Friends and family business will be businesses that are created from all their founding dads of that age, if might evolve from small businesses in to big corporations. Family organization is playing an important part in the economy of Malaysia; the reason is that more than half of the Gross Domestic Merchandise of Malaysia is from your family businesses which might be conducted in Malaysia. For example The Genting group and The Berjaya group will be two of the most famous family businesses which have been conducted in Malaysia. The following are the issues and challenges which might be faced by simply family businesses in Malaysia.
The first problem and concern that affects family businesses in Malaysia is succession preparing which is getting a next heir for the organization after the current successor retires or died. Choosing a replacement, beneficiary is one of the biggest challenges and it is often experienced by family businesses in Malaysia. Choosing a successor is hard since there are many elements that need to be regarded before delegating him or her to be the successor from the family business.
The initially factor is of course the capability of the potential successor, to find out whether he or she is up to standard andable to handle the responsibility that is certainly about to become passed onto to see whether or not they qualify for the positioning. The second aspect is that the potential successor must have certain amount expertise about the business enterprise and must know every part of operation in the business in details. The potential successor should also have incredibly good managing skills and possess a good marriage with everyone involved in the organization in order to have better process when ever sharing businesses.
The second problem and concern that influences the family based businesses in Malaysia is family disputes which can be the a harmonious relationship between members of the family and also in the business. The reason why it is one of the challenges and issues happens because some of the family or people involved in the organization are always envious of each different, or they are really angry as a result of decisions built which they are unfair, that may then leads to political concerns happening available which can greatly affect the final result of the organization, and sometimes it may be serious until it finally can destroy the whole business. So that is why it is very hard to keep the family and organization at a harmonious relationship all the time.
Nevertheless , if they are capable to do so, it can help improve the marketing communications between loved ones and also persons involved in the business so that they can share out their feelings as well as the conflicts more openly so the conflict may be solved in a way that will benefit the along with the business. The 3rd challenge and issue that affects the family businesses in Malaysia is professionalism which can be capability of to get family organization up and running for a long term.
This can be a very hard challenge for all the family businesses to choose from in Malaysia because it has its own factors to look at in order to keep the family organization in one piece, since family businesses frequently faced with conflicts between one another sometimes because of the informal business structure, just like there are not any roles presented formally which in turn allows everyone can step into each other territory in the business structure which is also known as entering other’s personal workspace. The other reason is because of the nonsystematic work which is due to bad operation control that may greatly effects the procedure of the friends and family business.
Nevertheless , if managing is in good control plus the organizational framework is full and the target and goals is the same and shared by everybody, the efficiency of the family business will certainly sure boost a lot. Personnel training also can improve the professionalism of the family business. Your fourth challenge and issue that affects the family businesses in Malaysia can be leadership which can be basically the compass for the direction from the family organization. It is very hard for family organization to have great leadership because it involves leading, involving, and in addition motivating those in the family members business in order that they share similar goal.
Therefore , if the innovator of the family members business is usually strong, then the chance of the business enterprise to succeed will surely be very high. The first thing is that the good head must have the stamina plus the passion to acquire. Besides that, the leader must have a wide knowledge of the economy as well as the industry by itself so that they can direct a most beneficial means for the family business to approach and in addition giving a sense of prevalent purpose. Last but not least, the leader must have power to control the people inside the family business and explain what is the plan and the actual need to do.
The very last challenge and issue that affects the family businesses in Malaysia is definitely fair payment which also includes fair treatment to the people involved in the family business. The reason why this is a common issue in family organization is because the family members constantly tend to take care of their own family member better and they also make prejudice decision most of the time. The most common issue is the payment and the wage of the persons in friends and family business. People who find themselves the loved one often get better pay which then the others will feel conned and roughed up at the same time. Chances are they will feel alienated by the loved ones of the family business, that can then significantly affect the making capability of the company.
Although there can be some problems and issues faced by family business in Malaysia, but if all those family businesses can easily overcome the challenges and issues that are stated previously mentioned, then their very own family business will surely be stable and run for some time.