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Family Business Assignment PDF

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Added on  2021-06-30

Family Business Assignment PDF

   Added on 2021-06-30

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SUMMARYThe family business is the sort of venture in which most of the shareholders belongs to onefamily. Moreover, decision making power are restricted to family members. Literature explainsthat, family cohesion, fairness and loyalty are vital element to achieve success in familybusiness. The agency theory is applied and implemented to support the literature in which theconflict between agent and principal exist. The simple random sample is used to collect the datafrom participants. All participants belong to the managerial post of family business. The city ofpopulation is Rawalpindi and Islamabad. The correlation and regression test were run to examinethe relationship between dependent and independent variables. The significant result of above0.05 shows that, there is a significant relationship between dependent and independent variables.The results show that, the care and cooperative behavior is vital to achieve success in familybusiness. The recommendations were drawn that, family cohesion and morality is vital todevelop efficient family human resource. The time and lack of access of data are majorlimitations of the research. INTRODUCTION1.1. BACKGROUNDThe religiosity includes the set of belief and values which defines the behaviour of a person in asociety. Moreover, religious beliefs play a part in the development and expansion of the familybusiness (Zellweger, 2017). The morality and character of an individual, are considered as partof religion and create an impact on the family business goals. The business achievement dependson the behaviour of a person with staff and other members of the business. The morality andcharacter of a person defines, the character of a person which affects the long-term and short-term gains of the business. The family business achievements are divided into two majorcategories. Firstly, the financial category includes sales, growth rate, market share, and profit ofthe company. Secondly, an ethical environment includes the care of other persons, moral values,norms of an organization, and job security of the staff. The non-financial elements are importantbecause it leads to the satisfaction of staff. The satisfied staff is more likely to work for thesuccess of an organization.(Gherardi, 2016)Every business has set short-term and long-term targets which leads to high businessperformance if accomplish. The short-term goals have few major elements. Firstly, the system ofthe business. The system includes the hierarchy of the company, a delegation of authorities, and
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short-term company targets. Secondly, competition with other businesses is one of the primegoals of an organization. The intense competition in the market forces the company to introducenew features and position the brand differently in the mind of customers. Thirdly thecommunity-based work plays a role in customer satisfaction. At last, the quality of services andcustomer retention strategies lead to short-term and long-term firm performance(Astrachan,2021).Morality and character values are very important in maintaining the firm’s performance.Every system is designed based on some norms and values and these ethical and moral values.Firstly, loyalty to an organization and with the work is the ethical and moral duty of every humanbeing. The firm’s success is heavily dependent on the loyalty and commitment of the work andloyal employee is an asset of every family business and corporation. Secondly, the employeemust respect each other and it is the part of norms of values of every organization.In a family business, family cohesion is a vital element that includes the respect and careof one another. The helping behaviour of employees in the family business is vital to gain long-benefit. Family cohesion comprises knowledge sharing, idea sharing, Trust is the key to familybusiness because most of the businesses face difficulty in building long-term relationships witheach other. The researchers argue that even in family businesses the trust is a vital factor becauseowners must have a trustworthy relationship with each other. Family cohesion includes a coupleof factors. Firstly, the supporting behaviour of employees because in a family business everyemployee must need support in business activities. The supporting behaviour of the owner of thefamily business allows other people to adjust to the working environment and allow the familymembers to expand the business. Secondly, the care and affection amongst the members of thefamily are vital to enhancing the productivity of an organization. Researchers argue that toenhance the profitability of a family business all members of the family have to put maximumeffort into the betterment of the business. Care and affection play a key role in the expansion offamily and Non-family business. The study aims to highlight the impact of moral values, ethics,family cohesion on a firm’s performance(Astrachan, 2021).Problem StatementThe firm’s performance can be judged by profitability and the moral and ethical values of thecompany play a part in improving the performance of the family business. The discriminationsand differences amongst the members of the family damage the firm’s performance in the long-
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term and short-term. The researchers argue that, without care and affection, the family businessesmove towards loss. Moreover, lack of supporting behaviour towards the new members andemployees results in a long term loss of business. Religious values are very important to run thefamily business and they must be pass on to the next generation.Research QuestionThe research question of the study is as followsRQ1:How the religiosity affects the short-term and long-term performance of the familybusiness?RQ2:How the religiosity affects the long-term and short-term achievement of the familybusiness?RQ3:How the moral and character values affect the long-term and short-term performance ofthe family business?RQ4:How the moral and character values affect the long-term and short-term achievement ofthe family business?RQ5:How the family cohesion and affection affect the long-term and short-term performance ofthe family businessRQ6:How the family cohesion and affection affect the long-term and short-term achievement ofthe family business?Research ObjectivesRO1:The study aims to examine the effect of religiosity on the short-term and long-termperformance of the family business.RO2:The study aims to examine the effect of religiosity on the short-term and long-termachievement of the business.RO3:The study aims to examine the impact of moral character and values on the long-term andshort-term performance of the business.RO4:The study aims to examine the impact of moral character and values on the long-term andshort-term achievement of the business.RO5:The study aims to examine the impact of family cohesion and affection on the long-termand short-term performance of the family business.RO6: The study aimsto examine the impact of family cohesion and affection on the long-termand short-term achievement of the family business.
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Significance of Study.The study had great importance in academics and the corporate sector as well. From an academicpoint of view, the study extends the literature for future researchers. Moreover, the study drawsthe guideline for future researchers to work on the other dimension of the same topic as well.From, corporate point of view, the study provides clear policies to sole traders and other familybusinesses to enhance work performance(Konopaski, 2015).LITERATURE REVIEWThe performance and achievement of the family business depend on moral characters, familycohesion, and religiosity.Family CohesionThe entrepreneurial families cooperate with another to run businesses and avail themselves ofdifferent opportunities. Researchers argue that family business is a source of effective learning ifmembers show supporting behaviour with one another. Moreover, the enhancement in learningallows the members of the family to expand businesses and earn more profit. However, it isobserved that different relations create a different impact on the performance of the familybusiness. The siblings and spouse play a vital role in the expansion of the family business. Thefamily members of the business exchange business knowledge with another and develop thehuman resource. However, the researchers argue that the issues of ownership disturb theenvironment and affect the achievement ratio of the family business. Although, family binding isvital to achieving success in the family business the people want to take ownership of thebusiness. Moreover, the family business faces complexities when it transfers to the nextgeneration. The issues of authority and designation result in the loss of the whole business(Konopaski, 2015). Family cohesion depends on the power and involvement of the family members in aspecific family business. The Agency theory is applied because it describes the difference in theopinions between the owner (principal) and employee agent). Although the family businessshares are held by the member of families there is a difference between the involvement of theowner and managers. The conflict arises due to agency theories affects the achievement of thebusiness. The care from the family personals develops a strong culture in the business which playa part in achieving financial and non-financial benefit. Reputation is the major element of every
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