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Why a Business Cannot Be Run Like a Family?

Why a Business Cannot Be Run Like a Family?

We hear some business leaders claiming “In my business, I treat my employees like my family. We all are a big family.”

Or, in WhatsApp groups of company employees, after adding new employees to the group, the HR person of the company announces “We welcome the new employees to our company family.”

In all such contexts, the word “family” is used very casually, without really meaning it.

Here is what a big CEO had to say about it.

“A company cannot work like a family. In companies, relationships are not permanent. We hire people for a purpose, to perform certain tasks and produce some results. If results are not achieved, we may have to fire people. Such hiring and firing is not possible in a family.

In companies, people join a company if they believe in its mission or purpose or if they like the culture or something else about the company. Also, they are selected based on their merit and suitability. In families, we get people as they are. We don’t have a choice. Mostly, we have to tolerate people.

In companies, we can give feedback if something about someone needs to change. In families, that is not always possible.”

Even though it may appear like a good idea for optical purposes, it is not tenable.
Companies cannot work like families and vice-versa.

-Sanjay Shah

SME Business Coach