Family Business(Pratik Negi)

By:Pratik NegiShalini Kaushal

Share capital owned by a family either

jointly or individually.

Involvement in decision-making, maintain

management or ownership.

Ownership control by direct descendants

• 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

• 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.

Founder

Next Generation

Family members

Non family members

• 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

• 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.

• 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.

Difference in pay

Promotions and salary hikes

Maintain good chemistry with owning family

Senior positions easy path

Difficult to retain in top management

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

Thank You!!!