Top Management Team Development For Family Owned Enterprises During Evolution

Since the reform and open up stage, all types of non-governmental enterprises prospered and grew in a fast pace, and became an important force in China's economical and social development. During the 16th communist party meeting, it was stated that government will firmly support, guide non-governmental economical growth, they are important elements in the socialist market economy, and they serve a non-replaceable role in mobilize social resources and acceleration of productive force development.Most Chinese enterprises can be categorized into two different development phrases. The first phrase involves more of business start up and the search of company's road to survival; and the second phrase involves more of the search of company's development model, and company's strategy. Family owned enterprises makes up 90% of all non-governmental enterprises in China, during 2008 when its size grew larger than its management capability, they were forced to hire professional management teams, and introduce within their organization the modern management process and systems, this has highlighted the conflicts occur in senior management's team building during model change.This study focuses on the senior management team development during family owned enterprises during model change period. Based from China's unique social and economical background, this study analyzed the family owned enterprises that are run by family members, their inevitable need for model change, model change's pros and cons, and stated the way out for family owned enterprises is through model change to a modern company. The study concludes with Company A's senior management team building during model change period, provide a template solution after potential problems are analyzed1. Solve company A's trust crisis by a system with clear set of rules; 2. By development of a target management system, connect and make clear of authorities and responsibilities, this would help better integrate new management team members into company and them quickly build a sense of belonging; 3. Through strengthen and mutually agree on corporate culture, together with company's owner's effort to improve his understanding of modern management, it is possible to align the differences in recognition of group objective. The above mention method can be summarized as a two prong attack from both the hard and the soft side of organization management This study suggests company owners to make the efforts in self improvement, to better understand modern management, in order to realize standardized management, and achieve sustainable growth after completing model change.