Compensation Issues in Family Businesses

2498 Words10 Pages
Compensation issues in family businesses 1. Introduction The contemporaneous business community is extremely challenging and dynamic and the managerial teams in the organizations are forced to respond to a wide array of threats. Some of the new challenges for instance include the shifting demands of the customers, the increasing domestic and global competition or the advancement of technology. All of these challenges are common to the entire business community and each economic agent has to respond to them in the best possible manner. Nevertheless, aside from these generic challenges, the economic agents must also address issues which are more so linked to their internal features. For instance, a retail company would have to focus extensively on their pricing strategy; a travel agency would have to focus extensively on customer relationship management; an IT firm would focus broadly on innovation and a family business would have to focus on business efficiency rather than family relationships. The current project then approaches the topic of the compensation dimension in family owned businesses, through the lenses of the issues which are raised. The nature of the project is one of research, based on the gradual gathering of data from reliable, secondary sources. The information is structured as follows: Definitions of family owned businesses Statistics of family businesses Issues with compensation in family businesses Recommendations to avoid issues 2. The
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