Family Business Employees and Theory of Needs Report

Introduction

A family business is rather difficult to run due to the unique relationships between its employees. Specifically, the relationships of family members and the regular staff that is not related to the owner directly may involve tension due to the possibility of unfairness and biased judgment on the side of managers. Applying the theories of needs to the described scenario suggests that the creation of a family business in which independent employees are hired along with relatives will need a rigid system of ethical standards and an unbiased approach toward assessing each employee’s input in order to reduce the threat of conflicts.

Needs-Related Theory

In order to embrace the challenges that different types of employees face in the context of a family business, one will have to apply a needs-related theory. By utilizing Maslow’s Hierarchy of Needs, one will realize that in the environment of a family business, employees that are not related to the owner are typically satisfied only when it comes to the first two levels of needs (physiological and safety-related ones) (Vargas-Hernandez & Arreola-Enriquez, 2017). Opportunities for self-actualization are typically thwarted by nepotism in the family business, hence the inability to satisfy esteem-associated needs. The need for love and belonging is also unlikely to be addressed since family members will receive more emotional support than the rest of the staff.

In a similar vein, Herzberg’s Theory of Motivation shows that one is unlikely to have their needs satisfied in a family business context. Approaching the subject matter from the perspective of Herzberg’s theory, one will notice that the factors linked to motivation, such as achievement, recognition, advancement, and growth are unlikely to emerge in a family business setting for an outside staff member. Instead, family members are more likely to be offered additional career opportunities, which will create a sense of unfairness and reduce the levels of motivation among other employees (Andersson, 2017). For example, other employees may receive less recognition and positive feedback for their accomplishments than family members do, which will reduce their motivation. Moreover, family members are more likely to be recognized for their achievements than outside ones. The described outcome will lead to higher dissatisfaction rates among staff members. As far as the hygiene factors are concerned, the process of supervision is also likely to be slightly unfair. For example, advancing the careers of family members even if they show lower performance rates compared to other employees will cause a rise in dissatisfaction levels. Finally, job security levels may also suffer for other staff members if family members remain the focus of the HR managers’ efforts.

However, while the supervision issue can be managed with the introduction of strong values and ethical standards, the damage to workplace relationships as a critical factor according to Herzberg’s theory will be irreparable. Once knowing that family members hold an unfair advantage to them as employees, the rest of the staff is highly likely to develop suspicion toward the employees that are related to a company owner. Thus, the efficacy of outside employees’ performance will drop. The salary and security of the latter also may be reduced extensively compared to the staff represented by family members. Thus, the introduction of side staff members into the context of a family business without reconsidering corporate standards is doomed to be unsuccessful.

Conclusion

Due to the high probability of conflicts caused by the unfair distribution of tasks and rewards among family members and the rest of the staff, family businesses need to incorporate rigid ethical standards and adhere to the principles of clarity and visibility to ensure that the needs of every employee are met. To address the issues found in the course of the analysis, one will have to establish the ethical standards that will allow treating every staff member, in the same manner, disregarding their relationship to the business owner. For this purpose, the principles of openness and clarity must be integrated into the organizational setting. Moreover, uniform standards for quality performance must be introduced, with each staff member being evaluated based on these criteria. Thus, the threat of unequal treatment will be minimized..

Reference List

Andersson, S 2017, ‘Assessing job satisfaction using Herzberg’s Two-Factor Theory: a qualitative study between US and Japanese insurance employees’, IAFOR Journal of Business & Management, vol. 2, no. 1, pp. 22-35.

Vargas-Hernandez, JG & Arreola-Enriquez, JA 2017, ‘The motivation of collaborators in family micro companies: cybercafé’, Revista de Administração Mackenzie, vol. 18, no. 6, pp. 149-176.