The term professional culture is not intended to mean that this type of organization is more professional than the other three but that its cultural pattern is generally found in firms where the owning family decides to turn management of the business over to nonfamily, professional managers.
This
series of articles discuss the paternalistic, the laissez-faire, and the participative cultural patterns in family owned firms. The first two cultural patterns reflect similar traits, whereas the latter cultural pattern is relatively rare and is based on assumptions that vary dramatically from the first two. The final cultural pattern that we will discuss is the professional culture.
The term professional culture is not intended to mean that this type of organization is more professional than the other three but that its cultural pattern is generally found in firms where the owning family decides to turn management of the business over to nonfamily, professional managers. The professionals often bring with them a set of assumptions that are quite different from those in the other three patterns.
Individualism and Career OrientationRelationships in professional cultures are individualistic, meaning that employees focus on individual achievement and career advancement. Competition is keen in this kind of culture. Professional managers often take a rather impersonal, neutral stance toward employees, who are evaluated on their ability to contribute to the profits of the business. The owning family’s involvement in the business that characterizes the other culture often disappears with the advent of professional management. The professionals rely on their years of professional training to make rational decisions. The result typically involves the creation of various programs to improve efficiency and cut costs.
Employees are encouraged to do their jobs quickly and efficiently. Personal development of employees is a secondary concern. Since professional managers are frequently brought into a family firm in order to turn it around, they may find themselves in a reactive mode, or they may take a proactive stance in cutting costs by instituting “modern” management techniques, restructuring the company, or laying off employees.
ConclusionThe advantage of the professional culture is found in the new ideas and management techniques that the professional managers can often bring into the organization. The outsiders can often improve the firm’s accounting, marketing, and other operating systems and make the business run more efficiently. Furthermore, they have fewer ties to the past, and thus they are able to see new possibilities that can move the firm in new directions.
The major weakness of the professional culture is that it tends to alienate the employees who were used to working for the family under a different set of assumptions. Absenteeism, turnover, unhealthy competition among individuals and among departments, low morale, and low commitment are often negative side effects of the change to professional management.
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 Participative Culture in Famiy Firms
Ensuring Continuity in Family Firms