What are the disadvantages of family business management? If the family business management is done well, it has advantages in many aspects such as risk resistance and execution.
But if the management is not good, there are many disadvantages:
1. weaken the work enthusiasm of foreign employees. This is obvious. It is difficult for employees, especially foreign middle managers, to find a sense of belonging in the family business and reach the professional ceiling prematurely.
2. It is difficult to unify government decrees, which leads to disorderly implementation. My uncle said to control inventory, and my uncle said to shorten delivery time. A similar situation will cause the following people to be at a loss;
3. It is difficult to retain excellent talents;
Principles of family business management "Family business urgently needs a completely different set of rules, which must be strictly observed, otherwise it will not survive, let alone develop and prosper."
After 60 years of research and insight, Drucker put forward four principles for effective management of family businesses. After more than ten years of verification, these four principles are also applicable to organizations and enterprises in China.
The first rule is, "unless a family member is as competent as any employee who is not a family member, he can't work in the company."
I have witnessed many directors of listed companies take the initiative to put people they know in important departments, even ignoring the protests of shareholders, and most of them go their own way. As a result, it didn't take long for executives to leave. Finally, such a family-owned listed company went bankrupt. Some people may say, I just arranged for my nephew to start at the grass-roots level, but I didn't arrange for him to be the manager. What's the matter? What's the problem? But in fact, in a family business, no matter what the work contents or titles of family members are, they all belong to the "top management" in the eyes of employees. Because, from Monday to Sunday, when sitting at the table with the chairman, they can talk to the chairman directly. If they perform well and are honest and upright, they can certainly win the respect of employees. However, if they are cruel and overbearing, they will inevitably arouse the dissatisfaction of most employees, which is an insult to employees and will also make employees unable to respect their bosses. In the end, all the employees who could make a difference left the company, and those who stayed soon became flatterers.
When Tianxia, an influential magazine in Taiwan Province Province, China, was founded, it was clearly stipulated that "all family members of shareholders are not allowed to join the company", which of course forced the company to find non-family members to become future successors. This method is unique because it may also isolate the talented and promising next generation from the company. This is of course a special case.
In order to keep the balance among shareholders, some family business owners have to accept a lazy and mediocre family member of the second largest shareholder and put him in the company with the title of "marketing manager", but in addition, they also hire a very capable professional as "deputy marketing manager" with high salary. The boss said to the assistant manager, "my cousin's title is just a formality, the purpose is to let his mother leave me alone." After all, she is the major shareholder of the company. Of course, the company knows that you are the one who is really in charge of this department. As long as you are responsible for me in the future, ignore him. "
Is it that simple? Is it really as easy as the boss said, and can you live a happy life from now on? Facts tell us that if we deal with it this way, it will only make the situation worse or even out of control. Because, as long as his cousin stays in the company for one more day, it will be another day of trouble. If he has neither the ability nor a good working attitude, retaining such a person in the enterprise will cause dissatisfaction and jealousy among his colleagues. In the end, the operation of the enterprise will go to the point of no return, and the company will naturally suffer. Therefore, the cost of sending a lazy and mediocre cousin away with money is far lower than the cost of leaving him in the company.
The second rule is, "No matter how many family members occupy many management positions in the company, no matter how capable they are, they need to reserve an executive position for those who are not family members." For example, the boss of Levi's Company is a family member and a descendant of the company's founder, but their president and general manager are not top professionals of family members.
Drucker gave an enlightening example. The first "outsider inside the company" he knew was an assistant financial controller who worked in a very large family business in Britain 60 years ago. Although he has close friendship with family members of the company, he "never attends their family gatherings or weddings, or even plays golf in country clubs where their family members join". He once said to Drucker, "The only family gathering I attended was their funeral."
The third rule is, "except for very small family businesses, family businesses need professionals who are not family members to constantly supplement the important positions of the company." Non-family professionals employed by enterprises should be treated equally, and they should be given "completely equal rights" in enterprises, and they should not be treated differently, otherwise they will not stay in the company.
