Research On Introduction Of Professional Management In Family Business

It is an important period for Chinese Enterprises to develop in 21th century.With China's accession to WTO and the further development of market economy, theinternational and domestic economic environment has become more and morecomplex. There are a lot of chances and challenges at that time. It has become moreand more important for the developing Chinese Enterprises to seize opportunities andmeet challenges in order to have a better place in the world and domestic market withfierce competition.As the main part of Private Economy, Family Business plays an important rolein our country's socialist market economy. Family Business would enter adjustmentprocess for its persist development in new century after coming through twenty years'growth. Single family management is not suitable for the new situation in this periodand it led to many problems such as single property rights structure, unreasonableincentive mechanism, the lack of systematic management, high policy arbitrariness,enterprise culture absent from their duties, unjustness and so on. These problemsprevent the Family Business' rate of development and scale growth. At the same timethey have become a stumbling block which holds back sustainable development ofFamily Business.First, the paper wrote some theories about Family Business and ProfessionalManagement. Secondly, I analyzed some topics about the Family Business, such asexisting problems and reasons, evolution of trends, transformation and so on. At last ,the core contents of this paper discuss some countermeasures and advices for theFamily Business to introduce professional management gradually. The employers andour country must change ideas, transform enterprise culture, innovate the system andchange operations. The paper summarizes the experiences of family business andcompares with the world developed enterprises in order to find some weaknesses inmanagement and let Family Business to make rapid progress by providing someproposals. If Family Business entered a virtuous circle, it would make greatercontributions to our socialist market economic constructions.