Construction Of Trust Mechanism Between Family Business Owners And Occupation Managers

Chinese family enterprises has achieved rapid development since the reform andopening-up, but trust problem between enterprise owners and occupation managers preventsthe family enterprises bigger and stronger. Trust is a kind of special control mechanism whichshows a reliable expectation from individual to other’s words, commitment and oral or writtenstatements. Trust problem has been solved in developed countries like United States, Japanand so on, which still exists in our family enterprise. Under the double pressure of traditionalculture and market competition, how to balance the contradiction between family enterpriseowners and occupation managers, eliminating trust barrier by institutional change andmanagement innovation is a difficult problem from theory circle and business circles.The paper is based on the relevant theory and research results from domestic and foreignreferences, taking family business owners who introduce occupation managers as the startingpoint, and represents trust status that owners and occupation managers from the research data,that also indicates the existence of trust difficulties. The paper constructs the model of gametheory, making normative analysis from the angle of number and influence factors, and makesconclusions of the root of dilemma and possible ways to break through it. Under the supportof game theory, the paper proposes trust mechanism from the angle of external and internal.The introductions of Battle of control of Gome and Cooperation of Fotile can wellex p la i n s t h e u se o f tru st mech a n i sm wh i ch ma y cau se d i ffer en t r esu l t s.Normative relationships between owners and managers is a win-win situation, based onmutual trust, mutual complementation,mutual support and mutual benefit. As enterpriseowners, their mission is doing pioneering work from scratch, while manager’s mission is tohelp enterprise from small to large. The relationships between both sides are complementarybut not alternative, compatible but not contradictory, partners but not competitors.