Family Business(pratik Negi)

Presentation on FAMILY BUSINESS : 

Presentation on FAMILY BUSINESS By: Pratik Negi Shalini Kaushal

Characteristics of A Family Business : 

Characteristics of A Family Business Share capital owned by a family either jointly or individually. Involvement in decision-making, maintain management or ownership. Ownership control by direct descendants

Advantages : 

Advantages Long-term orientation and continuity Family culture pride for family Less bureaucratic Greater willingness to weather the bad times by ploughing back profits. Impart training to younger members

Disadvantages : 

Disadvantages Role of members not clearly defined. The style may be autocratic or patriarchal. Members may not be worthy of their position. Succession battle. Selfish motives to drain the money from the company.

Elements in Family Business : 

Elements in Family Business Founder Next Generation Family members Non family members

Role of A Founder : 

Role of A Founder Head of the family Determines the nature and direction of the family enterprise Starting the business and Builds the organization Provide guidance and direction to employees and family members Planning for succession

Next Generation : 

Next Generation Demanding and challenging than that of start-up Address the faults and imperfections. They will be unable to start from scratch Already established systems and so difficult to justify changes and justify failures Fear of failure may panic into making sub- optimal decisions.

Entry of Family Members : 

Entry of Family Members Ground rules regarding entry Members be encouraged to join the family Business Encourage the younger generation to develop skills and educations Different family members different levels of involvement. Develop internship program for family members to judge if they are out from family business. consider the role and rights of those family members who are not at all involved in the family business.

Issues with non family employees : 

Issues with non family employees Difference in pay Promotions and salary hikes Maintain good chemistry with owning family Senior positions easy path Difficult to retain in top management

Solutions : 

Solutions Discuss career paths in the company and clearly state if top positions are not open for them. Offer compensation and benefits that are at par with others in the industry. Involve non-family managers in top-level decision making Set targets and use performance measures to build motivation. Emphasize the contribution of non-family managers in company meetings. Treat family members like employees at work. Involve non-family managers in succession planning

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Thank You!!!