Question

Explain why communication, employing family and non-family members, professional management, employment qualifications, salaries and compensation, succession, and ethics are important issues for all family businesses.

Answer 1

Answer:

Communication, employing family and non-family members, professional management, employment qualifications, salaries and compensation, succession, and ethics are important issues for all family businesses because for running a successful business, all thee factor are important and essential and without these elements none of the business can be executed or operated effectively.

For a family business communication is the most important element because unless we make the proper communication in the family and non family business, employee and stakeholders will not be able to come to know the business updates and status. Communication update employee and motivated them to go forward.

Employing family and non family member is also an important aspect as we need to place family member at key positions which are essential for control point of view and non-family employee at skill and competency level so that we get good balance of family and non family employment at the business.

Professional management is significant because without professional management, we cannot operate the business adequately and professional management is key for achieving the desire success for the business. Employment qualifications are also significant and we need to ensure that essential qualifications are available with the employees of the organization.

Salaries, compensation, ethics and succession are all essential and critical element for the business and these need to be adequately managed so that we can operate the business adequately and manage the interest of employee, government, community etc. Ethics standard is the base for good culture and environment for the business. Succession planning is required to ensure that we get the right back up for the business.