In the article I (Sam) was quoted in, the spokesperson for the Canadian Federation of Small Businesses says most small business owners treat their employees like families. I think that this is absolutely the wrong way to go about working with staff.

I don't consider my staff my family or friends. It's not cuz I'm cold hearted. I care a lot about my staff - not just as employees, but as people. But workplace boundaries set up a clear system of roles and rules and help to prevent manipulation (both conscious and subconscious)

A boss who says "we're all family here" leaves the door open to emotional manipulation. We're supposed to sacrifice for our families! This type of business relationship makes it easy to guilt staff into working longer, harder & for less (& it's easier for staff to feel guilty)

A less formalized "family style" relationship is also a way for bosses to duck regulations and blur responsibilities. It means things like sick days and pay rate become rewards that can be handed out for good behaviour (or withdrawn for bad) instead of consistent policies.