Time to move on from the LALA style of working -

The Indian blue-chip companies have grown leaps n bounds conquering the western frontiers either through the acquisition route, the famous TATA Steel take over of Anglo Dutch giant Corus, or fighting it out on the foreign lands like Ranbaxy in US, but today the focus is on the SME segment, whether it is the IT companies like SAP & Cisco or the pure service providers, all want the share of this large but unstructured market in India. With market being so buoyant most of these SME’s are at the verge of major expansion and break into the big league. Global tie-ups, geographical expansion, acquisitions are all on these SME’s cards to take that quantum leap.

The major impediment in achieving these goals fast and successfully is the quality Human resource and policies. These companies are usually a family runs business ad hence lack the professional touch which is critical in today’s global market. Usually the companies in this segment depend on a set of loyal employees who have been with them for a long time. The decision making lies with the promoter with inputs from these so called old war horses.

Attrition rates in such companies is comparatively higher which is understandable as the growth potential seem limited and the company always seem to be in favour of these old pillars. Generally these senior employees who form the core team are reluctant to induct in the juniors in decision making teams even if they deserve to be and can add value. With the SMEs going in for expansion they will have to rework there HR policies and make the working culture more conducive for idea generation and contribution. The open office culture helps a lot making each one feel important and responsible. Hierarchy is a must but the flatter the better would be my take. The decision can be taken faster and everyone is inmidst of action instead of all decision making being done by set of people without even taking any views from other stake holders.

Market growing at great pace, the technology and resources availability being ample there is no stopping to these companies. Quality human resource (which in fact chalks down your strategy and policies) will be the differentiator and the key to growth.