Direct Negotiation with the President

The company's financial state is up to the judgement of the president. The family management tends to be autocrat. The contents that employee negotiated with the president directly will affect largely to the management.
There are variety of factors that management fails. For example, changes in society and the market, management's wrong assumptions and judgments, of neglect of quality issues and corresponding delay to the customer complaints, then sudden retirements or fraud of employees etc.
Even employees knew the risky situation, the presidents are often not aware of the signs of the problems. The employees will not be staying if their president looks carefree under the critical situation.
In case the employee who does not say anything comes to direct negotiation with the president, it should be probably a serious situation. Some employees may retire suddenly without saying anything. It is necessary to give easy-to-speak atmosphere to the employees who are likely to have problems.
Some employees often make direct negotiation with the president easily. The president should listen to the good suggestions, but may need to be careful if they are winning the president's favor only for the sake of self-interest.
Some employees only say complaints or speak ill of other employees. The employees who often complain or speak ill of others will often have problems in themselves.
The distance between president and employees are close in family management. It is easier to make direct negotiation with president than in the bureaucratic organization. This is the big advantage and big disadvantage at the same time of the family management. The president must be careful which suggestion he/she should listen to and which should not.

* Return to Family Management Theory

Benefits of Family Management

Cohesiveness That Ate Rice of the Same Kettle
Features of the family management which is more strong than anything else is its cohesiveness. It is a meal that the cohesiveness is generated. Foods are very influential to the psychology and relationships of people.
Flexible Roles
There are roles in the organization. Every member of the organization has his/her own role so that the organization can operate efficiently. In large organization, the roles are specified and written in manual in detail so as not to cause mistakes.
Determination
In large companies, members hold meetings, conferences again and again to make a decision about one thing. They take time, adjust interests of various sections, then determine one thing after several months.
Love and Dedication
There aren't detailed rules or systems in family management. Employees who are treated with love from management are impressed, and are willing to contribute in a tremendous spirit of dedication. Employees and managers are linked with love and dedication.
Direct Negotiation with the President
The company's financial state is up to the judgement of the president. The family management tends to be autocrat. The contents that employee negotiated with the president directly will affect largely to the management.

Issues of Family Management

Harmful Effect of Autocrat
The family management tends to be autocrat by the president. The autocrat management can act quickly by snap decisions of the president, but there are various harmful effects for the company. Here let's see about harmful effects of autocrat.
Pressing Unpleasant Jobs
The company has more or less unpleasant jobs. Someone must do the jobs even nobody want to do them. Employees would start pressing unpleasant jobs each other if the roles and responsibilities who do what are not determined clearly.
Depend on "Easy Money Making"
Tough and painful situations come again and again when you become independent and start a smal company. Sometimes you may think, "why did I started such a tough business?" Management sometimes feel they want "easy money making".
Ruled by Emotions and Obstinacy
People have emotions. Managements also have emotions. People often take actions by emotions. And, when managements make decisions, they are influenced by their emotions at a certain extent. While, making decisions by emotions are quite risky.
Relying on Intuition and Experience
Management is continuous of decision on every day. When making decisions every day, management would doubt at various points. Every decision making may affect the fate of the company, the management must be very careful on making a decision.

Directionality and Necessary Mechanism

Ideal Image of Management and the Decisions
Quality of family management is largely determined by the quality of the president. In order to continue the good management, the president must control his/her own feelings well. Therefore, mental training is important as the president.
QC Reflection
Various problems will occur when doing a management. Management shall make improvements by seeing problems as precious experiences to create better future. QC reflection is necessary for that.
Reset the Past
Some of the managers say, "the old days were good" many times. In the old days there were many customers, it was good economy, ant the environment was easy to do businesses. But now everything is gone.
Worship Father and Ancestors
The company president is the person to lead the company. He/she will have to be responsible for his/her employees lives and futures since he/she let them work. It is important to worship his/her father and ancestors to be aware of the responsibility.
Do not Spoil
After long years of management, there may occur various collusion between the president and the employees. Eve the employees make mistakes, they spend money privately, or they privatize company equipments, the president would carelessly overlooked.