Question

According to the joint optimization system of managing a family business, family employees in the same generation should

a. receive the same salary and benefits to avoid resentment.
b. be paid based on performance and level of responsibility, even if the salaries are then different.
c. be paid and trained exactly the same way as nonfamily employees.
d. be compensated depending on how long they have been contributing to the family business.

Answer 1

The correct option is b. be paid based on performance and level of responsibility, even if the salaries are then different.

Family employees in the same generation should be paid based on their performance and level of responsibility. This approach reflects wider economic compensation practices and encourages efficiency and productivity in a family business.

Step-by-step explanation:

According to the joint optimization system of managing a family business, family employees in the same generation should be paid based on performance and level of responsibility, even if the salaries are then different. This approach aligns with the principles that skills and productivity should determine compensation.

Career inheritance does play a role in family businesses, but it is important that wages reflect individual contributions. While some argue that uniform salaries might prevent resentment, hiring and compensation practices should incentivize and reward the unique value each employee brings to the company, which is in line with a competitive workforce.

In a competitive market, businesses must prioritize efficiency and productivity. This means that salaries should be reflective of an employee's ability to contribute to the business's success rather than based solely on tenure or family status. This approach aligns with broader economic principles where compensation is typically tied to an individual's talents, skills, and education, all of which contribute to the business's performance and ultimately its profitability.