Authors: Associate Professor Dr. Kanupriya Dubey, Assistant Professor Ms. Avantika Tripathi, Assistant Professor Mr. Rahul Sharma
Abstract: Human Resource Management (HRM) is the most delicate and sensitive part of an organisation, that plays a vital role in the success of a startup. Its function is not only to do administrative tasks but it also plays its part in the strategic functions to enhance the performance, be innovative and shape organizational culture. The aim of Human Resource Management (HRM) is to provide a cooperative work environment for employees coming from diverse cultural backgrounds, which helps them grow professionally. At the same time, it ensures that employees work in alignment with the company's vision and mission. Humans are the primary and active factor of a firm. Startups face many challenges in establishing their name in a competitive market. In such situations, not having a positive and enthusiastic workforce can lower their morale. They face many challenges in acquiring, retaining qualified employees, managing high employee turnover, motivating employees, getting experienced employees to work according to their way. HRM designed before works better in the companies who operate at a wide scale so they often fail to assist the new startups to align with their work and resources convenience. This is the reason why many HR strategies fail when it gets applied to new firms. In these startups founders work as HR who recruit and make them work as per their vision. As they lack the experience of the same, their HR strategies backfire at them big time. With the growth of the startups transitioning from informal working style to formal working style is essential, so the company can manage more employees efficiently and provide proper assistance to all the employees. This involves selection of the candidate, job profiling, job descriptions, analyzing the performance, compensation structures, payroll, managing legal aspects of the department. Startups don’t have time for a long term growth and adaptability of the employees to the firm norms, they focus more on short term necessities. Therefore this paper is going to focus on the challenges faced by the new startups in managing their human resource and how they tend to remove the same.
