A History of Top Management in Japan: Managerial Enterprises by Hidemasa Morikawa

By Hidemasa Morikawa

This ebook analyzes the pinnacle administration of best eastern businesses. Drawing at the paintings of Alfred Chandler, Morikawa demonstrates the adaptation among family-owned organisations and professionally controlled firms.

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Given this, salaried managers have a much better chance of becoming top managers because they have been trained and promoted for a long time within the managerial hierarchies and can be comfortable with the managerial hierarchies necessary to compete in severe, competitive environments. In other words, it should come as no surprise that family enterprises seeking continuous growth and development often feel a compelling need to become managerial enterprises. Transition from Family to Managerial Enterprise 39 Variations To recap briefly, the above section discusses some of the most common ways that managerial enterprises develop from former incarnations as family enterprises.

Managerial hierarchies are not always formed because of the need for vertical integration. There are many forms of cooperation between the founder’s family and top salaried managers, and managerial enterprises are not the de facto result when a founder’s family totally populates its top-management positions with salaried managers. In some cases, the family and the salaried managers run the business cooperatively. In others, salaried managers have fulltime positions and family members part-time ones.

21 Such fixed ideas on the part of a founder’s family are not easily discarded, so it is quite normal for salaried managers and founder families to have relationships characterized by conflict. Conversion from a Family Enterprise to a Managerial Enterprise Comparisons of Family Enterprises to Managerial Enterprises Discussions of whether family enterprises are superior to managerial enterprises or vice versa draw wide interest from a range of individuals, both management scholars and nonresearchers alike.

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