Today, we are starting an article series with a brand new topic! It is a weird topic to write about, but I did some research so... Anyways, we are here to broaden our vision! I am not limited to boring textbook info and can explain other things in a fun way if you want... But a start is important. Let's start.
Family and Professional CEO: Which One is More Appropriate? In What Conditions?
Family businesses are a combination of two distinct social structures: the family and the business. Members play different roles in the family and the business, but the borders between these roles are usually uncertain. The interference of roles generates constructive and destructive characters which differentiate the family business from private business. The Interference-related differences make it impossible to manage a family company where the CEO is the husband, and the managers are the children as a private company. In addition, even a small size family company has non-family employees and the interaction between family and non-family employees requires additional managerial approaches. At this point, it can be stated that managing a family business is different than a private business and more complicated with its family relationship issues, informal structure, the tendency to nepotism, low level of training, family members as successors, and emotional approach to the business.
How to manage the family business with its distinct and unique problems is the first question that arises when the complex structure of the family business is examined. The main question is the combination of several problems which should be investigated separately like how to strengthen the family relationship, how to finance the company operations, and how to regulate the relationship between family and non-family employees. Most derivates of the main question have subjective answers but one of them is very interesting and scientifically researchable: “ Who should manage the family business?”. The characteristics of a good manager can be an answer to the question; however, when the combinational structure of the family business, as the family and the business, is considered, a more sophisticated question appears: “ Who could manage the family company better: a family CEO or a non-family CEO?” (Khanin et al. 2020, Miller et al. 2014).
OK, let's stop here for today. The topic will develop further and I ensure that you will gain a different perspective. When you are tired of the bad news about crypto, come here.
