The document discusses three key facets of managing human resources in startups: the impact of founders' characteristics, how new employees are onboarded and developed, and establishing HR structures and processes. It also examines how HR practices need to evolve over the stages of a company's growth from creativity to direction to delegation, and the challenges that come with managing family-owned firms. The stages of growth each present unique HR challenges around hiring, compensation, autonomy, documentation, and performance management.

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

8. Stages of growth and HR
challenges

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