Key Success Factors of Change Management in The Family Business-Case Studies of Li & Fung and TestRite Group

• Main Authors: Tung-Ching Lin, 林東慶
• Other Authors: 陳鴻基
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/57005119965533654207

碩士 === 國立臺灣大學 === 商學研究所 === 99 === Family Business is a common type in Chinese companies. This paper intends to observe if there are some key success factors in Chinese Family Business, when they are changing. Change management is a key to sustain business life, especially in a traditional Chinese Family Business. Following are the key dimension and the affiliated dimensions in this paper: ◎How to know if Chinese Leadership type is in a organization? 1) Employees pledge their loyalty to “boss” instead of the company. 2) Employees regard Chinese traditional ethics as an important criteria to judge their leader. 3) Leaders use subjective view to evaluate the employees. 4) High power distance. 5) Paternalistic Leadership exists in the organization. ◎Key success factors in Change Management: 1) Address the human side systematically. 2) Conduct a fast and open communication way. 3) Address the culture landscape explicitly. 4) Keep the flexibility. 5) Make the formal case. 6) Create ownership. 7) Look for source and assistance 8) Strike a balance between change and survive. 9) Planning is a concern. ◎Key success factors of Family Business: 1) Do not Recruit professional managers only in family. 2) Pursuit the strategy of diversification. 3) Make the employees united. 4) A good change management. 5) Build a mechanism to ensure inheritor has capability to lead the company. Research conclusion: The factor「Employees pledge their loyalty to “boss” instead of the company」 make a successful change management easier to achieve via 「Address the human side systematically」and 「Make the formal case」.「Employees regard Chinese traditional ethics as an important criteria to judge their leader」make a successful change management easier to achieve via 「Address the human side systematically」and 「Address the culture landscape explicitly」. Paternalistic Leadership make successful change management easier to achieve via 「Address the human side systematically」and 「Strike a balance between change and survive」.「High power distance」 is against to 「Conduct a fast and open communication way」, cause if the power distance is too high, it will block the communication way between leaders and employees. Every success factor of change management is relative to「A good change management」(a key success factor of Family Business), the factors of different dimensions can be achieved at the same time. 「Strike a balance between change and survive」is relative to「Pursuit the strategy of diversification」, 「Create ownership」is against and weakens the factor「Do not Recruit professional managers only in family」, in Family Business, we should pay attention on the possible paradox between interior managers and the managers who are recruited from exterior environment.