Conflict in Family Businesses
Monthly Teleconference: Managing Conflict in the Family Business
Free and open to the public
The key difference between a successful family-owned and operated business that prospers and one that founders and ceases to exist is often the ability to manage the differences in the complex relationships between and among family members and non-family employees. Consider the financial cost* of conflict.
The Track 2 option is recommended for managers, whether family members or non-family employees. The Track 3 option is recommended for human resource professionals and other support staff.
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Bibliography
Edited by Kristin Evans. See other bibliographies.
Contributors: Cavit Kahya, Ed Beaupre, Sara Yandell, Rebecca Pandolfo, Gil Pizano
Copyright restriction: The contents of this bibliography may not be placed on other websites, but links from other websites may be directed to this page. Hardcopies of this page may be printed for academic purposes.
- Aronoff, C. & Ward, J. (1995) ‘Run the business like a business' (conflict resolution: Family Business: Planning). Nation's Business, Vol. 83, pp. 49-51.
This article acknowledges that family run businesses encounter conflicts at some point. They offer suggestion of how the family can counteract conflict by implementing several strategies. These strategies include; the development of family policies that anticipate family business issues, putting outsiders on the board of directors, initiating family meetings as a communication and conflict resolution mechanism, as well as agreeing on methods to reconcile family business conflicts.
- Aronoff, C.E., Ph.D. (2001). Family Business Values: How to Assure A Legacy of Continuity and Success. Marietta, Georgia . Family Enterprise Publishers.
Topics covered: The power of values in the family business. Role of values in joining family and business. An example of winning family business values. How to nurture and pass on values in the family. Building Values in the Business. Values as part of the culture. Reinterpreting and renewing values to fit into the modern and ever-changing world.
- Astrachan, J.H. & McMillan, K. S. (2003). Conflict and Communication in the Family Business . Marietta, Georgia . Family Enterprise Publishers.
Topics covered: Understanding Conflict and Communication. Taking a closer look at the many masks of conflict. What makes good communications so hard. How to Improve communication skills. Creating an environment that will foster good communication. Using communication to manage conflict. Getting outside help. Developing Strategies for tough cases.
- Balshaw, T. “The business of family conflict.” Business Day. Retrieved from the Web on Sept. 13, 2004. Website.
This article makes the point that conflict is normal, but needs to be handled correctly to minimize conflict. Conflict is caused by individualism among family members; unstructured decision-making; lack of clear vision and commitment and fear of succession. The article emphasizes developing trust and open communication in the family business to minimize the causes of conflict.
- Bass, B.L., Butler, A.B., et. al. Extending the demands-control model: A daily diary study of job characteristics, work-family conflict and work-family facilitation. Journal of Occupational and Organizational Psychology, Vol 78, Part 2, pp 155-170.
Using personal digital assistants, 91 parents employed in non-professional occupations were surveyed for 14 consecutive days about their job characteristics and work-family experiences. The study found significant daily variation in work-to-family conflict (WFC) and work-to-family facilitation (WFF) that was predictable from daily job characteristics. Higher levels of WFC were associated with greater job demands and control at work.
- Bauer, T.N., Grandey, A.A., Hammer, L.B. Work-Family Conflict and Work-Related Withdrawal Behaviors. Journal of Business and Psychology, Spring, 2003, Vol 17, Issue 3.
Study explored the effects of work-to-family conflict and family-to-work conflict on withdrawal behaviors at work (family interruptions at work, lateness to work, and absenteeism) among both members of 359 dual-earner couples. Theoretical and practical implications of the study of work-family conflict crossover effects on withdrawal behaviors at work are discussed.
- Berry, C. L. ( May 4, 2004 ). What happens when siblings take charge. Business Journal Serving Fresno & Central San Joaquin Valley , Vol. 32, (43), p. 5.
