2021年1月23日发(作者：thick是什么意思)
Introduction

Family
business
is
one
of
the
oldest
forms
of
organization
in
the
world.
Whatever
developed countries or developing countries, family business is an important business
model. Nowadays, family business is also one of the important parts from extensive
development
of
market
economy
in
China.
With
the
reform
and
opening
up
policy
over
thirty
years,
the
family
business
has
had
a
significant
progress.
Although
the
family has some rational characters in survive, there are many problems about cultural
construction in family business in china. Most of the family business develop slowly
and even die when they are in infancy period (Newing, 2007). With increasing of the
world
economic
globalization,
the
living
environment
of
family
business
has
an
important change. There are more opportunities but also have more challenges. How
to
improve
core
competitiveness
of
family
business,
and
make
them
survive
and
develop,
which
becomes
a
hot
argument
in
china.
The
organizational
culture
is
the
soul
of
organizations.
An
outstanding
organizational
culture
can
help
the
family
business to maintain and develop healthily.


This
essay
aims
to
analyze
the
how
to
develop
the
organizational
culture
in
family
business in China. Through discusses the current situation of organizational culture in
China and some existed problem, analyze the advantages and disadvantages.
At the
same
time,
it
will
find
some
differences
from
compare
with
foreign
organizational
culture.


This essay is divided into five parts. Firstly, it define family business base on research.
Secondly,
it
represents
the
current
situation
of
organizational
culture
in
China
and
some
exited
problem.
Thirdly,
it
discusses
the
advantages
and
disadvantage
of
organizational
culture
in
family
business.
fourth,
it
takes
US
and
Japan
as
representative
，
and comparing the culture of family business to find out the difference
between them .Fifthly, it will analyze how to develop organizational culture in family

1
business in China.


Definition of family business

The
family
business
means
one
or
more
members
of
family
have
a
significant
commitments and ownership interest toward the business (Robbins, Bergman, Stagg
&
Coulter,
2006).
In
some
countries,
a
number
of
the
famous
and
successful
listed
corporations
are
family- owned.
Generally
speaking,
if
there
is
a
person
who
is
the
controlling
shareholders
in
the
company,
it
can
be
considered
as
a
family
business.
The
person
has
the
largest
percentage
of
voting
rights
in
comparison
to
other
shareholders
which
to
assure
at
least
20%
(Hatch,
1997).
Sometimes,
the
family
business can be managed by the person who is not a member of the family. Family
members
are
often
in
the
operations
of
their
business
as
the
senior
officers
and
managers,
family
members
can
strength
the
company
because
they
have
loyalty
to
contribute all energy and do the best. However, the members participate in their own
business
will
cause
many
unique
problems
according
to
dynamics
of
the
family
systems which are often not in balance, such as the interests of family business may
not
be
consistent
with
their
members.
There
will
be
not
aligned
when
a
family
member need its business to distribute funds for living expenses whereas the business
requires those to stay competitive (Sheets, 2009).

Current
situation
of
organizational
culture
in
family
business
in
China

In 1978, Chinese family business has started to develop with the reform and opening
up policy. Many families in city or countryside start to create their own business since
they
fail
to
enter
government
organization.
After
China
join
WTO,
family
business
grows rapidly and its effect become bigger and bigger (Zhang & Ma, 2009). At the
same time, people start to realize that organizational culture is the role and resources

2
which
help
organization
surviving
and
developing.
Today,
organizational
culture
becomes an important part of organizational core competition ability.


Family
business
is
a
management
evolution
which
changes
form
target
design,
implement, management, and image design. Nowadays, Chinese entrepreneurs start to
focus
on
development
of
family
business
in
order
to
create
better
organization
competitiveness.
They
create
own
organization
culture
according
to
the
change
and
inherit
the
family
business
culture
and
tradition
business
culture.
It
makes
a
great
benefit
base
on
three
areas
(Newing,
2007).
From
the
great
view,
Chinese
family
business
has
three
conditions.
First
of
all,
family
business
starts
to
research
by
organization itself.

Second, family
business
research target
changes
from
focusing
on
organization
image
to
human
resource
and
aesthetic.
Third,
Chinese
family
business
development
is
limited
by
historic
environment,
policy,
leadership,
and
traditional
culture.
As
a
result,
only
small
number
of
Chinese
family
business
becomes successful. There are still a lot of problems during family business culture
built (Sonfield & Lussie, 2009).

Common
problems
exist
in
the
organizational
culture
in
family
business in China

1. Low level education of family business owner

Until 2008, there is more than half family business owners only accept level of high
school
education
or
less
(Stone,
2008).
The
low
level
education
is
one
of
the
most
important factors to limit development of management philosophy and
management
ability.
At
the
same
time,
it
also
causes
the
most
owners
of
family
business
lack
knowledge about organizational culture, which make most family businesses are hard
to
establish
suitable
organizational
culture
with
core
value
and
management
philosophy.

