MOTIVATION AND LEADERSHIP IN FAMILY BUSINESSES

Abstract

Worldwide, what is perceived is that, when the third generation joins family businesses, many of them disappear. The survival of such companies depends most of the time, among other aspects, on punctual and systematic strategies at the time of succession, which requires impacting organizational changes. This article aims to theoretically analyze the strategies that business families use in order to lead the heirs to the management of their companies, offering an innovative vision for the Family x Company issue. People management is crucial for the constant development of the family business, reconciling old and new customs. The main objective, however, is to identify the leadership style that predominates in family businesses. It is common in family businesses to have an approximation between leader and subordinates, however, such approximation does not mean motivation, but it can represent a constraint in approaching problems with the leader. It is worth mentioning that human capital is fundamental to the success of organizations, that is, motivated people are more productive.