管理學essay:家族企業的發展之路

2The Life Circle of a Family Enterprise

Family enterprise is an ancient and "short" enterprise organization form. Say it old, because it is the oldest one business forms. In private ownership conditions, the history of the earliest enterprise is family businesses. Say it "short" because, developed so far, the family enterprises in life cycle has the "rich only three generations" the continuation of the law.

According to the American college of a family business studies show that about 70% of family enterprises failed to pass Wal-Mart

To the next generation, 88% failed to spread to the third generation, only 3% of the family enterprises in the fourth generation and later still in the business. In China, family enterprise more "rich only three generations," said. Data shows, the family business with a life expectancy of 24 years, the founder of the right with enterprise average working years same; About 30 percent of the family enterprise can be uploaded to the second generation hands, which had less than 2/3 of the enterprise can spread to the third generation, the latter about 13 percent of the enterprise can spread the third generation. While China family-based private enterprise life span shorter. From these data we can see, family enterprise can sustainable development down is not much.

 

3The Present Development of Family Enterprise

Family enterprises in the world as the most universal significance of enterprise organization form play a vital role in the world economy. In the world, both developed and developing countries, the family businesses on the growth and development of the stubborn. American scholar Kerlin thinks "Gail even the most conservative estimate also thinks a family owned or operated enterprise in the world enterprises 65% to 80% between. The world top 500 enterprises in a 40% by family owned or operated".#p#分頁標題#e#

According to statistics, family enterprise value created currently occupy us GDP, 50% of the United States and to provide a 50% chances of employment. And according to the American family company institute of investigation, family controlled enterprises for American new post the contribution of 78%. At the same time these family enterprises, is no longer holding tight private companies and mom-and-pop shops, there are also a significant proportion of the listed companies. According to statistics, fortune magazine in the global 500 big companies, 175 family controlled enterprises. But in the United States the largest publicly listed companies, a 42% of enterprises are family control, in recent years, although the U.S. a listed company of its shares in decentralization trend, but overall, family still control the enterprise larger shares.

In Southeast Asian countries and regions, the largest 15 family control of listed companies in the stock market value and total gross domestic product most. According to a 2002 "new wealth" the 8th period of material, in addition to China, Japan, Hong Kong, China, Indonesia outside, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand before 15 family control of listed company occupies total market value and GDP per cent 34.4%, 61.7%, 38.4%, 28.3%, 55.1% and 29.9 per cent, 20.1%, decreasing and 10th, targeting, 12.9% and 76.2%, 46.7%, 48.3%, 0%, 39.3% that 28/6/5 in these countries economy family controlled very apparent.

In our country, from the late 1970s to the early 1980s, the household management of the first wave raised. As to the private economy in national economy status identification with the private sector of the economy, occupy the vast majority proportion family enterprises get rapid development. According to the China statistical yearbook of material, 1989, China's private enterprise were 9.05 million households, the private enterprise to 2001 growth to 202.85 million households, the increased 2.14 times, register fund from 84 billion yuan increased to 18212.2 billion yuan, increased 215.8 times (not deduct price factor). In the private enterprise of national economy, private economy of contribution to the contribution of GDP by 1989 0.57% rise to 2001, 12.7% since 1990s average annual increase nearly more than one percent. In employment, the private economy contributes to the proportion of higher and higher. In 1989, the whole society of every 100 new employed in 0.07 people flooding into the private enterprise, by 2001, has been increased to 33 people flooding into the private enterprise.
 

4Aim and Objectives of the Research

There are several aims and objectives of this research.

Firstly, the research is designed to find the present development of family enterprise

Secondly, the research is designed to find the merits and the demerits of family-run enterprises.

Thirdly, the research is designed to find the prospects of the family enterprises in the market.#p#分頁標題#e#

Last but not least, the research is designed to find the solutions which the family enterprise can learn from to make a better development in the future.
 

5Brief Outline of the Research Methods

This research is made with the simple methods. The research is done in such a simple way with all the family enterprises selected, all the data collected, and finally all the data and information analysed.

This research is prepared to make a simple survey of the development of family enterprises. In this research, firstly, we select a number of family enterprises among so many family firms. Let’s settle with ten firms. Secondly, all the information about the history of all the family enterprises should be collected and analysed. Data collection should be accompanied with the help of computer and library search. After all the data analysed, we can find some of the rules and find our conclusion, which is the developing road of the family enterprises.

