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RELEVANCE OF BUSINESS DYNASTY

TO EMPLOYEES PERFORMANCE

A THESIS
PRESENTED TO THE FACULTY OF THE
COLLEGE OF BUSINESS ADMINISTRATION
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
STA. MESA, MANILA

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE COURSE


BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
MAJOR IN HUMAN RESOURCE DEVELOPMENT MANAGEMENT

BY:

VANITY JOYCE S. ILAGAN


DIOBELLE V. RAMIREZ
JEAN MYKHAIL V. SISON
CHARISMA R. VALEZA
JENILYN G. VARGAS

BSBA HRDM 3-2N


Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction

During the First Republic of the Philippines was instituted, the family dynasty

in politics also commenced. If there are political dynasty it is also a fact that in

corporate world there are family dynasties that dominate the world of business in

the Philippines and most parts of Asia. Business dynasty means that a family

owns the business for a long period of time as the proprietor pass his position to

its successor. Currently in the Philippines, there are many families who own a

tremendous corporation such as the renowned Sy family (SM Investments

Corporation), Lopez family (Lopez Holdings Corporation), Aboitiz family (Aboitiz

Equity Ventures, Inc.) and lastly the Ayala family (Ayala Corporation).

Business dynasty is established and run by the family members. The head of

the family is the one who controls the business and usually the eldest son

inherits the enterprise. It is inevitable that the other family members also work

within the company as they hold the ownership and management together.

Employees may have a less advancement in the business that will reduce their

performance. Nowadays, the performance of an employee depends on their

motivation. It is important for the management to know the employees

involvement and working environment that may cause their productivity.

The researchers aim to perceive the relevance of Aboitiz Equity Ventures, Inc.

to employees performance. If there would be a connection or some factors that

might affect employees performance due to inequality in organization


Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the related literature and studies both foreign and local

which is important bearing in further discussion of the study. It will help the study

to clarify and fully understand the concept of the business dynasty.

Foreign Literature

In the study of Transferring Power in the Family Business, the transition

of family business to one generation (old) to the younger generation is one of the

most agonizing experience that business faces. The transition problem affects

both family and non-family member employees inside the company. Employees

(old and young) who work inside the business but who are outside of the family,

faces different pressures and concerns from those of the family employees. The

older employees want rewards for loyalty, sharing of equity, and security, and

they want to please the boss. Younger employees generally want

professionalism, opportunities for growth, equity, and reasons for staying. Both

age groups worry about bridging the family transition (Barnes and Hershon,

1976).

Another perspective comes from the relatives, those who are inside the

family member but not in the current management of the business. The older

relatives worry about income, family conflicts, dividend policies, and a place in

the business for their own children. The younger, often disillusioned brothers and

might affect employees performance due to inequality in the organization.


Chapter 3

RESEARCH METHODOLOGY

This chapter presents the methodology that was being used by the

researchers with regards to the relevance of business dynasty to the employees

performance in aspects of motivation, equality and promotion.

Research Method Used

The descriptive survey method was used by the researchers to gather

information about the relevance of business dynasty to the employees

performance. It can be divided into two categories such as the questionnaires

and the interview. The researchers utilized questionnaires both oral and written

to attain the objective of the study.

Population and Sampling Technique

The descriptive survey method was used by the researchers to gather

information about the relevance of business dynasty to the employees

performance. It can be divided into two categories such as the questionnaires

and the interview. The researchers utilized questionnaires both oral and written

to attain the objective of the study.

Respondents of the Study

The target population of the study is consisted of 150 employees, male and

female who are currently working at Aboitiz Equity Ventures Inc. The

respondents composed of employees having different position either family

member or non-family member who can contribute to the study on how the