The most common ones are “businesses in which two or more extended family members influence the business through the exercise of kinship ties, management roles and ownership rights” and “a business which the owner…
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A family business is different from a traditional business because the business stakeholders are related to each other unlike the conventional business where stakeholders are individuals and not related by blood. Secondly, in a family business there are three primary roles and they are family, ownership and business. The family means relationships, i.e. mom, dad, son etc, ownership means who owns the business (who are the primary stockholders) and business means people who work at the business. Since, the business is tied together with more than just professional attitudes the day to day functioning of the business is not as easy as it seems.
Conflicts occur more in family businesses as compared to the traditional business and these conflicts are extremely hard to resolve especially if there are close blood relations (Family Business Conflict Resolution). With emotions playing a vital role in decision making, not everything is simple as it may seem. While traditional business success can be judged by a lot factors which include use of technology, level and capability of resources, growth opportunities, using electronic commerce for business, customer satisfaction, customer retention and the company’s market share (Top 7 critical Business Success Factors 2000). Family business can only be judged using special factors that take into consideration the dynamics of the family business.
One of the most important factors in accessing the success of a family business is to determine whether work boundaries are specified or not. For the smooth running of a business it is necessary that the roles of individuals are well defined and communicated (Essentials for Family Business Success). In a family business it is easy that roles may often be neglected or might not even be defined. In such situations a single person gets overburdened with work while the others simply remain absent from work.
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This paper has highlighted family business, and investigated various aspects of the concept. This research aims to evaluate and present the theory of family business; the vital role of the family system in family business; the sustainable family business theory (SFBT); leadership transition in family firms using executive coaching.
But it is very normal for governance issues to arise in a family business every now and then because a family business, like all other non-family businesses, involve more or less the same issues like personalities, passions, power, deadlines, resources, supervisors and subordinates.
There are terms to watch in this provision, specifically, qualified staff. The reasons provided in the act include the birth of an infant, adoption or fostering of a child. Workers may be entitled to leave if they want to cater for family members such as children, spouse or parents with significant health problems.
It is as a result of this that methods can be observed, recorded and assessed, as well as evaluated in that they all hold a common agenda and ground in looking after the functionality of family businesses. Consequently, these criteria can be identified and discussed to determine the successes and failures of family businesses, as we seek to find out.
1A family business can be defined as a business the is governed and managed on a sustainable and potentially cross generational bases in order to ensure that the business achieved a formal or implicit vision that has been held by the family member. 2This means that a family business is based on a vision that is held by all the family members.
eir relationship goes sore, it can result to internal conflicts in the management which can result to the collapsing of the business unlike in the non family businesses where there are no personal attachments to the interests of the business. In most cases, a family business is
ined as a business corporation where one or more members of a single family have a notable ownership interest in the business and have some level of control over strategic decisions. In a family business, usually one of the family members may be the controlling shareholder, that