How to Stop a Fight
The Psychology of Family
On the need to study family structures and family interactions in the Psychology of Family
The
psychology of family examines how and why we have families and close
relationships as also the dynamics of family interactions. The structure
of families is based on evolutionary biology, anthropology, history and
sociology and the roots of family systems are found within these
disciplines. However studying family structure will show us how family
systems have evolved over time but may not directly tell us why family
relationships develop in the first place. Family relationships are in
turn studied with psychology, child development and philosophy and
suggest why family forms the basis of our existence. The
interdisciplinary approach to the study of family will have psychology
at its core as human evolutionary biology, sociology, philosophy have
significant psychological components.
To begin an answer to the
questions on how family structures have developed, early evolutionary
history and anthropology will suggest that family, albeit in a different
form is the basis of human civilization. The earliest men who lived in
caves and forests, quickly formed groups or tribes to protect themselves
from wild animals. Research into anthropological remains has shown the
life of primitive humans who were cave dwellers. Forming herds was one
of the basic security and safety needs of humans as by forming a large
family they could attack or defend themselves against wild animals, warn
each other of natural disasters, gather food and raise children in a
community, almost like modern day societies. Thus the earliest families
were tribes or herds and there were several generations of humans in one
family. Family sizes were thus presumably large with entire forest
tribes forming single families. However this tribal system of forming
large communities possibly did not last long and some humans wanted a
different kind of life and migrated to places where there were no
communities or tribes. Some others may have simply weighed the
disadvantages of a group life as insurmountable and reasons could be
possible jealousy regarding mates, dissatisfaction in sharing food,
shelter and apathy for the rules of a community life. The freedom
seekers moved out of this community pattern and groups became smaller
and humans started building their own homes and the first human
civilization was thus laid with many smaller families, although large
when compared with contemporary nuclear families of a couple and their
children. The basic human need of safety and security gave way to the
fulfillment of more emotional needs of love and sharing through family
systems and humans developed attachment and affection as these were
constantly reinforced with rewards of love, love making or promise of
love.
Humans as we know were born with some basic drives of sex
and aggression, as suggested by Freud but humans found that they could
fulfill their sexual needs only when they also showed attachment and
affection as attachment and affection were often rewarded with sex and
through sex, their aggressive needs were also fulfilled to an extent.
That is how humans developed attachment and affection and these positive
emotions have been constantly rewarded and thus have been reinforced
over time to the point that love in a civilized society has been
glorified and sex has been degraded. Of course, psychoanalysis would
suggest that love is just a sugar coating on our real primal sexual
needs, the fact remains that humans have constantly found that indirect
love needs are more readily rewarded than direct sexual needs and thus
developed these positive emotions of love and attachment as the basis of
family structures. Experiments by psychologist B. F. Skinner
successfully showed that behaviors are reinforced when rewarded. Family
systems are built on the foundation of love, attachment, loyalty, trust,
which in turn fulfills safety and status needs and thus psychology is
an important ingredient in family interactions.
The Psychology of Family could be divided into two branches -
The Psychology of Family Structures:
The
psychology of family could possibly branch out to two directions on
understanding how and why family structures have evolved in a specific
way. Why did the earliest humans form tribes or groups and why did they
suddenly abandon the nomadic life to begin farming and settled in homes?
How did communities form and why were social rules made that helped to
protect the family system? Why did the family size diminish over time?
What needs were fulfilled with the changing family patterns? This branch
of the psychology of family studies social systems, political systems,
civilizations and history and evolutionary biology and anthropology.
This is the structure of the family, the basic family systems and the
psychological basis of the evolution of family. Here the basic social
psychology of group behavior and group formation highlights the reasons
of forming groups through cooperation (with other members) and
identification (with the group) as found in earliest humans and
continues to this day. Kurt Levin, Bruce Stickman and Gustav Le Bon are
noted group behavior theorists in social psychology and studied group
behavior as the basis of social development. Family formation could be
explained with Maslow's hierarchy of needs as family provides the basic
safety and security as well as love needs and in some cases also
fulfills our status needs. I have discussed Maslow at length in another
essay. The basic drives of sex and aggression being fulfilled through
love and attachment as we get in families would be a Freudian
explanation of family systems. Existentialism by Sartre who claimed that
man is thrown alone in this world with an inherent sense of isolation
could explain the need to overcome this loneliness. Group structure and
group interaction are both explained with these varied theories.
