The Research On Internal Trust Issue In Family Business And Its Solution Analysis

As China's open & reform policy become more effective and Socialist Market Economy get more matured, which provide private firms better governmental support & services, and financing environment. For this century, Chinese private businesses are facing unprecedented opportunity. Base on such background, however, Chinese family firms-the mainstream of Chinese private businesses, also facing all-around challenge and competition. How to get hold of such development opportunity, while upgrade self core competence is a mutual problem for all family businesses. Same as entrepreneurs in family businesses are thinking about its future development, the academics also have their focus on trust issues in Chinese family firms.This thesis bases on current development status of Chinese family businesses, combine many research work done by the author, aims to explore the possible solution to facilitate family firm's healthy development. Emphasized the feasible revolution within Chinese family enterprises, focus on the trust problem between the family members and ordinary employees, this article tries to unveil the normal illusion about Chinese family businesses and propose practical & feasible solutions.Firstly this article described the basic definition of trust, it's characteristics, the importance of trust in an organization environment, and the process of trust building, hence obtained the theoretical support for the research work of trust issue.Secondly, utilizes questionnaires and verifiable investigation & analysis, and researches on family business's characteristics and basic problems, this thesis come into the below conclusions: 1. Family assets normally controls the majority of company shares; 2. Through the ownership of the majority assets, family members obtained their power to control over the whole enterprise; 3. The human resource network is based on kindredship, affinity, and geographic zones, etc. relationship; 4. The owner's behavior and speech is the chief represent of enterprise's culture; 5. The chiefly goal of the family enterprise is to pursue benefits for the family.Compared and contrasted with the history of foreign family businesses, and base on favorable and unfavorable external factors and the inner characteristics of Chinese family businesses, from aspects, such as, competitiveness > internal decision mechanism n decision-making system and sustainable development of the enterprise, this thesis testify the suppose that future trend for Chinese family businesses is the decentralization of the shares. Nevertheless, optimal organization structure, core decision-making team, and the establishment of effective control and encouragement system will be the inevitable way for Chinese family businesses to become stronger.In the later part of the thesis, the author further discussed the paternalistic management style ^ relationship network human resources, outcomer lack of belongingness, problems in family firms. Surround the core content "trust issue is the bottleneck for family business to grow bigger", the author conducted series deep anatomy and argumentation, hence come to three main results: 1. Deliver to employees: transform from sensibility trust to enterprise's vision belief; 2. Trust employees: transform from emotional trust to synthesized trust that base on personality and capability; 3. Transform from the forcedly control to contracted guarantee, which establish on equal base.At last, the thesis spend a lot time on four issues: the improvement of the enterprise's culture; construction of a trustful environment; practice of scientific management; and strengthen the development and application of modern human resources ideas. In great details, the article listed out the basic measures to solve the trust crisis in Chinese family businesses, which underpinning the main deduction in the thesis.What deserve to be mentioned here is: although the main research work and solution ideas come from various theories and academic researches, the article tries to go deeper, and promote the key thoughts: the enterprise trustful environment conception and the transformation from emotional trust to synthesized trust. Meanwhile, the author also think, that consider the current external environment, which also lack of trust and credit evaluation mechanism, and the internalenvironment resides in family businesses, family business's preference to pick up trustful employees from network won't have fundamental change for the time being.Based on enough case study and facts data, the author tries to clarify the future development orientation of family businesses, and at the same time, hope to construct a mature, systematic and comprehensive theoretical frame to guide Small-Medium-Enterprises' practices. Provide the SMEs with effective solution to optimal their resources, and make timely and correct strategy choices.In a society of diversification, the cost of organs' operation is increasing. Increase the trust among members of an organ, no doubt is an effective way to lower management costs. However, the effectiveness of trust is such intangible and unpredictable, and its effective scope and extent can hardly be described by cause and effect. So, in the managerial reality, fully belief that purely rely on trust between people will greatly increase efficiency will be a folly. Construct an internal trustful environment in family businesses will only be one of the revolutionary solutions.