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Differences between family businesses and family businesses

Anonim

" The family is the fundamental foundation of society, " or at least that is what is taught in elementary school classrooms. But what is the meaning of the word “family” in the administrative field? Many times that concept is used when welcoming a new member of the work team without stopping to think about everything that such a peculiar word represents or can represent according to the particular aspect that each company gives it.

Undeterred to engage in elaborate sociological discussions of the term, fully validated indeed, the family is, from a very personal perspective, the most basic and perfect example of organizational functioning:

The income comes from offering a service or selling a product, there are fixed and variable expenses, there are emerging human resources (children) who must be trained and empowered to occupy positions of importance and whose decisions allow establishing directions in the future of the organization, of course, all in an ideal setting.

But like the economically formed organizations, families are exposed to bankruptcy, defalco, usurpation of functions, espionage, excesses and many other evils that are not alien to the administration.

Each family is different, they have values and behaviors that bring them closer or separate them from others, as also happens in organizations.

But all this simile does not answer the question that gave rise to this approach, since it does not broadly point out the difference between a family business and a family business.

Well, family businesses are historically older than family businesses, because as their name indicates they arose from the exercise of economic, political or religious power that a family group exercised over others of a similar nature but lacking such power.

History is full of these examples: the pharaonic dynasties, the Roman and Chinese emperors, the English, French and Spanish royalty and even the Mayan, Inca, Aztec and other monarchies that came to have an important influence on trade and the system social of its times.

Then, with the arrival of commercialism and technological advance, wealthy and economically capable families put aside noble titles and dedicated themselves to trade, generating a new form of empire.

There are many names that contemporary history has duly documented, which vary according to the country studied, but which are always present in the popular fantasy of what it means to be rich and powerful.

However, not only these two characteristics describe family businesses, since it is common to observe how respect for the patriarchal figure is conjugated and at the same time the conflicts characteristic of the different personalities of the family members who manage certain areas of the business, putting their particular touch to your power niche.

For this reason, it is easy to recognize family companies: they come from a common core, their members form an essential and unalterable part of the boards of directors and, at the same time, they are in charge of a part of the business activities, or several of them Depending on the centralist and distrustful vision that "the family" has developed during the growth of the financial year, obviously nepotism reigns in them and the policies, norms and rules are created along with deviations.

In family businesses, vertical growth is almost impossible, for this, special skills are required that allow the person outside the family name to be considered as a member of the family environment and, finally, to be adopted as one more, without meaning total absence of supervision and the prevailing need to consult any decision that may affect the stability of the company.

In this type of organization, emotions are always present, be they benevolent or malefic, or a good portion of both, because as anything can be considered an attack, it is about eradicating immediately what upsets the balance without stopping in details or reasons, regardless of whether those involved in the alteration are allowed their legitimate defense.

It is impossible to stop imagining these organizations as the feudal reigns of the past where the offense was paid with humiliation, punishment or death and even with all of them, understanding them in modern administrative language as the loss of employment immediately, the declaration of person is not pleasant for the institution and the indisputable absence of job references, really severe punishments in a society where conflicting people, whether confessed or potential, are quickly discarded when detecting such behaviors during the selection process.

Although it is true that family businesses have developed great and true economic empires that leave their own and strangers to an eternal amazement, it is no less true that those who have experienced - without luck - working in them conceive it as entities where success and the recognition will depend on how good or bad they are seen by the owners, beyond the efficiency, effectiveness and effectiveness of the work or the time that has been dedicated to it.

In family businesses, the smaller denomination currency is worth as much or more than any other, investments are discussed in the boards of directors, however basic they may be, and staff are usually compensated with the minimum allowance, since what is intended is to maintain or increase family wealth.

Only the family counts. They are companies with a high turnover rate which is considered normal and even beneficial, since it allows offering less compensation to the new employee even when it is the same task.

But not all things are negative in family businesses, since their constant pressure, particular stability and excessive supervision generate behaviors of responsibility, care for details, respect for authority and deep desires for improvement and development, which make them true labor universities where its graduates, in less rigid and contracted scenarios, stand out for their ability to save, precision and skills to do more with less.

Now, family businesses seem to be a utopia.

They are companies that may or may not have emerged from a wealthy family but whose business vision is based on synergy, valuation and trust.

These organizations observe their members as family members, whether legitimate or adopted, offering them the same opportunities for growth and development, they do not rule out supervision, auditing and controls, but such mechanisms rest on personal ethical values ​​and trust. that is owned by those who carry out the work.

Considering that they are a family, they observe enrichment as a consequence of the quality of its members and distribute the profits generated in an equitable manner without jeopardizing the finances of the company, since they understand that to the extent that everyone is doing well company will also be.

Family businesses strive for the recreation and development of a social life for their employees, do their best to make them feel comfortable and involved in the success of the company, share success in the same way that they assume failure, and show true ties Fraternal when any member of the team suffers an accident or a fatality.

They are simply a family.

In family businesses, expenses are also controlled and excesses are avoided, but not through repressive policies or terminal sanctions, but through the awareness of its members.

Unlike family businesses, family organizations do not live in a constant war economy, because although their income fluctuates as in any other organization, they have managed to sensitize their employees well enough to react favorably to these changes, when the company wins everyone wins and when the company loses everyone loses, it's as simple as that.

But not everything in family businesses is so positive and pleasant, because such bonds of fraternity and cooperation are created that arise elements such as personal sacrifice and the absence of effective communication to avoid generating changes in the company.

Some employees try to empathize with the firm so much that they refrain from requesting improvements even when they need it because they feel it would be unfair to make such requests knowing the conditions of the company.

Others use such ties to demand consideration for their services.

Furthermore, a climate of such harmony and feeling of satisfaction is generated that when other scenarios are experienced, feelings of frustration and longing for past experiences arise, elements that can affect job performance.

In short, it can be said that the difference between a family business and a family business is in the way in which that concept is understood, on the one hand it is broadly exposed and without discrimination, all are part of the family and that requires sacrifice and the dedication that the term contains, on the other hand, only the members of "the family" must have the privileges of the power that is possessed and those who want to belong to it will have to win, but not in full, the trust and respect that this requires.

Two opposite poles with their advantages and disadvantages that suggest remembering that phrase "everything in excess is bad" which allows us to conclude that whether it is a family or family business, the important thing is to always keep balance.

It cannot be said that one is better than another, it will depend on what you want to achieve the comfort or inconvenience of belonging to one of them, as far as the employee is concerned, but if it becomes an element of reflection for those who have to direct them, since success is built on the basis of satisfied people and identified with the organization.

Differences between family businesses and family businesses