A Discussion On Choosing And Optimizing Chinese Family's Governance Pattern

As a kind of enterprise organization, surmounting developing stage of society and nations, the family business widely exists not only in the low developed countries (or areas), but also in highly developed countries (or areas). According to the work of those who have studied, like Gersick.K, it is the most conservative estimate that the enterprises, which are possessed or managed by the family, occupy between the 65 percent and the 80 percent in the world, and the 40 percent in 500 strong business enterprises in the world. The family business has created one half of the total output value in US, and has hired one half of the labor force. In Europe, the family business controls the small scale company, and occupies the majority of some countries. In various kinds of Asian countries, the family business occupies the dominant position mostly. According to the statistical data, in our country the private sector of the economy, which is dominated by the family business, makes a contribution to GDP from the 0.57 percent in 1989 up to the 7.37 percent in 1998. And it makes a contribution to employment from the 0.07 percent in 1989 up to the 100.8 percent in 1998. The labor force, who the private sector of the economy absorbed, surpassed the increasing employment population of the entire society in the same year, who shift from other departments to the private sector. Obviously, the family business's development effectively promoted the national economy and alleviated the serious employment pressure day by day.Then, What type of governance structure does suit the family business mostly in the switched time? That is extremely a significant topic of theory and practice. In the foundation of quoting overseas business's governance pattern for reference, the author discusses what suits the family business in our country how to develop to be Chinese characteristic and the highly effective governance pattern in this paper.The family governance pattern truly has a certain special efficiency in certain aspects, especially in newly established stage of the enterprise, and has the superiority of the rapid decision-making and centralizing, the low transaction cost, which has guaranteed the family business's competitive power in a certain degree. But along with the family business further growing and developing, the malpractice in the family's governance pattern gradually...