The Psychology of Family Interactions/Relationships
The
second branch would however be about the family relationships, the
basic psychological and emotional nuances of family members, their
interactions and interrelationships, the emotions of love and trust and
the functions or role of family in an individual's life. This branch
would emphasize on family relationships and the psychological basis of
emotional interaction in the family and how this relates to the outer
world. This branch also studies how our family patterns and
relationships closely affects our interactions in the outside world and
how we behave in the community, society and the world. This branch of
psychology is also related closely to issues of existentialism and
phenomenology in philosophy as with the family, man does not feel
completely lonely or isolated in the world as existentialism would claim
but rather develop a sense of belonging ness and through family humans
first relate to the outside world. The family is thus the stepping
stone, the first stage on which we begin our learning about the world.
This is also an important part of child development studies. In addition
to the theories of Freud, Maslow, Levin and Sartre, the theories of
Erik Erikson in which the stages of man from birth to death show why
humans form relationships, could well explain the dynamics of family
interactions and relationships. Erikson has also been elaborated in
another essay, but briefly in Erikson's theory humans go through eight
stages in psychosocial development from hope and trust in infancy to
integrity or despair in old age.
On the one hand we study
changing family patterns and in some cases comparisons are drawn within
cultural studies as families in different cultures could have different
patterns and structures. For example large families are still prevalent
in Eastern societies although this is becoming almost extinct in western
more individualistic societies. With marriage rates falling drastically
and people preferring to remain single, the study of the family
structure and its gradual change could help us analyze and predict
future patterns in family as well. Will the family system become slowly
extinct with individualistic societies showing a decline in the number
of members within a family? It could be predicted that a hundred years
from now, individualistic single member families would become a norm
worldwide and this could further lead to isolation, loneliness and a
need to emotionally connect that would see humans forming large groups
or herds or close communities once again. These will however be the
ultra urban, technologically superior tribes, possibly space traveling
nomads, like we see herds or groups of aliens in movies related to alien
culture and UFOs. Aliens who are considered superior to us and possibly
reside in UFOs are always shown or seen in groups or herds as you will
notice. Ever wondered why the aliens are always in groups or herds?
Possibly they have passed through all the evolutionary stages of humans
and thus are more evolved than us. The future is possibly a return to
the past, to formation of tribes, groups, herds and communities, rather
than small families. I don't claim to believe in UFOs and aliens but
this is possible and is based on speculation but the evolution of the
structure of family systems would also depend on how our emotional needs
for interactions and relationships change or evolve.
Apart
from the theories of Maslow (safety/love needs), Freud (basic drives),
Existentialism (loneliness) Levin (Group formation) that could be
related to the need for family structures, the psychology of family will
have to gauger human emotions in different family situations and this
would be about child and adult development considering theories of
Erikson (life stages), Freud (on sexuality) and the reinforcement of
positive emotions
Reflections in Psychology - Part I - by Saber Roy (2009) Copyright: Saber Roy (2007/2009) http://www.lulu.com/content/5865445
Reflections in Psychology - Part II by Saber Roy (2010) Copyright: Saber Roy (2010 -) [http://www.saberiroy.com]
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How To Select Toys for Children
Firstly, safety is the most important sector. When you buy a toy, you
must notice the security log, playing method, suitable ages and warning
words on the toy box. And also need to notice the volume size and sharp
corners. especially the toys for infants and young children. You must
pay more attention. Because children is ignorant of the safety. If
parents have no knowledge about this, it is easy to have an accident.
Secondly,
toys must be suitable for children ages. Cautions on the labels
indicate that the toy is suitable for which age group. For example, if
the label indicates that the toy is suitable for the children who is
more than 3 years old. So do not buy it for the children who is under 3
years old. Toys must be suitable for children€™s age. One reason is
safety. Another is about intelligence development. Otherwise, toys can
not bring joy to children, but make them feel troubled.
Third,
toys must be interesting and educational. Toys must be attractive and
interesting. So children can be 100 percent devoted. Or children will be
half-hearted. After the passion, they will put it aside. If the toy is
interesting, children can get great fun from it. It is also good for
their physical and mental development. Besides interesting, it must be
instructive. It means that the function of toys is helpful for their
cognition, emotion and social skills.
