New venture team, human resources, organizational culture

  1. Human resources management is one of the key fields where superior or deficient performance of the founders manifests itself. It creates a strong basis for the firm’s competitive standing in the market. This section will discuss the key issues in human resources management in newly established firms.
  2. The core of the team related with the newly created organization is its founders (a single person or a team comprising of two or more people). Later on, they will be joined by employees. As the firm develops, some employees will make up the management team together with the founders.
  3. Issues related with human resources and their management in start-up firms reveals one basic contradiction. The start-up phase requires unconventional actions from a narrow group of leaders and the first employees, before procedures and rules are developed. At the same time, basic principles start taking shape not only in the scope of strict business operations of the firm, but also in the field of values, moral standards and interpersonal relations. Typically, these spheres are collectively referred to as the firm’s “organizational culture”.
  4. Organizational culture is extremely important to implementation of the enterprise’s strategic objectives. For this reason, it is unacceptable for it to develop spontaneously. Due to the specific nature of interpersonal relations, correction of possible mistakes resulting from inappropriate development of these relations at the beginning may prove very difficult in the future.
  5. Among crucial elements of the firm’s organizational culture, ethical issues require particular attention. They result from specific conditions occurring at the start-up of the business. Therefore, when preparing for start-up of a new business, its initiators should specify the basic principles and values which will become the foundation of the firm in the future. While it would be unrealistic to assume that all issues will be resolved immediately, the initiators should recognize how important these principles are from the start.