AFF9100

Family business issues I

Dr Kosmas Smyrnios

6 credit points in the Executive Certificate in Family Business · 3 hours per week · Caulfield

Objectives On completion of this subject students should: achieve a better understanding of their role in the family business; increase their understanding of the prevailing values of family business members; achieve a better understanding of the impact of leadership on the culture of the family business; understand the organisational lifecycle and stages of development of family businesses; better evaluate and plan for change in the family business; identify the key attributes of the family business which create its strengths and weaknesses and which lead to its success or failure; be aware of the impact 'institutional overlap' has on the family business and how to tackle the problem it creates; identify methods to minimise conflict in the family business and make it successful; and enhance communication in the family business.

Synopsis This subject has been designed to provide graduates who are owners, managers, family business members, family and private business professionals, as well as prospective business owners the means to explore issues of family and organisational cultures, and the interrelationship between both entities. The subject discusses how culture is articulated at an early stage of the business, how it is communicated to employees and other generations, and how it is cultivated and changed. The 'institutional overlap' between business and the socio-familial system is also explored. Many family businesses mix their family agenda with the business agenda creating a conflict-ridden and stress-producing environment which prevents both systems from functioning efficiently. Still, some families achieve both business success and family harmony. These families are not immune from conflicts, but they have found a non-destructive way to resolve them. Hence, what do successful family businesses have in common?

Assessment Individual assignment (2000 words): 15% · Case study exercise (3000 words): 20% · Individual presentation (20 minutes): 15% · Written examination (3 hours): 50%

Prescribed texts

Aronoff C E, Ward J L and Astrachan J H Family business sourcebook II Business Owner Resources, 1996
Gersick K E, Davis J A, McCollom H M and Lansberg I Generation to generation: Life cycles of the family business Harvard Business School Press, 1997
Jaffe D T Working with the ones we love Conari Press, 1991
Rosenblatt P C, de Mik L, Anderson R M and Johnson P A The family in business Jossey-Bass, 1987
Ward J L Keeping the family business healthy Jossey-Bass, 1987

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