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Management decisions on ‘Human Resources’ at StartUp

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Oct 17, 2012

Human resource (HR) is one of the four most important resources of an enterprise which occupies overall productivity. Among the necessary resources of an enterprise managing human resources is more critical because it deals with ever unpredictable creature-Human. While organizing an enterprise in its startup level, an entrepreneur probably faces the majority difficulties in managing and maintaining human resources. But, what do we mean by human resources? It is actually that part of the organization which consists of a group of people having heterogeneous skills that contributes and creates resources through their subject of exercise. Such skillful people need to be defined their roles and responsibilities at the organization and at times they need to be monitored. Defining their roles and monitoring is arduous job for an entrepreneur, who basically works as the chief of HR at a startup.

Startups that passed around 6-18 months of their existence experience a lot of difficulties with human resources because in a new born organization the entrepreneur is the most important human resource and he/she plays as the chief of HR assuming all roles and responsibilities while he/she needs to evaluate and control his/her team activities and targets. We know most of the cases startup enterprises are formed through a bunch of like-minded people who drive towards a goal and in this case all the co-founder/co-workers vision, work experience and level of expertise are not evaluated altogether. So, in the real world problems related to the co-founder/co-worker cum HR make trouble for the entrepreneur…

I think managing HR at startup enterprises (from their very beginning) should go on some specific procedures which include decisions on maintenance of HR and a well fit HR management procedure is needed to maintain by the entrepreneur himself/herself. Here is a proposed procedure of managing HR for a startup organization: 

  1. Defining startup’s organizational goal (Short term & Long term): Each and every startup should have some defined goals those can be for short or long time span. Pertaining to the goals human resource should be defined and organized and the initial HR team can be formulated through the co-founders or paid employees.
  2. Defining startup’s core team (consisting of all partners/co worker/co-founders): In an organization’s early days some sorts of neophytes are seen to be interested to engage in the organizational activities. But all of these people couldn’t become capable to be part of the core team as time passes by and their interest diverge . So, every startup should (form a team) or have a bunch of people having expertise on some specific field who will make a core team for doing all big deals according to the organizational goals.
  3. Sharing/elucidating the organizational goals to the core team members: It’s important to share the organizational goals to the core team members as to match organizational goals and their individual objectives. Before bestowing any responsibility to any anyone it's necessary to learn their expectation from the organization.
  4. Matching ‘team members level of expertise' in achieving organizational goals: After sharing and matching organizational goals with the team members, here needs to evaluate and match the team members level of expertise to justify whether it is good enough to achieve organizational goals. It’s crucial because a well fit HR is required to get the jobs well done.       
  5. Bestowing team members’ roles and responsibilities: After justifying the team members’ capabilities and skills then the Chief of HR can bestow the roles and responsibilities to the core team members.
  6. Identifying necessary incentives for the core team members: Only bestowing responsibilities can’t bring expected productivity from the team members. We know every person does a job for his/her personal interest. So, where their interest lies, what they expect should be identified and the entrepreneur (chief of HR) should provide continuous incentives to get proper output from them.
  7. Building ‘supportive team’ with core team: Till now I have talked only about the core team which is formed at the very beginning of the startup. From real life experiences we can realize, it’s very important to build up a ‘supportive team’ which will help the core team and the members of the supportive team will also learn from the core team.         
  8. Removing role conflicts among core team and supportive team:  As supportive team grows and learns many a things after having experiences, conflict between the core team and supportive team arises. So, strictly defined roles and responsibilities for both the team can help remove possible conflicts.
  9. Trying to build alternative/simulation core team from supportive team: The entrepreneur should try to assume or build a simulation core team from the supportive team. It’s because a simulation team can help an organization in its crisis moments.
  10. Continuous searching of new member for supportive team: Along with the core team and simulation core team, a startup should continue searching for new people (employees) for its supportive team. The selection of the members for the supportive team should be executed continuously by every startup for their strong HR team for the future.

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One comment on “Management decisions on ‘Human Resources’ at StartUp”

  1. My takeaway:
    "It’s important to share the organizational goals to the
    core team members as to match organizational goals and their individual
    objectives. Before bestowing any responsibility to any anyone it’s
    necessary to learn their expectation from the organization."

    Great post Indeed:)

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