Human Resource Management in Small and Medium-sized Family Enterprises

Introduction: Small and medium-sized family enterprises are small and medium-sized enterprises whose capital or shares are mainly controlled in the hands of one family and whose family members maintain absolute control over assets and business management. Family enterprises as an important part of China's non-public economy, they play an important role in promoting economic growth and increasing employment. But in the process of growth is often small, long, and even premature death has been plagued by the problem of family business. The reason lies in the lagging management of family enterprises, especially in human resource management problems. This paper analyzes the current situation of human resource management in small and medium-sized family enterprises, points out that the crux of the problem lies in the lack of trust, and proposes to strengthen the role of trust and incentives to improve human resource management.

Human Resource Management in Small and Medium-sized Family Enterprises

(a) Arbitrary human resource system arrangements.

The family business management mechanism is independent and flexible, but in terms of human resource allocation, the basic personnel system is not sound, the recruitment, hiring, training, promotion and dismissal of employees without a set of scientific and reasonable system of norms and operating procedures, often based on the business owner's past experience and subjective judgment, arbitrariness is great, more emotion than reason, inside and outside the difference. The family members, friends and relatives regardless of their ability to be arranged in important positions; outside the family of the staff job design is unreasonable, too much responsibility, demanding, once the violation of the penalty is too heavy, so not only frustrated non-family members of the work of the enthusiasm, but also very difficult to recruit high-quality personnel to the command.

(2) The talent cognition that emphasizes education and light ability.

Most of China's small and medium-sized family enterprises are developed on the basis of urban and rural individual businessmen, various types of professional households, and the owners of the enterprise have a lower cultural level. They are in the process of entrepreneurship, y appreciate the importance of knowledge on the development of enterprises, have recruited high-level professional and technical personnel and management personnel, for the further development of enterprises to lay the foundation of talent, which is a very valuable transformation. But in the talent cognition, many family-owned enterprises are very easy to go to the other extreme: ? Only academic theory? Do not analyze the needs of the job, do not pay attention to the division of responsibilities, regardless of the cost of employment, the pursuit of high education of the employed. So that the emergence of? High consumption of talents? The phenomenon of "high consumption of talents" is that they are not looking for practical results, and they are using high education to decorate their enterprises. This is not only a great waste of national human resources, increasing the cost of enterprise expenditure, but also directly affect the economic efficiency of enterprises.

(3) The structure of talent that emphasizes technology and light management.

As we all know, technological progress has become an important foundation for enterprise development, without the support of advanced technology, the product in the market is bound to lack of competitiveness, reduce the value-added, and affect its economic benefits. However, many family enterprises have a single talent structure, focusing too much on the technical field and neglecting the introduction and cultivation of management talents. In the family business, the entrepreneur is often a professional and technical personnel of the enterprise, is a professional in this industry, in technological innovation, product development has its own advantages. However, as the owner of the enterprise, it is easy to fall into empiricism, one-sidedly believe that with advanced technology can produce high-quality products, can occupy the market, so as to obtain profits, and even for the pursuit of technological advancement and research and development. Family business spares no effort to recruit professional and technical personnel, but do not pay attention to the number of management staffing, the lack of unified deployment of human resources management and coordination, ignoring the important role of scientific management in business operations, the formation of a limp development situation, the result is that although the enterprise has advanced technological capabilities, the product performance is also very good, but due to the management can not keep up with the high rate of scrap, the cost can not be lowered, the sales can not go, after-sales service is not good, the enterprise is not good. The result is that although the company has advanced technical capabilities and good product performance, the management can not keep up with the high scrap rate, the cost can not be reduced, the sales can not go, the after-sales service can not be good, the overall economic efficiency of the enterprise has not been greatly improved.

(d) The incentive mechanism of heavy material stimulation and light humanistic care.

In the family business, between the enterprise and the staff is basically a kind of employment and employment, command and obey the relationship, the business owner of the incentive understanding is very simple, that is, incentives? Reward plus punishment? The business owner's understanding of incentives is very simple, that is, incentives and penalties, the staff as their own money machine, not only the lack of long-term, effective incentives, incentives are also too simple, mainly in the form of material incentives, do a good job on the raise, do not do a good job of deducting money. People are not only economic or social people, in addition to material satisfaction, but also the pursuit of the realization of self-worth. The lack of humanistic care for employees, employees do not have a sense of belonging and trust.

(E) heavy introduction, light training of talent development and utilization.

The discovery and cultivation of talents in family enterprises is a long-term and meticulous work, enterprises must develop a perfect `human resources development and cultivation strategy, and the formation of a reasonable talent echelon in the enterprise, in order to make the development of the enterprise flourish. However, some family enterprises have serious short-term thinking, short-term behavior is more common. The performance of human resources development and management, not willing to invest in their own training, not willing to bear the cost of investment in human resources and human resources investment risk, always want to sit back and enjoy the benefits, digging the wall of other business talent; or wait until the staff vacancies affect the normal operation of the outside world in a hurry to recruit, due to the time rush, it is difficult to ensure the quality of the hired personnel.

