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HR ForStartups Over View
1. HR FOR START UPS
Vasanthi Srinivasan
Indian Institute of Management
Bangalore
2. Would you tell me, please, which way I ought to
go from here?'
That depends a good deal on where you want to
get to,' said the Cat.
3. I don't much care where--' said Alice.
Then it doesn't matter which way you go,' said
the Cat.
4. --so long as I get SOMEWHERE,' Alice added
Oh, you're sure to do that,' said the Cat, `if you
only walk long enough.'
5. Three facets to Managing people in
start ups
• Impact and influence of founders characteristics
• Manner in which new people are brought in to
the organization and managed (selection,
socialization, performance management and
feedback, allocation of roles and responsibilities)
--- HRM function delivered by operating
managers
• Structures, systems and processes – HR
department
6. Do entrepreneurial firms differ?
• Life cycle has an important role to play in
differences in HR practices
• Nature of ownership impacts
• Founder’s foot prints take time – last up to 25
years
• Entrepreneurial firms need to evolve their
own HRM practices – copying large firm
practices does not make you a large firm
7. Challenges in family managed firms
• What is your role ? Are you an owner, a
manager or an owner manager?
• On what areas, are you
– Responsible
– Approval
– support
– Consulted
– Informed
9. STAGES OF GROWTH OF AN
ENTERPRISE
• Growth through creativity
• Growth through direction
• Growth through delegation
10. GROWTH THROUGH CREATIVITY
• Each stage has a unique HR challenge
– Hire people known, often for lower compensation
– Ability to do multiple things
– Compensation – ad hoc, based on criticality
– High autonomy, lack of procedures, close knit
– Documentation weak
11. GROWTH THROUGH DIRECTION
– Norms/standards
– Strong performance management processes
linked to incentives
– Succession and delegation
– Definition of jobs and responsibilities
– Need to attract talent w/o jeopardizing existing
loyalty
– May have to exit some employees/make
compensation corrections
12. GROWTH THROUGH DELEGATION
– Variation across divisions
– Competence of the managerial /technical staff
– Leading from afar-- CEO
– Strong reporting structures for control yet
autonomy
– Need for HRM practices of be integrated