The fourth rule is, "delegate the decision on succession to someone who is neither a family member nor has anything to do with the company." Even if the family business faithfully implements the above three rules, there will still be contradictions due to the successor problem of the business, and even face the risk of enterprise disintegration. This is because the needs of enterprises conflict with those of families.
Drucker put forward an incisive and effective opinion on this kind of problem: usually, family businesses will wait until the contradiction about successors becomes acute, and then ask outsiders to help them solve it. If so, it will be too late to miss the opportunity to make a decision. Succession planning should be combined with financial and personnel planning, and these plans cannot be achieved overnight. For this reason, more and more family businesses have found "suitable arbitrators" in advance before their successors are determined.
What are the characteristics of small family business management? Characteristics of small family business management;
1. Family culture is the cultural foundation of family business.
China's Confucian culture runs through the history of the whole Chinese nation, and "family culture" embodies the remarkable characteristics of China's traditional culture, with the main contents of "father's kindness and son's love", "long benefit and young obedience", "harmony is precious" and "harmony is precious". Most of the family businesses in China are based on the traditional "family culture" in China, and on this basis, the cultural characteristics of family businesses have been formed. China people's unique thinking mode and behavior rules are mostly formed on the basis of "family culture". Therefore, the form of property right and organization of family enterprises in China also embodies the characteristics centered on family patriarchy. In other words, the cohesion of family business comes from the prestige and absolute obedience and worship of the power of the family leader, thus promoting the family business to produce a strong centripetal force. Family members in the enterprise have formed basically the same values centered on their parents, which makes the cohesion of family enterprises particularly strong. And this kind of interpersonal relationship between family business members formed by blood relationship is very exclusive. In other words, family members in an enterprise are easy to accept people who are related to themselves to join the organization or obey family members as leaders, and are willing to listen to their calls. However, the trust in non-blood members is low, and non-blood members are rarely arranged as enterprise managers.
2, the parent company centralized enterprise management system.
The biggest feature of China culture is that it is based on the principle of unconditional obedience to elders, otherwise it is "disrespectful and unfilial". If the main manager of the family business is an elder, then this parent will have absolute authority in managing the whole business. It is precisely because of the influence of parents' absolute authority that parents will be quite casual when managing family businesses, that is, the management power of enterprises is highly concentrated in the hands of top managers. However, the person who holds the highest power in the family business is often the founder of the family business. From the day the family business was established, the parent company of the family business centered on the founder of the business was formed. This parent may be a father or a child. It may be the eldest brother or the younger brother. A highly centralized management system centered on the founder of the enterprise will form a paternalistic centralized system of the family business. This high degree of centralization may sometimes lead to the disorder of family business organization because of the identity of the person who holds power in the family or other reasons, which is easy to produce disorder. For example, the wrong tolerance of incompetent family members leads to the betrayal or dissatisfaction of other family members and disputes or conflicts occur.
3. Family enterprises lack financing channels, and the capital chain is easily affected by external conditions.
Most family businesses in China are mainly labor-intensive and low-tech industries. The financing channel of family business is single and difficult. At present, China's financial institutions discriminate against small and medium-sized family businesses to varying degrees, which leads to difficulties in financing family businesses. Influenced by the planned economy system and traditional consciousness, the financial sector can't treat non-public enterprises equally, and it is even more disrespectful to family businesses to love the poor and the rich. If there are risks in loans to family businesses, especially small family businesses, they may be investigated for legal responsibility by relevant leading institutions and even judicial organs. Many financial institutions would rather not reach the loan target than lend to family businesses. Even if they agree to the loan, they will try their best to limit the loan to the family business. In the case of financial difficulties, many family businesses have to borrow from private capital and bear several times the interest burden of financial institutions. If the economic situation deteriorates or the financial policy changes, the capital chain of the family business will easily break, which will make it impossible for the company to continue to develop. It is a reflection of this situation that Wenzhou's private lending capital chain is broken, causing serious social contradictions.
4. Ownership and management rights are highly centralized, enterprise management is undemocratic, and it is easy to manage chaos.
