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FMB Conflict Management


FMB Conflict Management

This is a group dedicated to resolve Family Managed Business conflicts.

Location: Global
Members: 11
Latest Activity: Jul 2, 2012

Discussion Forum

Lets discuss key Family Managed Business conflicts

Started by krishna sagar Apr 3, 2010.

Comment Wall

Comment by Emma Su on July 29, 2011 at 7:21pm

Conflicts in the family business are inevitable due to the unique nature of the family business. There are fundamental differences between the family and the business system (Swartz,1989). Such fundamental differences contribute to the prevalence of conflicts in the family business. The fundamental differences between the family and the business can be summarized as follows: 1) the family system is considered as emotional because of all the closely related family relationships; while the business system is characterized as rational seeing the business profits as the ultimate goals. 2) Family members in the family system are often resistant to change and depend on the status quo for psychosocial comfort; while the business system recognizes changes and only through changes the business can grow. 3) The family system more follows an inward thinking trying to protect the interests of family members; while the business system more takes an outward thinking looking for new opportunities to grow the business. Thus, conflicts are embedded in the family business. We cannot avoid conflicts in the family business. All that we can do is to find the optimal ways to manage conflicts in order to maintain the harmony of the family and the success of the business.

Source: Swartz, S. (1989). The challenges of multidisciplinary consulting to family-owned businesses. Family Business Review, 2(4), 329–339.


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