PROPRIETORIAL CONTROL IN FAMILY FIRMS: SOME FUNCTIONS OF ‘QUASI‐ORGANIC’ MANAGEMENT SYSTEMS

Abstract

ABSTRACT The purpose of this paper is to investigate the strategies of managerial control which are used by the proprietors of family‐owned business enterprises. Interviews with the proprietors and senior managers of businesses in the building industry illustrate the ‘quasi‐organic’ nature of management structures. These grant some autonomy to senior managers without threatening proprietorial decision‐making prerogatives. Although the family firm has certain distinctive features, similar control strategies designed to ensure that delegated decisions are ‘reliable’ and ‘responsible’ are evident in various types of business enterprise. There is, then, scope for further comparative research within a conceptual framework which does not entirely divorce the family firm from other business organizations.