Fourthly, toys must be
resistant to play. Many parents think that children will feel bored
after playing the them for the first time, so toys can not be resistant.
But in fact, the good toy must be resistant. Kids won't be easy to lose
interest. This can avoid unnecessary waste, but can also foster
children€™s good moral character to cherish things.
Fifth, toys
are regardless of gender. In general parents€™ opinion, boys and girls
will have different ones. For example, boys should have model and toy
bus, girls should have plush toys. Actually, there is no strict rule for
this. It just need to be suitable for their interesting.
Finally,
toys must be personal. Some toys such as RC bus and teeth plastic toys,
they are used for embrace and playing a bite. Consider the sector of
health. These toys would be better for personal. It is not suitable to
play with others. So children will have more kindness for the toys. It
also can help them to affirm themselves and feel valued.
The Benefits Of Jigsaw Puzzle Toys For Children
The toys for children belongs to the children whose intelligence is in
puberty. They are mostly simple, interesting and full of creativity.
This situation has changed because Jigsaw puzzle toys are very popular.
The jigsaw puzzle toy is also controversial. Some people think that
jigsaw puzzle is good for developing children€™s intelligence. Also some
people think that it purely increases the burden of parents. No matter
how, the jigsaw puzzle pop up at a rapid speed. The fact has already
indicated that jigsaw puzzle has a benefit for children.
Every
new start of shopping season, families with children would buy a large
number of toys. The number of toys are increasing dramatically. There
are many reasons for the mass production of jigsaw puzzle. Firstly,
there are enough space to show toys on shelves of the retailers. Modern
crafts have already made the package of toys smaller. Secondly, toys are
almost components and parts when we buy them. Buyers need to assemble
them personally. Parents are very dissatisfied. They are all depressed
because of the additional task. Herman, a toy manufacturer, agrees with
this opinion. But, she also thinks that this kind of package for toys
can reduce the cost of transportation. It reduces the price indirectly.
To families, it is a good thing. Indeed, consumers can buy cheaper toys.
But when they open the box and see all the components, they heave a
sigh when begin to assemble them.
Now the very popular combat
robots are back again. There is no need to assemble for previous
versions. Now it is not only need to assemble, but he size is smaller.
One reason is that producers and retailers pursuit the max profit. In
fact, jigsaw puzzle becomes more and more popular now. The important
reason is that it can help children to develop operational ability. For
people, the process of assembling is also a fun of playing. They DNA€™t
use the new image for many toys like these. They use the famous movie
theme on the premise of permission. Such as Star Wars, Transformers.
This can make it more popular. It is also make it more difficult to
assemble. When children can not assemble successfully. Parents have to
help them.
The experts in American toy industry said that the
sales of it increased dramatically last year. The investigation report
of toy market has shown that the sales growth of jigsaw puzzle is more
than other toys.
Continuation and Succession Planning Considerations in a Family Enterprise
What makes a family business unique, and quite often is the key to its
Competitive Edge is its close family connections, experience and
expertise. In order to sustain this unique edge, a family business needs
to plan early, carefully and thoroughly so successors can be developed
and groomed from the family ranks.
Common Succession Issues
- Treating all family children fairly
- Reactions from non-family employees
- Family communications and conflict
- Estate Taxes
- Executive and Management level organization and structure
- Determine how best to select successors:
-- Groom one child from an early age to take over?
--
Allow family members to compete and choose replacements and successors
with the aid of the Board of Directors and/ or the Family Council?
-- Choose successors without the aid of a third party?
-- Form an Executive Committee of family members (3-members)?
-- Allow the children and/ or family as a whole to choose incoming leaders?
How
to go about choosing future leaders and successors really is a factor
of a particular family business's history, current structure, planning,
success, future growth forecasts, available resources (human, technical,
strategic and financial), aspirations, goals, wishes and a host of
contingent variables. The complexity of succession issues really
dictates the use of an experienced Business Consultant, Attorney and
Accountant to help develop and implement a successful Continuation Plan.
