Those employees who are not family members are still affected by family consider-
ations. In some cases, their opportunities for promotion are lessened by the presence
of family membeg who seem to have the inside track. Few parents will promote an
outsider over a coppetent daughter or son who is being groomed for future leader-
ship. The potential for advancement of nonfamily employees, therefore, may be limited, and they may experience a sense of unfairness and frustration.
Consider the case of a young business executive who worked for a family business that operated a chain of restaurants. When hired, he had negotiated a contract
that gave him a specified percentage of the business based on performance. Under
this arrangement, he was doing extremely well financially—until the owner called on
him to say "I am here to buy you out." When the young man asked why, the owner
replied, "You are doing too well, and your last name is not the same as mine!"
The extent of limitations on nonfamily employees depends on the number of
family members active in the business and the number of managerial or professional
positions in the business to which nonfamily employees might aspire. It also depends
on the extent to which the owner demands competence in management and main-
tains an atmosphere of fairness in supervision. To avoid future problems, the owner
should make clear, when hiring nonfamily employees, the extent of opportunities
available and identify the positions, if any, that are reserved for family members.
Those outside the family may also be caught in the crossfire between family members who are competing with each other It is difficult for outsiders to maintain strict neutrality in family feuds. If a nonfamily employee is perceived as siding with one of those involved in the feud, he or she may lose the support of other family members. Hard-working employees often feel that they deserve hazard pay for working in a firm plagued by family conflict.
Those employees who are not family members are still affected by family consider-
ations. In some cases, their opportunities for promotion are lessened by the presence
of family membeg who seem to have the inside track. Few parents will promote an
outsider over a coppetent daughter or son who is being groomed for future leader-
ship. The potential for advancement of nonfamily employees, therefore, may be limited, and they may experience a sense of unfairness and frustration.
Consider the case of a young business executive who worked for a family business that operated a chain of restaurants. When hired, he had negotiated a contract
that gave him a specified percentage of the business based on performance. Under
this arrangement, he was doing extremely well financially—until the owner called on
him to say "I am here to buy you out." When the young man asked why, the owner
replied, "You are doing too well, and your last name is not the same as mine!"
The extent of limitations on nonfamily employees depends on the number of
family members active in the business and the number of managerial or professional
positions in the business to which nonfamily employees might aspire. It also depends
on the extent to which the owner demands competence in management and main-
tains an atmosphere of fairness in supervision. To avoid future problems, the owner
should make clear, when hiring nonfamily employees, the extent of opportunities
available and identify the positions, if any, that are reserved for family members.
Those outside the family may also be caught in the crossfire between family members who are competing with each other It is difficult for outsiders to maintain strict neutrality in family feuds. If a nonfamily employee is perceived as siding with one of those involved in the feud, he or she may lose the support of other family members. Hard-working employees often feel that they deserve hazard pay for working in a firm plagued by family conflict.
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