When siblings take over the family business it can be difficult to separate family issues from establishing an effective work environment. Siblings must be able to work well together because if they fail to do so the company will suffer. The following characteristic should be assessed in order to have a successful business. Siblings should appreciate one another's talent, commit to the same dream, manage their rivalries and resolve their conflicts.
- Bork, D., Jaffe D.T., Lane, S. H., Dashew L. & Heisler, Q. G. (1996). Working with Family Businesses: A Guide for Professionals. San Francisco, California. Jossey-Bass Inc.
Topics covered: Advising regarding the family business. Defining roles. Regenerating Roles. Dynamics of the Family Business, Accessing the Family Business System. Developing Effective Communication and Interventions. Helping Families deal with Conflict. Establishing Boundaries, Structures and Policies. Establishing Succession in Leadership and Ownership. How to Manage Inherited Wealth and do estate planning. Striving for professionalism
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Boles, J.S., Donofrio, H.H., Howard, W.G. An investigation into the inter-relationships of work-family conflict, family-work conflict and work satisfaction. Journal of Managerial Issues, Vol 13, Issue 3, pp 376-391.
Research on the relationship between inter-domain conflict in the form of work-family conflict and family-work conflict with various facets of employee job satisfaction. Results indicate that work-family conflict is significantly related to satisfaction with job in general, supervision, promotion, and work. Family-work conflict is not as consistently related to the facets of job satisfaction with work and co-workers.
- Bowman-Upton, N. “Transferring Management in the Family-Owned Business.” U.S. Small Business Administration. 2001.
This article is an extensive review of the transfer of ownership process and how to avoid many of the problems that occur when ownership of a family business is transferred. Choosing a successor is a five step process comprised of Initiation, Selection, Education, Transition and Letting Go. A Board of Directors is recommended to increase the odds of a successful transition.
- Branch, S. (1998, April 4). Mom always liked you best: Conflicts are a sure bet in any family firm. The trick is to confront problems before too much damage is done. Fortune.
In family business, there is a fine line drawn between friendly sibling competition and devastating family and business ruin. This article discusses several real-life examples in which conflict in family business has led to disaster for the organizations, from lawsuits to defamation of character. The article stresses the importance of separating family from business in order to keep relationships and profits healthy.
This article covers many common issues a manager of a family business must face such as having to hire a family member that needs a job and succession planning. Suggestions include putting various business agreements into writing, conducting regular meetings to facilitate information exchange and using outside advisers who have no connection with any family member.
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Carlson, D.S., Kincaid, J.F., Rotondo, D.M. Coping with multiple dimensions of work-family conflict. Personnel Review, Vol 32, Issue 3, pp 275-297.
The relationships between four styles of work and family coping (direct action, help-seeking, positive thinking, and avoidance/resignation) and levels of work-family conflict are considered. Two different forms of work-family conflict (time-based and strain-based) were examined as well as the effect of direction (work interfering with family, family interfering with work) to examine the efficacy of different coping styles. The results suggest individuals may have greater control and opportunity for positive change within the family domain compared with the work environment.
- Cinamon, R.G. & Rich, Y. (2002, December). Gender differences in the importance of work and family roles: implications for work-family conflict. Sex roles: A journal of research. http://www.findarticles.com/p/articles/mi_m2294/is_2002_Dec/ai?98125309.
This article discusses a case study in which the differences in perception of males and females in the workplace are compared to uncover how each sex perceives workplace conflict. In general, it concludes that women tend to put a greater emphasis on family than men, which leads to greater stresses when conflicts occur in the workplace.
- Cosier, R.A. & Harvey, M. (1998). The Hidden Strength in Family Business: Functional Conflict. Family Business Review: Journal of the Family Firm Institute , Vol. 11, (1), pp. 75-79. Retrieved from the Web August 5, 2004.
This paper discusses recommendations for introducing and managing positive conflict in family business. Three types of conflict: task, relationship, and process conflicts are described. The Two-Dimensional Model of Conflict Resolution is a model for considering conflict resolution methods. Utilizing a devil's advocate or dialectic decision method may be used to program cognitive conflict.