The Business Consultant should be the quarterback of the planning
process: he or she should coordinate the inputs of the current
leadership, Board of Directors, Family Council, key non-family employee,
legal, human resources and accounting; along with the Consultant's
experienced advice, to come up with an acceptable, flexible, successful
Business Succession Plan.
A Business Consultant can be a great
investment when replacement choices are limited. If faced with this
challenge, a family business needs to utilize professional help to:
-
Analyze present key position assignments, responsibilities and
performance to determine current capabilities and weaknesses, as well
as, future succession management and leadership gaps.
- Take a
Close look at the current company structure and determine if the
structure needs to be modified to meet future human resource
challenges.
- Do present family members need cross-training,
leadership education and mentoring? Or are there key non-family
employees who can fill future leadership gaps?
In order to find
a solution to a leadership and management future gap threat, it is
important to have sound, objective, experienced third-party professional
advice and expertise at hand. Moreover, all present managers and key
people, family and non-family, should be included in the decision making
and planning process when replacement choices present an inherent
challenge.
Business Continuation and Succession Planning
In
a family enterprise, succession occurs when the family business owner/
leader/ founder passes away, becomes incapacitated, exits the company or
retires. You can never start too early in planning replacements; along
with succession and continuation contingency planning. Having explained
the various areas and issues to consider when planning for future
Company leadership and management, we will now examine the importance of
Operating Authority Planning; how this authority will pass from one
generation to the next when planned for, as well as, putting in place
emergency, contingency authority planning when the family business's
leader and/ or top management suddenly departs.
- Sudden
Departure Planning: Sudden death or incapacity in a business's upper
leadership echelon can be paralyzing if not properly planned for. It is
very important to consult an experienced Certified Financial Planner,
Estate Planning Attorney and Business Accountant to ensure a Business
Continuation Financial Plan is in place, which sets up the necessary
wills, trusts, insurances, investments and other vehicles to ensure the
business can have a successful financial transition. This is often
accomplished with Key Person Life Insurance and Disability Insurance. It
is very important these advisors work in concert with the Company's
Business Consultant, Financial Consultant and Business Attorney so that
the Business Succession and Continuation Plan link both Management &
Leadership Planning with the Operational Authority Planning.
-
Planned Departure Planning: As previously discussed, there should be a
Leadership and Management Continuation Plan in place. This ensures a
smooth transition and can be overseen by the Company's Board of
Directors. This Departure Plan will kick in automatically with the
Operational Authority Plan if a sudden, unplanned Leadership Departure
occurs. The Continuation and Succession Strategy should be implemented
in stages so the existing Company leader can ensure a smooth transition.
Having finances in place to take care of any dips in sales and profits
during this transition is key and should be part of the plan.
It is
important that the outgoing Company leader can retire comfortably and
has a retirement life plan in place. When it is time to go, according to
the plan, the family Company leader must cleanly go and not hold on. It
is time for the next generation to move the Company forward. A
Certified Financial Planner and Compensation Structure Expert should be
consulted to determine the best way to set up a successful Retirement
Plan for outgoing family members- their retirement comfort is key toward
continuing a clean break from the business.
- Selling Stock to
Family Members: A successful transition is only complete when the
outgoing business leader/ owner sells his stake in the business to the
remaining family members as per the Operating Authority Plan. The
advantages of this type of transition are numerous:
-- Business remains in the family.
-- Business continues to provide a source of steady employment to family members.
-- The family's status and stature are preserved.
-- The former owner/ leader is freed up to actually retire and travel.
-- A successful successor(s) instills confidence and happiness throughout the family.
-- Strengthens family bonds rather than causing additional friction and conflict.
-- Future success rewards the family very well financially.
-
Selling the Business Option: After several generations, sometimes
family contracts or its members choose alternative careers and
businesses. It is better to sell a successful venture than one withering
and dying on the vine. This option should be included in the
Operational Plan and be well thought out, utilizing the expertise of a
Business Consultant, Registered Investment Advisor, Valuation Expert,
Business Broker, Attorney and Accountant. If planned for properly, a
business sale can be a great thing for a multi-generational family. The
proceeds and resulting investments can secure future education funds,
new business ventures, philanthropic organizations and other
generational family interests and passions.
-- Some things to consider when selling the family business:
-
The business owner/ leader ought to plan a transition period into the
business sale process. An immediate retirement can reduce a Company's
attractiveness to a buyer as having the founder/ leader/ owner around
during the transition is often preferable.