 

Section 2:

 

6The Congenital Superiority of Family Enterprises

Family enterprises in all enterprise organization form, has its particularity. The particularity lies in the ownership of the family enterprises in blood, genetic master as a link to the family members hands, but it does not follow that family enterprises is a kind of low efficiency of enterprise form. Instead, as a kind of institutional arrangement, its itself exists explains its existence rationality, and the indomitable vitality of family businesses is that it with other enterprise form compared with its superior side. Of course, the pros and cons of begets, the deficiency is unavoidable, the particularity also led to the family enterprises many fundamental internal defects. We analyze on family enterprise congenital superiority and intrinsic defect below:

In family businesses, familial member of ownership and control two right one, family members participating enterprises management, and participate in the distribution of residual claims, so the family members had a family-owned enterprise dynamic management enterprise, this makes the facing adverse selection and moral hazard possibility is reduced greatly. Meanwhile members of the family of family enterprises formed between a small group, the group internal because often together, make internal members communicate the information asymmetry and coordination among the members of the falling cost. Not only such, because blood relationship, family members to family height of identity and oneness, make its to family produced a sacred responsibility, this makes the family members for family enterprises work are "from each according to his ability, to get," don't care about you paid labor and obtain remuneration are in reasonable scale relation, thus the enterprise between members of the transaction cost is reduced greatly.#p#分頁標題#e#

In addition, in the family groups internal still have a kind of selective stimulation system, namely the family members must strive for the development of family struggle, if a member appear moral hazard and adverse selection, he may be open family heads of cadastral. In this kind of family enterprises under the pressure of the family members will generally comparative consciously, for family enterprises but also for the development of family and work hard. In the information asymmetry in weakened and selectivity stimulation system, family enterprise of family members and enterprise signing a contract is greatly reduced the transaction cost, but also because of family members have Shared values and ethic and they exist between familial tacit understanding, so owners to the staff of the supervisory cost is low. Because of the lower transaction costs, which family enterprise the organizational form in certain circumstances can manifest the relative to other organization form of advantage; this also is family enterprise can universal existence and indomitable growth factors.

 

7The Latent Defect of Family Enterprises

With these congenital advantage begets accompanying the particularity of family businesses is also led to many internal defects. These internal defects by the particularity of family enterprises are determined by the attached to the particularity and unripe. When the family enterprises need to further develop and expand, these defects became enterprise development inhibited, the obstacles enterprise's sustainable development. Below we analyzed the family business fundamental internal defects were.
 

8Talent Bottleneck

Enterprisedevelopment has a process from childhood. Family enterprises in those early days, the small scale of the enterprise, its core members basically is blood, genetic as a link to the family members, entrepreneurs as the core with natural parents authority, depend on parents authoritative family-based management will ensure smooth running, family enterprise can even "edge dinner side open board". Meanwhile, the family business in the development initial period, to provide residual claims and remaining total control of relatively small, namely enterprise deserved rights supply is less. This kind of situation obligate BMW

Family enterprises' internal parties to share interests achievements, strive for deserved rights conflict isn't too sharp, emphasize parents authority, family principle of family ethics can effectively coordinating the interests of the members of the family of contradiction. This one phase enterprises are relatively scarce is monetary capital instead of human capital, management requirements is not high also. But along with enterprise's development:

On the one hand, the enterprise scale the rapid expansion of leading companies on the human capital amount demand has been greatly improved, and family members group supply speed in under the influence of the natural population growth, general meeting is far below enterprise on the human capital demand speed,#p#分頁標題#e#

On the other hand, due to the expansion of the scale of enterprises, management of complicated, leading companies of senior human capital demand increased, while for the members of the family groups speaking, senior human capital should be talented person growth factor owners of the probability of the factors such as members of the family in this small group inside, this talent produce of probability is extremely low, so from the nature on look, familial member group also hard to guarantee on the human capital supply.

From the above analysis, we can see that development of family enterprises process must be meet talent bottleneck.

 

9Lack of Good Enterprise Culture

Enterpriseculture is enterprise's basic values and norms, is the enterprise advocating, believe in simultaneously must put into practice, but also the value concept of enterprises running, energetic internal sources. The main content of the enterprise is institutional arrangements and strategic choice, enterprise has what kind of institutional arrangements, what kind of strategic choice, you have what kind of enterprise culture. And in family businesses, power tends to be concentrated in entrepreneurs as the core of the family members, this kind of totalitarian hand decision-making system is lack of effective supervision, feedback and restriction mechanism, to the detriment of decision-making scientific and democratic, easy to cause the decision error, this is a system arrangement defects.

