English for Small Business Management - страница 4

Another issue is personal freedom. We live in a society that values the right of the individual to choose his or her own career and way of life. If this value is embraced by a son or daughter, that child must be granted the freedom to select a career of his or her own choosing.

A son or daughter may feel a need to go outside the family business, for a time at least, to prove that "I can make it on my own." To build self-esteem, he or she may wish to operate independently of the family. Entering the family business immediately after graduation may seem stifling – "continuing to feel like a little kid with Dad telling me what to do."

If the family business is profitable, it does provide opportunities. A son or daughter may be well advised to give serious consideration to accepting such a challenge. If the business relationship is to be satisfactory, however, family pressure must be minimized. Both parties must recognize the choice as a business decision as well as a family decision – and as a decision that may conceivably be reversed.

Special features of family firm management.

The complexity of relationships in family firms creates a demand for enlightened management. To a considerable extent, this just means good professional management. However, certain special techniques are useful in dealing effectively with the complications inherent in the family firm.

The Need for Good Management

Good management is necessary for the success of any business, and the family firm is no exception. Significant deviations for family reasons from what we might call good management practices, therefore, only serve to weaken the firm. Such a course of action runs counter to the interests of both the firm and the family. For the benefit of both, we suggest three management concepts that are particularly relevant to the family firm:

1 A family firm must be able to rely on the competence of its professional and managerial personnel. It cannot afford to accept and support family members who are incompetent or who lack the potential for development.

2 Favoritism in personnel decisions must be avoided. If possible, the evaluation of family members should involve the judgment of non-family members – those in supervisory positions, outside members of the board of directors, or managers of other companies in which family members have worked.

3 Plans for succession, steps in professional development, and intentions regarding changes in ownership should be developed and discussed openly. Founders who recognize the need for managing the process of succession can work out plans carefully rather than drift toward it haphazardly. Lack of knowledge regarding the plans and intentions of key participants creates uncertainty and possible suspicion. The planning process can begin as the founder or the presiding family member shares his or her dream for the firm and family participation in it.

The family firm is a business – a competitive business. The observance of these and other fundamental precepts of management will help the business thrive and permit the family to function as a family. Disregard of such considerations will pose a threat to the business and impose strains on family relationships.