How to transform family business into modern enterprise

Introduction to post-family management of modern enterprises

Yang Zhou

This paper introduces a new management theory, that is, the post-family management theory of modern enterprises, and tries to define the research object, research content and research method of this theory through the historical analysis of the logical evolution of management theory, and tries to establish a simple model of this theory. Finally, the basic management methods and applications of this theory are briefly introduced.

Post-family management, family business and modern enterprise management integration

1 Introduction

With the rise of China's economy, in today's China, not only private enterprises, but also township enterprises, collective enterprises, partnerships, joint-stock cooperative enterprises and private contracting enterprises also adopt a large number of family management methods. The author finds that some enterprises and listed companies with modern company system, whether they admit it or not, essentially adopt family management mode. At present, all walks of life and all kinds of enterprises generally adopt family management and modern management methods, each of which has its own advantages and disadvantages and plays a complementary role.

Unfortunately, when introducing the development stages of enterprise management, the existing enterprise management theories all claim that the management methods adopted by most enterprises in society are used as the symbol of division, and the traditional management stage, scientific management stage and modern management stage are obtained; There is no mention of the fierce debate between family management and modern company management, and even family management is regarded as the natural enemy of modern management. And scholars who have studied family business and family management more, such as Colin? Gesik, Zhou Qiren and Chu Xiaoping all think that family management is an inevitable process in the growth stage of enterprises and is historic. Although some scholars admit that family management and modern management can exist in society, they have not pointed out that family management and modern management can also exist in an enterprise, nor have they studied the combination of family management and modern management. However, the author believes that family management can not only be combined with modern management science to become a new post-family management model, but also develop into a new management theory and become the forefront of contemporary management theory.

This paper attempts to introduce the author's research results on the post-family management of modern enterprises in the past two years, investigate the concept, essence, task, status and methods of post-family management from the perspectives of philosophical thinking, theoretical model and management methods, and introduce the logical evolution of post-family management. The first part of this paper summarizes the meaning, research object and research method of post-family management; The second part discusses the basic logical evolution of post-family management; The third part introduces the theoretical model of post-family management of modern enterprises; The fourth part introduces the basic management methods of post-family management; Finally, it is a summary of this paper, pointing out that this paper and other research results of the author are only a preliminary exploratory research, which needs to be more specific and deepened in the follow-up research.

2 the meaning of modern enterprise post-family management

2. 1 The concept of post-family management in modern enterprises

Post-family management in modern enterprises does not refer to family management in family enterprises, but develops the concept of family management from two aspects. First, the "family" of post-family management refers to the family network circle, that is, the "family group" with family nature and blood characteristics, including relatives, founders and lovers. Among them, the * * * identity of the founder refers to the interest * * * identity formed by the founder with his classmates, colleagues and neighbors in the process of starting a business, which has the same characteristics as blood relationship. The androgyny of love refers to the androgyny of cultivating some enterprise members to become cronies and combine them into interests in the process of enterprise development, and it also has the same characteristics as blood connection. Second, the "management" of post-family management refers to the integration of modern scientific management methods and their management structures with the traditional "management structure" of family management and becomes a new management model. Therefore, post-family management is a management mode in modern enterprises, which is obviously different from the family management mode in traditional family enterprises.

The post-family management of modern enterprises is not personnel management, or at least, not all personnel management, but includes personnel management, including personnel recruitment, selection, appointment, tracking, promotion and so on. However, post-familial management also includes the management of strategy, production, marketing, finance and organization, which is an all-round and systematic management mode. Post-familial management is a management system combining informal structure-"blood system" and formal structure-"organization system". Here, we can analyze and study the relationship between blood system and tissue system by using the concepts of formal group and informal group, formal organization and informal organization.

Organizational system is a formal organizational structure, which clearly defines the scope of responsibilities and the relationship among members of the organization in order to effectively achieve organizational goals, and its organizational system and norms are binding on members. The consanguinity system is an informal organizational structure with no clear articles of association. However, this does not mean that consanguinity is not binding. On the contrary, consanguinity binds members with in-laws and their moral traditions, is the source of strength of the organizational structure of family management, and is a way of resource allocation to make full use of organizational resources. In fact, the consanguinity structure not only has the same organizational function, but also has the characteristics of low supervision cost, incentive cost and risk cost.

2.2 the research object of modern enterprise post-family management

Obviously, the research object of post-family management of modern enterprises is not only family enterprises, but also modern enterprises. Firstly, the theory attempts to establish a universal management theory; Because the theory summarizes the management status of modern enterprises through questionnaires and reflects the management mode of general enterprises; Finally, post-family management is the product of the combination of family management and modern management, and it is the third stage of the development of management mode. Therefore, this theory not only studies the evaluation of employees' functions and positions, but also studies how the informal kinship system enters the formal management system of enterprises. How to carry out system integration and reengineering in enterprises; The transformation of enterprise management mode; And use this theory to explain the reform of state-owned enterprises, and point out new ideas of state-owned enterprise reform.