Family businesses in China generally implement a highly centralized system, that is, enterprises often exercise absolute command by one person, and ownership and management rights are concentrated in one person's hands. The management rights of important positions in enterprises are often concentrated in the hands of family members, who own most of the shares. Because family members have control over shares, enterprise management often reflects the interests of family members. Under the condition of scientific and technological modernization and social and economic development, family enterprises must get rid of the management mode based on family members if they want to develop, otherwise it will be difficult to achieve effective development. The main reason is that the family business itself has a certain exclusiveness, so it is difficult to hand over the management right of the family business to non-family members, thus limiting the development ideas of the family business. In addition, the family business only considers the requirement of reducing the operating cost of the enterprise, and is unwilling to hire professional managers to manage the enterprise, which leads to the low management efficiency of the family business. This is related to the cultural literacy of family business managers.
Most of the family businesses established by limited liability companies are not worthy of the name.
The important reason why most modern enterprises adopt the limited liability company model is that the development of enterprises needs to establish corresponding scientific management model. Limited liability companies are managed by means of shareholders' meeting and board of directors, which can effectively implement democratic centralism and make enterprises develop under the principle of efficiency. Although many family businesses are named as limited liability companies, most shareholders are family members, and even a considerable number of family business shareholders' shares are only nominal and have not contributed. Enterprises are only registered as limited liability companies by actual investors in the name of family members. Therefore, the status of shareholders in family businesses is unequal. Many family businesses called limited liability companies, shareholders' meetings or boards of directors are often just a formality, and all kinds of unhealthy trends are formed.
Does family business have to be managed by family? Whether the performance appraisal management consultation of family enterprises can be carried out is the most concerned content of the chairman. The purpose of performance appraisal is to help employees improve their performance, which is the key. The purpose of performance appraisal is to help employees improve their performance, not only to complete the simple action of filling out forms and grading, but also to do other work well, including communication, counseling and feedback.
1, performance training.
In some family businesses, only a few employees know about performance appraisal, and most employees know little about performance. The assessment content and standards of each post are not clear enough, and the work performance cannot be recorded in the usual records. The corporate culture of family business is mainly based on interpersonal relationship, not performance, and the unclear performance standard is distorted by interpersonal relationship. Family enterprises need to conduct a comprehensive and systematic performance appraisal training for employees at all levels, so that all employees of the company have a scientific and comprehensive understanding of performance appraisal.
2. Make assessment objectives according to the facts.
Led by leaders, a leading group composed of personnel departments and heads of various departments will conduct in-depth and detailed analysis and formulate overall assessment objectives. Different departments have different assessment objectives. Starting from improving employees' personal performance and achieving company goals.
3. Clear assessment relationship.
In family business, multi-head management and blood relationship management are very common. Therefore, ① determine the appraiser; (2) Establish a standardized management system.
4. Strengthen the human resources department.
5, formulate targeted assessment content. For example, check whether the application of innovation in the financial field is reasonable.
6. Challenge and stability of evaluation criteria.
7. The assessment period is reasonable.
According to the different levels of employees in enterprises, different periods are adopted, such as one year for senior managers and technicians, quarterly for intermediate and ordinary technicians, and monthly for general managers and employees. Don't let the assessment become a "street rat", and everyone quarrels. iep.essh。
The failure of performance appraisal of family enterprises is often due to the fact that the appraisal system itself is not scientific and objective enough to meet the actual situation of enterprises. The enterprise diagnosis scheme is forbidden to be used by thousands of households, which is the general principle and the application of specific enterprise schemes, so the in-depth and comprehensive investigation in the early stage is the focus.
What kind of subordinates are the most difficult to manage? How do you manage it? It should be a person with his own management style, and it is difficult for you to fundamentally change his thoughts and practices.
Generally speaking, it is to seek common ground while reserving differences, absorb and develop his essence, and subtly dilute the side effects he brings. After all, you are his superior, and it is not difficult to do this!
Why is the family difficult to manage? Before answering why family-owned enterprises are difficult to manage, I want to talk about the family-owned enterprises I have seen, and then talk about the business death point of family-owned enterprises 10.
