Non Family Business Case Study

In a Non Family Business, recognizing and resolving conflict can sometimes be easier, but also could potentially be more difficult than resolving conflict in a Family Business. For example, in a family business, the family members sometimes live with each other or have at least a small idea of what that person is going through in their personal life. As with Non Family Business, most employees are there for the job and may have a few acquaintances, but sometimes lack the understanding that someone’s poor performance may be due to something going on in their personal life. “When employees have strong emotional reactions to a workplace dispute, their whole internal defense mechanism may resort to a fight or flight reaction, and their ability to think and reason will typically take second place” (Boutet, 2015). Thus, it is important for management to have a conflict protocol, which allows for open communication for resolution, after the anger has cooled down. …show more content…
However, studies have shown that Family Businesses have actually out performed, grown faster and are more resilient than Non Family Businesses (Fernández-Aráoz, Iqbal, Rittter, 2015). It is said that Family Businesses are more receptive to growth because they have one aspect that Non Family Businesses do not have to offer in their lineup of success. This factor is family gravity. While Non family and Family Businesses share the need for strong governance, high-potential executives and succession plans, it is the family gravity that helps the Family Businesses take one step ahead. For further explanation, family gravity is the idea that Family Businesses have one to three key family members in the organization that give the business its identity and align the differing interests (Fernández-Aráoz, Iqbal, Rittter,