By Hidemasa Morikawa
This ebook analyzes the pinnacle administration of major eastern businesses. Drawing at the paintings of Alfred Chandler, Morikawa demonstrates the adaptation among family-owned agencies and professionally controlled firms.
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Extra resources for A History of Top Management in Japan: Managerial Enterprises and Family Enterprises
Salaried managers are free from such constraints. These variations result in policy differences between family enterprises and managerial enterprises in diverse areas, including dividends and taxes. 4. Generally, after the founder’s death, salaried managers, particularly those who have worked at every level in the managerial hierarchy and have polished their management skills, have a better understanding of the day-to-day operations of the company than do members of the founder’s family. 5. If the top manager makes a major mistake or becomes a source of conﬂict within the company through arbitrary management practices, he must be replaced.
Dr. Katsuyuki Ozawa has this to say about DuPont and the du Pont family (although some early members of the family spelled their name “de Pont,” the spellings have been consistently rendered “du Pont” throughout this book): For 165 years, from the time of the company’s founding until its 11th president stepped down in 1967, the positions of company president and chairman were occupied solely by members of the du Pont family (meaning that they were either direct descendents or the spouses of direct descendents).
Factors that are negative for some companies can be positive for others. Some managers of family enterprises are well aware of their weaknesses. As Werner Siemens has noted, “Making money is a lot of fun. ”25 Siemens realized that in a family enterprise, proﬁt making and long-term goals can run con- Transition from Family to Managerial Enterprise 37 trary to each other. In examining the relationship between family enterprises and managerial enterprises, it is evident that the latter has more potential for long-term growth.