Study Towards Professional Transformation Of Management Model In Ningbo Fotile Group

Our family business has achieved a rapid development since the reform andopening-up policy of the1980s, both the strength of scale and market influence issignificantly enhanced. Family business bear a large part of the employment needs ofthe community, occupy a considerable part in the private sectors of the economy andhas become an important part of the national economic development. With thedeepening of economic restructuring, opening-up and the growing up themselves,family business is increasingly facing the bottle neck of management model in itsdevelopment process. The management model from the inception stage to thedevelopment stage of the family business and governance structure is increasingly notcomply with modern highly developed environmental requirements of marketeconomy, thus many companies introduce professional managers and establish astandardized management and governance system when develop to a certain extent, totransfer to the professional management model.Against this background, this article analyze the relative theories of familybusiness first, including the connotation and main features of family business, themain features, advantages and disadvantages of family business management model,as well as the management model, features and evolution in different stages ofdevelopment and the professional transformation of the management model. On thebasis of theoretical analysis, we studied the trends and direction of the professionalmanagement model transformation, by introducing the characteristics and evolution ofthe management model and professional managers’ appointment, selection andgovernance mechanisms in Ningbo Fotile Group, which is a representative familybusiness enterprise. On this basis, we summed up a series of questions to be faced inthe professional management model transformation, including the lack ofmanagement personnel, information conflict, rights and responsibilities doesn’t match,principle of employment, family relations and the internal structure of property rightsis not clear and so on. Finally, to address these issues and causes we put forward fourideas, to change the organizational structure and governance mechanisms, to establisha sound internal organizational structure, prior to the development of specificplanning steps, step by step to insure that the authorization of the enterprise, theseparation of powers and effective control system. And two principles, including pan-family principle and the principle of equal treatment of non-family professionalmanagers. Meanwhile, we proposed four countermeasures as to solve these questions,optimize the structure of enterprise property rights, make the configuration of powersand responsibilities of career management clear, establish a sound incentive andrestraint mechanisms of the professional mangers and fully rely on the staff members.