When consulting and consulting the private enterprise industry, the author found that most enterprises are private enterprises, and the bosses of these private enterprises are mostly grassroots bosses who started from scratch. This is one of the most dynamic groups among business owners in China, and it is also one of the most prone to make mistakes and detours in business management. One of the reasons for making mistakes and detours is one's own limitations, such as personality, vision, vision, pattern, knowledge, origin and so on; Second, the private enterprise industry itself is a sunrise industry, which is not mature in itself, and there are not many "takenism". There are no mature patterns and templates to copy. All business owners are "crossing the river by feeling the stones", and most of them believe in the short-term pragmatic theory that "no matter whether a white cat or a black cat catches a mouse, it is a good cat". An interesting phenomenon is that in the private enterprise industry, even a peer enterprise in a sub-industry, the organizational structure, department name, functions and responsibilities of each enterprise are different, which also shows the immaturity of this industry from the side.
The biggest business death point is why corporate culture can't be left behind.
More and more bosses realize that the bigger and more developed an enterprise is, the more it needs corporate culture. Bosses also painstakingly formulated a set of corporate culture, which was hung on the wall and written in the manual. In general meetings and small meetings, employees are also trained, but all of them are "much cry and little rain", and most of them have become "oral culture", "wall culture" and "coping culture". There are many reasons why culture can't be pushed away in the enterprise and the boss has the final say. The reason for this result is that most bosses don't know that they are corporate culture, and the boss's culture is corporate culture. If the boss has no culture, it is also a kind of "no culture" corporate culture. The boss's words and deeds, especially his words and deeds, and his words and deeds to the management are the corporate culture. Just because the boss wants to promote a set of culture that he thinks is good, and he is doing another set of culture, he can't be left behind. As a result, the "two skins" of culture are separated from each other and even contradictory. The boss does not recognize and practice the corporate culture promoted to employees, especially for management and grassroots employees. In this way, boss culture and corporate culture are two parallel lines, and there will never be an intersection and it is impossible to land.
The second largest business death hole, enterprises can not do without their loved ones.
Blood-related enterprises are not necessarily bad enterprises, and many excellent foreign enterprises started from family businesses. As mentioned above, most bosses in the private enterprise industry are self-made, just starting a business and have no relatives. Who can they rely on? Who can be trusted? This is also a very realistic problem. Therefore, the vast majority of private enterprises are either husband and wife shops or relatives shops, and relatives related to the boss are more or less in the enterprise. It should be noted that there is no contradiction between foreign family businesses and modern enterprise systems without blood relationship. On the contrary, many family businesses abroad are family businesses that have established a modern enterprise system and a professional manager mechanism. But don't forget "orange in the south and orange in the north". Compared with foreign countries, it is much more difficult for our family business to evolve into modern enterprise system and professional manager mechanism. A very big reason is that foreign countries are the management logic of "law, reason and emotion", while China is just the opposite, which is the logic of "emotion, reason and law". First of all, it is not in line with human feelings, whether it is reasonable or not, and finally it is in line with the system and rules. Even if the business owner gives another bowl of water to his relatives, others always feel that the bowl is still crooked. The vast majority of employees think so: as long as there are relatives, there is no fairness! It's useless for the boss to shout loudly. This highlights the "greatness" of two brothers, Liu Yonghao and Liu Yongxing, who founded Hope Group, one of the best private enterprises in China: at the beginning of their business, they didn't want a relative. I know China's humanity too well, I admire it! But it can only be a successful case, not representative and universal. The reality is that with the development of enterprises, bosses should let their relatives gradually fade out of the enterprise. As for how to fade out, it is beyond the scope of this article.
The third biggest business death point is "soldiers rushing to the iron camp."
The reason why the soldiers with running water are replaced by soldiers with "flushing" is that the use of "flushing" can better reflect the rapid flow of people, just like pressing the latest toilet button, as fast as lightning. Every year, the human resources department is busy recruiting people. With the old crops gone, the new crops can't be picked. It is a pain that many private enterprise bosses can't erase. Most private enterprises rely on people, not on systems and systems to survive and develop. The departure of people, especially old employees, takes away a large number of technical backbones, and the technology and methods of enterprises are also lost, and many good things and methods are also lost, which becomes a means for employees to strive for high salaries themselves, while enterprises draw water with a sieve. Retaining people, especially talents, is something that every boss must seriously consider and deal with. The salary level of employees, the competitiveness of salary in the same industry, the career development space and development channels of employees, and the means and methods of retaining people should all be compulsory courses for bosses.
