ENT 501 Lecture Notes - Lecture 1: Management System
7 Dec 2016
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Ownership control (15%) by two or more member of a family or a partnership of families. Some family firms do not have ownership but do have voting rights, and make changes and strategic decisions. Strategic influence by family members on the management of the firm. The dream (possibility) of continuity across generations. The firm is a dynamic system in which integration is achieved by adjustments between family, management and ownership subsystems. Individual perspectives of family and firm may differ, leading to overemphasis on one subsystem at the expense of others. Employment in the business is a birthright. Member of the same generation are paid equally. Perks that transfer from the business to family member are often extensive. Financial systems may be obtuse by design, and secrecy is often paramount. Commitment to continuity depends on the agendas of individual family members. Employment is on the basis of qualifications, family is discouraged from working in the business.
