|
No. |
Family-managed Business |
MNCs |
|
1 |
Autocratic style of management | Democratic and People-oriented |
|
2 |
Traditional | Professional |
|
3 |
Centralised Decision-making | Participative |
|
4 |
No importance to Classroom training | Training for developing professional skills |
|
5 |
Rare/Virtually non-existence of Social Responsibility | Recent focus on social responsibility |
|
6 |
Employees supposed to be loyal to owners | Loyal to organization |
|
7 |
Undefined rules and regulations | Well-defined rules and regulations |
|
8 |
No role clarity of employees | Clarity of roles |
|
9 |
Rewards based on performance and loyalty | Only performance-based rewards |
|
10 |
Leaders have unlimited liability | Limited liability of Managers |
|
11 |
Long-term relations with employees | Non-existent |
|
12 |
Mostly top-down communication | All channels of communication are open |
|
13 |
Karta has unlimited powers | Powers are limited |
|
14 |
Business decisions made on the basis of gut-feeling | Decisions made professionally |
Difference between Family Managed Business & MNCs
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