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Comparative Study of HR Practices in Startups vs Corporates

Issue Abstract

Abstract 

This study explores the contrasting Human Resource Management (HRM) practices of corporate organizations and startups, highlighting how size, structure, and culture shape their approaches. Corporates operate with formal systems, well defined hierarchies, and standardized HR processes covering recruitment, onboarding, training, performance management, compensation, and compliance. Their practices emphasize stability, regulation, and scalability but often face challenges of rigidity and slow adaptability. In contrast, startups function with lean resources, flat structures, and a people-centric culture that prioritizes speed, flexibility, and innovation. Their HR practices evolve organically, focusing on cultural fit, multi-tasking, and ownership, though often lacking consistency and formal frameworks. The study also notes a growing convergence: corporates are adopting agility and people-first approaches from startups, while startups are formalizing policies as they scale. Ultimately, both models carry strengths and limitations, and a hybrid HR approach that blends structure with adaptability is essential for building sustainable and engaging workplaces. Keywords: Human Resource Management (HRM), Organizational Structure, Corporate–Startup Comparison, Agility and Adaptability, Sustainable HR Practices


Author Information
S.S. Suvaathi, H. Nithya Sai, K.V. Yuvasree, R. Varshaa
Issue No
9
Volume No
5
Issue Publish Date
05 Sep 2025
Issue Pages
75-101

Issue References

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