- Utilized Valuation
Experts and Accountants to evaluate assets, project profitability and
determine good will mark up, among other value determinants. A
prestigious accounting firm conducting a full audit and investigator go a
long way in deriving a premium sales value which is acceptable to the
buyer.
- Building up profits, retaining earnings and
instituting cash flow management strategies can go a long way to
attracting good buyers.
- Structuring the deal with the family
retaining a small, passive stake in the business can be very attractive
to a buyer as it instills confidence in the new leader and management,
while giving the family the opportunity to profit from the Company. This
can also make a premium price structure more palatable to a buyer.
- Shift assets to heirs to lower your basis in the business, thereby, decreasing and spreading out the tax load.
-
Ensure financial records are up to date and audited with projections
tending to air on the conservative side, while having realistic
marketing outlooks and inherent assumptions.
- Need to
understand what you and your family members will lose from the sale and
plan accordingly with your financial advisors. Things to consider:
Pension/ Retirement Investment Plan
Stock Plan
Health, Life, Disability & Long-Term Care
Company cars
Club dues
Perks & Benefits
--
Tax implications can be substantial in a business sale so utilize a
good tax planning firm, along with garnering advice from your Certified
Financial Planner.
Tax and Estate Planning Implications
One
of the biggest threats to the successful continuation and succession of
family businesses are the constantly changing tax laws. Utilizing an
experienced Estate Planning Attorney, Tax Attorney and Business
Attorney, along with a solid Business Accounting Firm, to ensure you not
only maximize present profits while minimizing your tax liability, but
also successfully plan to pass your estate and business onto heirs in
the most tax preference way. Some Estate Planning considerations to keep
in mind while planning for business continuation and succession:
-
Major concerns typically are the perpetuation of the business and
maintaining liquidity. Without sufficient cash to pay estate taxes,
heirs have little choice but to drain cash from the business when it
most needs it or worse, be forced to sell it or sell many of its prized
assets.
- Good Estate Planning can:
-- Reduce the need for beneficiaries to remove funds from the business.
-- Maintain beneficiaries' interest stakes by keeping funds in the Company.
--
Provide a smooth transition when developed in conjunction with the
Management/ Leadership Strategic & Succession Plan and the Company's
Operating Authority Plan (see previous sections for more details).
--
Selling the patriarch's / matriarch's stake in the business, in advance
of any Succession Plan implementation (whether a planned or sudden
departure) to family members can be the best estate planning a family
business can employ, while giving the business leader control of the
Company until the agreed upon relinquishment.
-- There are a
host of structural tools which can be used to minimize estate tax
liability, that should be fully explored with your Financial Advisory
Team, such as:
Gifting
Stock Sales
Trusts
Limited Liability Corporations
Family Limited Partnerships
Share holder Buy/ Sell Agreements
-
Critically Important: Establishing a valuation of the business which is
in compliance with IRS regulations is critically important.
Overvaluing, as well as, undervaluing a business for tax purposes can
both be highly expensive mistakes. This is why having an excellent Tax
& Financial Team of Advisors in place is absolutely essential.
Conclusion
Not
everything can be planned for, but if you adopt the strategies
prescribed in this article, which are commonly unique to a family
enterprise, running and managing the successful family business is
significantly improved, while ensuring successful next generation
business continuation and succession. Family Businesses have a unique
set of Competitive Advantages, which if planned for, can be used to
exploit new markets and ensure future profitability and success. In the
end, if you, the family business owner / founder / leader successfully
plan, build and manage the family enterprise, you will need to give up
control and ultimately ownership in your cherished accomplishment. If
built well, the family business will continue to reflect the leader's /
founder's ambition, innovation, initiative, entrepreneurship, character,
values, integrity, ethics; all those things in testament to hard work
and perseverance. This is the legacy of the business, clearing the way
for future generations.
Frank Godley is a business consultant,
business turnaround consultant and business coach for ABC Business
Consulting. He is an expert in developing, writing and implementing
business plans, business funding plans, marketing plans, strategic plans
and business turnaround plans. He also offers complete solution
business consulting, business turnaround consulting, and web SEO,
marketing and development consulting. Frank is author of a business plan
book, The Comprehensive Business Plan Workbook - A Step by Step Guide
to Effective Business Planning, and he writes the Business Success
Strategies Blog.
