Ireka Construction Berhad Case

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The case is a model of family business firm in Malaysia, Ireka Construction Berhad which control activities to smooth transition process and become publicly listed company(Francesco,2004,p1).Nowadays, family businesses have become a significant element in the corporate economy. They play a key role and become the backbone of a country's economic growth(Jasani,2002). Family owned or controlled businesses account for over 80% of all firms in US and about 70% in Malaysia(Claessens et al.,2000). All organization faced web of challenged ,but success in family businesses required balance between family dynamics, company achievement ,profits and many other element to capture growth of family oriented objectives. As Ireka developed and diversified,…show more content…
I strongly impressed the company's policy during the economic recession in 1984 and 1985. It" didn’t lay off any staff and there were no reduction in salary" (Francesco,2004,p3). In addition ,it continued its work inside the country. By those, it strongly got the trust from the staff and the government. The government provide unlimited supportiveness to small and medium enterprises(SMEs), for example in Oman his Majesty ordered the establishment of public authority of SMEs as funder and supporter to SMEs and small family businesses and they have a priority in government's tender . In Ireka case, the Malaysian government encouraged the companies to go public by established the second stock exchange and suitable funding was available. Also it take Ireka hand to implement public sector construction work. There is no doubt the diversity strategy of the company contribute to the achieved successions. Ireka should adapt to the locals need and culture. I strongly agree with the founders that they didn’t compel second generation to join the company. They have the choice after well qualified and abroad experience. This of course will have a positive impact on the business. In some family organizations the holder declined to…show more content…
While the second idea of move achievement component is the amicability of relationship in organization. Ireka development on premise of trust between the worker and the family which is backed by the society and the structure of the organization. The third class is the planning and control activities. The primary elements focus a family business can proceed starting with one era then onto the next is progression arranging (Demers2003).Ireka team in my point of view deal with change management well, as we know people resist changes. Change management is important portion of management that tries to ensure that businesses and people are doing well and responds to the environment in which it operates. Numerous components infer changes in business , regardless of the potential positive results change is constantly stood up to. Anyway as aftereffect of great change administration , the organization succeed. They could recognize the change require and obstacles. They can focus the level of risk and the expense of progress. Additionally this in light of the fact that the workers comprehend the reason or even the need of progress. Too the representative trust the initiative because of the great relationship divert in Ireka. They all are ready and powerful co-operation (Googe,2003). There is no doubt that employee
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