Family business is linked by family culture. The so-called family culture is a group based on consanguinity and clan relationship and centered on consanguinity or clan values. Family culture had a lot of positive significance in the initial stage of enterprise, but with the further development of enterprises, enterprises must break through the development bottleneck brought by family culture and make family culture a beneficial part of enterprises.
1. Lack of talent training plan
The bosses of private enterprises think that it is not cost-effective to invest a lot of money in employee training, so these enterprises implement utilitarian measures of recruiting now and not recruiting in the future. In this way, talents either can't enter or can't leave; The old ones can't get on, and most of the new ones can't adapt and have no ability. Nowadays, the rapid development of market economy puts forward higher requirements for people's thinking, quality and skills. From the perspective of talents, we should constantly study and practice to adapt to the development of the market. However, some old employees in family enterprises have outdated values and concepts, which leads to low quality and skills of employees and is difficult to adapt to the requirements of market economy development.
2. Family management restricts the employment mechanism.
Family management and cronyism in enterprises have seriously affected the improvement of quality of enterprise. Family-style management within the enterprise restricts the selection and employment to the small circle of family and close relatives, which often leads to the shortage of human resources, and the shortage of soldiers will not form a good organizational structure. Therefore, when solving problems, it is inevitable that the quality of decision-making will be low because of ignorance. Therefore, when the enterprise needs to upgrade, scale and level, and the products develop in the direction of "fine, special and excellent", the disadvantages of family management are obviously exposed.
3. Parents' dictatorship leads to enterprise decision-making mistakes.
After some private enterprises succeed in starting their own businesses, "parents" are blindly confident, deliberately establish absolute authority and refuse to listen to suggestions. They only rely on their own hard work experience in previous years to make personal dictatorship in decision-making, mainly relying on personal perceptual knowledge and limited experience to manage. After the enterprise develops, these successful experiences may not be wealth but burden. This dictatorial decision is arbitrary and irregular. Decision-making power, administrative power and even supervision power are all in the hands of one person. Without power checks and balances and supervision, the risk of decision-making increases. Once there are strategic mistakes in major decisions, enterprises may decline.
They can seize the great opportunity of reform and opening up, start their own enterprises and succeed. However, due to their low quality and the ever-changing economic environment in China, it is difficult for them to make timely decisions according to market changes, which often delays business opportunities.
4. Lack of senior managers and high-tech personnel.
The staff in private enterprises are basically below undergraduate level, and there is a serious shortage of high-tech personnel. Technicians basically have no high-level theoretical knowledge, but they have become technicians since they were apprentices, learning from old technicians and accumulating certain experience. Managers' team leaders are also promoted from employees with long-term work experience. These so-called squad leaders may be competent in small aspects because of their low academic qualifications and lack of complete management knowledge, but they are likely to be helpless when they encounter important problems.
5. The system exists in name only, which makes it difficult to implement the reward and punishment system.
The ineffectiveness of the system is a major shortcoming of many private enterprises. According to relevant statistics, about 10% of private enterprises in China do not have any written articles of association. A considerable number of private enterprises have regulations and orders, lax enforcement, failure to implement the reward and punishment system, and rules and regulations become a mere formality.
6. Lack of corporate culture leads to weak corporate cohesion.
Due to historical reasons and conditions, most business owners who started their businesses in the early days of reform and opening up had low cultural quality, and many of them were farmers without good cultural education. Family business operators have a vague and superficial understanding of corporate culture.
The "parents" who have experienced successful entrepreneurship often monopolize the power, because the "parents" formed unshakable authority in the past entrepreneurial process, and the successful experience also made them fall into dependence on the previous management methods. With the praise of many followers, business owners will inevitably show strong paternalism and individualism in management.
Content expansion: problems and countermeasures in family business management
First, the family business problems in the internal control system
(A) the internal environment is not ideal
First of all, the governance structure of family-owned enterprises is relatively simple, and their management rights and management rights are highly concentrated in the hands of owners, and the management has a close relationship with internal employees, which leads to a low degree of separation between ownership and management rights of family-owned enterprises, which is not conducive to further development. Secondly, the management and internal staff of the family business do not know enough about the importance of the internal control system, and pursue high efficiency unilaterally, thus ignoring the construction of the internal control system.
