Study On The Introduction And Effective Integration Of External Human Capital Of Our Family Business

After30years of reform and opening up, family businesses of couple style and parent-child style have been rapidly developed, which has played a powerful role on the domesticeconomic and social development.But these family businesses usually don’t have a long life,most companies are not able to have a sustainable development.For the above phenomenon,numerous scholars have studied the family business from different perspectives, mostlyconcentrated on the trust between organizations of the family business, professionalmanagement of the family business, the principal-agent of ownership and management offamily business, family business governance, family business property and its evolution,affection of market imperfections on the development of family businesses, etc., there is littleabout the family businessspecializing inthe integration ofhuman capital. In fact, the coreofthegrowth of family business is how to effectively absorb all kinds of social capital, especially thesocial human capital that can improve the capacity of management. At this stage, most of ourfamily businesses have turned from a shortage of money capital into a shortage of humancapital, lacking of human capital seriously affect the development of family business, andhuman capitaldevelopment has become the bottleneck to family businesses which is difficult tobreak through. Integration and absorption of external human capital is significant to thesustainable development offamily businessesThrough research, I found that most family businesses are aware of the importance ofhuman capital, but theydo not pay attention to the introduction; Even having the introduction oftalent, because of unreasonable application, it leads to larger corporate staff turnover, anincrease of internalcontradictions, and the idea did not meet expectations. This is due to specifichuman capital of family business structure, family members in the enterprise have taken animportant role. Therefore, introducing external talent is only the first step, how to integrateexternal human capital and have an effective integration with family business, achieve1+1>2utility between internal and external human capital, is the most critical thing to do. Therefore, adeep study on the integration of external capital within the family business has importanttheoreticaland practical significance.In this paper, firstly,the definition of the family business, capital, external human capitaland internal human capital have been defined, the research literature on integration ofexternal human capital by predecessors has been reviewed, establishing a theoretical basis forfollow-up study; Then describe the status of human capital of the family business to in China,analyze the importance of the introduction of external human capital in theory, prove that external humancapital must be introduced for further development in family businessesthroughmathematical models; And then through questionnaires, on the basis of practice, analyze theintegration of human capital in family businesses at this stage, finding out that the degree ofintegration of human capital obtained is not high; analyze the problems and the causes in theprocess of integration, finding out five factors i.e. the trust system of internal family kinship,complexrelationships, business culture based on blood and kinship, the government structureofsingle stock right and high concentration of ownership and management right, unreasonableperformance appraisal system, that affect integration of human capital in family business;Finally, in order to promote the effective integration of human capital in family business, thispaper analyze in four areas i.e. improve the internal co-operation and trust mechanism, reshapecorporate culture, improve the corporate government structure, establish a fair performanceevaluationsystem.