Family Business Owners And Professional Managers In China Cooperation Dilemma And Breakthrough Research

Family business which plays a very important and irreplaceable role for the national economy in most countries and regions in the world is a worldwide prevalence of a corporate form of organization. Since reform and opening-up, China implement the economic policy that public ownership is dominant and diverse forms of ownership is the common. Family business which stubborn cracks in the system, grows at an alarming rate and has been a considerable scale, has been made tremendous contributions for economic growth and employment . With the growth of family business, the need for more resources and social integration is increasing, especially the professional managers of human capital resources. However, the co-operation between family business owners and professional managers results in a serious dilemma. On the one hand, family business owners, in an objective need for a principal-agent system for the introduction of professional managers to carry out "management revolution". they are in the hope that the introduction of career manager alleviate the scarcity of resources of enterprise management, Accompanied with some concerns for a variety of considerations; On the other hand, professional managers who want to be hired feel difficult to enter the family business and be trusted more difficult. "Mutual alert, mutual suspicion, trust game, trust vulnerability" is the general status for the cooperation between the professional managers and family business owners in China. Why the family business need the "management revolution" inevitably? How the co-operate dilemma generates between professional managers and family business owners? How to achieve the plight of a breakthrough for it? These are the main problems studied in this paper.First of all, through the analysis of the cost of principal-agent and the relationship between business growth and expansion of trust, the paper has proved the need and the inevitability of the co-operation between family business owners and professional managers.Secondly, through the large amount of data and standing point of view of the family owners and professional managers to the principal-agent, the paper has got the conclusion that cooperation of the two sides has reached a "Prisoner's Dilemma" and "mutual alert, mutual suspicion, trust game, trust fragile "is the situation.Thirdly, through the second dimension of human capital, the paper derived the existence of bilateral moral hazard, and analyzed the trust structure of the community, then revealed that the characteristics of tooled and special trust, such as utilitarian and vulnerability is the root causes of family business owners and professional manager in the plight of cooperation.Finally, the paper analyzed the main influent factors for the trust and get many proposals such as, sounding the legal system , improving the professional manager market, deepening enterprise reform and strengthening the business owners to expand the areas of confidence-building. It has some practical and guiding significance for improving the confidence of the both sides.