This article was originally published in Family Capital, January 24, 2024;
In India's business world, the Marwari community is a
formidable force. A part of its success is often attributed to the system of
“joint families", which has created many great business dynasties. But the
system is in decline, leading to concerns that its advantages may be
irreplaceable and thus pose challenges to the business dominance of communities
like the Marwaris.
The “joint families” concept is based on the idea of living
together of and shared business responsibilities among grandfather, father,
sons, their sons, and other family members or close relatives.
Marwaris, which originally come from Marwar, a region of
western Rajasthan state- has given rise to great family business dynasties such
as the Birlas, the Mittals, and the Agarwals.
The resources created by joint families, including the
pooling of financial resources, collective decision-making, and shared
responsibilities, have provided a robust foundation for entrepreneurship in
India.
The joint family system facilitated a collaborative approach
to business, where the collective wisdom of the family contributed to strategic
decision-making and sustainable growth.
Assessing the impact of joint family disintegration on
businesses remains elusive and largely anecdotal. Hence, there is a pressing
need to investigate the mechanisms that fostered familial cohesion and
identifying critical factors that facilitated harmonious coexistence among
family members.
By gaining insights into these dynamics, contemporary
families may incorporate pertinent traits to preserve the advantages of a
diversified resource pool while upholding individuality and freedom.
Basant Hetamsaria, the head of the Hetamsaria family, shares
a compelling narrative of the organic evolution of their joint family in
Ramgarh, in the state of Jharkhand. From a small family of three, the family
expanded to 30 members across four generations, diversifying economic pursuits
while remaining tightly united. His unexpected role as the family head at a
young age underscores the indispensable need for a universal head.
"In the familial framework, I emphasize the pivotal
role of a universal head—a unifying force offering direction and leadership,
even within collective decision-making. The essence of prudence, fairness, and
transparency in our decision-making cannot be overstated. We must strike a
delicate balance between authority and respect, endorsing an informal code of
conduct that nurtures mutual respect and consideration among us, the family
members," says Basant.
The challenges of decision imposition and the necessity for
transparency underscore the importance of a unified approach within joint
families. “Every adult and youth in the family must have a voice, preventing
unnecessary controversies and promoting a harmonious environment. Furthermore,
ensuring suitable opportunities for education and employment aligned with
individual abilities is crucial for the collective well-being of the joint
family,” says Basant.
Strong family values, including familiarity, love,
affection, harmony, and cooperation, are essential for the success of joint
families. Basant's insights highlight the need for an adaptable family dynamic
that can navigate changing environments, ensuring the continued relevance and
resilience of joint families.
However, the disintegration of joint families, which was
considered one of the strengths of business families in India, poses certain challenges
for contemporary business families, such as communication and bonding. Despite
the array of communication tools available, such as instant phone calls,
WhatsApp, and emails, the absence of physical proximity can lead to
communication and personal challenges.
Face-to-face interactions in joint families foster a deeper
understanding of individual strengths, preferences, and challenges, which is
often difficult to achieve through virtual means. The nuances of non-verbal
communication and the daily interactions that build personal bonds are
diminished when family members are geographically dispersed.
“In today's era, the concept of joint families may be
considered unconventional, and a more open and liberal model should be explored
as a potential sustainable family solution amidst the challenges of modern
relationships, increasing tensions, growing distances between spouses, and
fractured relationships,” says Basant.
Perhaps, establishing a structured leadership model within
the family, designating a family leader who plays a pivotal role in providing
direction, fostering transparency, and ensuring fair decision-making would help
the business families, despite not being in a joint family system.
This leader should embody the qualities of prudence,
fairness, and transparency, striking a delicate balance between authority and
respect. This structured approach would help maintain a cohesive family unit
and facilitates effective decision-making.
Similarly, a culture of collaborative decision-making where
the opinions and perspectives of every family member, both adults and youth,
are valued, should be encouraged.
Families should develop a framework that ensures active
participation from all members, preventing unnecessary controversies and
promoting a harmonious environment. By integrating diverse viewpoints, families
can tap into the collective wisdom of individual talents, similar to the
collaborative approach seen in joint family systems.
The success of many business families that were joint
families, lies in their unique ability to create a rich resources basket,
fostering collaboration, and providing a robust foundation for entrepreneurial
endeavours.
Basant Hetamsaria's insights underscore the importance of a
universal head, prudence, fairness, transparency, and commitment in maintaining
the resilience of joint families.
Despite the challenges posed by modernity and the
disintegration of joint families, its principles continue to be of relevance. It
offers valuable lessons for contemporary business families. Incorporating what
joint families offered in a modern setting would retain entrepreneuring
families and their rich resources basket.