The fourth business death point, if employees don't pay, I won't go up and respond passively.
The boss cares about costs, especially labor costs, and doesn't want to go up every year. However, employees think differently. As long as the salary has not increased for two years, most employees begin to have ideas. Waiting for employees to ask for a raise is equivalent to letting employees find a good home before negotiating with their bosses. This is mostly the case. When the boss is "cornered", the employees are generally "lions open their mouths", which makes the bosses in a dilemma and very passive. Instead, take the initiative to deal with it. It may be a practical solution to clarify the annual assessment method for employees, improve the promotion mechanism and set wages for employees' length of service every year.
The fifth biggest business death point is "we don't need airborne troops to die, we use airborne troops to die".
The most successful professional managers in China, whether Kai-fu Lee or Tang Jun, have exciting salaries, but it is not their intention to constantly change jobs. The bitterness behind the scenery is only clear to them. At present, it is rarely estimated that business owners in China can grow old together with professional managers. First, China's current society is impetuous. Most bosses are eager for quick success in the short term, have no long-term strategic planning, and have limited patience with professional managers who can't make achievements and sales in the short term; Second, China's own professional managers are not mature enough, and they are mixed, and they are also despised and criticized by bosses; Third, bosses and professional managers often need a long running-in process because of the huge contrast in origin, vision, orientation, personality and thinking mode, but the market waits for no one, and it is possible to break up before the running-in is completed. What the boss needs to know is the classic "barrel theory": he invited a "long board" (professional manager) back, and the other boards in his barrel were still "short boards". If they are not as long as longboards, or if they don't develop in the direction of longboards, they can't have more water (good performance and good sales). This "longboard" is likely to become the target of short board attack, and "longboard" (professional manager) has mostly become a despondent unlucky egg.
The sixth biggest business death hole "is not the life of big enterprises, but the disease of big enterprises".
What is the disease of big enterprises? Most people are overstaffed, overstaffed and inefficient. This is not a question of whether big enterprises want this disease, but whether it can be cured. This is an inevitable disease of large enterprises with the expansion of institutions, personnel and processes. Only the severity of the disease, there is no problem of getting sick. This is why the book Dancing with Elephants written by Guo Shina, the former CEO of IBM, became a best-seller in management. Elephant (large enterprise) has the advantages of long process, slow decision-making, slow speed and insensitive response, but it also has the advantages of less decision-making mistakes, stable system and strong anti-risk ability. Private enterprise owners are mostly sparrows (small and medium-sized enterprises). They should have made quick decisions, responded sensitively to the market, changed quickly and worked efficiently, thus giving play to their comparative advantages. However, many bosses of private enterprises have got a saying that "the sparrow is small and complete". There are many institutions, departments, management levels, bloated personnel and low efficiency, which makes them suffer from the undeserved disease of being rich in big enterprises. Enterprises in private enterprises mainly keep in mind that streamlining institutions, refining personnel, reducing levels, being responsive, making decisions quickly and efficiently, and implementing them in place are magic weapons for the survival and development of small and medium-sized enterprises, which need to be adhered to and pursued for a long time in the stage of development and growth.
The seventh biggest business death point is "small feet wear big shoes".
Frankly speaking, most bosses of private enterprises in China have strong learning ability. Willing to try and adopt new ideas and practices is a double-edged sword. Whether it is theory, system, mode or mechanism, there is no difference between advanced and backward for enterprises, only suitable and unsuitable. I admire the spirit of many bosses who dare to treat their enterprises as "experiments". Regardless of the development stage of their own enterprises and the present situation of enterprise resources, they blindly introduce and popularize the so-called advanced theories, systems, models and methods that they think or are sold to them by others, and only put on a pair of unsuitable big shoes for their little feet. Definitely not suitable. When employees can't understand, can't carry out, complain and give up halfway, bosses will give up and dislike. What private entrepreneurs need to keep in mind is that what is suitable is the best, and don't let your head become someone else's racecourse!
