It is sometimes thought that the most efficient way to run a business is within the family. Family members who are running a business together will work harder and be more dedicated, but there are also drawbacks to be taken into account.
Firstly, one evident benefit of a family running a business together is directors or managers who are family members can work harder and be more dedicated. To put it another way, when a group of relatives works in their own company, they will make sure this company to be a leading company in their fields and make a considerable profit every year, unlike other employees. Secondly, a family run business would be advantageous because family members trust each other, and work schedules can be adjusted and cover easily found. Therefore, decisions can be made that benefit the entire family. Thirdly, family members have a shorter learning curve because they have grown up with the business. This will result in reducing the rate of errors in the business, and this also will facilitate communication between staff. Moreover, the work atmosphere will be relaxed.
On the other hand, one problem of a family run business is that there might be a bias toward promoting family members ahead of non-related staff. This means that non-family employees will find it difficult to integrate with the job and remain loyal to the company. For instance, if an employee who is working hard to increase a company’s sales, but he noticed that one of his boss’s family got a promotion instead of him. This will have more negative consequences on the company in the long run. Another possible issue is that family members might not have the required skills to be successful managers or directors, resulting in mediocre business performance. Losing the right skills to run business means that ideas will become stale and fresh perspectives might be difficult to find. Furthermore, business disputes lead to family conflicts because issues become more subjective rather than objective. The unbalance in decision making is due to not all family members have the same aims for the company.
In conclusion, although a family run business can bring about more benefits to the company, it can lead to family conflicts and poor business performance. Also, non-related staff will lose their loyalty because of bias promotions toward family members.
It is
sometimes
thought
that the most efficient way to
run
a
business
is within the
family
.
Family
members
who are running a
business
together will
work
harder and be more dedicated,
but
there are
also
drawbacks to
be taken
into account.
Firstly
, one evident benefit of a
family
running a
business
together is directors or managers who are
family
members
can
work
harder and be more dedicated. To put it another way, when a group of relatives works in their
own
company
, they will
make
sure this
company
to be a leading
company
in their fields and
make
a considerable profit every year, unlike other employees.
Secondly
, a
family
run
business
would be advantageous
because
family
members
trust each other, and
work
schedules can
be adjusted
and cover
easily
found.
Therefore
, decisions can
be made
that benefit the entire
family
.
Thirdly
,
family
members
have a shorter learning curve
because
they have grown up with the
business
. This will result in reducing the rate of errors in the
business
, and this
also
will facilitate communication between staff.
Moreover
, the
work
atmosphere will
be relaxed
.
On the other hand
, one problem of a
family
run
business
is that there might be a bias toward promoting
family
members
ahead of non-related staff. This means that non-family employees will find it difficult to integrate with the job and remain loyal to the
company
.
For instance
, if an employee who is working
hard
to increase a
company’s
sales,
but
he noticed that one of his boss’s
family
got
a promotion
instead
of him. This will have more
negative
consequences on the
company
in the long
run
. Another possible issue is that
family
members
might not have the required
skills
to be successful managers or directors, resulting in mediocre
business
performance. Losing the right
skills
to
run
business
means that
ideas
will become stale and fresh perspectives might be difficult to find.
Furthermore
,
business
disputes lead to
family
conflicts
because
issues become more subjective
rather
than objective. The unbalance in
decision making
is due to not all
family
members
have the same aims for the
company
.
In conclusion
, although a
family
run
business
can bring about more benefits to the
company
, it can lead to
family
conflicts and poor
business
performance.
Also
, non-related staff will lose their loyalty
because
of bias promotions toward
family
members
.