Abstract

Family-owned family business organization, ownership and management rights of the high degree of unity among the members of the family business and the psychological contract costs relatively low cost of business operations; the interests of consistency, so that family members have a natural cohesion, the business-to- sensitive to changes in the external environment, expansion of sufficient power, decision-making responsive. But also the family business is often difficult to overcome the impact of family intervention and accurate business decisions, financial constraints affecting the development scale, long-term management of the patriarchal system to the exclusion of talented people to join other defects. Further development of family business, family organization must have a big breakthrough, a family-effective integration of social capital to financial capital and human capital, and gradually realize the socialization of the family business. The familial organizational form of the family corporation has many characteristics. On one hand, it has a high unity of the property and management rights, which makes a relative low cost of the psychological contract, and a low cost of the corporate operations among the members of the family corporation. On the other hand, it has an accordance of the benefit which makes the members of the family corporation possess a natural cohesion, and which makes the corporation become sensitive to the development of the outside environment, and has an ample expansion momentum, and can make a quick reaction. But meanwhile the familial organizational form would make corporation reject the outstanding managers and technicians