Abstract
This study highlighted the importance of establishing clear work roles and responsibilities in the family business, the measurement of family employee work performance and regular feedback on their performance and fair and market-based compensation of family employees in family businesses. An Oblimin oblique rotation was performed on the principal components of the exploratory factor analysis. In this study three factors describing the theoretical dimensions of family employee work performance, clear work roles and responsibilities and family employee compensation in family businesses were extracted. Although statistical significant differences were found between the perceptions of male and female as well as between senior and younger generation family employees regarding the constructs, these differences were not practically significant. This study, however, confirms the important role that an effective family employee work performance management and compensation strategy plays to ensure harmonious family relationships and at the end the sustainability of the family business. Practical recommendations are suggested to improve the effectiveness of family employee work performance and compensation in family businesses. Recommendations are also offered to utilise the questionnaire as a diagnostic tool.
Highlights
Sixty two (76,54%) of the 81 family businesses who participated in this study can be categorised as small businesses in the South African context
The results indicate that, the average scores for family members employed by medium-sized family businesses are higher than those for small family businesses, it could not be regarded as a practically significant difference between the perceptions of family members employed by medium or small family businesses regarding family employee work performance, clear work roles and responsibilities and family employee compensation
Literature has shown that clear work roles and responsibilities form the basis for family employee work performance management and compensation in family businesses (Brooks, 2001:37; Jaffe, 1991:199)
Summary
The important contribution of family businesses to economic growth and wealth creation in the world has been emphasised by numerous scholars (Basu, 2004:13; Morck & Yeung, 2004:391; Astrachan & Shanker, 2003:212; Ibrahim, Soufani & Lam, 2001:245; Birley, Ng & Godfrey, 1999:598). Van der Merwe (1998:3) points out that family businesses have been making a positive contribution towards the South African economy for the last 300 years. Ackerman (2001:325) concurs that approximately 80% of businesses in South Africa could be classified as family businesses and that they comprise 60% of the companies listed on the Johannesburg Stock Exchange. the field of family business, according to Klein, Astrachan and Smyrnios (2005:321), has been regarded as a separate academic discipline since the 1990s (Bird, Welsh, Astrachan & Pistrui, 2002), it only recently emerged as a topic within mainstream business research (Steier & Ward, 2006; Chrisman, Chua & Steier, 2003). Brockhaus (1996:3) points out that, in South Africa, relatively little research has been carried out on family-run businesses. Van der Merwe (1998:3) points out that family businesses have been making a positive contribution towards the South African economy for the last 300 years. Ackerman (2001:325) concurs that approximately 80% of businesses in South Africa could be classified as family businesses and that they comprise 60% of the companies listed on the Johannesburg Stock Exchange. The field of family business, according to Klein, Astrachan and Smyrnios (2005:321), has been regarded as a separate academic discipline since the 1990s (Bird, Welsh, Astrachan & Pistrui, 2002), it only recently emerged as a topic within mainstream business research (Steier & Ward, 2006; Chrisman, Chua & Steier, 2003). Brockhaus (1996:3) points out that, in South Africa, relatively little research has been carried out on family-run businesses. Research on family businesses in South Africa gained some momentum during the paste decade (Van der Merwe, 2007; Van der Merwe & Ellis, 2007; Venter & Boshoff, 2006; Adendorff, Boshoff, Court & Radloff, 2005; Venter, 2003a; Venter, 2003b; Venter, Boshoff & Maas, 2003; Van der Merwe 1998; among others), more scientific-based research is urgently needed to gain more insight in the unique challenges facing the family business
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
