and resources. These researchers carried out an empirical study that focused on six Chinese-Australian family businesses in an effort to analyse the factors that determined the succession decision-making process. From the study, it emerges that the interests of the business founders as well as cultural and individual values were of critical importance in the succession decision-making process. Moreover, the managing team as well as the executives of the business are family members. According to Spector (2014), these businesses integrate both family and business issues. This form of integration only translates to the fact that any negative pressure emerging from the family will affect the business adversely. Negative pressures may be in the form of family conflicts and difficulties in decision-making as highlighted by Chung & Chan (2012). In Asian family businesses, the authority lies with the parents of grandparents if they are still alive. This means that, the main decisions regarding the business are only limited to the elder members of the family. Although sons may have great business ideas, it is against their culture challenges their parents. They are compelled to remain obedient to authority from their parents and grandparents. In any case, only the elder members of the family controlling the capital and hence have the right to make critical decisions regarding the business. This form of authority has resulted in challenges in business governance. Lu and his colleagues (2013), highlight that the modern businesses require new governance models that can be more effective in the highly competitive business world. Moreover, businesses are compelled to take many risks unlike in the past. This may become a challenge for the grandparents and parents in the family business who are used to strategies that were effective in the past. The above is in accordance with the Asian culture, which forbids children from overtaking their parents in issues. Therefore, the cultural setup denies them an opportunity to learn business secrets. Au and his colleagues (2013) identified that in some situations, the issues facing family businesses emerge from failure to pass on business skills and experience to the younger generation. The purpose of their research was to understand the trans-generational entrepreneurship in her Hong Kong Company named Automatic Manufacturing Limited. Their study revealed that the company took measures of determining whether the second generation had the potential of taking over the business leadership. Therefore, the research highlighted that preparation for the succession process was of critical importance. Researchers in this field have identified succession issues as the most critical challenges in the Asian family businesses. It is evident that Asian family businesses do not consider training and mentoring the younger generation for business leadership when their parents retire or die. It is against their culture for the younger generation to request for such training as it translates to a curse on their family. This is because young people who are considering themselves as future leaders of the business are assumed to be wishing their parents were dead, as highlighted by Law (2011). Therefore, the issue of succession is not given the critical regard it deserves. Ye, Parris, and Waddell (2013) have identified that the failure to prepare for succession contributes to the decline of many family businesses after the parents die. Since the younger generation were denied the opportunity to acquire experience and skills in business leadership and governance, they are left stranded a factor that compromises the success of the business. Researches have highlighted that there is a need for experts to help family businesses prepare for the succession process. According to Ye, Parris, & Waddell (2013), there are numerous benefits associated with effective preparation for the succession of a family business. This gives the family members an opportunity to discuss issues such as policies affecting the business. Therefore, the family can effectively plan about the future. Although in the Asian culture, the preparation of succession proves to be a difficult task because of the emotional and psychological effects it presents as highlighted by Janjuha-Jivraj (2004). Janjuha-Jivraj’s article focuses on the role of the woman in the succession planning process. It is clear that women face more challenges after the death of the business founder because the Asian culture does not support the role of women in business. For many families in Asia, preparing for succession mist is accompanied by the acceptance that sooner or later, one family member will be dead. However, if given time to adjust, and to handle all the emotional issues related to succession, families can have a plan that can facilitate the transition in case the business leader is not in a position to continue working because of either a critical illness or death. As highlighted by Janjuha-Jivraj and Woods (2002), this form of preparation is critical because it prevents the disruption of the business during the transition process (Ye, Parris, & Waddell, 2013) Cultural values in Asia determine the leaders of the business in many cases. Being a patriarchal society, men are given the privilege of handling business leadership even if they lack the proper skills. In some cases, where daughters prove to be competent in promoting the growth of the business, they are only allowed to work under the males of the family. This means that a daughter would never be a company president as long as her brothers are still around. The patriarchal system affects businesses negatively. This is because business leaders of the family farms are not selected in accordance with qualifications as asserted by Lai Si (2004). The fact that cultural values are given a priority in determining leaders compromises the type of leadership in place. Experts have highlighted that the type of leadership in place determines the market performance of any business. Therefore, poor leadership by individuals placed in the leadership position in an effort to preserve family values may unfortunately lead to the decline of the business. For many Asian businesses, this is a practical challenge in every family because cultural values are deeply embedded in the decision making process. (Lai Si, 2004) Researchers have identified that failure to learn about succession leaves family members about the governance goals of the business when the business leader is no longer present. It is critical for family members to understand the long-term goals of the business and understand the ownership of the business. In large families, each of the family members owns a certain percentage of the business shares. According to Ye, Parris, & Waddell (2013), there is a need for a clear definition of ownership protocols, and the management team and its roles. Unless such