HR FOR START UPS Vasanthi SrinivasanIndian Institute of Management Bangalore
Would you tell me, please, which way I ought togo from here?That depends a good deal on where you want toget to, said the Cat.
I dont much care where-- said Alice.Then it doesnt matter which way you go, saidthe Cat.
--so long as I get SOMEWHERE, Alice addedOh, youre sure to do that, said the Cat, `if youonly walk long enough.
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
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
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
STAGES OF GROWTH OF AN ENTERPRISE• Growth through creativity• Growth through direction• Growth through delegation
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
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
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