HR Ownership & Scale

Who Should Own HR in a ₹20–₹50 Cr Company?

In ₹20–₹50 Cr companies, HR cannot be “everyone’s job” or just the admin team’s responsibility. Poor HR ownership creates chaos: random salaries, weak managers, high attrition, and founders stuck in daily firefighting.

HR ownership must be shared but accountable. Here’s the exact structure that works.

The 3-part HR ownership model

1. Founder/CEO owns the WHY (Vision + Culture)

What they do:

  • Sets people philosophy and rewarded behaviours
  • Approves org structure and leadership hires
  • Ensures HR strategy supports business goals

At this scale, culture cannot be delegated fully. Founder ownership of “what we stand for” keeps alignment intact during rapid growth.

2. HR Head/HRBP owns the HOW (Systems + Execution)

What they do:

  • Designs hiring, performance, compensation, training, policies
  • Partners with functional heads to translate business needs
  • Tracks people metrics: hiring speed, attrition, engagement

HR here is a business partner, not admin. This role must speak revenue, productivity, and efficiency—and report directly to CEO/COO.

3. Functional Heads own the WHAT (Team Performance)

  • Sales Head owns pipeline, conversion, revenue
  • Ops Head owns delivery, quality, efficiency
  • Finance Head owns financial discipline

HR provides tools, not supervision. Line managers own daily performance and results.

Why this model works (and others don’t)

What works: Shared ownership with clear lanes

Founder → Sets direction + culture
HR Head → Builds scalable systems
Line Heads → Drive team results

What fails:

  • HR as pure admin
  • Founder owning everything
  • Line managers owning HR
  • No clear ownership

Real-world proof this structure delivers

  • 21% higher profitability
  • 17% higher productivity
  • 41% lower absenteeism and 59% lower turnover

When HR becomes a business partner, execution becomes predictable and scalable.

The HR Maturity Checklist for ₹20–₹50 Cr

Level 1: Admin-focused

  • Payroll and compliance only
  • No performance system
  • Founder approves everything

Level 2: Transitional

  • HR Head exists but underutilized
  • Basic structure, weak accountability

Level 3: Strategic partner

  • HR in strategy meetings
  • Clear KRAs and KPIs
  • Data-driven people decisions
  • Founder freed from daily HR issues

How to implement this ownership model

Step 1: CEO communication

“I own culture and direction. You own team results. HR owns the systems.”

Step 2: HR capability upgrade

HR must evolve into a business partner with access to real business data.

Step 3: Functional head accountability

No excuses. Results are non-negotiable.

Step 4: Regular cadence

  • Monthly HR + function reviews
  • Quarterly org health reviews
  • Annual org structure planning

What this looks like in practice

BEFORE: Founder approved every salary.
HR processed paperwork.
Attrition = 28%.

AFTER: Clear ownership model.
HR built systems.
Sales owned results.
Attrition dropped, productivity rose.

Grow with Consultants, led by Ameet Mukherji, helps ₹20–₹50 Cr companies implement this ownership model so HR becomes a growth accelerator.

FAQs – HR Ownership in Mid-Sized Companies

Who should the HR Head report to?

Directly to CEO or COO. Never to Finance or Admin.

Should founders still be involved in HR?

Yes, selectively. Founder involvement drops from 80% to 20%.

What if functional heads resist HR systems?

CEO intervention is required. Results are non-negotiable.

Can a COO own HR instead of CEO?

Yes, if the COO understands people philosophy and strategy.

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