issues are discussed during the planning of succession, the family business may be negatively affected when the business leader who understood such concepts is no longer present. Moreover, family businesses may require professional help from non-family managers. In other cases, they may be compelled to have a board comprising of non-family members. The family must agree on the decisions to hire such individual and clearly highlight to whom they are supposed to report to. In many cases, none family professionals can have to help family businesses stay on the right track because they incorporate their professional experience and help their family members to indulge in successful strategic planning. It is unfortunate that many family businesses in Asia are yet to recognize the value of hiring none family managers. This is the reason why family businesses may face critical challenges during the financial recessions when they need advice from experts, as highlighted by Law (2011). Family businesses face challenges when they are compelled to make decisions such as when to hire the boards of directors who the appropriate members of the boards should be, and whether the board should comprise of independent directors or should incorporate family members. In cases whereby a family sees the need of hiring independent managers, it becomes a challenge in replacing the family members who held the top positions (Law, 2011). Researchers focusing on understanding family businesses in Asia have discovered that such businesses do not prove to be successful beyond the second generation. In the exploratory study carried out by Ye, Parris, and Waddell (2013) revealed that unless there is preparation for effective succession, family businesses are likely to fail in future. This means that business values are not passed down the different generations, the founders of the business families may often be blamed for not passing down the business culture, goals, and policies to their successors. Therefore, by the time the business gets to the second generation, the leaders have no idea of what the founders considered as the long-term business goals. It is unusual at this point, whereby, family businesses may be compelled to hire experts who are not family members to redefine the business goals and strategies. Moreover, businesses are relying on innovation in the modern day. Lu and his colleagues (2013) highlight that, since family members may not exhibit the level of innovation needed, hiring people from outside the family may add value to the business. Family businesses in Asia are also under the pressure to exhibit change I how they operate especially in managing risks. The modern business world is governed by globalization, e-commerce, and liberalization. These three factors have altered the way businesses make profits and have introduced new business risks. In an effort to sustain economic growth in Asia, family businesses are under pressure to accommodate new business models and extend beyond regional borders. Many authors agree on the need for effective preparation of the succession process in Asian family businesses. There is a common view that failure to prepare for succession presents problems to the business in the future. Part B A Reflection on Skills Developed in this Module One of the critical skills I developed in this module was team working. Working in a small group with my classmates presented me with an opportunity to learn important aspects of teamwork. Since all the teams were presented with a group assignment, the team was compelled to work within the defined time line and achieve certain goals. The most critical part was planning and determining the goals and the objectives of the team. This activity required the team members to be realistic because at the end of the modules, the team had to present positive outcomes. Working in a team helped me develop intellectual and emotional integrity. This is one of the critical aspects of communication. I recognized the value of communication skills in determining the success of any team. Communication skills determined whether each of the members would explain ideas and express feelings without threatening others. Listening was an important part of effective communication. As a team member, I learned the value of asking questions and engaging others in an effort to ensure that ideas are clarified. For example, the last part of each group session required members to raise questions about the groups assignment, that would be discussed by the entire group. Most importantly, I developed non-verbal communication skills that enable me to sense the feelings of others, hence control my behaviour within the team (Jackson, Sibson, & Riebe, 2014). Working within a team also helped me understand that openness was of critical importance in promoting a favourable climate for the team to achieve its goals. Openness is of critical importance because it ensures that all the team members can share their interests, new ideas and even discuss diverse perspectives without any form of rivalry (Liyana & Noorhidawati, 2014). Openness also promotes the value of listening and eventually ensures that there is cohesion within the team. In the initial days, I was afraid of participating in self-disclosure within the group. I kept my feelings to myself and was afraid of sharing ideas with other team members. However, upon the realization that other team members were trustworthy and respectful, I began to be more honest and eventually engage in self-disclosure. An environment governed by trust ensures that a team is highly efficient (Liyana & Noorhidawati, 2014). Of critical significance is the fact that, working in a team, taught me the value of supporting the team goals. Each member of a team has a responsibility to contribute positively in ensuring that the team achieves its goals. At one point, my team faced a critical conflict because team members failed to complete the delegated task of each individual. However, the team handled the conflict in a productive way, a factor that imparted all of us with problem solving skills. It was at that point when we defined the roles of the team leader in coordinating all the tasks of the group. Notably, working in a team has helped me acquire critical skills that will help me in the future because teamwork is of critical importance in work places. The team relied on participative decision making whereby all the members were required to give their opinion and views prior to making a decision (Hobson et al, 2013). Although the group faced certain challenges and conflicts, we learned how to handle problems and how to give each other constructive criticism. All these team-working skills will be of critical importance in my postgraduate studies. Evidently, the description above reveals that I made efforts of promoting successful teamwork. Although I am happy that I have made efforts, I feel I can do more in the