Introduction
When many family businesses are founded, they are run by succeeding generation of the founding family. Family members occupy important position in the organizational hierarchy. Employees from outside the family are at times used in the organization. However, this is dependent on the unavailability or unwillingness of a family member to occupy the position. The organizational structure of family businesses may vary depending of the type of business entity and how its growth reflects on size. This survey was carried out of owners of four family businesses. The questionnaire used was designed to explore various aspects of family businesses. It is from the data collected in the questionnaire that this report is written.
Findings and Discussion
Of the four family businesses that were interviewed, two of them had retail businesses while the one of the other two had a wholesaling business and the other with a service business. When asked the most significant concerns regarding the growth of their businesses, two of the family businesses ranked the overall business costs as the most significant concern. While there were other choices, the overall business cost were chose as the most significant concerns for the business. When asked about the most significant human resource problems for the business, three of the businesses identified workforce shortages, skills shortages and compliance with labor laws as the most significant challenges although not in that particular order.
In order for businesses to comply with the labor requirements, sometimes businesses need to part with significant amounts of money. For instance, businesses that have full time employees will require to give their employees all their entitlements, some of which include health plans and social security contributions. This has an incremental effect on the overall costs of the business (Glowik 75). While only one business had the written job descriptions detailing the individual responsibilities and qualifications required, it is worth noting that none of the businesses provided professional training and development opportunities for their employees. This is related to the human resource challenges that the businesses have reported to facing. Through training and professional development, these businesses can nurture their employees so that they are not only able to deliver more effectively on their mandate, but can also take up the business when the owner retires.
With regards to the rules and how they apply to family members in comparison with non-family members, two of the businesses reported that there were different rules when it came to the termination. This implies that family members may not be terminated in situations where non-family members may be terminated. This might have an effect in the morale of non-family members within the business, especially if they are working at the same organization level, and the favoritism is conspicuously visible. With regards to the succession plans, the four businesses felt that it was important for the founder to leave positive legacy when he retires.
Nonetheless, there were split opinions regarding the successions plans of the businesses. When asked whether the successor who was chosen for the family business was a family member, the four interviews reported to having chosen a member outside the family as a successor. The four businesses also reported that the families did not have a council or an advisory board. When asked about the challenges that faced the family businesses, diverse views were given. This implies that these businesses were operated by sole proprietors, where the proprietor made all the decisions of the family business.
Nonetheless, employee attitudes and finding skilled labor featured predominantly in three of the four businesses. When asked about the most significant external challenge that faced family business, three of the four businesses confided that it was the slow economy. Since the economic downturn in the last five years, businesses have performed dismally. This has been challenging for businesses seeking to make profits (Kurtz & Louis 89). The other challenges that even though they were not the most significant featured in the list were taxes at the state and local. The four family businesses interviewed did not admit to using any chamber methods in order to promote their business.
Promotion of business is important for businesses, more so for small businesses that want to compete favorably. There are many business promotions strategies that are at the disposal of business owners. This survey sought to ventilate on the use of social media platforms. With regards to promoting the business via social media, three of the four businesses interviewed reported to using the social media under normal business operations, with two of the businesses that reported to using social media preferring Facebook over other platforms. The two businesses who reported to not using social media platforms to promote their businesses cited the lack of time as the main reason. Others cited the fact that had tried and failed previously. It is important to note that the use of social media requires time. It is probably for this reason that those who did report to using the social media platform for promotion reported so.
The two other businesses who reported to using social media, and preferably Facebook reported to using it daily to push content regarding their business hence giving the business exposure. Those who reported to having tried and failed should get training in the use if this social platform. This is because it can be used effectively to advertise and promote the business leading to an increased performance. Additionally, the survey found that the businesses who reported to using the free services of Facebook where they can post content about their business on their profiles. Even as admirable as this is, it is important to consider the use of paid advertisements on these social network platforms.
Conclusion
The survey found that the family businesses lacked the organizational structure seen in big firms. The survey showed that retail businesses are common business types for families. One of the issues raised in through the survey is the lack of promotion for small businesses. For instance, none of the four businesses interviewed used any chamber methods for promotional purposes. Additionally, only two of the businesses interviewed used the social network for promotional purposes. The social network platform is a very potent form of promotion for small businesses.
Additionally, the survey has found that the businesses do not have training and career development programs for their employees. In today’s business world, it is important to invest in their employees. Given that one of the human resource concerns for the business involves a lack of skilled labor, it is important to train and develop current employees professionally so that they can deliver their mandate more effectively.
Works cited
Glowik, Mario & Bruhs, Sarah. Business-to-business: Aglobal network perspective. London Routledge. 2014. Print.
Kurtz, David L, and Louis E. Boone. Contemporary Business. Hoboken, NJ: Wiley, 2011. Print.