The eighth biggest business death point is suffering from "brand hyperactivity disorder".
Now is an era of information explosion. Bosses should remember that a strange enterprise, a strange brand, has a high cost and a large investment, which takes a lot of money and time. Moreover, the corporate brands of private enterprises are mostly unknown industry brands, and there are very few popular brands that can be called by the public. There is still a long way to go for the brand building of private enterprises. The bosses of many private enterprises, whose brand positioning, brand slogan and brand image are constantly changing, change once a year or two, which is a typical "chop and change". Look at Heng Yuanxiang's "Sheep, Sheep and Sheep" and Brain Platinum's "No Gifts for this Festival". Even though they are called "brain-dead advertisements" by so-called experts and consumers, they still insist. They won the essence of brand building in China, and let consumers remember that this is the first. Consumers scold melatonin for going to the supermarket and giving people something as a gift. May think of melatonin. Owners of private enterprises need to keep in mind that the accumulation of brand equity lies in perseverance, otherwise brand equity will be out of the question, and they will get "brand hyperactivity disorder" and may also get negative equity. The glistening silver is really wasted. It hurts. Why do bosses always suffer from "brand hyperactivity disorder"? Because important brand positioning, brand slogan and brand image determination all require profound market judgment and consumer insight. Most bosses clap their heads and make decisions, without confidence and persistence. Going with the flow, the brand naturally becomes a doll that can be changed.
The ninth business death point is "fast is slow, and slow is fast".
Many bosses of private enterprises, especially those of national brands, can't wait to complete the layout of national networks and channels as soon as possible. It's a great sense of accomplishment to see small red flags everywhere on the national map. This has led to the blind rashness of many business owners. It is relatively easy to become the "dark horse" of network expansion speed, but it is by no means a day's work to become the "white horse" of network quality. The cost of acquiring a new customer is four times that of acquiring an old customer; The investment of rebuilding a rotten market is more than four times that of reopening a new market, and the hidden cost may be much greater. If you can't do it well, you would rather not do it; It is often a wise choice for the boss not to do it because he is not fully prepared. Fast without quality is slow, and slow with quality assurance is fast. This is the management dialectics that all bosses should know.
The tenth biggest business death point is "the boss who can't be a man."
Should the boss know how to do things, or be a man, or be a man even if he knows how to do things? There is no standard answer to this question. But the author's consulting experience summarizes that small bosses should be able to do things; The boss can do things and be a man 2. The big boss must be able to be a man. Doing things depends on IQ, and being a man depends on EQ. The bigger the boss, the higher the EQ should be. The main task is to be a man. Some bosses often misunderstand that they regard themselves as "pioneers in doing things", but employees stand by and comment. Big brothers, please ask yourself, if you still need to do things by yourself, why invite so many people? Thinking deeply about human nature, practicing human feelings, and condensing people's hearts to death may be more important and critical for a private enterprise boss who wants to be big, and can determine the development of the enterprise, even life and death!
The dead hole is not terrible, but there is no way to get through. The top ten "dead holes" of private enterprise bosses summarized above may be generalized and taken out of context. As long as the bosses of private enterprises combine their own actual conditions and prescribe the right medicine, they will certainly be able to get through their own appointment and supervision, solve the dead hole, keep fit and make great progress in martial arts.
The most difficult thing to manage in the world is people. what do you think? The coexistence of angels and demons means that human beings are the most ideal, ambitious, lazy and stable. So we can't generalize, there are all kinds of birds when the forest is big, but most of them are good birds!
Vote! What do you think is the most difficult to manage in production management? Please explain! In feed production, machines, materials and people are all managed by people. I think it is the most difficult to manage people in production, because people have different educational levels and strong mobility, so managing people in production is our most difficult thing.
How to manage the family business is the same, so is the family business, except that relatives should put their position in the business and take the lead in performing their duties, which will lead to better management.