Empowering Non-Family Staff Members and Binding of Professionalism in Family Business to Enable Business Prospects

Abstract

Family business structure is one among the traditional and most predominant system of business activity. The family-owned business operations have started with very small-scale organisations and it establishes as a giant in the market. It has very significant resistance and also emerged as corporates at national and global level. In the initial stage of the family business have focussed on production of specific products, reached on specific markets and depend on particular customers. During this modern competitive era, the family businesses started widening their wings to reach the greater high in the global markets. In this scenario, the business enterprises moving towards the professional way of operating business with traditional touch. Ultimately the role and functions of the owner, family members and more importantly, the role of business manager from non-family member is relatively high in applying professional practice into the family business. Present research work is carried out by applying qualitative research method with empirical way of field level datum. Both secondary and primary data has been used to analysis and infer the variables. The secondary data is collected from various published research papers, articles and magazines and the primary data is collected from 69 selected small and medium scale family business retail firm in India. These samples have collected on the basis of random selection method. The collected data is analysed with appropriate statistical instruments such as multiple regression and paired t-test to infer the relationships among the variables. A five-point Likert scale has been applied to record the response. It is evident from the data that there is positive association between the constant variable of business performance and the role of owner in the business operations. Across the total samples of 69 family business units, the role of owner in taking care of the business responsibility is quite high. It leads to enhance the business operations ahead and for the better performance in achieving the business goals. It found that there is no association between the role of business manager and the business performance. It is also found that there is an association between the professionalism of business manager. It has the positive association between the variables. Based on the values of the business firm’s performance and the professionalism practice of the business manager, it is predicted that there is positive linear relationship between the variables. It shows that the performance of the business firms can be achieved through the professionalism practices of the business manager.