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Thursday, October 14, 2010

The family Business and conflicts

What is a family Business?

A family business is, in principle, all the companies in which the majority of ownership or control is within a family.Involvement of family members of a business may have its own complexity, because the boundary between the business system is sometimes separated by a thin line from the family system, These 2 positions overlap, sometimes causing all kinds of conflicts.

Families means emotions with includes relationships that carries loyalties and natural love a business system is unemotional and coolly designed to extract the maximum profit from the company.

Styles that are necessary in a family situation may not always fit the business situation; Membership in a family is born membership in a company should, through investment and results.

Families deal with family issues in a particular way in which the head of the family to take a decision either alone or in consultation with another leading member in the family; however, activities have their own systems and methods of communication, as well as the styles include resolution of conflicts and complete decision.

The conflict between Business Systems and family systems

Conflicts arise in the family business in the roles of a system of infringing other roles, and because each Member of the family is in fact part of a dual system problems occur; the overlap of these two systems become really obvious when there are conflicts of interest that occur between family members and activities.

Most families consider the concerns of the utmost importance in all cases but a conservative business owner will ensure that the family concerns and business concern is properly balanced to achieve the highest satisfaction both systems and people involved.

The emotional bonds in family tend too often to the shortcut processes designed to ensure the security of your business and to maximize their success.

For example, family members are in power positions where they have no experience or knowledge simply because they are members of the family.If they came through normal interview and selection, they would not get this position.

This is clearly a case where the family considerations violate normal standards for how business should be run in order to achieve maximum profitability.

Problems in the Family Business

A company is hard enough to handle at the best of times.

A family company with its own issues and problems, and these must be clear before it can participate in a family business, regardless of whether the person is a part of the family or third parties.
A family business is subject to the same problems that beset all other companies except they usually takes an extra one or two, simply because family members are involved.

Some of the questions that most companies have to face includes the following:

Leadership. Who is the leader in the company that makes the final decision and how it will look for companies that move to the next generation.Family harmonyWhat needs to be done to ensure that there is harmony in the family.Successor.Who will be selected to manage and run the family business in the current Chief retires or dies?Any member of his family who are given the responsibility to manage the family business must ensure that sound business and management practices are carried out.Commitment.Who should participate in the family business, and under what conditions?Passes over the Business;What needs to be done to permit the contractor can pass across the business to the next family member?Non-family persons.How are non-family managers and business leaders are attracted and retained and what powers they have to take decisions which may go against the wishes of family members in the activities.Compensation.Should the family members are paid for the work that they are not qualified in? And their salaries should be on the same level that are not members of the family members with greater expertise and knowledge in a particular area?Protecting finances.Many caregivers consider it as their own personal banking and as a place where they can do what they wish; Family care "head" must take a decision, but he will be unpopular with family members, to ensure that the progress and financial health activities.

All the above issues must be assessed in a family situation, since the possibilities for business conflict and family stress can be very high, Way to diffuse the conflict and avoid stress means to identify the queries that cause conflicts and stress and then discuss these issues with all interested members of the family.

Copyright 2005 StartRunGrow

StartRunGrow ( is a global online information organization that specializes in Creating, developing and marketing enterprise help information specifically for the purpose of "doing business" for entrepreneurs around the world; StartRunGrow objective is to become a dominant player in the enterprise using arena provides comprehensive solutions for the millions of small and medium-sized enterprises throughout the world who continue to struggle every day with the difficulties of starting, running and growing a successful company.

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