A Study On The Professional Manager System Of Chinese Family Firms

Since reform and opening, the vigorous development of our country's private enterprises has become the main force of economic development. Most private enterprises have developed by the management of family. According to the survey, at the present, private enterprises which used family management account for 80%.Admittedly, most of the family management has obtained high efficiency, some continues to create a high efficiency. However, experience shows that ownership and right of management owned to one has helped to found the enterprises, but not conducive to family firm's development. After China's accession to WTO, economic globalization has made family firms face greater challenges and opportunities. As environment changes in the production, its management mode and specific management methods should be changed as well, management should comply with the trend of modern society in order to expand their living space in the increasingly fierce competition in the market which is one of the important subjects of the current theory and practice.Family firms have begun a exploration, some started or have already implemented a stock or a corporate reform. With further deepening of specialization, corporate management and ownership of the gradual separation, hiring professional managers has become an inevitable trend. Because of some certain reasons, cooperation between family firms and managers is not very harmonious; therefore, it's necessary for the professional manager system.This paper reviews the family firms, professional managers, and principal-agency theory based on the literatures of family firms. By the analysis of the family firms' limitations, it concludes that it's necessary for family firms to hire professional managers, and finally I propose the way to introduce the professional manager system focusing on the employing stimulating and supervising in order to provide feasible measures for family firm and to resolve the conflicts.