Family Business Literature Review

Mention “family business” and one might assume you’re talking about shops and restaurants around the corner or your local dry cleaner. But the vast majority of businesses throughout the world (two thirds of all businesses around the world )—from corner shops to multinational publicly listed organizations with hundreds of thousands of employees and best known brands like Novartis, Walmart, Facebook, Samsung Electronics, Volkswagen, Mars, are rooted family businesses. Kongo Gumi, one of the oldest Japanese construction family businesses funded in 578 till today with the 40 th generation. Prince Shotoku got Kongo family members to Japan from Korea more than 1,400 years ago to build the Buddhist Shitennoji Temple, which still stands. Over the centuries,

In the business, two or more members within the management team are drawn from the owning family and it can have owners who are not family members. Family businesses may also be managed by individuals who are not members of the family. However, family members are often involved in the operations of their family business in some capacity and, in smaller companies, usually one or more family members are the senior officers and managers.

In this literature review we will be discussing the selection and training as well as the innovation of non-family employees and their effects on performance. The problem in this study that few are the articles that tackles the above points about non-family employees, most of the studies are either about family members in a family business or regular employees in a

They centered their concentration on administrative competence and compliance activities; additionally, they tended to invest in talent intangibles rather than human capital (Guthridge et al., 2008). Such tendencies reached short term accomplishment but came across long term dilemmas ever since the company’s goal was reached at the expense of the worker efficiency. Now the important role of Human resources division is to focus on the company’s goal by applying the right recruitment and selection methods, and retains its employees as they are the key success of the corporation. In addition, they lay significance on future-oriented plans and objectives and value adding proposals (Punnett, 1993). Recruitment is where the organizations select their procedures in different ways to seek applicants and attracts potential employees these processes; whereas selection refers to be the method, by which the organization distinguishes the interviewees with the knowledge, skills, abilities, and other characteristics that will help it achieve its goals. The role of recruitment and selection is to prepare for potential long-term employment requirements, with day-today employment opportunities, all as part of a human resource strategy (Kramar, 1992). It is a serious point of all businesses to guarantee that the people who are employed through the recruitment and selection process are the