"Relationship Network": The Death Of Family Business Governance

Li Huagang, a private enterprise management expert at the private enterprise research center of the Yangtze River Delta Research Institute of Tsinghua University, believes that the biggest feature of Chinese family businesses is that almost all enterprises have a black net.

The first net family network:

There are more family members in the family business, and the relatives and relatives of the bosses have become a firm and substantial entity.

The second net: kinship network:

There is a widespread relationship among employees in family businesses.

At least 50% of the staff members have relatives or friends in the company, and are in a wide range of blood ties and nepotism.

The third network -- regional network:

There is a strong regional color in family businesses. Whether they are recruited, hired or appointed, they are willing to accept local people, who are strongly rejected.

The formation of these three networks naturally has its long historical background and origin.

Hagel said, "existence is reasonable", and the existence of "net" naturally has its reasonable side.

But these three nets are the biggest obstacle to the healthy development of all family businesses.

Because of the existence of "net", there are four special characters in the family business.

1. the first level is the direct family member of the boss.

2. the second level is an iron elder brother and an elder with the boss.

3. the third level is the collateral relatives of the boss.

4. the fourth level is the relatives and friends of the direct relatives of the boss.

{page_break}

There are four special characters in the family business, some of which are similar to India's surname hierarchy system before the French Revolution.

This division has not been publicly expressed, but it has long been a fixture in people's minds.

The common characteristic of the four grade personages is that they are self conceited and arrogant. They never put their management systems in their eyes.

They often know more about the major decisions of some companies than their immediate superiors.

Direct subordinate is not important in their eyes.

Every higher class of people, the more aggressive and aggressive in their bones, the more intimate they are with their bosses, the more arrogant they are in the company.

The first grade is the most "cattle", the second level is slightly worse, but it is still "full of beef". The appearance of third grades and fourth grades is very ordinary on weekdays, but as soon as they encounter specific matters involving their own interests, they start to "bull" immediately.

Family members in the company have a superior manner and a kind of default privilege. They report directly to the boss, and never look directly at the supervisor.

The biggest characteristics of family members are tempered, difficult to communicate, difficult to cooperate, and do not obey all kinds of rules and regulations of enterprises.

At the beginning of China's family business, most family businesses rely on a kind of family strength, affinity and geopolitical strength. They usually have very low cultural content. They are purely profit oriented organizational forms, lack of high-level spiritual goals, and have a low starting base. The whole management mode is based on a culture of farmers and townspeople, and has no connection with the management mode of international modernized enterprises.

After developing to a certain scale, its own spiritual structure, institutional structure and personnel structure have become obstacles to the development of enterprises.

At this time, unless a strong reform is carried out, it will always linger at the original level or close down.

In this black net, the hardest part is the family network.

The biggest difference between modern enterprises and traditional family businesses is that the cadres of modern enterprises can be removed after making mistakes, while family members of family businesses make mistakes only to admonish and not to recall.

The existence of black networks in Chinese enterprises will seriously affect the uploading of normal orders, and the black net will form a huge electromagnetic field, which will disrupt the normal radio communication within the enterprise.

The black net is not cut, and the enterprise will never have a healthy and healthy development day.

{page_break}

Because of the existence of "net", there are many forms of power centers in Chinese family businesses.

1. executive power center;

2. family power center, family multi power center) (for example: husband and wife power two center, father and son power two center, brother power two center, etc.)

3. veteran power centre:

4. geopolitical power center.

The existence of multiple forms of power centers in the family business makes the enterprise always have a stubborn black force. Its connotation is hostile to innovation, maintaining the past existing mode, localization consciousness, exclusion of foreign personnel and things.

This black influence exerts a great influence on enterprises.

This black influence is a common phenomenon in family businesses in China.

Zeng Liang Liang and Li Huagang, a private enterprise management expert at the private enterprise research center of the Yangtze River Delta Research Institute of Tsinghua University, said: the dark rule is actually the initiator of the "short-lived rule" of Chinese family businesses. In the past 30 years since the reform and opening up in China, this farming culture has been reduced to some extent, but there has been no fundamental change.

The fundamental reason for the short life span of family businesses lies in this.