- Danes, S.M., Zuiker, V., Kean, R., & Arbuthnot, J. (1999). Predictors of Family Business Tensions and Goal Achievement. Family Business Review: Journal of the Family Firm Institute. Vol. 12, (3), pp. 241-252. Retrieved from the Web August 5, 2004.
The potential for conflict varies depending on the stage of the family business. Family business conflicts do not fit prevailing dispute/resolution models as they often fight about deeper issues. This article describes the outcomes of a study performed to identify factors causing tension. The APGAR score which measures adaptation, partnership, growth, affection, and resolve and is used to assess the functional integrity of the family predicted the level of tension in a family business.
- Danes, S. M., Huddleston-Casas, C., Leichtentritt, R. D., & Metz , M. E. (2000). Effects of conflict styles and conflict severity on quality of life of men and women in family businesses. Journal of Family and Economic Issues. Vol. 21, (3), pp. 259-286. Retrieved from the Web August 1, 2004.
The article discusses the effect of conflict over men and women in a family. A study has been conducted with husbands and wives to see the changes in the quality of life that they are having, as a result of conflict. It is concluded that domestic aggression negatively affects the quality of life, and also affects the productivity in the family business. Denial, assertion and withdrawal also affect couples at a different level. Thus, authors suggest that couples should consult therapists and improve their conflict management skills.
- Danes, S.M., Zuiker, V., Kean, R., & Arbuthnot, J. (1999). Predictors of Family Business Tensions and Goal Achievement. Family Business Review: Journal of the Family Firm Institute, Vol. 12, (3), pp. 241-252. Retrieved from the Web August 5, 2004.
The potential for conflict varies depending on the stage of the family business. Family business conflicts do not fit prevailing dispute/resolution models as they often fight about deeper issues. This article describes the outcomes of a study performed to identify factors causing tension. The APGAR score which measures adaptation, partnership, growth, affection, and resolve and is used to assess the functional integrity of the family predicted the level of tension in a family business.
- Davis, P.S. & Harveston, P.D. (1999). In the Founder's Shadow: Conflict in the Family Firm, Family Business Review: Journal of the Family Firm Institute. Vol. 12, (4), pp. 311-324 . Retrieved from the Web August 5, 2004.
Conflict in the family business results from generation and generational shadow variables. The generational shadow refers to the amount of influence that the parents still have in the business after the next generation has assumed control. The results of a survey of 1000 family business owners confirmed that increased organizational conflict is directly related to the amount of generational shadow and especially increased when the founder is still influential.
- Davis, P. S., & Harveston, P. D. (2001). The phenomenon of substantive conflict in the family firm: A cross-generational study. Journal of Small Business Management, Vol. 39, (1), pp. 14-30. Retrieved from the Web August 1, 2004.
The article argues that substantive conflict in a family business can be reduced by the non-active family members in the business at later generations. The non-active family members can mediate in a conflict and protect the cohesion in the business. It is also concluded that increasing the number of close family members in a business will increase the frequency of the conflict.
- Druchniak, C ., (1997). Can the family that works together live together? New Hampshire Business Review . Vol. 19, Issue (17), p. 27.
This article discusses the role of intergenerational conflict within a family. It discusses the importance of defining roles of family members, dealing with on-the-job arguments, defining who can be working within the structure of a family business, and why using a third party to help mediate the family problems can be a useful tool.
- Eckhoff, J. (2004, May 15). Families in business squabble. The Des Moines Register.
This article chronicles the conflict four separate family businesses faced with issues including succession, share of the company profit, and accusations of misspending company funds between family members. Other families in the article sight the way they manage their family business conflict is to keep the home and office separate. Separation in some cases includes separating family members in different office locations.
- Eddleston, K. A. (2004, March) Feuding families: when conflict does a family firm good. Entrepreneurship: Theory and Practice (Vol. 28, Issue 3, pp. 209-228).
