A family council is primarily a business situation where members of a family take the responsibility of running a family business. In this form of business management, responsibilities for the family members involved ensure smooth running of the business.
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Family councils are exceedingly useful when the business needs to remain close to the existing customers. One function of the family council is to ensure that the younger generation has some input into the business before they can be fully trusted to run the business in the future. The council’s function is to provide a meeting where issues critical to the business and internal to the family can be addressed. The benefits of a family council include : Family members preserving integrity. All the generations, in the past and the future can enjoy the rewards of their work. Responsibilities can be shared accordingly (Lee, 2010).
In various situations, family councils are useful in determining the future of a business (Dunn, 2007). For example, where it is costly to hire an outsider as a member of the board, the family may decide to give the responsibility to a family member so as to reduce cost. In situations where the expected results require a high level of integrity, commitment and personal touch to the business, the family councils serve best.
Equality vs. Fairness
Equality is the state of being at par with the other individuals or organizations in terms of value, quantity and status while fairness is the quality of having unbiased dispositions (Heck and Mishear, 2008). In a small business management set up, all the people involved in running that business should have a feeling of being appreciated and be able to enjoy opportunities without bias.
In conclusion, the family councils are equally valuable small business management structures. They help in instilling the family values into the business and hence reduce collapsing of the business.