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Tough Economic Times Put Family Businesses to the Test
Recently, a good friend confided in me that she's been waking up in the
middle of the night worried about the economy and its effect on her
family and business. She's not alone. Business-owning families across
the country are concerned about the impact of oil prices and the
impending economic slowdown. For many, the demands and tensions of tough
economic times highlight even more clearly the need for trust and open
communication between family members. These demands and tensions also
emphasize the need for economic discipline, clear policies, and
well-established systems of family and business governance.
Over
the last 15 years of economic prosperity, the financial success of many
family businesses has spawned a number of bad habits. A recent meeting I
had with a client led to a discussion of the economic outlook in his
industry-rising fuel costs together with a more competitive landscape
have led to a shrinking bottom line. The natural tendency in tough
economic times is to cut costs and consider letting some employees go.
Upon further discussion with my client, it became clear that the family
members around the table in management positions were reacting to the
pressures without a clear understanding of the true cause of their
financial troubles or the likely financial impact of their decisions.
I
asked the founder of the business how he ran the business seven years
ago, when it was growing rapidly. As expected, I heard that there were
regular weekly meetings that included a review of the financials and
in-depth analysis of revenue and cost trends, and a comparison to a
budget. My client admitted that as the business grew and profitability
exploded, the budget process became less disciplined. Weekly meetings
became monthly meetings and then disappeared altogether. Further
discussion also revealed that family tensions were ignored as the
business grew and bank accounts expanded.
Suppression of family
conflict did not resolve it, but only made it more deep seated. This
lack of financial discipline combined with increasing tension in the
family and a shrinking bottom line were leading to real challenge.
Beyond economic discipline, families must have the discipline to stick
to their policies and succession plans. Families can avoid creating
additional tension at an already challenging time by enforcing
discipline in all areas of family business planning.
Family
Business System Managing the intersection of the three systems present
in family business-family, business, and ownership-is a key to family
business success. Tough economic times create stress across the system.
Business performance may suffer and tough decisions need to be made.
Family business conflicts, which are easy to ignore when the return from
the business is good, rise to the surface during an economic downturn.
Family members not in the business may blame those who are for not
addressing financial problems sooner. Owners have to deal with the
possibility of cutting back on distributions or possibly even selling
the business. The conflicting goals, which are often present in the
three systems, are best managed by policies and processes that ensure
all concerns are addressed and brought into alignment.
The
tendency is to ignore policies and processes when times get tough.
However, a sound family business infrastructure is even more crucial in
tough economic times. Families have a dividend policy stating that
dividends will only be paid when they do not threaten the viability of
the business. In tough economic times, dividends may need to be
suspended. During an economic downturn, the test will be whether or not
family members follow the policy.
Enforcement of a family
employment policy is another example. Breaking the policies that you
have in place is not good for the business or the family. There does
need to be some flexibility in policies and processes to address
unforeseen challenges. However, families must consider the long-term
implications of breaking rules they originally made in the best interest
of the business and family. To weather an economic downturn, families
must build a strong infrastructure and stick to it.
Four Tips
for Addressing a Downturn 1. Build or return to sound business
management practices. Tracking and enforcing responsibility for
financial results is important in good economic times, but it is
essential in a downturn. Creating a realistic budget to ensure that
revenues will cover costs is also imperative. This exercise should
consider what areas can be cut back if revenues shrink substantially.
Once the budget is complete, create a process for tracking performance
against the budget so that any changes in the environment faced by the
business are identified quickly. Developing solutions in areas that are
not tracking against the budget and then holding management accountable
for delivering results (or alternative solutions if budget expectations
are no longer realistic) are a natural outgrowth of the process. Last
but not least, it is critical in uncertain times to hold regular
management meetings where the team can discuss changes in the business
environment and also develop plans to address them.
2. Be
prepared for lower distributions. A business that has prospered over the
years and has always paid generous distributions or dividends to its
shareholders may find it difficult to meet these payouts during today's
challenging economic times. A family shareholder group that has taken
the time and effort to learn about their business and the factors that
make their dividends possible will be in a much better position to
anticipate and adapt to changes in their dividends than a shareholder
group that has just accepted their dividend checks without any effort to
understand what lies behind them.
