Family business management

Family business management

1.Defination:

In a family business, two or more members within the management team are drawn from the owning family. Family businesses can have owners who are not family members. Family businesses may also be managed by individuals who are not members of the family. However, family members are often involved in the operations of their family business in some capacity and, in smaller companies, usually one or more family members are the senior officers and managers.

2.What exactly is learnt in this field:

We learned that the state of family business estate planning is better than ever before, but that day to day management succession strategies are considerably less well developed. The long and short of the data is that they paint a none too flattering picture of the management succession plans of family enterprises.
In this article we’ll undertake the issue of management succession, define it, present the statistics, and visit again with John and Mary. The final article in the series will discuss barriers to succession as defined by family business owners themselves and by family business writers and researchers.

3. carrier prospects:

Operations management:
Any company that offers some kind of product for customer needs a operational managers. Operation managers ensure that every product should be efficient and in reach of target market. They need to communicate with different department heads to ensure that their product do not cross budget and should be marketed properly. Normally any product depends on operations manager. They earn a handsome salary package. Number of universities offer courses in this Event Management:
As different industries are growing and competition increases, event organization become an emerging trend. Different companies organize shows, sponsors different programs and organize different exhibitions. All these need event managers who handle all matters. Event managers organize whole program, they have to plan an occasion according to client’s demands, coordinating with different agencies, getting permission from different government authorities, visualizing stage designs and etc. event manager should be hard worker, creative, have lots of patience and perfectionist. In event management there is no place for mistakes. As the trend increases, demand of event management degree holders increasing.

Hospitality management:
Hospitality industry becomes a very good career path for many individuals. This industry needs a management degree holder to manage their whole organization.   It is a rapidly growing industry, the demands of degree holder increases as well. Hotels and travel and tourism industry are major source of any countries income. You can get your degree of hospitality management from any university. Many universities are offering programs in this field due to increase in demand.

These three are major management degree career paths. Many other departments also need management degree holders. Fortunately you can get degree from any university in regular course or online. Online programs are specially design for those people who are doing jobs and could not take regular classes or for those students who leave far from the campus and could not come to attend class.

4. significant facts and figures related to the field

A family business can be described as an interaction between two separate but connected systems—the business and the family—with uncertain boundaries and different rules. Graphically, this concept can be presented as two intersecting circles. Family businesses may include numerous combinations of family members in various business roles, including husbands and wives, parents and children, extended families, and multiple generations playing the roles of stockholders, board members, working partners, advisors, and employees. Conflicts often arise due to the overlap of these roles. The ways in which individuals typically communicate within a family, for example, may be inappropriate in business situations. Likewise, personal concerns or rivalries may carry over into the work place to the detriment of the firm. In order to succeed, a family business must keep lines of communication open, make use of strategic planning tools, and engage the assistance of outside advisors as needed.

5.Important exam and certifications related to this topic

IT Certification - CISM

Executive Program- IIM C

Ashridge Business School

6.Popular software/technology used in this field

 

Internet:

To say that the Internet has changed family business is an understatement.Businesses use websites to advertise, provide product information, sell products,communicate with customers and reach new markets (domestic and international).In addition, the Internet provides communication from remote sites within the busi-ness. Finally, the Internet can be a benefit to employees by allowing flexible work ar-rangements.

Specialized technology:

Technology isn’t limited to hardware and software. Technology also in-cludes high-tech manufacturing robots, advanced microscopes, and other specialized equipment.For example, a small independent machine shop may use computer-aided manufacturing equip-ment to create parts to specifications. And, innovative start-up businesses may use nanotechnolo-gy or biotechnology to create new products.

Communication systems:

Though one might not consider telephone systems to be a part of tech-nology, today’s communication systems are very complex. A system may include an auto at-tendant that helps customers find the employee they are seeking and a voice mail system for mes-sages. Other systems do not require a landline but rather route everything through the Internet.Even the hand-held cell phone keeps the family business owner connected to the office, custom-ers, vendors, and market

7.  A  brief idea about what all responsibilities are performed in this field

POLITICAL SCENARIO: This is the case of a company linked to a large family, where it is expected that through inheritance, the property was spray quickly, possibly faster than the growth of own business, resulting in a dividend per head lower and lower. Identifying suitable members in the family can incorporate to address and possibly distinguish who may occupy the general direction afterwards. However, the existence of many members in the family can turn into conflicts of power, making it necessary to establish agreements and occasionally reorganize the business in terms of those individuals who, because of the obvious professional and human qualities can be recognized as leaders. In many cases this may mean separate reorganization to create new companies and business units.
OPENESS: When members of the next generation are numerous and among them is not possible to identify a person who possesses the characteristics necessary to assume leadership positions with expertise in family business, we have a scenario that we call Open, since the strategy more suitable for this type of organization is to shift some capital to others who can provide not only management skills but also liquidity for family members. This will succeed in securing the future of the business, creating more value for society and retention of jobs for their employees, not to please the family, getting money and avoid future complications.
FOREIGN MANAGEMENT: This scenario occurs when family members who control the business are not many, and yet, not having any of its members with a natural profile of leadership succession when they choose to appoint a non-family CEO .
NATURAL SUCCESSION: Families seeking to preserve its legacy business are the most favorable conditions in the presence of a stage of natural succession. This is the case of a company controlled by a few families, few heirs who in turn have identified among them a worthy successor, a strong name also is associated with the adequacy enough to drive its growth, the ability to run the organization, understanding market and commitment which means only a part of the family patrimony is also a source of value to society, other shareholders, customers, suppliers and even their own employees (stakeholders).

8.Conclusion:

In a family business, two or more members within the management team are drawn from the owning family. Family businesses can have owners who are not family members. Family businesses may also be managed by individuals who are not members of the family. However, family members are often involved in the operations of their family business in some capacity and, in smaller companies, usually one or more family members are the senior officers and managers. Many businesses that are now public companies were family businesses in India.
Family participation as managers and/or owners of a business can strengthen the company because family members are often loyal and dedicated to the family enterprise. However, family participation as managers and/or owners of a business can present unique problems because the dynamics of the family system and the dynamics of the business systems are often not in balance.