3
2. Unclear organizational culture


In China, profit maximization is the common value from most family organizations in
China.
Most
entrepreneur
of
family
business
pay
more
attention
to
seek
profit
maximization
how
to
create
more
profit
is
the
only
path
they
follow.
Lack
of
organizational culture in family business is main reflect in lack of ethical culture and
lack of trust culture (Sonfield & Lussie, 2009). In China, there are many small size
family
businesses
do
not
have
clear
organizational
culture,
or
a
kind
of
simple
organizational
culture
only
have
some
surface
factors,
such
as
uniform
and
slogan.
This
kind
of
organizational
culture
with
only
surface
factor
can
not
be
a
good
organizational
culture.
It
cannot
help
family
business
to
improve
the
core
competitiveness.
It
also
cannot
promote
functions
of
organizational
culture
(Pushkarskaya & Marshall, 2010).


3. Dictatorship

The founder of family business always has full confidence to make decision because
some
successful
experience
of
staring
family
business.
Under
this
situation
of
organizational culture, all employees only follow the decision of manger without own
idea. Once the decision is wrong from the boss, the whole family business will suffer
a terrible loss (Sciscia & Mazzola, 2008).





The advantages of organizational culture in family business in China

According to Drucker (1998), organizational culture is influenced by value, tradition
and custom from
local
society.
If
you want
understand the organizational
culture in
the family business, you must consider the influence from Chinese traditional culture.



4
Lack of sources about capital, technology and information is a common problem for
most organizations in the starting period. Under this negative situation, organizational
culture always working in the family business and help them own some advantages.

The
first
one
is
strong
cohesion.
Organizational
culture
has
agglomerating
function
(Robbins et al., 2006). It can unite the employees from every aspect. Compare with
the self- centered culture in western, the Chinese traditional culture is rooted in family.
Family is the most basic unit of Chinese society and it is the core of national culture.
Usually,
family
relationship
is
worthier
than
any
other
capital,
the
benefit
and
reputation
of
family
is
much
more
important
than
other
forms
of
organizations.
Compare with other form of organizations, family business has a stronger cohesion.
Because most employees are making up of blood relatives, they have common value.
When family business in the trouble, this relationship can help organization to unite
employees, and complete capital accumulation with the lower cost (Newing, 2007).

The second one is a high efficiency of strategy decision and management. The board
of directors is made up of family members in most family business. These directors
have common value of family, which lead less difference when they make decision. In
the other hand, these directors will be gathering soon to discuss and make decision to
suit the change from external environment without some necessary processes, which
improve
efficiency
of
strategy
decision
(Zhang
&
Ma,
2009).
Moreover,
most
management model of family business
is
centralization in
China. This
model
keeps
high the authority from core leader. It will reduce the time from processes of decision
and improve efficiency from effect of decision (Lysons, 2000).

The
third
one
is
positive
effect
from
traditional
culture.
Hardworking
and
thrifty
is
one
of
the
Chinese
traditional
cultures.
Compare
with
other
form
of
organizations,
personal
assets and organizational
assets are not very clear in
the starting of family
business.
Additional,
most
employees
are the kinships
who are higher level
loyalty.
They will use capital without waste, which can help organization reduce expenditure.

5
Family business
can run with
lower cost
in starting period without adequate capital
(Sheets, 2009).


Chinese traditional culture is
emphasis on integrity and
reputation.
As
an extension
from
family,
reputation
of
family
business
is
link
to
family.
For
maintain
the
reputation of family, most family business pay more attention about establish image
of integrity when they create maximum benefits (Pushkarskaya & Marshall, 2010). It
always
can
help
most
family
business
get
a
good
reputation
in
starting
period.
At
same time, it also helps family business gain more opportunities.

The
disadvantages
of
organizational
culture
in
family
business
in
China


Every
coin
has
two
sides.
Chinese
family
business
gets
some
benefits
from
the
opposite elements of organizational culture. At the same time, the negative elements
are also become a big barrier to limit development and growth of family business.

The first is low trust culture. There are two kinds of culture, high trust culture and low
trust
culture.
Meaning
of
low
trust
is
the
trust
only
limit
between
the
kinships,
the
high trust culture mean the trust beyond the kinship (Chien, 2006). Traditional culture
of family is a kind of the low trust culture. This culture cause the people easy to trust
the guy
who
is
the member of the family, but
lack trust
the
guy
who
is
do not
has
kinship.


This difference of trust
cause family business owner has different treatment to treat
the two kinds of employees. Family members always have better treatment, and easier
to
get
the
chance
to
promotion.
Compared
with
the
family
members,
the
common
employees
are
hard
to
get
a
promotion.
There
is
a
typical
example,
a
medium
size
family business in the ZheJiang province, there are 30 members of family work for

6
this
company,
and
more
than
half
members
of
family
are
middle
or
high
level
mangers. In this kind of family business, common employees is hard to be trust, even
they have higher ability of management or more advance skill (Hatch, 1997). It will
break the motivation from common employees, and common employee will lack the
sense of belonging, which cause cost increase in the high employee turnover rate.