This paper analyzes the suggestion that not all conflict is bad for family businesses. Conflict that leads to improvements in tasks and processes are necessary for growth to occur. Most family firms do not continue past the first or second generation due to failure to manage conflict effectively. Conflict within family businesses is analyzed and a model is used to explain its uniqueness with respect to conflict in other types of businesses.
- Estess , P.S. (1997) “Cutting back - preventing conflict due to salary cutbacks in family businesses.” Entrepreneur.
This article covers the difficult task of cutting salaries of family members in the business. The author's suggestions to minimize the conflict this will cause are to have open communications; a fair performance review and appraisal process for all employees including family members, salaries consistent with industry trends and have outside opinion on salary reviews.
- Fast, J.G. & Segel, R.M. (1997). Case study: when values conflict – advice – family business brief article. Nation's Business.
A case study is presented in which an individual is in conflict regarding a failing family owned business division he operates and the struggle to keep his employees happy and employed. Two separate solutions to the dilemma are presenting, which discuss trying to create a win-win situation for all parties involved and keeping in mind that one of the main purposes of a business is profit.
- The Family Business Conflict Resolution Handbook (n.d.). Family Business Magazine.
This book acts as a guide for families involved in business together to gain an understanding of potential conflict and attempt to resolve conflicts that can occur. Broken down into eight sections, the book addresses how to separate business and personal life, as well as the various power struggles that can occur between family members. The book also gives advice on how to manage disputes using various mediation tools.
- Fenn, D. (1995). Sources of conflict in family businesses. Inc. Vol. 17, Issue (10), p. 96.
This article explores the different sources of conflict within family business . It looks at the role of conflict and how it affects the family business on all levels. It also looks at the differences between generations within a family and how those age differences affect major issues such as money, ownership, control, etc…
- Fletcher, D. (2002). Understanding the small family business. London; New York. Routledge.
The nature of family businesses. The dynamics of family firms. Scale of family enterprise. A multi-rational perspective strategy. Understanding strategy processes in family businesses. Tensions in the med size family business. Work-and -family conflict. Comparison of American and Australian business and their owners. Emotional dynamics of family enterprises. A household-based approach for a small family business
This article states the need for a “family-business constitution” to address the common problems in a family business. In particular, it tackles the difficult issue of succession in a family business and the conflict it often causes. The constitution is a set of principles designed to guide the company through times of crisis and change. The process of creating the constitution is often as valuable as the end product because it creates discussion about important topics that often need addressing.
- Foley, S. & Powell, G.N. (1997). Reconceptualizing Work-Family Conflict for Business/Marriage Partners: A Theoretical Model. Journal of Small Business Management. Vol. 35, (4), pp. 36-48.
It is suggested that the quality of the marriage is directly related to the success of the business. If work-family conflict is high, quality of marriage will be low and negatively affect the business. The work-family conflict is also affected by the personal characteristics of each partner and the couple as a whole. A model of the work-family conflict for business/marriage partners is proposed and evaluated.
- Folker, C. A. (1999). Female vs. Male Family Business Owners: Exploring the Differences Through a Trust/Distrust Framework.
Retrieved from the Web August 5, 2004. Proceedings from 1999 USASBE/SBIDA Annual National Conference, San Diego, CA .
The author suggests that family businesses will manage conflicts using different strategies depending on whether a man or a woman runs the family business. Female family business owners favor the relational model that incorporates high trust and low distrust, and they operate from an “ethic of care.” Male family business owners favor the dominator model that incorporates high trust and high distrust, and they operate from an “ethic of justice.”
- Fraley, J.L. (1998). Family business succession planning takes communication. Business Press , Vol. 11, Issue 34, p. 26.
This article address's the role of conflict within a family business. It expresses why the development of a succession plan for family -owned businesses is a good idea. It discusses how these plans help to reduce future conflicts between family members as well as between founders.
- Galbraith, C. S. (2003). Divorce and the financial performance of small family businesses: An exploratory study. Journal of Small Business Management, Vol. 41, (3), pp. 296-309.
