Research On The Establishment Of Professional Manager System For Chinese Family Business

Over the last 20 years, family business in China has been developing rapidly and has been playing more and more important role in the development of national economy. It is a must for family business that establish a modern enterprise system and employ professional management in order to grow bigger and stronger, which is also trend of the times. As the reform of market economy goes deeply, professional managers as an important human capital are much more involved in the operation and management of family business. With the growth of family enterprise, family business needs to cooperate with professional managers and is depend on the management skills of professional managers to accelerate the development process. However, there are always lots of conflicts in the cooperation of family enterprises and professional managers, including divergence in interests, conflicts led by asymmetric information, conflicts of different management philosophy, conflicts in the transferring of control rights led by lack of trust and so on. These conflicts affect the smooth cooperation between the two sides, if not solve these conflicts, not only can not achieve the "win-win" development, and even the professionalism of family business will be affected.Based on analyzing related theories of family business and professional managers, this paper discussed the advantages and disadvantages of family enterprise management, and clarified why and when family business need to bring in professional managers. Then this paper analyzed the conflicts in the cooperation of family business and professional managers. This paper proposed solutions for the conflicts from three aspects that is family business, professional managers and policy mechanisms. By compared with state-owned enterprises and foreign-funded enterprises, this paper analyzed the necessity for introduction of professional managers by China's private enterprises, the career environment, adverse selection and moral hazard in the introduction process. At last, this paper made recommendations on introduction and incentive methods for family business in our country.