The second is institution of ownership succession. The eldest son should be successor
to
replace
the
position
of
his
father,
which
is
the
traditional
patriarch
system.
It
already
existed
for
thousands
years.
Because
of
this
traditional
culture,
almost
all
owner of family business choose their son as their successor. The ability of successor
will directly effect the development of organization. A not suitable successor may lead
a successful family business shut down rapidly (Sciscia & Mazzola, 2008). In addition,
not every like to join businesses, if successor does not have interest to join business,
which may cause empty position to take over the ownership, even cause the property
disputes, because of the uncertainty successor.

The
third
is
centralized
management
system.
This
management
model
can
create
some
opposite
effect
in
the
starting
periods
of
family
business.
But
it
becomes
a
barrier
to
development
of
family
business.
Most
family
businesses
are
from
the
development
of
individual
economy,
so
some
mangers
lack
some
knowledge
about
market
and
management.
Moreover,
family
business
lack
institution
of
monitor,
family business owner can make decision without monitor. Once they make a wrong
decision, the business will be in trouble (Robbins et al., 2006).

Wang Laboratories is a computer corporation, which establish in 1951 by WanAn who
is an American Chinese. This family business is not from China, but it can represent
some problems, which from disadvantages of Chinese family business culture. Wang
Laboratories produced magnetic core in starting period. It joins the computer market
in 1960s, and gets a great success. Wang Laboratories get a heyday in the 1980s.
In
1983, Wang Laboratories has set up many sub companies in 103 countries and areas,

7
there are 30 thousand employees and 2.3 billion dollar of sale turnover. In the internal
company,
WangAn
still
centralized
management
system;
other
mangers
are
hard
to
effect his decision. At that time, he makes a wrong decision. He does not choose entry
the
new
market
of
PC.
When
he
find
potential
from
PC
market,
Wang
laboratories
already lose the competitive advantages. It causes the business start to decline. At the
same
time,
WanAn
choose
his
son
as
successor
just
like
most
owners
of
family
business. Most managers oppose this decision, because his son is not suitable to be
successor, his lack ability of management. But WanAn insist to choose his son to be
the
successor,
which
cause
the
Wang
Laboratories
shut
down
in
1991
(Sciscia
&
Mazzola, 2008).

Analyze
and
compare
difference
of
family
organizational
culture
from China and other countries

The theory of organizational culture comes from the United States, but its root is from
Japan.
American
research
theory
of
organizational
culture
is
based
on
the
special
sprite of Japanese organizational culture. In the other hand, these theories make some
opposite effect on development of Japanese organization (Drucker, 1998). This essay
will chooses these two countries to analyze and compare below.


Difference of organizational culture in family business between Japan and China


1. Human resource management

Because of the traditional culture, Japanese family business always hires employees
for longer time.
Compare with
the individualism
of western
counties,
Japan culture
emphasis
on
collectivism,
advocate
the
individual
to
organization
belonging
and
loyalty(Lysons, 2000). As an employee, once he is accepted to a company, he will link
the benefit of himself and organizational interest together, and thought himself as one

8
part of this organization. At the same time, as an organization, once hair the employee
through the examination, the organization will train the employee to suit the position
of career and organization culture, and make a long term plan of development for this
employee.
Employees
always
work
for
longer
period
in
a
company.
When
an
employee works for a company longer period, he will has more experience about his
poison of career, which
can improve the efficiency
of work.
In the other hand, this
employee will has more salary and more chances to promotion. Employees will have
stronger
sense
of
belonging,
which
cause
they
will
like
to
work
hard
for
this
organization
(Sciscia
&
Mazzola,
2008).
This
point
is
much
different
from
high
employee turnover rate in China.

2. Social responsibility


Most
Japanese
entrepreneurs
add
some
traditional
religions
thought
into
their
philosophy
of
management.
They
put
social
responsibility
as
responsibility
of
themselves. Japanese organization never put profit maximum as the first target. Their
emphasis
on
responsibility
of
organization,
organization
should
be
responsible
for
society,
nation
and
world
(Pushkarskaya
&
Marshall,
2010).
For
instance,
TDK
is
electronic
brand
in
Japan,
which
spirit
is
creation:
contribute
for
culture
of
world.
Moreover,
Toyota
has
some
clear
values:
respected
Buddhism,
grateful
for
life
of
gratitude
and
thanks
(Niehm
&
Swinney,
2010).
In
contrast,
many
family
business
lack
social
responsibility
in
China,
such
as
aspect
of
environment
protection,
many
family
business
pollute
environment
as
the
cost
to
seek
the
profit
maximum
in
the
short
term.
The
lack
of
social
responsibility
is
big
problem
in
the
organizational
culture in family business in China.







9