Running head: EFFECTS OF NON-FAMILY WORKERS ON FAMILY BUSINESS 1 EFFECTS OF NON-FAMILY WORKERS ON FAMILY BUSINESS 3 Effects of Non-Family Workers on Family Business Students’ name Tutor Course Date Family businesses are owned by two or more members of the same family (Reed, 2017). The family business can be owned and managed by members of the family and is intended to realize different types of returns including returns on the relationship, return on finances, and emotional return (Aguinis, 2014). This type of business is fully owned and managed by members of the family who assume different positions in the organization. Some instances, however, need where the family business is forced to hire non-family members (Grzywacz & Handlowa, 2016). When a non-family member is hired in a family owned and managed business the action leads to significant effects on the business performance (Glas, Mirtič, & Pšeničny, 2016). Several factors affect family business which include the need to maintain family relation, social factors, management of family and business. This research therefore seeks to distinguish the difference brought about when the non-family member is introduced in the executive position of a family business. The study seeks to test the hypothesis that when a non-family member is included in a family owned and managed business at the executive level the business performance is improved . The study will attract several dependent and independent variables. The independent variable will include attitude, level of social interaction, personal interests, and family conflicts. The dependent variable on the other hand includes the business profitability level. There are intervening variables which include the impact of non-family member, the business interest and legal requirements . Literature review According to Hisrich, Peters, & Shepherd (2017) Family members are closely related to each other, and this makes management of the business mostly personal. When the members of the family tend to argue the work done, they take things to a personal and family level that could result in severe conflict and poor management of the firm (Wolff & Resnick, 2012). Organizations run by the family members strive to create a distinction between the family and business issues making it difficult for them to operate (Searing, 2016). Other members also embezzle funds for the business with the idea that it’s a family issue and rarely will legal action be taken against them (Ritonija, et al., 2015). According to the principles of economics the business and the owner should be treated as two different entities, however creating the distinction becomes difficult in the family business (Johnson, 2015). The inclusion of purely family members in the business could, therefore, be fatal at some point. According to Lussier & Hendon (2016) introduction of non-family members in family business creates a sense of increased respect for the organization. The non-.