The article examines the effect of divorce on short-term performance of family businesses. A study has been conducted to see this relationship with other variables such as the involvement of other partners in the business and the structure of the businesses. The results of the study indicated that divorce affects the organization's short-term performance in a negative way. However, other potential effects should also be considered in this negative performance. It has been concluded that more research is needed to be done with other factors.
- Godfrey, A. (2004). The Culture of Family Firms. Grant Thornton International.
Family firms face the same economic issues as other larger organizations, but in many cases have less financial resources and management breath to deal with potential conflicts. In many cases, decisions are based on emotions versus rational thinking. The family structure seeks to preserve harmony, avoid changes and potential conflict, even when the business requires changes to survive in the long-run.
- Gordon, B. (1998). Beyond Blame: A New Way of Resolving Conflicts in Relationships. Family Business Review: Journal of the Family Firm Institute, Vol. 11, (1), pp. 84-86.
The author reviews this book written by Jeffrey Kottler. Kottler presents that conflict is usually triggered by past experiences, and we respond to people based on our perceptions of their behavior. Business-owning families need to approach conflict with two ideas in mind. First, they must understand that constructive conflict is natural. Second, families must understand that there will always be conflict in their relationships. Kottler presents a six-step model to resolve conflicts in relationships.
- Graff, B. (2005). The Family/Business Overlap. Orange County Business Journal.
Specific family/business confusions are seen as some of the primary causes of unnecessary conflicts. Similarities in families can be a comforting asset where in business it can be a cost liability. The conception of fairness, along with the conception of gender roles, for example may be difficult for family members to differentiate between business and family. A clear differentiation between family and business is necessary for a family business to succeed.
- Grote, J. (2003). Conflicting generations: A new theory of family business rivalry. Family Business Review, Vol. 16, (2), pp. 113-124. Retrieved from the Web August 1, 2004.
The article argues that when the harsh internal competition emerges between family members in a family business, it will affect the business in a negative way. Thus, the author suggests that the competition should be external to the family business. Non-family members in the management should mediate between the family members, and bring their own suggestions to make the business much more profitable.
- Gus, I. (1998) Behavioral aspects of the family business. PSICO, Vol. 15, (1), pp. 7-17.
This article looks at the psychological problems of operating a family business. It examines the role of conflict on the success of the business. The article deals with the conflicts caused through family power struggles as children fight to affirm their place in the business as equals while the father tries to maintain his dominance. The article looks at the affects these conflicts have on the family business.
- Haynes, J.M. & Usdin, T.M. (1997). Resolving family business disputes through mediation. Family Business Review: Journal of the Family Firm Institute, Vol. 10, (2), pp. 115-127.
The authors deem that any type of conflict that occurs in a family business can be resolved through mediation. The first section of this article presents the advantages and disadvantages of using a third-party mediator to resolve conflict in family businesses and includes a case study. The second section of this article presents opinions from the perspective of an attorney/mediator, a conflict specialist, and a psychologist/mediator on using mediation to resolve conflicts in family businesses
- Hilburt-Davis, J. (1996). Consulting to Family Businesses: Contracting, Assessment, and Implementation (Organizational Development ). San Francisco, California . Jossey-Bass/Pheiffer.
Topics covered: What is Family Business. Understanding interdependencies. Family Firm Systems. Family Business Consulting. Comparing Healthy Family Business to Unhealthy Family Businesses. Strengths and Weaknesses of family Enterprises.
- Hofstrand, D. “Resolving Family and Business Disputes.” (2000).
This succinct article covers the five conflict management styles: Competing, Collaborating, Accommodating, Avoiding and Compromising and the two variables of Assertiveness (looking out for one's own interests) and Cooperativeness (looking out for others' interests). In addition, 6 steps are put forth for resolving disputes (initiate dialogue, etc.)
- Hoover, E. A. & Hoover , C. L. (1999). Getting Along in Family Business: The Relationship Intelligence Handbook. London, Great Britain. Routledge.
