1 / 24

MGT 4550 - Family Business Management

MGT 4550 - Family Business Management. MULTIPLE GENERATIONS - ROLES IN THE FAMILY BUSINESS Chapter 3 Family Business Management, Concepts and Practice by A. Bakr Ibrahim & Willard H. Ellis. Instructor: Dr. Irene Duhaime. Class Schedule - Week 3.

orpah
Download Presentation

MGT 4550 - Family Business Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. MGT 4550 - Family Business Management MULTIPLE GENERATIONS - ROLES IN THE FAMILY BUSINESS Chapter 3 Family Business Management, Concepts and Practice by A. Bakr Ibrahim & Willard H. Ellis Instructor: Dr. Irene Duhaime

  2. Class Schedule - Week 3 • MULTIPLE GENERATIONS - ROLES IN THE FAMILY BUSINESS • Reading: Chapter 3 Dual Relationship • Case: • The Steinberg Family, FBM, p.57 • Precista Tools, FBM, p.157 • Questions 73, 74, 78, 90, 91 from FBAB • PROJECT TEAMS TO BE ASSIGNED

  3. Content • The Social and Business Functions • The Overlap between Functions • The Problem of Carry-over • Forming One’s Own Identity - Daddy’s Little Girl • The Path of Self-evaluation • continued ….

  4. Content • …. continued • Expectations and Exploitations • Zone of Comfort • Nepotism • Confusion • Supervising Family Members • The Art of Disengagement

  5. The Social and Business Functions • Dual Relationship • Social Function (Family) • Decision-making based on emotional and biological imperatives • Business Function (Family Business) • Decision-making based on objective, rational economic model

  6. The overlap between functions • Value Conflict • Consists of different sub-systems of the family and the business • Each sub-system affects and is affected by the other parts of the system • Overlaps cause dysfunction

  7. The Overlap between Functions

  8. The Problem of Carry-over • Create situations of: • no-win • transfer of family problems to non-family employees • disruption due to family feuds • difficulty in distinguishing between roles in family & roles in the business

  9. Forming One’s Own Identity - Daddy’s Little Girl • Suppression of identity for offspring • Tendency for gender biases to influence decision-making

  10. The Path of Self-evaluation • Offspring often: • crave autonomy • are not prepared for succeeding the founder

  11. Expectations and Exploitations • Offspring are often required to meet family expectations • Elder family members may exploit younger family members • difficult to say ‘no’ • working long hours • little compensation

  12. Zone of Comfort • “...establishing well-defined inter-personal boundaries is critical in family firms” • to avoid negative impact on family life

  13. Nepotism • “The advancement of family members on the basis of their relationship in the social function rather than on their qualifications...” • Causes some family businesses to lose talented staff

  14. Confusion • Confusion over • Rules and Roles • Acceptable practices e.g. in succession or hiring

  15. Supervising Family Members • Hard to criticize elder • Hard to evaluate close family members • Family members must learn the art of constructive criticism. • Senior family members must take the lead to explain the benefits of being open and candid.

  16. The Art of Disengagement Box 3.2 The Art of Disengagement • Formulate clear organizational goals, objectives and strategy. • Design job descriptions. • Establish policy and procedure guide. • Design the organization chart. • Develop the strategic plan. • Prepare a code of conduct. • Establish performance evaluation measures. • Develop a succession plan.

  17. Cases • THE FOUNDER AND MULTIPLE GENERATIONS • Cases: • The Steinberg Family, FBM, p.57 • Precista Tools, FBM, p.157 • Questions • 73, 74, 78, 90, 91 from FBAB

  18. Project Topics PROJECT TOPICS DUE THIS WEEK !!!

  19. Class Schedule - Week 5 • CONFLICT MANAGEMENT IN FAMILY BUSINESS • Reading: Chapter 4 • Case: Northern Construction Inc., FBM, P.203 • Questions 9, 24, 59, 70, 77, 85, 86, 90 FBAB

  20. Question 73 • Is it a good idea to spend time together away from the business? • Can you ever really have a separation between family and business?

  21. Question 74 • When you and your sibling are contemplating joining the family business, what should you, your sibling and your parents have in mind concerning sibling relationships and roles?

  22. Question 83 • Should advisors be or become personal friends ?

  23. Question 90 • What are the different types of company cultures that can exist in a family business and does it matter for family harmony and good business ? • What can you do to emphasize more, the culture’s good points and change its negative ones?

  24. Question 91 • How do you get management and employees to buy in to culture? • How do you also market that culture to attract employees and customers plus impress others in the industry?

More Related