The Role of Non-Family Managers in Promoting Business Continuity in Family Owned Enterprises: Practical Conflict Resolution Techniques for Independent Managers and Non-Executive Directors
4 Pages Posted: 18 May 2006
Date Written: 2005
This paper describes the conflict that is typical in a family business and highlights some of the major factors that make family business conflict unique from other types of interpersonal conflict in the workplace. Failure to adequately control conflict in family business may contribute to the high mortality rate of family-owned firms. This is due to a management failure to come to grips with the inevitable discord that arises when family members work closely together. The difficulty for family business arises when family rules do not apply after they are transferred to the business system. This paper identifies common causes of conflict and it explores ways to manage or resolve this conflict in family business, with the view to preserving the existing business, ensuring its continuity in the short term and assuring succession for the long term.
Keywords: family business conflict, Non-Executive Directors
JEL Classification: L21, D74, G30
Suggested Citation: Suggested Citation