Family Run Business Vs Professionally Managed Business Case Study

“Family Run Business vs Professionally Managed Business”
There is a famous saying that “The first generation builds, the second generation consolidates and the third generation destroys the family business.” The most classic example from the recent era could be the ‘RELIANCE GROUP OF INDUSTRIES’ , look at the simmering rivalry between Dhirubhai ‘s sons Mukesh and Anil Ambani threatens to rock the empire to its foundations and throw up some very dirty linen in very public place. We are sure this situation would not have developed if it would have been a professionally managed business. So we believe that the professionally managed business are much more effective and efficient because he is not born on a bed of roses instead he have to make
Professionals will always look for their organisational growth because they are trained and professionally educated in that way where as family run business are always at very high risk due to internal family politics and lack of specialisation, further issues like who will do what and who will be the next successor leads to situations where whole organisation can become a battle arena. In the modern dynamic era where there is a necessity of change in that competitive world there is a requirement of open mind professionals who are leaders in adopting them and experimenting them, where there is a lack of this attitude and responsiveness of family run business in this criteria. Organisational oriented financial management are better taken by the professionals but the family oriented business gives it first priority to their familiar concerns and interests. Unstructured governance issues such as internal hierarchic and rules as well as the ability to follow and adhere to external corporate laws tend to be taken less seriously at family business because of the level of the trust inherent at the family firm. Napotism is the another demerit of the family business as some family firms are reluctant to let outsiders into the top
They possess leadership quality, competency receptive behaviour to adopt new ideas for experiments and calculative risks. As an organisation expand, it creates more intricacy the way the business is done, the system , the process, the policies, the business follows will differ as the business expands and changes. So, having a knowledge of those essential demand and providing necessary valuable input is the key to the success of business and essence of professionalization too. Running a business professionally means discerning the critical requirements and insuring that those requirements are being fulfilled .Professionally managed organisation give a way to decentralisation of authority, scalar chain, principle of order, decision made methodology and set system and process. The basic philosophy, objective, procedures, programs and expectations of customers, business relationship are revaluated in professionalization process as