3. Stick to your employment
policy. Many families require members of the next generation to work
outside of the business for several years before the next generation can
work in the family business. However, when the economy slows and a
well-paying, desirable job is tough to find, the family may be tempted
to ignore its employment policy and hire young family members right out
of college. The family may ask, "What good is having a business if we
can't help the kids during tough times?" A valid question-but perhaps
the members of the family would be wise to remember why they created the
policy requirement in the first place. Most family members are able to
make more significant and enduring contributions to their business after
having a chance to learn in other work settings. Just because it's very
difficult to find work, is that requirement no longer relevant? Rather
than simply ignoring the established policy, a family must seek ways to
help young, inexperienced family members without abandoning its stated
policy. There are many ways to accomplish this, and each family will
find its own way. For example, the family business can help family
members with resume development, interview preparation, or even
introductions to possible employers.
4. Honor the succession
plan. A father or grandfather who has turned management of the business
over to members of the next generation is often tempted to jump back
into action during tough times. The family may welcome and encourage
their involvement because of Dad's or Grandpa's history of success under
pressure. Will the family allow the current leadership to lead or will
there be too much fear for the family to place its trust in the next
generation's leaders? An "either/or" solution is not the answer. Finding
a way to access the wisdom of the senior generation without cutting off
the junior generation at its knees will be imperative. Combining the
wisdom of the past with the talents of the present will be the key to
success in these tough times. A family's response to these economic
times could be seen as a test of will and commitment. A family
shareholder group that has worked hard to establish policies and
governance systems will certainly be led to question the wisdom of those
policies, which were likely created during times of peace, calm, and
even prosperity. Will the family stick with its policies, even if
individual or collective suffering results in the short term? What will
take precedence-the needs of the business, or the needs of the brother
who requires his dividends for a mortgage payment or the sister whose
daughter needs a job? All systems will begin to fray or fracture at
their weakest point, when the going gets rough and pressure starts to
build. A family system is no different. Many family businesses are
seeing and feeling more than a few cracks starting to emerge in response
to today's increased economic pressure. By returning to the tried and
true-strong governance, agreed-upon policies, family education-families
can use the challenges of these tough times to become even stronger and
more unified.
This article is designed to provide general
information and is not intended to provide specific legal, accounting,
tax or other professional advice. Since your individual situation may
present special circumstances or complexities not addressed in this
article and laws and regulations may change, you should consult your
professional advisors for assistance with respect to any matter
discussed in this article. Family Business Consulting Group®, its
editors and contributors shall have no responsibility for any actions or
inaction made in reliance upon information contained in this article.
Articles are based on experience on real family businesses. However,
names and other identifying characteristics may be changed to protect
privacy.
A senior associate of The Family Business Consulting
Group, Dr. Green is the former director of the Austin Family Business
Program, and was founding Director of the Austin Entrepreneurship
Program, at the College of Business at Oregon State University.
Mark
is an active educator, speaker, researcher and advisor on succession,
family business governance, entrepreneurship and professionalization of
the family business. He consults, speaks and leads academic courses,
executive education programs, workshops and seminars for family
businesses and the professionals that serve family enterprises. He is
regularly quoted by the news media such as the Wall Street Journal, The
Oregon, and The Denver Post regarding family business issues. He was
co-founder of the Family Enterprise Research Conference with Plasmodia
Sharma that was hosted in Portland, Oregon in 2005 and served as chair
of the Educator and Research Conference for Family Firm Institute in
2005.
Mark graduated from Cal Poly Pomona (B.S. Business
Administration), the Atkinson Graduate School of Management at
Willamette University (MBA) and the Claremont Graduate School (M.A.
Political Economy and Ph.D. Economics & Political Science). Mark
comes from a family business and learned firsthand the challenges and
pitfalls of running a family business, including the critical importance
of issues such as succession planning, strategic planning and healthy
family business relations.
Article Source: http://EzineArticles.com/?expert=Mark_T._Green,_Ph.D.
Article Source: http://EzineArticles.com/3131761
The Answer for the Query How to Charm a Girl
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putting off at a later age.
The truth is, the real truth about how
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short.
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Proceed to
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