Topics covered: The business of relationships. Understanding relationship intelligence. When family and business meet: the relationship intelligence challenge. Improving relationship intelligence: tools and methods. Assessing one's RQ. The architecture of family enterprise. Relationship of RQ and working with family business.
- “How to Resolve Conflict in Family Businesses.” Business Europe. 2004.
This article covers three aspects of conflict in a family business: staff management, compensation and succession. It asserts that to avoid and resolve conflict, a “family creed” should be created. The family creed will put into writing how many of the common sources of conflict will be handled. The article also advocates regular meetings to prevent festering of issues and recruitment of external assistance when necessary to resolve conflict.
- Jun, Y. & Sorenson, R. (2004) “The influence of Confucian Ideology on Conflict in Chinese Family Business.” International Journal of Cross Cultural Management. Vol. 4, (1), pp. 5-17.
The dual concern conflict model argues that conflict management strategies are based on two concerns; concern for interests and goals of self and other. The author challenges the dual concern model of conflict management by introducing a third set of concerns based on Confucian ideology, an ancient set of guidelines for social interaction. The article specifically examines the influence of Confucian ideology on conflict management within Chinese family business.
- Kellermanns, F. W. & Eddleston, K. A. (2004). Feuding Families: When Conflict Does a Family Firm Good. Entrepreneurship: Theory and Practice, Vol. 28, (3), pp. 209-229.
A model is presented regarding the effects of task, process, and relationship conflict in family firms. It is proposed that generational involvement affects task and process conflict and the performance of the family business. The paper also implies that some firms do not survive past the first generation as a result of a lack of planning, disregarding the input of the next generation, and failing to effectively manage conflict.
- Kliska, B. & Aronoff, C. (1997, Jan). The price of ‘peace at any price'. (Managing conflict in a family business). Nation's Business, Vol. 85, pp. 46-48.
This article accepts that there are stresses and strains in a family business. As such many leaders of family businesses heads choose to avoid conflict by copying the “peace at any price” attitude. It focuses on the two types of “peace at any price” people, and offers suggestions of dealing with each type. The authors suggests that a “peace at any price' attitude can lead to a deterioration of the family business.
- Kreitler, B. (1998) Planning Can Pre-empt Family-related Business Conflicts.”
This article addresses two of the biggest causes of conflict that family-run businesses incur: participation and succession. In participation, relatives' roles must be clearly defined. This includes qualifications non-family and family members must possess and performance standards each must meet. In succession, how ownership and leadership will be transitioned should be defined. Without participation and succession clearly defined, conflict is more likely to occur in a family business.
- Lea, J. (2001). Relationship-Building Tips Can Help Avoid Family Conflicts. Silicon Valley/San Jose Business Journal, Vol. 19, (12), p. 43.
This brief article presents and discusses tips to follow that can minimize the conflict between family members who are in business together. Tips include talking openly and often to family members, letting bygones be bygones, making plans, policies, and procedures and sticking to them, practicing performance-based compensation, and disagreeing with respect.
- Mavromatis, K.A. (2001). Helping Family Enterprises Survive. Providence Business News, Vol. 15, (52), p. 1B.
Differences in how families deal with conflict in the family business depends on culture. In different countries, bonding between family members may be more intense. Succession plans for the family business is a common source of conflict and many families are shifting to a team style business management style to address succession issues.
- Messick, W.D. (2002) “Managing Conflict in the Family Business.”
This article presents a typical family business situation: the original owner is retired, but still involved, offspring are running the business and heirs are looking for their share of the business. The article covers understanding the goals of the different generations and using Dan Dana's Self-as-Mediator and Manager-as-Mediator processes to resolve conflict between the different generations.
- Money, E. (2004). A family Affair. Press & Sun-Bulletin, Binghamton.
