Research On Employment Of Professional Managers To Family Business In China

Since the reform and opening up, the family business in C hina, becoming an important part of the natio nal economy,has achieved rapid development and promote the growing significantly role of China’s economic growth. In business start-up period, the family management model has indeed contributed to fast- growing of the companies. However, with the growing size of the family business and the family management style which is closed, is not suited to the sustainable development of the family business, and for the further development,family business need urgently to strengthen the family business standardization and professional management,and break the family bottleneck management through the introduction of professional managers.Analyzing on the status of the family business and problems of employiment professional managers, This study finds family business owners do not very trust the professional managers, and professional managers in family businesses served as the positions w hich have low confidential information, existing serious trust problems and principal-agent problem between the them. Combined with the family business and professional managers theory and analysising the causes of family business employing professional managers Problems from the family business, professional managers, and related social and environmental point, this research finds professional manager market development of China’s relatively backward, and ability and quality of professional managers have to be improved, and family business owners have serious discriminat ion in trust to professional managers, which led there are lots of problems when the family business employs professional managers. Depending on the cause analys is, this research presents the measures to resolve the problem of employment professional managers to family businesses, which is using the strong relat ionship management and strong contractual governance mode to address the issue of trust and agency problems, and the questionnaire was carried out by empirical analys is. Finally, the research proposed solutions guarantee conditions from the perspective of the internal construction and the associated external environment.