Family Business Succession Research Paper Example | Topics and Well Written Essays - 1750 words

Family Business Succession - Research Paper Example Family business succession has become one of the critical issues in the modern family organizations. This is more so in terms of leadership and the management of the firms. In most cases, conflicts arise among the stakeholders on who is supposed to take the leadership in case the leadership positions remain vacant due to various causes. It can also lead to intergenerational conflicts which can also be very critical the existence of an organization. This may affect the overall performance and to some extent the existence of an organization. There are various factors that determine the succession of business from one family member to another. It is important to note that there is a significant difference between intra-family succession and transitions between family and non-family members (Handler 298). As already noted, family business represents the largest fraction of the global economy. Therefore, they are essential to the well being of the global economy. Poor succession in family businesses can therefore adversely affect the performance of an organization. Many countries like Europe have come up with various measures to make enterprises aware of the importance of having a thorough planning of the succession process in a timely fashion. This is in an effort to rescue family organizations from falling. ... It is important to note that children will not be automatically willing to be part of the family business. In some cases, children who have grown up in a business may become bored and therefore may not be willing to be successors (ABC Business Consulting par 7). This is one of the reason why there is a need to have a next generation preparation on order to promote the performance of an organization. They may also take the business without seriousness, the fact that may dip an organization to failure. In order to come up with a top performing generation in a family business, it is necessary to have the young members of the family do simple tasks within the business on part time basis. This will provide them with insights to the business. It will also help the young generation to understand the business from the bottom up and also gaining a strong work ethic (Lansberg 76). Early age involvement in business activities will also encourage the young generation to pursue higher education i n order to take leadership positions in the future. In preparation for the future generation, it is also necessary to take a family member to work in an outside organization. This will help in broadening training and background. By working in the family business and later working in an outside organization, a family member will be satisfactorily justified to take leadership positions in a family business upon coming back. There are several factors that must be taken into consideration when preparing for the future generation to join a family business. To begin with, it is highly recommended to have a family member work for another organization before being given a