2.3 Research methods of modern enterprise post-family management

The research on the post-family management of modern enterprises not only follows the general scientific research methods, that is, historical methods, comparative methods, abstract methods, comprehensive methods, critical methods and so on. At the same time, the author also believes that empirical research should be the cornerstone of this theoretical research. Therefore, the author has done interviews and questionnaires in Zhengzhou, Henan Province for nearly half a year. Among them, * * * distributed questionnaire 120, recovered questionnaire 120, valid questionnaire14, recovery rate 100%, and the effective rate was 95%. For the details of the questionnaire survey, please refer to the paper "Post-family Management of Modern Enterprises" published by the author in Journal of Wuhan Jiaotong University in 2000.

At the same time, in the follow-up research, the author will make use of the original survey data, continue to conduct more in-depth investigations, and conduct reliability tests, validity tests and sensitivity tests on the questionnaire survey to deepen the understanding and research of this theory.

3 the logical evolution of post-family management in modern enterprises

Accurately speaking, the development process of family management, modern management and post-family management cannot be regarded as a strict logical evolution process, but for the convenience of theoretical research, we can see the fundamental reason for the development of management mode and the essence of path dependence from the historical development process. The post-family management of modern enterprises is transformed from family management and modern management, so it inevitably develops with the development of enterprises and the deepening of people's understanding.

3. 1 family management stage

The family management stage is the first stage, which is a mode of relying on family members to manage enterprises with the emergence and development of the original enterprises and the urgent requirements of management. Because there is no mechanized mass production, there are not many people and the external environment is not complicated, this method is a more suitable management mode. Nowadays, in the initial stage of starting a business, family businesses usually adopt the method of family management, which is not only because there are few small talents, but also because the benefits of family management mode are far greater than the cost of family management. As shown in figure 1, the family management stage is in the graphic OA stage.

The expansion line of the enterprise is also the income curve of the enterprise, assuming that it is a straight line with positive slope, that is; The cost line of informal organization management, that is, the cost line of family management, that is, the cost line of using blood relationship, is an upward convex curve, in which the first derivative is greater than zero and the second derivative is less than zero, that is; The formal organization management cost line is a modern management cost line, assuming that the slope is positive, but it is smaller than the straight line of the enterprise expansion line. That's understandable. If it is greater than the enterprise expansion line, the enterprise has no impulse to expand, so the formula is.

As can be seen from the figure,; ;

With the expansion of enterprises, the deepening of people's understanding and the requirements of modern management, enterprises have entered the second stage, that is, the modern management stage.

3.2 Modern management stage

The modern management stage is obviously due to the high cost of family management, which can only be managed by establishing a formal organization. Combined with economics, management psychology, organizational behavior, operational research, mathematics and enterprise management theory, the modern management stage has emerged. In fact, the development of management science really started from this stage. Then scientific management and modern management. However, for the convenience of theoretical research, the integration of scientific management and modern management into new modern management will not affect the research conclusion. This stage is in AB stage.

3.3 Post-family management stage

When the enterprise develops to BT stage, the cost of family management is reduced, while the cost of organization management is relatively increased, so the combination of the two can be adopted at this stage. In other words, we can choose different ways with lower management cost according to different positions and employees of the enterprise, and bring the kinship with lower supervision cost, incentive cost and risk cost into the enterprise management system, and integrate it into the post-family management management mode.

Therefore, the logical evolution of post-family management of modern enterprises is mainly formed by the changes of costs and benefits, and changes with the changes of enterprise conditions and external environment.

4 theoretical model of post-family management in modern enterprises

4. 1 post-family management enterprise organization chart

When consanguinity enters the enterprise system, it will have an impact on the management system of the enterprise. In the enterprise organization system, the management subsystem of home network circle is added. Therefore, we will conduct innovative research on management functions. As shown in Figure 2, the solid line represents the enterprise organization operation and enterprise information transmission line according to the organizational structure of public enterprises, that is, the formal structure diagram; The dotted line represents the organization and operation of home network circle and information transmission network, and it is an informal structure diagram. In pure public enterprises, the dotted network will no longer exist, leaving only the structure composed of solid lines; On the other hand, if the enterprise is managed by a pure family, the solid line organization no longer exists and is replaced by a point network structure. At this time, the supervision organization and incentive system of enterprises can be omitted, which is what people usually call the organization of family businesses.

