The Brown Family Business
Defining Work Opportunities for Family Members in a Family Firm
For nearly seven decades, the Brown family has operated an agricultural products business in central Texas. As Brown Bros. has grown, family leaders have attempted to preserve family relationships while operating the business in a profitable manner. At present, five members of the second generation, three members of the third generation, and one member of the fourth generation are active in the business. Other members of the family, of course, have ownership interests and a concern about the firm even though they are pursuing other careers. In the interest of building the business and also preserving family harmony, the family has developed policies for entry and career opportunities for family members. The human resource policies governing family members follow.
Family Philosophy Concerning Family and Work Opportunities
1. A family working together as one unit will always be stronger than individuals or divided units.
2. Family is an "umbrella" that includes all direct descendants of P. and L. Brown and their spouses.
3. The Brown family believes that a career with Brown Bros. is only for those who
• Believe in working for their success;
• Believe that rewards they receive should come from the work they have done;
• Believe in working for the company versus working for a paycheck; and
• Believe that everyone must work to provide an equal and fair contribution for the good of the whole business.
4. While work opportunities and career opportunities with the family business will be communicated to all family members, there will be no guarantee of a job in the family business for any member of the family at any time.
5. A family member working in the family business, whether in a temporary or a long-term career position, will be offered work and career counseling by a supervisor or officer/family member (depending on the job level). However, the family member/employee is not guaranteed a job or a career position. His or her job performance and qualifications must be the primary factors in determining whether the family member will be allowed continued employment.
6. While the family business is principally agriculture-related, there are many jobs that both men and women can perform equally and safely.
7. Compensation will be based on comparable positions held by other employees.
Committee on Family Employee Development
1. Review, on an annual basis, policies for entry and recommend changes.
2. Receive notices of positions available and communicate them to all family members.
3. Review, on an annual basis, evaluations of family members' performance, training provided, outside training programs attended, and goals and development plans. Offer counseling to upper management when appropriate.
4. Committee composed of three persons-one of four Brown brothers in the business; one of seven non- operating Browns; one of the spouses of the eleven Browns. The general criteria for having a career at Brown Bros. are given in Exhibit C5-1.
Questions
1. What are the key ideas embodied in the statement of philosophy concerning family and work opportunities?
2. Evaluate each of the criteria specified for a management career in the fi rm. Which, if any, would you change or modify?
3. Evaluate the structure and functions of the committee on family employee development.