A Quarterly Newsletter from AVTAR - April 2009
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HR- the Core Business Propellant in Start-ups
By Malini Kalyanam
Head HR, Veta

Businesses today, especially in the start-up phase, are increasingly relying on the HR function as a core business propellant. Entrepreneurs and other experts involved in start-up businesses have understood the fact that the HR is the one function that rings in ‘right’ man-power talent, nurtures it through relevant on-the-job training, motivates employees through suitable methods and is responsible for the desired growth in the business. In short, the HR is the ‘eyes’ and ‘ears’ of any business enterprise.

This article aims to look at the various roles played by HR when it comes to building a start-up organization:

Proactive Information Giver:
To carry out the HR function successfully, the HR team needs to be shrewd so that it renders proper advice to entrepreneurs to propel their business in the right direction. The Head of HR should focus on areas that can generate revenue without additional investment. The HR team has to be proactive always and come to the forefront to render proper Man-management practices. The team plays a liaison between the management and staff as also between the organization and its customers.

Accurate Benchmarker:
For any company, bench marking to proper standards should be a regular ongoing affair and this is more so in the case of young businesses, which rely on the gut instinct of the entrepreneur. A half-yearly bench marking exercise conducted in consultation with HODs will serve the purpose of the business leader to understand how the industry is moving. While in the short-term, this may be seen as an expense of time and effort, in the longer term, postponing the exercise can prove a costly affair to the company.

Strategic Decision Enabler & Problem Solver:
In start-up operations, where senior management will be hard-pressed for time, HR has to focus on strategic operations and inform the Management of how, when and which operations can be outsourced by shedding non-core business activities. Decisions such as ‘make-or-buy’ can be effectively enabled by HR with their inputs. In addition, any company litigation or dispute can best be understood by the HR department as it is constantly in touch with human behaviour and is in a position to analyze the same to the advantage of the business.

HR : The Core propeller of Business:
The HR always plays a supportive role in business verticals on strategic partnerships and joint ventures and also helps all business heads in difficult times like economic slowdown or recession. An organization can have the big “M” factor (Money) to invest, but without the right support from HR, a wrong “M” placement (Man-power) can be devastating.

The HR, as a core propeller to the business, understands this fact well; it is always the back bone of any business activity. It stands for the growth of all organizations.


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