STRUCTURING HUMAN RESOURCES MANAGEMENT PRACTICES IN FAMILY BUSINESSES: BETWEEN DISCOURAGEMENT AND PERSEVERANCE

Abstract

In this paper, we examine the evolution of HR practices in a family-owned business with 120 employees, using data (interviews, HR indicators, etc.) collected as part of a longitudinal intervention-research conducted over seven years. To date, literature suggests that family businesses tend towards informal HR practices, which foster trust and teamwork among family and non-family members. Furthermore, few studies have explored the connection between the state of HR practices in family businesses and their socio-economic outcomes. However, our study reveals that informal HR practices can become a “comfort zone”, leading to dysfunction, demotivation, absenteeism, staff turnover, and productivity loss within family businesses. Conversely, the professionalization of HR practices is a source of cohesion among family members, transparency with teams, and improvement of working conditions