Fair Process: Striving for Justice in Family Business

Posted: 4 Nov 2009

See all articles by Ludo Van der Heyden

Ludo Van der Heyden

INSEAD - Technology and Operations Management

Christine Blondel

Independent

Randel S. Carlock

INSEAD - Entrepreneurship and Family Enterprise

Multiple version iconThere are 2 versions of this paper

Date Written: 2005

Abstract

Procedural justice in family businesses and itsimpact on the firm's performance and the commitment of its employees isexamined in this study.For purposes of this analysis, procedural justiceis considered to be the process that is applied to resolving contradictoryclaims from various individuals within the family business. Often in family businesses, the application of justice is made more complexbecause of the deep personal relationships.The five characteristics thatare required for the practice of fair process are: (1) communication and voice;(2) clarity of information, process, and expectations; (3) consistency acrosspeople, over time, and with agreed values and norms; (4) changeability ofdecisions, process, goals, and principles; and (5) commitment tofairness. In an attempt to identify fair process practices in family businesses, fivecases are examined, including: (1) unfair process among shareholders, (2)unfair process in "business family" membership, (3) call for fairprocess in recruitment and career development of family managers, (4) fairprocess in leadership transition, and (5) fair process in familyparticipation.Although the implementation of procedural justice may bedifficult and time consuming, the benefits outweigh the initialcost.These benefits include providing a feeling of self-value toemployees, generating more ideas, and increasing the team performance.(SRD)

Keywords: Fair process, Fairness, Procedural justice, Justice, Conflict management, Employee management, Family-work relations, Management decisions, Management training, Organizational structures, Family firms, Families, Employee performance

Suggested Citation

van der Heyden, Ludo and Blondel, Christine and Carlock, Randel S., Fair Process: Striving for Justice in Family Business (2005). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1498252

Ludo Van der Heyden (Contact Author)

INSEAD - Technology and Operations Management ( email )

Boulevard de Constance
77 305 Fontainebleau Cedex
France
+33 0 1 60 72 42 89 (Phone)
+33 0 1 60 74 61 60 (Fax)

Christine Blondel

Independent

Randel S. Carlock

INSEAD - Entrepreneurship and Family Enterprise ( email )

Boulevard de Constance
77305 Fontainebleau Cedex
France
+33 0 1 60 72 41 42 (Phone)
+33 0 1 60 72 42 23 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
794
PlumX Metrics