The crux of human resource management in small and medium-sized family enterprises is the lack of trust

From the small and medium-sized family enterprises in the current situation of human resource management, we can see that the crux of the human resource management is the lack of trust between the family business owners and external managers. Influenced by the traditional Chinese Confucian culture, small and medium-sized family enterprises generally just build trust in the ? Specialist trust? basis, which is a trust structure centered on lineage and scoped by closeness. In the selection of key positions in the enterprise nepotism, not meritocracy, basically in accordance with the proximity of the order of affinity; in the major decisions of the enterprise generally only trust the owner himself or his own people, and to? Outsiders? The trust is very limited. particularist trust? under the principle of trust to select people. Modern small and medium-sized family-owned enterprises for the generation of senior management approach, more than 70% of the enterprise is by the owner of the enterprise, part of the insiders as well as a few foreign professional managers. It can be said that this is mainly due to the lack of trust leading to this situation. On the one hand, professional managers to enter the family business is still quite difficult, even if they enter the business, the function of its play will be discounted; on the other hand, for the family business owners, it is also difficult to let go of the business to the professional managers hired from the market to operate.

Second, small and medium-sized family-owned enterprises, major business decisions and general management decisions are mainly made by the owner of the enterprise, the enterprise investors will be the power to firmly in their own hands, not willing to share the power of business management with the business management personnel hired by the enterprise. And the smaller the size of the enterprise, the lower the cultural level of the owner, the more the owner tends to directly grasp the management power. The result is that the business management personnel hired by the enterprise tend to produce the feeling of being marginalized, it is difficult to work together with the owner of the enterprise, directly affecting the level and effect of business management. And most of the reasons why business owners are directly involved in their own management is because they can not find a credible manager. It can be seen that in small and medium-sized family-owned enterprises, there is still a relatively serious between the owner and the manager? Lack of trust? problem, and this directly affects the management mode and organizational structure of small and medium-sized family enterprises in China, which is not conducive to enterprises to give full play to the effectiveness of their human capital.

Three, small and medium-sized family enterprises to do a good job of human resources management is based on strengthening trust and incentives

Expanding the trust, strengthen incentives, is to do a good job of human resources management of small and medium-sized family enterprises based on. This is the majority of small and medium-sized family enterprises must face a considerable period of time in the future. One of the important points is to further expand the trust within the enterprise on the basis of the original material incentives, and pay more attention to the role of spiritual incentives. Of course, the trust relationship does not occur naturally, it is through the input and cultivation of both sides of the development, and need to have a suitable external environment.

First, trust is based on property rights.

Constant property rights motivate people. Property rights motivate people with anticipation, permanence and stability. In the human resource management of small and medium-sized family enterprises, in order to establish a solid relationship of trust between the owner and employees and employees, and in this way to stimulate the enthusiasm of the staff, it is necessary to establish a clear and perfect property rights protection system, so that the trust is established on the basis of the rule of law. On the one hand, we must establish the property right protection system of the enterprise owner on the enterprise property and its income, so that the enterprise owner is sure that at least in the legal sense, its property rights on the enterprise is protected; On the other hand, we must also recognize and respect the enterprise employees on their human capital has the property right, the human capital owners have the right to ask for its human capital investment to obtain the corresponding return, so as to maximize the incentive of all enterprise Employees will contribute their human capital to the enterprise. On the contrary, in the absence of respect and protection of property rights, it is impossible for people to build trust in the counterparty out of self-interest. At best, trust can remain in the blood-centered? particularistic trust? to the extent that trust in people who possess the human capital needed by the firm? Outsiders It is difficult to establish a relationship of trust, and of course, it is impossible to make better use of the potential human capital of the enterprise, and the allocation of human resources in the enterprise is not optimized.

Second, the bridge of trust is communication.

Trust is a long-term expectation based on mutual understanding between the two sides. In the enterprise, to make business owners and employees, employees and employees to establish this long-term stable expectations, it is necessary to make the other side of their own talent and character have a clear understanding; in turn, only to the other side of the talent and character have a clear understanding of the two sides may be able to establish a relationship of trust between the two sides. Although there are many channels of understanding between business owners and employees and between employees and employees within the enterprise, communication is one of the important channels of information disclosure and information search, through effective communication and exchange, it is possible to reach an understanding between managers and general employees, so that the general staff better understand the enterprise's management regulations and follow them in practice. Through effective communication and exchange, even if the enterprise in some aspects can not let the staff satisfaction, but as long as the manager and the staff to reach an understanding between the staff, the staff will still work hard to support and cooperate with the work of the enterprise.

Third, the soil of trust is the environment.

Undoubtedly, in a good environment, it is easier to achieve understanding and trust between people. We cannot expect to build deep trust in an environment of mutual suspicion, mutual envy, and mutual accusation. A business owner who is not trustworthy himself cannot expect his employees to be trustworthy. For human resource management within the enterprise, it is to create a relaxed, harmonious, equal and fair atmosphere to promote the formation of healthy interpersonal relationships within the enterprise, to provide the possibility of establishing trust between people.

Fourth, the guarantee of trust is the system.

In essence, trust is a long-term, stable expectation of the other party between subjects with different interests. It is meaningless to talk about trust when one's own interests are not effectively safeguarded. The principle of new institutional economics tells us that one of the important functions of the system is to create conditions for the realization of cooperation and the establishment of trust, and to ensure the smooth progress of cooperation and trust. The system, as a rule regulating people's behavior, is the sum of a series of contracts reached after many games in the process of extensive social division of labor and collaboration. With the system, the relationship between people is regulated, it can reduce the cost of information and uncertainty, to minimize the factors that hinder cooperation and trust can be carried out, the trust relationship between people established on a solid platform.