Gobernabilidad I: What does "governance" mean in a family business?

What does "governance" mean in a family business?

As a family business grows and matures it should seek to be more professional in its internal organization. That means it should develop a formal, internal management structure with a written organization chart (no matter how rudimentary) and job descriptions for its employees, including family members. It should also develop human resource policies and procedures. In developing these policies — either internally or with outside professional assistance — management should be sure that they comply with federal and state laws regarding the workplace.