Leadership and Sibling Rivalry in Family Business

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Leadership and Sibling rivalry in Family business
Authors: Ghadir Dhelal, Krenare Braha and Tom Delacroix

Course: Family Business
Tutor: assoc. prof. Müydelen Yenem

Summary:

Through this essay, we had an overview of the subject of family business, especially concerning the leadership and the sibling rivalry. We have to keep in mind that a family business is not necessarily a small business; indeed, it can be a huge company where family are just like owner.

In our first part we deal about the leadership. Remind that the leadership is about inspiring, persuading, involving and motivating people in order to improve the human resources of a company. But in a family business, we saw that there are three different ways of practicing the leadership: the democratic, autocratic and bureaucratic methods. Moreover, we can define that the autocratic method was more used in the past or in the developing country. Today, the democratic method is more usual, with the weakening of the father’s role. Then we described the 6 different leadership roles possible in a family business. These different roles are depending on the work the leader do, and if he is more passive or active.

The second part was used to introduce the sibling rivalry inside a family business. This subject represents an important problem, because unsuccessful transfers of ownership are one of the most common causes of bankruptcies. Sibling rivalry can be split up into two distinct categories, emotional or strategic rivalries. Emotional rivalry is about a self-esteem problem whereas strategic rivalry is more a conflict over business styles and strategies. One of the biggest problem in the generation change, it requires that the entrepreneur puts business interests ahead of family interests and planning the switching between both generation long-time before. Another possibility is to mix generations during short term to insure a safe change. Finally, we explained the different methods to transfer the ownership. Transfer of shares is the most common way to buy and sell companies

Abstract:

Family business has been playing a pivotal role in the several economies including turkey. Family owned business is one in which two or more extended family members influence the business through the exercise of kinship ties, management roles and ownership rights. Several world class organisations were family business ventures all over the globe. This study had focused its attention on the concept and contribution of family business, challenges, strengths and weaknesses of family business, a profile of selected organisations and the traits of the leaders. The suggestions at the end also provide a framework for effective management of family business.

Tables of content:

1.Introduction5
1.2Problem formulation6
1.3 Purpose6
1.4 Method and material6
2. Leadership in Family Business7
2.1 What is leadership?7
2.2 Different types of leadership roles in small and big companies9 2.3 Analyzing the past and the present family businesses11 2.Sibling rivalry12
3.1 What is sibling rivalry ?12
3.2 Background12
3.3 Different kinds of Sibling rivalry13
3.4 Problems in the generation changes14
3.5 What characterizes a suitable transferee?15
3.6 Different methods for generational transfers15
4. Conclusion17
5. Resources19

Introduction

For many decades the world has been ruled by family businesses, companies in the past were usually started by family members. It was more common with small family business than it is today, the reason for this is that the world wasn’t developed as much as it is today, for that family members with more money started a business together. The companies that were started by family members were usually a small business like selling clothes in a...
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