POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

INTEGRATING CHILDREN INTO THE BUSINESS

A Research Paper

In Requirements for the Course

Family Business Management

By
Group 2

Name:
Claudette K R. Garcia
Maxine Jade E. Victorio
Katrina Brian
John Patrick M. Valenzuela

Date: May 10, 2024

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Integrating Children Into The Business

One of the questions owner-managers of family businesses most

frequently ask is: How do you interest your children in taking over the family

business? This concern should probably be viewed from a parent's role of

helping their children make their initial career decisions. From this point of view

then, the parent has to decide which would have more priority-the good of the

family business or the future of the child. It would be advisable for parents not to

over-focus on this issue and to realize that the process of children entering the

business will take place over a number of years and includes resolving many

interrelated issues.

Family business experts recommend that in the process of determining

whether offspring should join the business or be given a free choice, the following

questions should be resolved:

1. Will the business continue for another generation?

2. Do the parents want their children to consider careers in management in the

firm or to participate only as owners?

3. Will several members of the next generation run the family firm together or will

only one individual be invited to join?

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

4.Do the parents want to structure opportunity and experience so that they

ultimately control who enters or do they want the offspring to choose for

themselves.

5. Will offspring who want to be in the business start immediately after school

and work straight through or go away and then decide about coming back?

Sibling Dynamics

In this process of the younger generation entering the business, a critical

area that parents sometimes overlook is that of - sibling dynamics or the

dynamics of the relationships of brothers and sisters evolving from childhood

relationships largely shaped by parents into adult sibling relationships. The main

issue here is whether brothers and sisters can sustain this relationship among

themselves for the rest of their lives. The decision to stay in the family business

will mean that brothers and sisters must accept that their adult lives will remain

intertwined and that they must remain on intimate terms with each other for a

lifetime. More than this, they must accept that their career and financial status will

be dependent on their relationships with their brothers and sisters.

Families who want to perpetuate their family business must therefore

create the right sibling environment. They must develop bonds among brothers

and sisters separately from work. This is easier in the Asian context. In the

American world, adulthood means leaving the family and becoming independent.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

In the Asian world, maintaining strong family ties even in their adult stage of life is

expected and, even many times, expected of relatives.

For the children to be successfully integrated into the business, all the

siblings must possess the necessary characteristics. If not, then there normally

will be conflict among them. There should be strong sibling ties to ensure

harmony during the moments of disagreement. These ties should be manifested

by their willingness to share rewards and public recognition. Instead of leadership

skills, what would be required would be skills in the areas of teamwork,

communication and conflict management. All these require an ability to work in

groups. Finally, a lot of patience and a sense of humor would be very helpful.

Reference

https://www.scribd.com/document/581059711/Family-Business-Management