Role of Family System And Business In Family Business Sustainability Essay

Role of Family System And Business In Family Business Sustainability - Essay Example the family system’s contribution to business enhancement include financial management practices, family functioning style, additional family income, and subjective measures such as functional integrity of the family, satisfaction with the family’s quality of life, and success in achieving the most important family goal. Similarly, other criteria related to family systems that help to improve business processes are reducing family tensions, living in a multi-generation family, undergoing sleep deprivation for devoting additional time to the business, hiring temporary help during hectic periods are other factors that will be taken into consideration to examine their impacts on business revenue. Olson, Zuiker, Danes, et al (2003) state that the family has a greater effect on the business than the business has on the family. The Family Business Research Group developed the Sustainable Family Business (SFB) model which equally recognizes the family and the business, and the dynamics between the two factors in achieving sustainability for both, state Heck, Jasper, Stafford et al (2000). The SFB model of empirical research portrays business system success as a systemic phenomenon. It includes research on several areas including â€Å"business performance, business strategy, subjective measures of business success and effects of the family on business performance† (Olson et al 2003, p.645). The research results will indicate the impact on business success by business characteristics, business owner attributes, and distinguishing features of the family system. Review of Literature The family system performs a â€Å"key integrating role for the business and at the same time meets the needs of the family† (Fletcher 2002, p.11). In this dynamic relationship, the family goals... This report stresses that Family and business are the two subsystems with their inherent and distinctive needs, â€Å"role requirements, rules, values and cultures†. Both subsystems are crucial in determining the extent to which sustainability of family business is achieved. Family types have been identified by characteristics including how a family communicates, resolves conflict and organizes itself, style of leadership and decision-making, and importance of traditions and values†. This paper makes a conclusion that the family system performs a â€Å"key integrating role for the business and at the same time meets the needs of the family†. In this dynamic relationship, the family goals are the most important, and influence business and family decisions. There may be a conflict when a family member’s behaviour calls for firing the person from the business system, yet the person continues to be accepted by the family system. Few family businesses consider firing a child, or other relative. Within family and business systems, individuals have different roles with specific expectations for behaviour. Thus, a child taught in the family system not to argue with the father, may have difficulty in expressing conflicting viewpoints in the business system when as a manager the individual is required to deal with the parent. â€Å"The confusion of roles such as parent/ founder/ owner/ child/ manager/ owner/ non-operating family member/ sibling, and the carryover of roles from one system to the other† are considered as critical sources of tension in the family business.