4.2 the theoretical model of modern enterprise post-family management

At this point, we can find that the theory of modern enterprise post-family management mainly establishes the basic ideas and methods of post-family management from the perspectives of organizational structure, institutional arrangement, post setting and employee evaluation. As shown in Figure 2, the organizational structure of an enterprise has two systems: one is a formal functional system; One is an informal functional system. The operation of formal functional system needs to spend costs, including the construction cost of formal organization, the salary cost of personnel, the friction cost of complex structure and the transmission cost of management information. Among them, the construction cost of formal organization includes discussion cost, feasibility study cost, bargaining time and opportunity cost, organization construction cost and so on. The salary cost of personnel includes not only the salary, bonus and various benefits of personnel, but also the intangible promotion cost in order to retain talents. Friction cost with complex structure is the main cost of bureaucratic organization. In Coase's institutional economics research, the main part of management cost is bureaucratic cost, and it is the comparison between this cost and the cost of using the market that leads to the boundary of enterprises. It can be seen that the reason why modern enterprises adopt post-family management mode is a rational choice for the benefits and costs brought by more formal organizational structure and informal organizational structure. This paper assumes that the informal system of consanguinity is "free", but from another perspective, the structure of consanguinity also needs to pay "fees", such as the multi-head command cost that may be caused by the overlapping of management organizational structure and functions, the cost that enterprise management does not fully mobilize the enthusiasm of professional management talents, and the high failure and high risk cost caused by irregular or unscientific management decisions. The institutional arrangement of the enterprise follows the principle of "benefit-cost" to design the organizational structure. Of course, in the design process, it is also subject to the formal external order such as cultural tradition, institutional background and law. The mode of post-family management not only compares the benefits according to the supervision cost, incentive cost and organization cost of different posts, but also includes the cost of more formal organization and the cost of informal organization, which is the family network circle here. If the supervision cost of the financial department is high, if the system arrangement is carried out according to the formal organizational structure, the cost is very high. But the cost of using family members is very cheap, so the financial department generally uses family members; Simple production process is easy to observe and supervise, so the cost of supervision is very low, but the cost of using family personnel is high, so non-family personnel are used at this time. Some positions are between the two, and various indicators can be obtained by weighting (that is, the comparison of various costs). This issue is discussed in detail in the institutional economics research on post-family management of modern enterprises. At the same time, the idea of post-family management can be transformed into a management technology or method, which can be applied to the mode of personnel management.

Five basic methods of post-family management in modern enterprises

The basic methods of post-family management can be embodied in many aspects. This article is limited in space, taking personnel assessment as an example to illustrate. Set any position J of an enterprise, the required ability index is αj and loyalty is βj. (αj+βj≤ 1) When αj+βj= 1, it means that the position only needs these two indicators, but if αj+βj,

X=x？ βj + l？ αj； Y= y？ βj + m？ αj； Z= z？ βj + n？ αj

By comparing the sizes of X, Y and Z, we can choose the right employee for this position. It is this mechanism that enables us to have a profound understanding of the management methods of general enterprises, especially family enterprises.

Although some enterprises don't and won't evaluate various indicators of every employee and every post according to quantitative methods, they will manage them according to the basic principles of post-family management.

6 conclusion

This paper introduces the basic concepts, models and methods of post-family management, and briefly describes the logical evolution of family management, modern management and post-family management with graphics. Through the data of questionnaire survey, the basic theoretical methods of post-family management of modern enterprises are obtained. This paper also explains some phenomena existing in current enterprises through the theoretical model of post-family management. Finally, it is pointed out that post-family management is the product of the combination of family network circle and public management mode, and it is the integration of family management and scientific management mode. Practice and theory have proved that the post-family management mode is not only an expedient measure, but will develop into a new form of modern enterprise management.

But there are still more fields, such as how to integrate post-family management with modern management, how to rebuild post-family management, and whether it will have an impact on enterprise strategy, enterprise marketing and enterprise finance, which are not involved in this paper. Therefore, it can be said that this paper is only an exploratory attempt in this field, and many viewpoints and expressions in this paper need further serious consideration, and some problems in some fields need further in-depth study. However, this paper has undoubtedly played a role in attracting jade, and will guide the author and more scholars to enter this field for rich and valuable research.

References:

1, Zou, She Lian, etc. Post-family management of modern enterprises [J]. Journal of Wuhan Jiaotong University, 2000 (4): 27-30

2. Research Group of Private Entrepreneurs in China. Operating conditions of private enterprises in China and group characteristics of private entrepreneurs [J]. China Social Sciences, 1994 (4): 66-68.

3 Zhou Qiren. Rural reform and the development of China [M]. Hong Kong: Hong Kong Oxford University Press,1994.100-101.

4 Chu Xiaoping. Research on Family Business [J]. China Social Sciences, 2000 (5): 5 1-58.