The Succession Process Planning And Management On TM Family Business:A Case Study In The Czech Republic

Family businesses in the Czech Republic had a rich tradition,flourishing especially during the First Republic in first half of the 20.century.Later in the second half of this century,during the forty years of communist era,this tradition was unfortunately disrupted and the private sector-and with it the family business-more or less ceased to exist.Although since the coup in 1989 already passed 23 years,the issue of family business succession process and planning in the Czech Republic has not yet been given a sufficient attention.Only a small part of family businesses owners all over the world start on time to select and prepare possible successors and most businesses shift developing a successor plan to a later time,which may,in the case of sudden serious illness or death of the owner,cause a threat to the very existence of the company.The subject of this thesis is to highlight the significance of family businesses,their characteristics and importance of succession planning.The thesis focus on comprehensive succession problems of family businesses with an emphasis on generation change in selected TM company,a family business with nearly 30 years of tradition.The main concern was to analyze TM family business problems,i.e.succession process,succession planning,generational conflicts and leadership style,which may influence the successful process.TM company is already in a process of generational exchange,but does not have created a succession plan and defined the future goals for the next generation.The detailed introduction to the organization,organizational structure,family members and company's attitude toward succession planning were analyzed based on the observations and qualitative questionnaires completed by founder,his wife and five children engaged in TM family business.Based on the research findings and analysis of problems occurring in TM family business;i.e.lack of communication,autocratic leadership style,high degree emotional connectedness of the founder,lack of motivation;a succession planning outline for the observed company is discussed.The successsion plan will enhance an assurance of good prepared succession process and successors training.The recommendations determine the succession framework,long-term development goals and future direction for the company.