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Creating a HR System in a Family Business

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Nityananda Chatterjee
22
Nityananda Chatterjee, India

Creating a HR System in a Family Business

I have been directed to set up a HR system in my company. Recently the management of the company has been switched over to a foreign owner.
I am facing tremendous problems to change the existing work culture to give a proper shape to the organization.
I regret to say most of the staff members do not realize the importance of an HR Department. Therefore, it is difficult day after day to run the organization.
Actually most of the staff are nurtured in family businesses. They think that if their boss is pleased that is enough.
Under these circumstance I ask for a suitable advice to give a proper shape to the HR department.

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  Vivek Joshi
2
Vivek Joshi, India
 

Creating a HR System and Organization Design in a Family Business

My experience is that in such cases a top-down as well as bottom-up approach is needed. For top-down, communication, setting of measurable objectives and an effective Performance Management System is needed. For bottom-up, external training, communication and reward system to be put in place.
Cultures change slowly, more so in social settings which are 'traditional", so you will need to give time to your people.

  Jack Van Den Heerik
2
Jack Van Den Heerik, Belgium
 

Creating a HR Organization

I would like to suggest that there are two elements that could make your job and your life easier. The first is to ensure that you have a sponsor for your project who will support you in your undertaking of setting up an HR function. The second is that you must communicate to the organization the purpose and advantages of creating a HR organization and give your co-workers a reason to get involved.

  Schircks, Arnulf, Dr.
2
Schircks, Arnulf, Dr.
Business Consultant, Switzerland
 

Introduction of HR System

Two points are relevant using a professional project management approach:
1. Acceptance of a new system is rather more important than quality. Of course, you need a sponsor. And define ALL important stakeholders. Communicate with them (meetings, interviews), take their needs seriously and convince them for the system which satisfy all stakeholders.
2. For quality: use a professional Project Management approach e. e. PMI with 9 Knowledge Areas.

  Nokwazi Shongwe
2
Nokwazi Shongwe, South Africa
 

Setting Up a HR System. Models

It is quite challenging to move people from their comfort zones after a long time. However there are 2 models that I believe can help to solve such change resistance problems. The Five Stages of Grief by Elizabeth Kubler-Ross (1. Denial, 2. Anger, 3. Bargaining, 4. Depression, 5. Acceptance) and the Change Phases Model by Kotter.
Both these models need to be followed accurately through the steps in order to avoid and overcome resistance.
2 books by John Kotter that discusses change management are Force for Change, Our Iceberg is Melting: Changing and Succeeding Under Any Conditions.
A burning platform might be the last resolution however that can only be done after consulting all stakeholders involved to avoid mass strikes etc."

  Susan Germein
3
Susan Germein, Australia
 

Introducing an HR System in a Family Business

I agree with @Vivek Joshi to an extent. I recently worked with an outsourcing professional services team in Bangalore, trying to build a results focused & ownership culture where the traditional culture was high dependency and 'family' culture with no performance management / HR protocols in place.
I think it's important not to throw the baby out with the bathwater. What I mean is, there are many aspects of traditional Indian business culture which work really well and don't need to be fixed, yet you have a foreign owner who has a different mindset and different cultural expectations.
You need a HR department, but honouring the best of Indian culture.
This requires education of both the owner side and the employees, and as Vivek said, it needs time and patience.

  Benjamine VO VINH - MARECHAL
2
Benjamine VO VINH - MARECHAL, France
 

HR Mission: Help to Reach Business Goals

The key point about HR dpt mission is helping company to reach business effectiveness and growth. HR dpt must therefore be seen as a true business partner and you may have to explain your HR staff that this partnership role, their role, is very important for the company, so for the boss who will be "pleased" because of good results. So coming from their reality, you slowly introduce the fact that company success is the boss' success. Your staff could after be seen as first adopters of cultural changes.

  Md. Shahriar Hussain
2
Md. Shahriar Hussain
Management Consultancy, Bangladesh
 

Ensure Support of Owner

I realize your problem. Such situations are seen in most of the private enterprises where a corporate culture is yet to develop. However, I think you should sit with the owner and try to explore his intention and whatever you want to do for establishing HR system, you need to have full support of the top person, otherwise you can't move.
If the rules of the game are not understandable by the employees then it's difficult to work and to achieve objective."

  Joseph Philip
1
Joseph Philip, India
 

Implementing a HR System: Identify the Top Issues

The first step is to identify the top issues (the number depends on resources you have) where the staff needs the help of HR the most.
Then create solutions around them and try to implement them, and monitor them.
The best place to start is often recruitment and managerial skills coaching / employee counseling.
The next step is to involve executives in the projects where they have an interest.

