The third cultural pattern that is sometimes discernible in family businesses is the participative culture. This cultural pattern is relatively rare in family firms and is based on assumptions that vary dramatically from the paternalistic and laissez-faire patterns.
In the articles
The Paternalistic Culture in Family Firms and
The Laissez-Faire Culture in Family Firms, the paternalistic and laissez-faire cultural patterns were discussed. Both cultural patterns reflect similar relationships in many ways, that is, relationships are defined hierarchically, family members are afforded preferential treatment, and employees are expected to achieve the family’s goals. However, where they differ is in their assumptions about human nature and the nature of truth.
The third cultural pattern that is sometimes discernible in family businesses is the participative culture. This cultural pattern is relatively rare in family firms and is based on assumptions that vary dramatically from the
paternalistic and
laissez-faire patterns.
Egalitarianism and Group OrientationRelationships in participative cultural patterns are tend to be more egalitarian and more group oriented. The status and power of the family tend to be de-emphasized. Employees are deemed to be trustworthy, and the family attempts to give employees the opportunity to magnify their talents. “Doing” is not enough. Employees must accomplish their work in such a way that other people will be involved and personal growth and development will result.
Participative cultures tend to be proactive in managing their environments, they attempt to get at the truth, and to make proper decisions by eliciting employee input. No one is assumed to have all the answers. The participative is present or focused on the now, but also oriented toward the future. Nepotism and other forms of favouritism are formally disdained and thus employees in such companies will reflect high commitment and morale, the ability to respond quickly to changes in the environment, and the ability to innovate.
To create this kind of culture, all people working for the company are called associates rather than employees. Terms like boss, manager, and supervisor are replaced by words like leader or sponsor. This practice de-emphasizes the use of titles and status symbols and fosters a feeling of community. Employees in such companies also become part owners of the firm after some years of service.
In a participative culture, employees are generally able to be creative to develop their talents and abilities. Through participation in decision making, they become more able to understand and internalize the values of the company, and they are more committed to the decisions that are made. Such a pattern seems to succeed in environments that are complex and changing that require employee input from many levels in order to make the correct decisions.
ConclusionThe major weakness of the participative culture is also found in its decision-making processes. It often takes a great deal of time to come to a participative decision. Important decisions can be delayed or undermined by the process of gathering input from employees. Hence, the challenge of those working in a participative culture is to differentiate between the decisions that need to be made rapidly with minimal discussion and the decisions that must receive more time and employee participation.
This article has been extracted and modified from Dyer, W.G. (1996). Culture and continuity in family firms. "The Best of Family Business Review (FBR): A Celebration." Family Firm Institute, Inc. Boston, USA. Other articles in this series:Culture and Continuity in Family Firms
The Paternalistic Culture in Family Firms
The Laissez-Faire Culture in Family Firms
The Professional Culture in Family Firms
Ensuring Continuity in Family Firms