This article interviews the Di Rienzo's who are the third generation to run the family business the Di Rienzo Brothers Bakery & Deli. Celebrating a one hundred year life span the brothers discuss some of the conflict that can occur between family members that work together. The brothers site some of the reasons how they have managed conflict between each other and the market to create a successful business.
- Neufeld, R. (June 25, 2004). When family members don't get along. Business Journal Serving Fresno & the Central San Joaquin Valley, p. 16.
The owner of a ranch was tired of the constant arguments between his three sons. The men frequently disagreed on who should order the fuel, what time to show up for work and whose wife was misusing the business cell phone. The owner considered selling the business if the conflict was not resolved. After two weeks of lengthy discussions, the sons agreed on a solution that would help them work more effectively together. The agreement was documented and disbursed among all the parties involved in the conflict. The brothers currently agree to meet frequently to resolve any new issues that arise in a mature business fashion
- Nix, C.D., Jr. (1999) “The Gamble of Conflict - Deal or Fold.” Family Business Institute News.
This article makes several points on about conflict in a family or business. One point is that conflict needs to be addressed rather than avoided. Another is that each conflict situation doesn't necessarily require a winner and loser. Situations can be resolved where everyone including the business is a winner. To resolve the conflict, a methodical approach should be used that stresses honesty.
- Reisenauer, T. (2003). In Family Matters, the Family Matters. Everett Business Journal, Vol. 6, (1), p. B7.
Most family-owned businesses that have problems happen from poor communication. Old perceptions of family members that are held onto can distort and block effective communication. Family members must understand that everyone has a unique contribution to conversations. Sometimes, too much similarity between family members can hurt communication because they may falsely think they have no differences. Families must first admit when they are having a problem before anything to remedy it can be done.
- Segal, R.M. & Fast, J.G. (1997). Case Study: When Values Conflict. Nation's Business, Vol. 85, (12), p. 59.
A short case study based on an actual business dilemma is presented describing the disagreement between family members on whether or not to sell a subsidiary of the family company that appears to be losing money. Two brief responses are presented that discuss possible solutions to resolving the family disagreement.
- Singer, Linda R., Settling Disputes: Conflict Resolution in Business, Families, and the Legal System. Westview Press (2nd edition), 1994.
This volume presents the origin and growth of the field and types of ADR as well as terms and conditions for successful conflict-resolution sessions. Work also discusses the usefulness of ADR as well as its broad usefulness and alternatives to adversarial litigation. Provides a broad historical introduction and overview of the topic.
- Smyrnios, K.X., Romano, C.A., Tanewski, G.A., Karofsky, P.I., Millen, R., & Yilmaz, M.R. (2003). Work-Family Conflict: A Study of American and Australian Family Businesses. Family Business Review: Journal of the Family Firm Institute, Vol. 16, (1), pp. 35-52.
Results of a study are reported that evaluated relationships among work strain, work-family conflict, and owners' perceptions of anxiety as mediated by family cohesion and comparing Australian and American business owners. One implication of their findings uncovered the importance of practitioners to assist business owners in dealing with conflicts involving the business because unresolved differences may affect business performance. The paper also presents a hypothesized structural model for work-family conflict.
- Solter, A. (2003). Keeping the Peace: Family meetings for conflict resolution-family living. Mother Magazine.
Weekly meetings provide a forum in which family members can resolve conflicts in a truly democratic way. It is best to propose a regular, weekly meeting time. It is important to have a written agenda. For a meeting to run smoothly there should be a chairperson and a secretary. Giving appreciation is a positive way to begin each meeting. It is important to encourage children to address problems not just with siblings but with parents as well. Children need to learn that their problems will be taken seriously. It is best to achieve consensus rather than voting. Consequences should not ever be implemented without consensus. It is important to recognize that individual's values differ.
- Sorenson, R. L. (1999). Conflict Management Strategies Used by Successful Family Businesses, Family Business Review: Journal of the Family Firm Institute, Vol. 12, (4), pp. 325-340.
