Institutionalization, human resources management and performance at family companies

Family companies are economic actors who are based on family members coming from the same family, produce goods or services for profit, family members take part in the management stages, important decisions are taken from these family members and are passed on to generations. Family businesses with important functions in the economy need to be institutionalized in order to ensure their continuity. It can be said that the performance of firms in enterprises that have completed the institutionalization process and have good human resources management has increased. In this study, qualitative research questions directed to managers and employees in a family business operating in Aydın province, institutionalization and human resources management and performance were examined. In the end of this study, it was determined that institutionalization, human resources management and performance have a significant place in order to protect and develop the existence of family businesses. Moreover, institutionalization and effective human resources management have a positive impact on performance when institutionalization and an effective human resources management policy are examined. It can be argued that family companies are important actors in world economies and that family companies that can't make institutional transformation can't get strong competitive power in free market conditions and therefore can't grow.