Study On The Problems Of Human Resource Management Of The Family-owned Enterprise

Since 1978, the family-owned enterprises, one of the existing forms of non-public economy, play the most significant roleas the major mode of economic development.The development forms, which is similar to the family-owned companies, inevitably emerges into an indispensable part of China’s economic development. To achieve a long-term economic growth, China’s family business should continue to strengthenitself.What can not be ignored is that capital shares of those family-owned enterprises are totally controlled in the hands of family members. In-house personnel are not competent enough in terms of basic quality while the incapable administrative staff work inefficiently. It ends up with a higher potential risk when key decisions need to be made. Problems mentioned above will lower the competitiveness of the whole company in the long run.Ultimately, the company will be trapped in the position of expansion failure or even bankruptcy. Based on what have been described above, improving the overall quality and technology skillsof the family members, strengthening basic functions of human resources, further integrating and optimizing such key points as company’s management philosophy and management skills will be majorly elaborated in the essay. With the analysis, the author tries to address the main issue.Research on this subject reflects the principle of innovation from the following respects. First of all, it is based on the theoretical knowledge and Chinese family business reality of the situation. The corporate system model is divided into family and enterprise systems, meanwhile to protect family members’corporate interests is a very important factor for preventing foreign staff entering. Secondly corporateproperty ownership and allocation of property rights are researched and discussed and ultimately it is concluded that why human resource management in this type of business is not always professional conducted. Finally the theoretical basis of the findings and the factsshow that the state has a very important role on reasonableand scientific human resources management. Thanks to the efforts of the company and the country, the family, the company and the government will result at a perfect tripartite win-win situation.