Meanwhile, in another important segment - personnel selection on family enterprise follows the often is special socialist principles, not universalism principle. So-called universalism principle is to show appointing talent general with ability to give priority to, personnel appointed follow systematization method of human resource management. Family enterprise more take to blood center for employment system, namely, adhere to the kinship first, secondly would be considered only ability. For family members take special socialist principles, and to the family members take universalism principle, often is the common fault of the family business. These behaviors deviated from the basic principles of fairness, not only in contusing badly non-family enthusiasm, and make the family members lost improves the quality of power and pressure, difficult to form effective incentive and restraint mechanisms. In this special socialist principles, under the guidance of the optimal allocation of human resources not reasonable structure of talents but also mentioned.

 

10Three Drawbacks of Family-run Enterprises

The contemporary Chinese social economic environment has lots of suitable for family enterprise survival characteristics, so, with nearly 20 years of rapid development, with family trade method to manage the enterprise has become 70% - 80 percent of the private enterprise's common management mode. Internationally, even if the market economy developed countries, the family business is the most common form of enterprise; much famous large enterprise is still a family color.#p#分頁標題#e#

But, as the market economic system gradually developed and economic globalization, the sheer family enterprise only in some sectors, a certain range of has limited the survival and the growth space, cannot become the market competition of real protagonist. When the market changes faster, more and more competition, completely controlled by family members the disadvantages of closed-end family management showed up.
 

11DisadvantageOne: obstacles of organizational mechanism

Along with the growth of family enterprises, its inner can form various interest groups, due to the inclusion of complex emotions in dealing with relationship, makes the leader will benefit relations in more complex, even dilemma. Business leaders to relatives and family violation of regulations, managers hard as the processing ordinary employees so alike, to the enterprise internal management left hidden trouble.

Family-owned businesses also has a very common characteristics is, may share sorrow but not joy, startup, all contradictions are entrepreneurial passion covered, but since starting three close - points of silver and gold, and honor or disgrace, row seating often to the organization's healthy growth caused obstacles. When treating honor, money and power views diverge, brothers, between the affection between all possible parents phenomenon.

 

12Disadvantage Two: constraints of human resources

Family-run enterprises seem to foreign resources and energy to produce a rejection role. Especially because in family-owned businesses, the general nonnative personnel find it difficult to enjoy equity, its mentality forever just migrant workers, always are difficult to assimilate into tissue. Moreover, due to the external personnel, the enterprise cannot absorb higher levels of development to be limited. As New Hope Group President LiuYonghang said: "family enterprise's biggest ills lies in social elite into do not come. Several brothers all the highest position in the enterprise, the outside talented people into do not come, but the family way of thinking is somewhat similar, without a breakthrough. Everybody all have ideas, to decision making something, it is hard to, easy to delay opportunities."

 

13Disadvantage Three: unscientific procedure making process

Decision-making dogmatic sex is many private enterprises is an important guarantee for the early success, many entrepreneurs in the growth process lean is resolute and judged sharply, because seized a narrow window of opportunity to success. But with the development of the enterprise, the external environment, the change of business owners of personal experience begin to fail; business bigger and bigger, the investment risk is more and more big, unlike startup, that a two errors loss can also up. This time, ensure policy-making democratic and scientific becomes increasingly important.#p#分頁標題#e#

 

14The Sustainable Development of Family Enterprises

The western developed countries on the family business experience offer us beneficial reference. As a traditional family culture relatively weak countries, America's family firms to modern enterprise system transition is experienced a long process, in deeply influenced by confucianist culture of China, is a long way to go. Currently in Anglo-American family enterprise public company this one phase, Japan has basically completed family enterprise stage, overseas Chinese big companies are from the enterprise family-based stage XiangGuZu entrepreneurial stage evolution, and family firms in China is still in the family enterprise stage. Although now many family enterprise has become listed companies, but their quantity in numerous family enterprises is just a drop in the bucket, the majority of family businesses are still at the lower stage. How to make this family enterprise as soon as get rid of low-level form to a higher stage acceleration stride? Besides choosing the correct way of sustainable development outside, still must strengthen this road construction, can cause the family enterprises in this way too is fast and steady.
 

