Effective human resources management is crucial for the success of any business. As capital, information, technology and markets are accessible to everyone, human resources of a company can only be the source of competitive advantage. Hence the CEO of a start-up company need to carefully design his/her HR Management systems. Some important aspects to be considered while designing HRM system for a start-up company are discussed in this article.

In the new age, starting a company has become far easier than it used to be. A lot of young people are increasingly choosing entrepreneurship as a career option. Internet and the web2.0 paradigm has revolutionized the way businesses are started and conducted. However, building a sustainable business will need a lot more than just a good idea. The most important aspect is building a team of right people for the business and retaining them with the company for a long time. Whichever business fails in this crucial aspect is bound to lose the battle and faces the risk of failure.




I often observed that designing HR policies and practices is taken lightly and usually the entrepreneur would search for some ready to use templates from the Internet or tries to copy from his/her past companies. This will only create problems at a later stage as HR policies and practices need to be designed to fit the unique context and nature of a particular company.

So how should a CEO go about designing HR policies and practices for his/her start-up company