Non-Family Managers and HR Practices of Family Firms
Küçük Resim Yok
Tarih
2022
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Nova Science Publisher Inc.
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
Family firms have one special factor that makes them unique and competitive compared to non-family firms, and that is family involvement. Family firms are composed of management, family, and ownership. While this composition often has many advantages, it also has some downfalls. Family involvement has a significant impact on the behavior of the company, more specifically on the human resource (HR) management practices of the company. As a result, family firms have to deal with nepotism, self-dealing, and entrenched management issues to hire and retain professional non-family managers and other white-collar workers. Family firms are intended to be the career center for family employees (Bloemen-Bekx et al. 2019). Therefore, family firms have different HR compositions. There are mainly three types of employees in family firms; first, the shareholder family members and their heir (ownership), second, the other family members and relatives (family), and third, the non-family employees (management). Non-family employees are divided into two categories, managers and workers. Although family firms have a tendency to assign family members to crucial positions at the firm (Deloitte and Touche Study 1999), non-family employees are hired for other executive and managerial positions, which is more crucial for family firms (Chua et al. 2003). Considering all these challenges and difficulties due to family involvement in employee relations, researchers raise the question of whether “family firms are good employers” (Neckebrouck et al. 2018). Family firms diverge from non-family firms with their long-term orientation and caring approach to their employees. This caring approach is proven in downsizing studies. Researchers show that during crises and downsizing practices, family firms lay off fewer employees than non-family firms (Stavrou et al. 2007). Non-family employees are keystones of the family firm’s growth and necessary for each growing family firm. Therefore, the employment of non-family members will affect the sustainability of the firm. While it is important for all types of companies, it is crucial for family firms to have committed and devoted non-family employees. Hiring non-family managers is usually a result of a limited family employee presence during the growth of the company. Controlling growth due to a limited family member presence and running a firm with only family managers would result in informal structures, peculiar culture, and limited growth. Non-family managers are sometimes hired as conflict resolution when there is a conflict of interest during the employment of family members (Lubatkin et al. 2005). Hence mostly non-family managers are hired if there is a formalization process in progress (Zhang and Ma 2009). Also, most first non-family managers in the firm are CEOs. Furthermore, family firms with financial struggles tend to employ a non-family CEO rather than a family CEO (Bocatto et al. 2010). According to a study done with Italian firms, family firms prefer to nominate non-family CEOs rather than family CEOs (Salvato et al. 2012). Additionally, in growth times, family firms also prefer non-family CEOs over family CEOs. In conclusion, while family firms are able to fill managerial positions, it is empirically shown that the growth of family firms is correlated with non-family managers (Fang et al. 2015). © 2022 by Nova Science Publishers, Inc.
Açıklama
Anahtar Kelimeler
CEO, Family firms, HR issues, non-family employee
Kaynak
Special Human Resource Management Practices and Strategy
WoS Q Değeri
Scopus Q Değeri
N/A
