issues in family business
Author: Hector
There are some theories and literatures say that the most crucial and important issues in family business is succession. Succession is one of important issues in business organization, especially for the family owned companies, but it may not be the most crucial and important issue in the family owned companies.
Succession will become issue when the founder of the company have plan to retired or pass the company to his/her successors or the next generation. Usually this will happen after the company has stabled, and the next generation will only need to maintain the growth of the company and some development. Before came to that level, the business organization itself as the family owned organization, has some challenges because of the family culture in the organization.
These challenges have to be faced by the management of the company, sometimes the family culture can become the disadvantage for the company. Some issues regarding the family culture in the business organization are: the unequal and unfair treatment between family member and non family member in the business organization, internal communication within organization among the family members, etc
Succession is an issue that came after several others issues in family owned organization/company, because the succession problems will only exist after the plan of retirement of the founder.