15Perfect law, standardize market, improve the market platform

The government should perfect law, standardize market, for enterprise's institutional change and development to provide more perfect market platform. Although our country's family enterprise system evolution mode is non-independent institutional change is given priority to, but the government is not entirely inaction, but should for enterprise's system vicissitude create more open and fair market environment, perfect the relevant laws and regulations, as far as possible open investment field, in the open financing, import and export right aspects to enjoy national treatment, promote capital, human resource elements such as configuration, according to the market mechanism as "qualified of market economy, promote the mediator" family enterprises the smooth implementation of institutional change. 2004 "constitutional amendment, is a further indication encourages non-private economy development, perfect the attitude to private property protection regulation, the provision of" citizens' legal private property shall be inviolable "was written into the constitution, strengthened the non-public economy's private property rights protection. The family business mainly in the private economy, it is undoubtedly a "good", for the development of family enterprises to provide the most fundamental law guarantee and system platform.
 

16Perfect professional manager market and credit evaluation system

Introducing professional manager is a breakthrough of the family business talents, but also an important means bottleneck sound corporate governance structure of the inevitable requirement. But at present our country has not formed mature market for professional managers and managers team the good and bad are intermingled, lacks#p#分頁標題#e#

Related books

By the credit system, it is difficult to managers for effective constraint. According to relevant material, the Chinese family business investors will directly participate in the management of due to find reliable managers' rates as high as 67.1%. To change this situation must establish open, transparent and perfect manager market and credit evaluation system, through the market for managers are invisible sclerosis constraint. To establish and perfect the manager market and credit evaluation system, can make managers at every stage of behavior information, transparency, overall design manager any action for their future will influence the market transaction, which greatly increase the cost of defeated Germany manager behavior, make its own human capital from the Angle of protected effectively self-discipline. Meanwhile, perfect market for professional managers and credit evaluation system of existence, still can reduce family business entrepreneurs and professional managers signing search cost and entrepreneurs to identify the cost of managers, thus make family enterprise system vicissitude of transaction cost is reduced greatly.

 

17Relax financing control, enhancing the financing system

The financing difficulties are long troubled family enterprise development a difficult problem. Enterprises in the development process will often encountered lack of money, and the family dilemma enterprise character, is also a barrier. The indirect financing from the bank to see, family enterprise mainly of small and medium-sized private enterprises very hard through the bank credit raise enough money. The state-owned commercial bank service object mainly concentrated in state-owned enterprises, for small and medium-sized private enterprises, the bank lending is very cautious and formalities multifarious. The most developed by private economy of zhejiang province as an example, private enterprise obtained from the bank loans accounted for only the whole society total loan of 10%-20%, instead of the whole province topped the status of barcap jiangshan not congruent with. And to the capital market, although the country in direct financing of private enterprise continuously relax restrictions listing and financing, but still smaller proportion. Actually both indirect financing and direct financing, the risk control on the financing system and depends on the construction of monitoring system, not by financing object proprietary nature will decide. We should strengthen monitoring, instead of restricting object. Relax to private enterprise's financing control, encourage and guide the private enterprise listing and financing, will help family enterprise capital socialization and management socialization, make family firms to public company forward, the realization family enterprise's sustainable development.

 

18Internal transformation of Family enterprise

New institutional economics perspective, family enterprise of institutional change is a non-profit pareto balanced process, not all of the family members in the transformation of the benefits are positive. In this process, and outside the family the core layer personnel sharing enterprises' property right, residual claims and the management right, part of the low quality of the core layer personnel will from important management positions, the power to retire professional management staff. The members of the family dollar are undoubtedly painful, and part of the family members from their own interests, will strenuously objected to change. To the entrepreneurs and core of workers, these processes were a fierce self-denial and transcend ourselves. Especially for entrepreneurs, the enterprise management to ability than oneself the strong to master defeats the family affection than overcome general customs more difficult. This process full of risk and uncertain factors, requirements as a change of subject entrepreneurs must possess strong change consciousness and develop energy, and must become truly schumpeter sense of entrepreneurs, have strong "entrepreneur spirit." The entrepreneur needs to accelerate its own knowledge renewal speed, form for modern enterprise management concept, make the enterprise operation of market economy growing and regulating rules adaptation.#p#分頁標題#e#

 

Section 3:
 

19Object of Study

Family enterprise refers to the capital or shares main control in a family hand, family members as enterprise's main leadership positions in the enterprise. American scholar Kerlin think, judgment of one enterprise is a family business, not to see whether corporation as a family to be named, or whether several relatives in enterprise's tallest leadership institution, but see whether there is a family ownership, general is who owns shares and has much.

According to professor Larry Lang Hong Kong scholar of the world of corporate governance research and is currently in the European countries, the top 15 family control of the listed company scale to all the above 20%. Belgian and French even reached on the plants, family enterprise and the role of the country is very apparent.

