What are the disadvantages of family management and how to improve it?

The best way to solve the disadvantages of family management is to separate ownership from management. This problem has been completely solved in developed countries.

What are the disadvantages of family management?

Family management means that the core position of enterprise leadership is held by the same family member. The operating system of management is generally maintained by consanguinity or consanguinity, and the management mode has a strong color of rule by man. Clothing enterprises, for example, are generally engaged in clothing wholesale business. After accumulating funds and experience, they started their own businesses, set up their own factories, set up their own production lines, and earned profits by OEM for foreign brands. In recent years, with the increase of labor costs in the mainland, the profit rate of OEM is getting lower and lower, and many garment enterprises have changed the marketing model of franchising and their own brand management ideas. However, with the change of business model, its management model has not changed. That is to say, these enterprises have more or less family management. Family management mode may still have its management advantages in the early stage of enterprise entrepreneurship. However, today, clothing enterprises advocate brand influence and franchise to open up the market, which seriously hinders the development of enterprises. As for the management mode of family business, I think there are the following disadvantages:

1. The management system is rigid and it is impossible to attract outstanding talents.

There must be a scientific management system behind the benign development of enterprises, relying on the system to supervise the design, production and sales of enterprises and maintain the healthy development of enterprises. For example, Youngor and Free Bird, two clothing brands, have completed the transformation from "rule by man" to "rule by law" after several years or decades of development and become well-known domestic enterprises. But relatively speaking, many private enterprises are still in the family management mode, which is easy to cause internal mechanism confusion. My brother-in-law is in charge of finance and purchasing, and my brother is in charge of sales. All departments are basically in the same place as the boss. In this environment, the company lacks an open and meticulous working environment. As people close to the boss, they seem to have a natural sense of superiority. Although they are not as capable and knowledgeable as those recruited by real skills, they can rely on their non-blood relationship with their boss. You can do whatever you want without being bound by the system. In the face of the system, equality for all is an empty talk in this family-owned enterprise. The system formulated by the relevant departments has been seriously hindered in its implementation. The same personnel system stipulates that it is strictly forbidden to be late for work; Smoking is strictly prohibited in the non-smoking area during office hours. As the boss's direct line, you can be late at will and smoke everywhere in the office area. Recruited "outsiders" must strictly implement the company's various systems, and violators will be severely punished. The same people do suffer from different institutional treatments. It is conceivable that this kind of management will eventually lead to the non-boss losing confidence in the enterprise and the work will change from active to passive. Personnel separation from morality and chaotic management mechanism make enterprises lose cohesion.

The drawbacks of the family business management model have also created a real elite, unable to obtain the corresponding work authority and give full play to their abilities. As Liu Yongxing of New Hope Group said: "The biggest drawback of family business is that social elites can't get in, and several brothers are in the highest position of the enterprise, so outsiders can't get in. Moreover, the family's way of thinking is somewhat similar, and there is no breakthrough. Everyone has their own ideas, so it is difficult to make decisions on some things and it is easy to delay business opportunities, thus making it impossible for enterprises to obtain fresh blood to expand their management team. The rigid management system makes enterprises lose their fighting capacity in the market game.

2. Staff morale is low

The internal interpersonal relationship of enterprises with family management mode is very subtle and complicated. In the crowd dominated by the boss clique, those "outsiders" who enter the company by their ability always feel that they have nowhere to display their talents. There was once a clothing company that came up with a unique trick in seating arrangement. That is, behind everyone who is not direct, arrange a direct person to sit. During working hours, "our own people" stare at the people in front of "outsiders" with monitoring eyes, which makes the people in front feel depressed. You should know that people in the office are required to pay attention to the initiative and creativity of their work, not the mechanical operation on the production line. How creative can you be if someone keeps staring at you?

An environment that does not advocate civilization is bound to have many bad habits. Another feature of the family management model is that tattling is common and confusing. Because the boss's direct followers are his core members, he can gain greater trust. Without a standardized management, it will do great harm to those "outsiders". It is also in that company, because the boss's own people are always looking at "outsiders" and seeing that "outsiders" have a little bad behavior, it will immediately spread to the boss's ears. In this way, no matter how hard "outsiders" try, if they accidentally offend a small group of bosses, they will never get fair treatment. Therefore, under the family management mode of enterprises, even the best talents can't be integrated into the core group of enterprises. In the long run, the enthusiasm of outsiders will always be consumed in the intrigue of family businesses, and people will lose confidence in their work.

3. Departments are fragmented and lack effective communication mechanisms.

The fragmentation of departments is also a criticism of enterprises with family management mode. Departments dominated by immediate family members and departments dominated by "outsiders" always present a state of strong and weak contrast. At present, the operation mode of clothing enterprises is basically that the marketing department and sales department are managed by "outsiders" and the procurement and finance are managed by their own people. In such an organizational structure, its departments and departments are not on the same fair line. The lineal department is the main department, and the department managed by outsiders becomes the vassal department. Originally, according to common sense, in the franchise mode, the marketing department and the sales door are the main bodies in enterprise management, undertaking market development and maintenance, brand building, channel construction, activity promotion planning and so on. , and are the key departments of the enterprise. The finance department and the purchasing department provide material and financial support for the work of major departments. Such enterprises operate smoothly. In the family management mode of enterprises, it is completely the opposite. Such enterprises will inevitably lead to poor communication between departments, problems in market operation can not be solved in time, resulting in ineffective operation of enterprise mechanism and customers losing confidence in joining the enterprise. For a long time, the departments have been unable to play their due functions and go their own way. With the growth of enterprises, various interest groups will be formed within enterprises. Because of the complex emotional relationship, leaders will be in a more complicated or even dilemma when dealing with interest relations. When the relatives and family members of enterprise leaders violate the system, it is difficult for managers to treat other employees equally, which also leaves hidden dangers for internal management of enterprises.