(B) Neglect of risk control
Many managers of family-owned enterprises do not attach great importance to risk control, and think that it is large companies and listed companies that need to guard against risks. However, in fact, family-owned enterprises tend to blindly expand their scale in order to increase sales and pursue profits, and the risks they face are often higher than those of large state-owned enterprises.
(c) inadequate control activities
First of all, many family-owned enterprises are cronyism, and there is a phenomenon that one person has multiple jobs, which violates the principle of incompatible job separation. Secondly, the division of power is not clear, which makes it easy for some people to use this gap to ask for personal fraud and increase corporate risks. Finally, due to the lack of strict and unified workflow, employees in family-owned enterprises are often more casual in workflow, and lack of a set of fixed workflow to guide them, which not only leads to low work efficiency and high error rate.
Poor information and communication
As far as family-owned enterprises are concerned, employees rarely take the initiative to talk to their bosses, and there is little communication between employees, which will lead to the occlusion of internal information communication. Externally, family-owned enterprises do not pay much attention to the information acquisition of upstream suppliers and downstream customers, and are always confined to a small environmental circle. It is an important means for enterprises to carry out internal control without in-depth analysis of various external conditions, but at present, family-owned enterprises in China are not perfect in this respect. A considerable number of family-owned enterprises did not realize the effectiveness and importance of auditing, did not send full-time staff to perform auditing work, and the scope of auditing was not comprehensive, resulting in a waste of auditing resources. This vicious circle makes the supervision function of the internal control system become a mere formality.
Second, the family business internal control system optimization recommendations
Through the above research, it is found that the most important task of family enterprises in China is to improve or formulate the corresponding internal control system according to their own economic development characteristics, to better develop family enterprises, to ensure healthy and sustainable development, to ensure efficiency, and to improve the value and necessity of existence.
(A) optimize the internal environment
First of all, improve the governance structure of family enterprises, further clarify property rights, so that investors other than family members can also own the property rights of enterprises, and at the same time, separate the management rights and ownership of enterprises by setting up corporate governance institutions such as shareholders' meeting and board of directors. Secondly, improve the attitude of the executors of the internal control system of family enterprises, supervise and restrain the operation and management of family enterprises with the internal control system as the standard, so that the management and internal employees can pay full attention to internal control and earnestly perform their respective duties.
(B) focus on risk control
Establish a risk prevention system, and find out the hidden dangers of the enterprise by analyzing the information in the report and company management: establish a risk evaluation system, conduct in-depth research on all aspects of risks, and submit them to the company management, so that family-owned enterprises can avoid risks in time and effectively; Establish a risk emergency mechanism to eliminate or reduce risks: establish a risk responsibility mechanism, find the responsible person, and sound the alarm for relevant responsible persons through a reasonable reward and punishment system to avoid risks.
(3) Strengthen control measures
In personnel control, we should be responsible for the division of labor and perform their duties: we should implement authorization approval control in handling business to realize the separation of powers and responsibilities; Formulate strict and standardized workflow for employees' reference.
(D) Strengthen information communication
Internally, employees of family-owned enterprises should report the abnormal situation in their work to managers at the corresponding levels in a timely and active manner, and at the same time strengthen communication and exchanges between employees. Externally, family-owned enterprises should adopt FRY system, attach importance to the establishment of customer file information, and reflect business information and business conditions in a timely manner. At the same time, family-owned enterprises should actively understand the information of external markets to keep up with the pace of market changes.
(5) Strengthening internal supervision.
First of all, to strengthen the audit awareness of management and internal staff, it is necessary to strengthen the internal staff's understanding of internal supervision, and managers should also strengthen their own supervision awareness. Secondly, sending full-time staff to carry out internal audit work is independent in itself. If the staff in other positions are engaged in the audit work, or directly ignore the audit work, then the establishment of the audit system is invalid. In addition, it is also important to improve the internal audit system. Internal audit should not only evaluate individuals, but also audit the whole interior.
Third, the conclusion
As a new force, family business has gradually come to the forefront of economic development. However, due to the short development time of family business, many external and internal factors have hindered the further development of family business. Faced with this problem, we must determine a feasible internal control system. In this paper, the internal control system of family business is expounded from the aspects of internal environment, risk assessment, control measures, information and communication, internal supervision and so on. Finally, combined with the characteristics of family business, some optimization suggestions are put forward for the internal control system of family business.
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