It can be easily seen that whether the western developed country or region east of developing countries, the family enterprises in the national economy plays an important role. Especially in this economic development is not balanced, employment pressure big country, development by family enterprise dominated the private economy for solving the employment pressure, improving national welfare level, all have very important practical significance. Therefore, from this angle, the family business study is a very instructive topic.

 

20Research Approach

This research is supposed to make a simple survey of the current development of family enterprises nowadays. In this research, firstly, we select a number of family enterprises among so many family firms. Let’s settle with ten firms. Secondly, all the information about the history of all the family enterprises should be collected and analysed. Data collection should be accompanied with the help of computer and library search. After all the data analysed, we can find some of the rules and find our conclusion, which is the developing road of the family enterprises.

As the era of progress and economic development, family-run enterprises the further development of the problem has already realistic before us. Family-run enterprises gradually exposed the shortcomings, family-run enterprises further development faced with severe challenges. For this reason group, Shenyang fei-long's bankruptcy and the fallen giants revealed family-based management mode and dictatorial type decision-making mechanism the drawbacks. Many insiders, oldest enterprises with the organizational mechanism obstacle, human resource bottleneck, capital bottleneck and other natural flaws, its development will eventually be these restrict got bogged down.
 

21Procedures for Data Collection

Firstly, all the data should be collected with in the constraint of the selected ten family enterprises.#p#分頁標題#e#

Secondly, all the data would be collected with the help of internet search and library search. After cutting out the information that is not useful, the useful one would be collected in the data of the final research.

Thirdly, all the data that has been collected would be analyzed with the help of the computer. For example, all the histories of the ten firms can be put into comparison with the help of Microsoft Offices. With this help, the data can be analyzed in a simpler way so as to provide convenience for the analyst to get to the final conclusion.

Last but not least, all the conclusions which concluded from the data should be kept as well as all the data which is used to deduce the final conclusion.

There are some tips for the data collection. Firstly, the site to collect data, and should be each day, week with the qc department hourly data collected for check, in order to finishing true and is representative of the data. Secondly, data arrangement, improving, before and after what conditions should be consistent and so did the data arrangement and comparative sense. Thirdly, exception happened to take measures, certainly must by sorting of data basis.
 

22Evaluation of the Choice of Approach and Data Collection

This research is made with the simple methods. With all the family enterprises selected, all the data collected, and finally all the data and information analysed, the research is done in such a simple way.

However, the procedures must be carefully done because even though the steps are not difficult at first sight, the conclusions can be quite wrong if one of the procedures is done in a less carefully way. In this occasion, the questions and data, as well as all the information used should be carefully treated and analyzed.

The family business as the main body, the private economy through family this stability and relatively have credit guarantee of organization, made up of small family firms gradually extended to scale production, group management of large enterprises, experienced 20 years' time test, according to the enterprise management experience and social and economic theory perspective, the new century initial will enter molding family enterprise survival and growth of adaptation. According to the American college of a family business, studies show about 70% of family enterprises failed to spread to the next generation, 88% failed to spread to 3rd generation, only 3% of the family business in the 4th generation and later still in the business. McKinsey, a management consultancy study conclusion is: family enterprises only 15% can continue the three generations of above. Family enterprises from create to growth, expansion, from small to large, by weak strong influence family enterprise second pioneering and restricting family enterprise scale of development of main resistance focused on: narrow capital gain channel, highly centralized enterprise property, clutter of human resource management, confused, business strategy and development mode of four above the ice. Therefore, the family business need explode again development of obstacles and reassure restricts enterprise forward the ice, to make them into the healthy development of the track.#p#分頁標題#e#
 

23Ethical Issues arising from the research

Generation problem is beautiful family enterprises facing the most main problem. Those who have already selected successors of the family enterprises, the choice is 84.5% 40s had a college education of family members. The successor selected issues, made generation qualification policy enterprise, 38% of the enterprise requirement successor in family businesses outside with at least 3 years working experience, In a family enterprise ownership of inheritance issue, 29% of the plan will share ownership gives children, CAAC statistics of tend to give the contribution to the members of the family of large enterprise more shares, 10.1% of plan to give those who do not participate in the enterprise management children less shares, 6% don't give any of its shares.

If there would be some questions and data which would be related to the ethical issues, the questions and the data should be kept apart the final analysis of the conclusion to make the final conclusion equal with any kinds of family enterprise.

 

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