Family Business Decoded!

Sadashiv Borgaonkar Author

The industrial enterprises were the result of joint family effort (capital) & therefore family control continued in the form of ownership / management

Family Business Decoded!

• The Founder must try to identify those critical operational activities which need to be adequately supported to ensure at least the survival of the firm. 

• He may structure them in such manner that all important operations continue to take place without any disturbance despite pertaining conflict amongst the family owners relatives. He may sanction powers to the competent people who need not have go to any of the family members for frequent approvals as long as they are carried out as per the guidelines. 

• The firm must create reserves to meet any contingencies occurring owing noncooperation or instigating of family members. They could be extra staff to compensate the possible loss of work because of incompetency of family members to carry out a given task. 

• While carrying out the structuring of the task system those areas should be identified where conflicts among family members is likely to arise. In these areas more professionals may be employed. At the same time family members may be entrusted with those areas where the chances of conflict are less. 

• The Founder should take extra care to keep morale and motivation of the employees so high that they continue to remain committed and loyal to the firm. They are likely to be the only individuals who can be entrusted with high level of responsibility in times of conflict for ensuring smooth functioning of the organization. 

• Very often, the founder refuses to accept certain lapses in the organization which are results of family issues. This leads to a state of confusion in the organization resulting in family members blaming each other for poor performance. The Founder should accept certain given problems and issues as weaknesses because of family based management system. This would help avoid unnecessary anxiety and politics in the organization. 

• The task system should be loosely structured so that enough flexibility is built in. The bureaucratic structure is very much vulnerable during a period conflict. In the case of conflicts or blocks being created to routine functions, a middle course should be adopted. 

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Sadashiv Borgaonkar,

Founder

ACTSol's eLearning Institute

Categories: : Family Business