Research On The Mechanism Arrangement And Effect Of Succession Of Professional Managers In Family Enterprises

Family business represents the most common form of organization in the world.Although most of them are small,their quantity and proportion of wealth can not be underestimated.In recent years,the inheritance of family business has attracted extensive attention from academia and practice.Who will inherit the family business is the primary problem to be solved in the study of inheritance.Under the influence of China’s traditional family planning policy,it is difficult to select successors from the family.However,under the influence of China’s traditional family planning policy,it is difficult to choose successors from the family,The succession of professional managers may become another important way for the inheritance of family enterprises.In view of the contradictions between owners and managers after professional managers take over due to information asymmetry and other reasons,resulting in typical agency problems,it is of great significance to study how to set up effective incentive and supervision mechanism arrangements for professional managers to take over family enterprises smoothly and promote the sustainable development of family enterprises.Based on the starting point of who to pass on(the selection of inheritance objects of family enterprises),this paper expounds the influencing factors of inheritance effect and the impact of family second-generation succession and professional manager succession on family enterprises.This idea roughly combs the previous literature on family enterprise inheritance,Using the method of case analysis and combined with theoretical analysis,this paper explores the motivation of Midea Group to give up the second generation family succession and choose professional managers.The focus is to summarize the company mechanism arrangement adopted by Midea Group to alleviate the contradiction between the family and the management in the process from selecting the candidate of professional managers to smooth succession,Finally,the comparative analysis method is used to compare and analyze the financial performance and innovation ability of professional managers before and after taking over,and the event research method is used to observe the reflection of market investors on the day when Hong Bo took over as the chairman of Midea.Through the case study of the succession of professional managers in Midea Group,this paper draws the following conclusions: first,when setting up the mechanism,establishing the mutual trust between professional managers and business owners is an important aspect that can not be ignored in alleviating the agency problem;Second,compared with the succession of external airborne professional managers,cultivating professional managers inside the enterprise early is more in line with the succession needs of family enterprises.In the process of getting along,we not only establish mutual trust,but also consciously cultivate the ability of professional managers to make them succeed smoothly;Third,when choosing professional manager succession,family enterprises need to comprehensively consider four reasons: the second generation level,professional manager level,company level and external environment level to judge whether family enterprises are suitable for choosing professional manager succession.Through the indepth study of the successful case of the succession of professional managers of Midea Group,the analysis of the mechanism arrangement of the enterprise is of great significance to promote the smooth completion of the handover of the management right of family enterprises and the transformation and management mode of family enterprises.