Research Of Family-run Enterprises Management Structure Principal-agent Model

China's private enterprises use of the family of family ownership, in the management of these enterprises exist extensively in family management. With China's accession to the WTO occasion of the growing internationalization of the domestic market. some family business and property owners as well as knowledge management and business development with the potential to fit establishment of a modern private enterprise system is imperative, practice principal-agent management, human resources to break the family business closed, the introduction of professional managers and their mandate is to ensure the orderly operation and further development of the requisite qualities How to Build a contractual relationship between the client and the agent, the establishment of an effective incentive and restraint mechanisms. options enable agents to promote the interests of their clients that is a family business after the separation of ownership and management issues to be resolved. To ensure that the principal-agent model of effective implementation, there is need for operators to carry out effective incentive and restraint.