  Rafael Acosta
3
Rafael Acosta
Coach, United States
 

Shaping a HR System in Family Business

Nityananda, as I read your request, I am not sure you if you are on board with what you have been "directed" to do. Your answers to the following questions should help you set right course.
1. Do you believe in the vision of the person who is directing you?
2. "Proper shape of the organization" or "foreign shape of organization" or "best long term business shape of the organization" which one do you know is best if its was your family business?
3. "Most of the staff members do not realize importance of HR dept". Nityananda you are the HR dept... You capture your co-workers attention when you convey confidence, intrigue, interest in others, enthusiasm, and respect. Once you have there attention they will begin to listen and hear what you have to offer. Good luck...

  Isabelle Virassamy
0
Isabelle Virassamy
Mauritius
 

Introduction of an HR System in Family Business

I am of the view of @Rafael Acosta, you need to drive your people. You are the one who needs to capture their attention. You are the leader, am I right?
Whatever you will say and do, the first thing is to get their attention, motivate them through incentives or rewards... Inspire them.
One organisation problem is that there is no alignment between individuals' goals and that of the company: maybe you could try to solve this area.

  Victor Aguilan
2
Victor Aguilan
Professor, Philippines
 

Start with Discussing the Purpose of the HR System

HR system is often viewed as a tool of management (owner). This view is common among union members. It's seen as a tool to control, monitor and discipline employees. However if both management and em...

  Kevin M. Adolfo
2
Kevin M. Adolfo
Management Consultant, Philippines
 

HRM as a Strategic Partner and Catalyst of Positive Change

Gone are the days when Human Resource Management was considered as a repository of employee files or information. Human Resource Management Roles have metamorphosed into a strategic partner of the ow...

  David Wilson
2
David Wilson
Manager, Canada
 

Keep it Simple and Walk the Talk!

I agree with @Kevin Adolfo that the HR department must align its program with the vision, mission and goals of the organization. The HR department must also have clearly defined roles and responsibili...

  Parakrama Girihagama
2
Parakrama Girihagama
Turnaround Manager, Sri Lanka
 

Introduction of HR System

In this process, my opinion that the process has 2 areas, a hard, technical area of the system which has to be attended to with competent organization members. And a soft area of winning the minds and...

  K.Narayana Moorthy
0
K.Narayana Moorthy
HR Consultant, India
 

Shaping the HR.Department in a Family Business

@Nitynanda Chaterjee: if I were to be in your position, I would first translate and implement internal policies into a process that: - Creates a culture which rewards individual and collective initia...

  David Wilson
1
David Wilson
Manager, Canada
 

Link the HR Roles to the Business Strategies, Goals and Objectives

Hi Nityananda: You need to ensure the HR Department understands the Company's strategies, goals and objectives. Every job should link to the Company's need to survive and thrive (see the following boo...

 

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Participate


More on Human Resources Management
Methods, Models and Theories Discussion Topics
topic Which Background is Preferable for a Manager?
topic Line Managers' Knowledge of HR
topic Job Evaluation Systems
topic Human Resources Management: Art or Science?
topic Introducing New HR Policies
topic Human Resource Audit
topic Methods of Employee Profiling by HR?
topic HR Challenges in the 21st Century
topic Favorite HR Phrases :-)
topic Definitions of Human Resources Management
topic Core functions of HR?
topic HR as a Strategic Business Partner
topic Meaning of Employee Induction, Orientation and Onboarding
topic Role of the HR Manager in a Financial Crisis
👀Creating a HR System in a Family Business
topic Differences Between HR Practices in Small and Large Organizations
topic Employee Relations - Frames of Reference
topic Old Myths about HR?
topic Role of the HR manager in M&A
🔥 Human Resource Information Systems (HRIS) - Overview
topic The 7 G Framework of HRM Practices
topic Return of Piecemeal Pay/Work
topic Ratio of Number of HR Positions to Staff Numbers
topic Does an HR Manager Need Relations in the Industry?
topic Human RELATIONSHIP Management
topic Ideas for Improving HR Service Delivery
topic The Role of HR in Safety and Security at Work
topic Methods to Create Task Descriptions
topic The Warwick Model (Hendry and Pettigrew)
topic What is the Effect of Globalisation on HR?
topic New Employee Orientation
topic Artificial Intelligence in Human Resource Management
topic Crucial Things to Know for a Starting HR Manager
topic Impact of HRM on Company Performance
topic Retirement of Baby Boomers and Ikigai
topic Green Human Resource Management
topic Psychological Contract
topic Models to Determine Numbers and Types of Staff
topic Salary Policy on Natural Disasters ('Acts of Nature')
Participate
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