Working with your partner brings a whole new meaning to the term ‘relationship skills’.
The organisational structure of family business is different to that of non-family businesses. The owner is part of a family and has a duty towards the welfare of the business and the family. This dual role can lead to conflict.
In Australia, the family business has existed for an average of 28 years (34 years in 2003). Information on the background of family business owners reveals that the average age is 55 years (53 years in 2003), ranging from 33 years to 80 years.
The key to long-term family business success lies in the ability to build and sustain an entrepreneurial family.
Since the same family members may be involved in both ownership and management of the family business, while others may only have one of these roles, in order to navigate effectively between family membership, ownership and management roles, it is necessary for a family enterprise to create clear differentiation and boundaries between them.
Many business difficulties stem from issues within the family. Since conflict is common, families in business should learn the best methods for resolving differences before they boil over.
We will now turn our attention to how daughters and younger sons who become CEOs find it difficult to shake off their family ties to the bottom levels of the family hierarchy.
The daughter or younger son who becomes head of the family business must struggle with both self-identity and changing family role expectations. In a sense, these problems of ambivalence, rivalry, and self-esteem arise because of two conflicting or incongruent hierarchies.
Although help in restructuring hierarchies sometimes comes from within the family, as when a mother mediates on behalf of a younger son or a father voluntarily withdraws, help more often comes from the outside.
The restructuring of identity seems to be a pervasive pattern in a large proportion of younger sons or daughters in family firms, particularly when undergoing a process of succession.
It appears that few women actively choose to embark on a career in a family business.
This article intends to provide a clearer understanding of power, particularly as it is exercised in connection with the three key elements of family business, that is, the wealth, the family, and the business itself.
Many family businesses are owned and managed by couples, and these copreneurs are possibly subject to much conflict.
Should the shares of the company be equally divided among the owner manager’s heirs? Do passive owners have the same rights and privileges as managing owners? Is it fair to treat siblings equally regardless of their contributions to the family business?
Conflict is a normal part of any family relationship. But when you combine standard sibling rivalries or parent-child conflicts with business disputes over money, employment, management and ownership, both family and business relationships can deteriorate rapidly.
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