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.
Use Company Money for Private Objective: For autocrat president, the company money is like his/her money. Some presidents save company money, some use for their private objectives that lead to deterioration of management.
Too Weak-Spirited: If the autocrat president are moving forward with strong spirit, the company would look powerful. If the president becomes weak-spirited, the whole company will lose power. Once the president were too weak, the company would become powerless.
Become lazy: In the organization that autocrat continues many years, the president would become lazy gradually. He/she will no longer challenge to new things but only doing a repetition of the same thing. It still would be OK in a growing market, but in a shrinking market or market that large companies are attacking, just doing same thing is vulnerable.
Too Optimistic: The autocrat managements determine everything by themselves. They tend to put off touch decisions. They stick to just maintain the current status, with too optimistic view. Too optimistic management will jeopardize the company.
Money embezzlement, weak-spirited, laziness, too optimistic etc. are the evils of autocrat management. The company will be in a crisis soon if they are left without doing anything.

* 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.