This research applies the concepts of system theory and system stability to develop a semi-quantitative model by logic reasoning of qualitative propositions. This model tries to explain the ”insufficiency of middle-level personnel” phenomenon in Taiwan traditional family enterprises. From cultural point of view, familism mentality reveals the characteristics of authoritarian leadership, Guanxism orientation, and impression management. These characteristics will cause ”bipolar coexistence” in the organization system of traditional family enterprises. That means top management will stay in stagnant equilibrium situation, and low-level employees will inflow/outflow in dynamic equilibrium status. Both situations are systematically stable in nature. Middle-level personnel, however, appear to be unstable in the organization system. They will gradually leave the organization and establish their own businesses in most cases. Besides economic/tangible inducements, there are social/ intangible inducements which are highly recognized and valued in Chinese society. Proper balancing of these two kinds of inducements, therefore, can reduce middle-level personnel's psychological dissonance and stablize the organization system. However, reasonable and fair contribution/inducement system is still needed to be established for organization's long-term growth.