future. There were times when I could have contributed more to the group. However, because I was still shy, I held back. In the future, I plan to be more determined in ensuring that teamwork proves successful. I will not hold back from sharing ideas with my team members. Moreover, I will be more devoted to group work activities more that I have been in the past. Finding and using the Information Finding and using information is a critical skill required in research work. All the students are required to develop critical information skills so that they can be able to identify information, evaluate it critically, and make effective and ethical use of the information. After indulging in several research activities, I have gained critical skills related to finding and using information (Liyana & Noorhidawati, 2014). Although initially I was stranded on how I could search for information from different sources, and I was unable to develop research paper, practice has helped me become more familiar with the different steps involved in finding and using information. I have learned that I need to develop a search strategy, which is well planned before beginning my search for information. The first critical step is usually the identification of information resources, which can help me with the specific topic of interest (Liyana & Noorhidawati, 2014). I have learned that encyclopaedias and review articles are effective resources in helping me develop an overview of my research topic. While considering literature review development and the latest studies I learned that journal articles published recently are the best resources. When searching for historical perspectives on my research topics, I learned that books are effective in outlining how a specific concept was developed. Research topics that require media reports are best handled using the newspaper articles as I learned in this module. In order to identify all these resources, I realized that library catalogues and databases can serve as effective finding aids. Although it was easy for me to recognize the value of using databases and library catalogues in search for information, I face difficulties in choosing the appropriate key words relevant to my research topics. Many of the times, I use the wrong keywords and the results generated did not provide relevant information. I was compelled to seek help from a librarian who helped me develop the skill of choosing effective key words. This helped me generate relevant results that had information related to my research topic. With time, I also learned how to use the Boolean operators, which are usually AND and Or. The Operator AND was of critical importance when I needed to narrow down the search results. On the other hand, Or was of importance when search results needed to be broader. Developing effective information skills also requires the use of dictionaries and encyclopaedias in order to understand the definition of terms and concepts (Hughes, 2013). After identifying the relevant sources, there is a salient need to appraise each source critically in an effort to select the most relevant to the research topic. Upon the identification of the most relevant sources, I learned to interact with them rigorously in order to identify the supporting evidence for my arguments. Finally, I learned the value of referencing using different styles in an effort to acknowledge the work of other authors used in my research papers. Equipped with these critical information skills, I am sure that my postgraduate studies will be easier. Evidently, I have made remarkable progress in developing the required skills of finding information. I am happy that I can register more success in my research papers because I can identify relevant sources, appraise them, and use them appropriately. A close examination of the learning experience reveals that it was a milestone in my studies and my research projects. In the future, I plan to develop more skills on how to obtain the most relevant sources. This will help me develop better research papers. Moreover, I will learn how to review different sources in an effort to validate the arguments developed by different authors. References Au, K., Chiang, F., Birtch, T., & Ding, Z. (2013). Incubating the next generation to venture: The case of a family business in Hong Kong. Asia Pacific Journal of Management, 30(3), 749-767. doi:10.1007/s10490-012-9331-7 Chrisman, J. J., Chua, J. H., Sharma, P., & Yoder, T. R. (2009). Guiding Family Businesses Through the Succession Process. CPA Journal, 79(6), 48-51. Chung, H. s., & Chan, S. s. (2012). Ownership structure, family leadership, and performance of affiliate firms in large family business groups. Asia Pacific Journal of Management, 29(2), 303-329. Hobson, C. J., Strupeck, D., Griffin, A., Szostek, J., Selladurai, R., & Rominger, A. S. (2013). Facilitating and Documenting Behavioral Improvements in Business Student Teamwork Skills. Business Education Innovation Journal, 5(1), 83-95. Hughes, H. (2013). International Students Using Online Information Resources to Learn: Complex Experience and Learning Needs. Journal of Further and Higher Education, 37(1), 126-146. Jackson, D., Sibson, R., & Riebe, L. (2014). Undergraduate perceptions of the development of team-working skills. Education + Training, 56(1), 7-20. doi:10.1108/ET-01-2013-0002 Janjuha-Jivraj, S. (2004). The impact of the mother during family business succession: examples from the Asian business community. Journal of Ethnic & Migration Studies, 30(4), 781-797. doi:10.1080/13691830410001699612 Janjuha-Jivraj, S., & Woods, A. (2002). The art of ‘good conversations’: a strategy to negotiate succession within South Asian family firms. Strategic Change, 11(8), 425-434. doi:10.1002/jsc.615 Lai Si, T. (2004). The Professionally Managed Family-ruled Enterprise: Ethnic Chinese Business in Singapore. Journal of Management Studies, 41(4), 693-723. doi:10.1111/j.1467-6486.2004.00450.x. Law, H. (2011). Intercultural coaching approach for Asian family businesses. In M. Shams, D. A. Lane (Eds.) , Coaching in the family owned business: A path to growth (pp. 41-57). London, England: Karnac Books. Liyana, S., & Noorhidawati, A. (2014). How graduate students seek for information: Convenience or guaranteed result?. Malaysian Journal of Library & Information Science, 19(2), 1-15. Lu, Y., Au, K., Peng, M., & Xu, E. (2013, September). Strategic management in private and family businesses. Asia Pacific Journal of Management. pp. 633-639. doi:10.1007/s10490-013-9359-3. Spector, B. (2014). Survey: Family firms have the publics trust. Family Business, 25(3), 8-10. Townley, G. (2000). Chinese family firms hold key to future of Asian economy. Financial Management, 8. Ye, J., Parris, M. A., & Waddell, D. (2013). The succession decision in Chinese-Australian family businesses: An exploratory study. Small Enterprise Research, 20(2), 110-125. doi:10.5172/ser.2013.20.2.110. Read More