terest (sector 6) might favor more generous employment and advancement oppor-
tunities for family members than, say, a family member who owns part of the business but works elsewhere (sector 4) or an employee with neither family nor ownership interest (sector 3).
Differing interests can complicate the management process by creating tcricion and sometimes leading to conflict. Relationships among family members in a busi-
ness are more sensitive than relationships among unrelated employees. For example, disciplining an employee who consistently arrives late is much more problematic if he or she is also a family member. Or, consider a performance review session be-
tween a parent-boss and a child-subordinate. Even with nonfamily employees, per-
formance reviews can be potential minefields. The existence of a family relationship adds emotional overtones that vastly complicate the review process.
Competition Between Business and Family
Which comes first, the family or the business? In theory, at least, most people opt for the family. Few business owners would knowingly allow the business to destroy their family. In practice, however, the resolution of such tensions becomes difficult. For example, despite being motivated by a sense of family responsibility, a parent may nevertheless become so absorbed in the business that he or she spends insuffi-
cient time with the children.
Many families are accustomed to making minor sacrifices for the good of the
business. In many family businesses, for example, the long hours needed in the business sometimes mean missing dinner with the family or skipping a Little League
game. Families usually tolerate some inconveniences and disruptions to family life.
Occasionally, however, the clash of business interests and family interests is so
persistent or so severe that entrepreneurs must decide which comes first. Even when the stakes are high, some choose business over family. Others declare that their highest loyalty belongs to the family but deny it with their behavior.