Succession planning in family business in an area for business students to understand about about small and family business management. This post by our assignment expert provides complete overview on this topic to provide you business assignment help.
Succession planning in family business or succession planning in small businesses is quite specialized topic in the current environment. Some large and well known companies around the world are family businesses such as Ford etc. In US economy, family businesses exerts powerful influence as it is estimated that family businesses generate nine jobs out of the ten jobs in US economy. get higher grades in Cheap Assignment Help. But at the same time, only one out of three organizations survives to the second generation, while the successful transfer to the third generation ranges from 10 to 20%. The failure of succession planning is because of the special succession challenges in the family businesses for the simple reason. The simple reason is that the elder son of founding entrepreneur may not have the best skills, vision and motivation to run the business successfully.
Bowman described that the succession planning in the family businesses requires commitment of the family and employees of the organization. The commitment of family and employees will be quite effective overcome the several forces that are against the succession planning. Bowman explained four phase for effective family business succession planning namely initiation, selection, education and transition. The initiation phase starts when the children start learning about the family business. Our assignment experts are glad to provide all types of Assignment Help in Sydney students. There may be positive or negative impression on children about the family business as learning starts from the time children are born. The owner should provide positive aspect of the organization to the children for effective succession planning.
The second phase is selection, in which the owner selects the person from the next generation, who will lead the business. our expert writing assignment help experts are described in brief below. The family business owner should select the successor on appropriate basis otherwise it may create several conflicts among the family and business. The lack of proper basis for the selection of successor may also cause the business failure due to lack of required skills, abilities, vision and motivation (Bowman 1991). Third phase is education that is also termed as the delicate process. The child should be trained properly to adopt the responsibilities of successor. The training of the successor should be based on the objectives that will be effective to facilitate successful succession planning. The last phase is transition in which actual control is transferred to the successor by the owner.
Golchin, in his article, exhibit that succession planning is a crucial part for each company. The succession planning of a family business should be based on the characteristics of family and the business both. Golchin described several activities that should include in the succession planning of a family business. In order to develop the succession plan, the owner first should identify the personal and business goals and also the expectations of family members. The planning should also include the identification of roles and also the development of understanding about capabilities required to undertake those roles. After identifying the roles, founder should identify the successors that can fill those roles.
You can contact our team for further customized, original, and high quality assignment help services.