This paper presents the results of a survey of 59 family businesses and identifies conflict management strategies for achieving positive and desired outcomes. Low levels of competition and avoidance are in the preferred conflict strategy norm in family businesses. A strategy of collaboration and compromise seem to produce the most effective outcomes, and collaboration should be used the most frequently.
- Swafford, M. (2004). Exit strategies must be prepared early. In Business Las Vegas.
This article discusses the pros and cons of family succession as an alternative to selling a business on the market to a stranger. It discusses the need to manage this process to avoid conflict such as early involvement with the potential family successor and considering a buy-sell agreement when the business is opened.
- Taylor, Alison. The Handbook of Family Dispute Resolution: Mediation Theory and Practice. Jossey-Bass, 2002.
The book outlines successful mediation and conflict resolution skills, theories, and techniques. It basically describes a framework, mainly geared toward practitioners, for dispute resolution techniques, specifically focusing on mediation. It discusses different systems and their effectiveness in dealing with different conflict situations, including intervention.
- Torani, J.A. (1999). In Depth: Family-Owned Businesses. “Strategic planning is essential to avoid family conflict.” The Business Review (October 8, 1999 Print Edition).
The failure to separate business issues from family issues can cause conflict and potentially threaten the survival of the family business. A “family first” culture is compared to a “business first” culture and the influence and effects that each culture has on the family business is presented. Having short-term and long-term strategic plans can help prevent conflict in the family business.
- Tortola , J. O. (2003). Relative worth. Progressive Grocer, Vol. 82, (13), pp. 12.
Compensation is a key factor in conflict. Parents of “family business” may have tendencies to pay their children who work for the company the same amount of compensation regardless of level of education or experience. Family businesses are encouraged to implement pay systems in order to distinguish the value of each position and earn respect. The six factors involved in a pay system are; pay for performance, create written job descriptions and measurable performance goals, establish an outside board of advisors in assisting in a written pay system, institute a business philosophy, issue phantom stock and hold performance reviews.
- Vilaseca, A. (2002). The shareholder role in the family business: Conflict of interests and objectives between non-employed shareholders and top management team. Family Business Review, Vol. 15, (4), pp. 299-320.
The article examines the relationship between non-employed shareholders and the top management team regarding their diverse interests in a family business. The diverse interests in the organization create conflicts inevitably. It is stated that there is a relationship between employment in the business and the organizational commitment that will decrease the conflicting interests. It is suggested that non-employed shareholders should be active in the firm's decision-making process. It is also suggested that outsiders would also contribute to the family business success when they participate in the decision-making process.
- Walsh, T. (2004). Managing family-business conflicts requires tact. Business Journal; Central New York , Vol. 18, (30), p. 17.
A healthy company deals with conflict in mature way, which results in an acceptable solution to all parties. The below examples illustrate a company where the management opted to use immature tactics in resolving conflict. A family business that has been successful for about thirty years faces conflict during transitions from generation one to generation two. Shouting, throwing coffee cups and swearing are the types of solutions they use to resolve conflict. As a result, non-family member employees with valuable talents and skill get frustrated and look for employment satisfaction in another company. Therefore, the family business declines.
- Ward, J. L. & Aronoff, C. E. (1994). Managing Family-Business Conflicts. Nation's Business, Vol. 82, (11), pp. 54-55.
Conflicts are natural occurrence in family businesses. Strategies that work for a family to use to resolve conflicts include arbitration, compromise and creative resolution. Avoidance is another strategy, but it is typically not applicable to business situations because they cannot be deferred. It is important to keep discussions to the issues and not let them get personal. It is also recommended to address issues quickly and directly.
- Ward, J. L. (1987). Keeping the Family Business Healthy: How to Plan for Continuing Growth, Profitability and Family Leadership. Family Enterprise Publisher.
Topics covered: The challenge of keeping a Family Enterprise. Overcoming obstacles to long-term firm health. Ensuring family interest in managing the business. Developing a strategic plan for the business that includes the family. Importance of family roles in the company's future. Business and family vision.
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