What are the advantages and disadvantages of family business management?

Advantages of family-style management Despite the mediocre management of many family-owned enterprises, low technology, but still have a strong ability to survive and compete, which is the unique advantages of the family-style management model, focusing on the following: First, most of the employees of the enterprise lifelong employment system, employee stability and rarely flow, so the investment in human resources development is less, the cost of staff training is low, and can ensure that the overall quality of employees.　Secondly, the dependence of employees on the enterprise is strong, and the enterprise has strong cohesion. Lifelong employment and annual merit pay system makes employees reluctant to leave the enterprise, once jumping to a new enterprise, the salary and benefits will start from zero again. As a result, the interests and destiny of the employees are linked with the enterprise, which can improve the durability and risk resistance of the enterprise.　Third, the internal interpersonal relationship is harmonious. Family-style management seeks to move people with emotion, to act to touch people, to convince people with virtue, managers with less power of the position, with more personal authority, thus fewer labor conflicts, fewer personnel disputes, less likely to produce the kind of labor-management confrontation of Western enterprises, strikes, demonstrations, batches of dismissal of workers and other vicious events.　Fourth, the new technology, new technology has a strong absorption and digestion ability, can effectively prevent the leakage of enterprise secrets and technology patents, its internal technological innovation also has a strong target and practicality.　Fifth, the family-owned enterprises in the managers and employees in the emotional existence of the "know and repay" idea. Employees have to look at the manager as the food and clothing parents to repay the kindness of the psychology, non-family employees will also have to know the love, appreciation of the relatives, the grace of reuse, they will double their efforts to repay, if someone ignores or violates the ethical values and standards of behavior, will cause public criticism, sometimes it is difficult to get a foothold in the community. Disadvantages of Family Management Family management overly emphasizes human feelings and neglects system building and management. This management mode makes the interpersonal relationship within the enterprise harmonious and brings harmonious benefits to the enterprise, but the enterprise is not a family but a social economic organization, and there are certain differences and conflicts between the personal goals and interests of its members and the goals and interests of the enterprise, especially the adjustments of the interest relationship between the employees who are not related by blood as well as between the employees and the managers and their relatives or cronies, which must be based on an objective and fair standard, with a Uniform system and discipline to restrain the behavior of all members, in order to form an objective and fair management mechanism and good organizational order.　The role of family enterprise managers is very prominent. Their morality, behavior is correct, strict style, played the role of public service and dedication to the role of an example, business quality also requires a skill, many of them are composite talents, not only is an expert in a technical field, but also a shrewd businessman, or a public relations expert. Because of their talents and limit the role of many subordinates to play, suppress the growth of talent, the formation of personal absolute authority. Therefore, this kind of enterprise will often have the phenomenon of "success is also Xiao He, failure is also Xiao He". At the same time, when the person is not in or abdicated, the organization will appear talent gap, power vacuum phenomenon, resulting in a period of time in the enterprise in a state of disorganization.　The phenomenon of nepotism is serious in family management. They deal with interpersonal relationships according to affinity rather than according to talent, thus creating a difference between "their own" and "outsiders" within the organization, resulting in a familial atmosphere of "brothers in war, fathers and sons in battle". "This creates an atmosphere of familialism within the organization. In order to survive, outsiders tend to follow the trend and form gangs, forming factions of "your group" and "my group". Sometimes in order to protect the interests of "outsiders" they will unite with the managers or "their own people" to fight, resulting in corporate infighting. Therefore, the family-style management either cohesion is very strong, interpersonal relations, or internal fragmentation, factional strife.