Leadership in the family business has been debated by countless people. However, it is alarming how the theme of leadership in the family business has been neglected. Most researchers and analysts focus on the ownership of the family business, ownership amongst others(Rouvinez and Ward, 2005). Family businesses are of varying models. This essay shall highlight the characteristics of leaders of the family business, and their difference from the leaders in nonfamily business.The major difference between the family business and nonfamily businesses is that family businesses need-oriented while the nonfamily businesses are goal-oriented. In this perspective, the types of leadership skills tend to differ. Unlike in nonfamily businesses, the leaders work on the grounds of need orientation. This is an interpretation of a democratic leader who does not work based on making their own decisions and imposing them on their employees, but act to please all family members who have contributed to the business. Ward (2004) argues that family businesses are driven by attaining the needs of the organization or an inward attempt to attain the goals of the organization. This is different from the leaders of nonfamily businesses who act in accordance with handling the opportunities that may come along the business. Since nonfamily businesses are opportunity oriented, the leaders tend to be authoritative, unlike democratic. This is about the fact that the leader needs not to impress the other board members, as they are not of the same family.Family businesses operate under the mercy of related individuals while the non family business operates without family ties (Rouvinez and Ward, 2005). In the family business, it is important that the leaders develop honest attributes in terms of human resource management. For the family business, it may be extremely difficult to fit in the global economy, unlike in non family businesses.
Family and NonFamily Businesses Leaders