When the organisation works without proper 50+ years without HR, one can imagine the state of affairs. After half century, if you are establishing the HR systems and processes, then you should have anticipated the resistance to the change that you wish to to bring in.
The problems that you are facing are common to the family run businesses. These are because of the following reasons:
a) There is no strategic planning or strategic plan itself. Therefore, organisations of these kind do not do SWOT Analysis. Management does not identify the risks associated by depending on the persons rather than the systems and processes.
b) Generally growth of such organisations is 15-20% YoY. These breeds complacency. At times complacency is little milder word. It breeds arrogance itself. However, management neither has capacity nor inclination to calculate the losses YoY because of lack of systems and processes. Profit and losses both should be calculated. However, these organisations just look at profit and not at losses.
c) There are no proper measures of performance. Generally length of service or loyalty is rewarded rather than performance. Leadership prefers to be surrounded by clique by or yes-men around them. Far from criticism, leadership is not inclined to accept the opposite view as well. Divergence of the views often dismissed as disobedience.
d) Most of these organisations are shrouded by opaqueness and secrecy. Leadership relies on persons of their caste. Personal allegiance overrides the intelligence.
Your future course of action: - The change that you wish to bring in, HR or otherwise, depends on the authority that you enjoy. What is your designation? Does designation commensurate with the authority? Above all, what is the buy-in from the management? Will leadership be supportive to the changes that you wish to bring in? If not, then better do not waste time in convincing them to change. Just wait for the next 2-3 years and move on. Change is not just accepted but embraced provided it is thrust from outside. You may or may not be available when management realises folly of not changing.
The reasons you have mentioned in your post is very true.I am facing the same problem with my management.As a HR manager, I have tried hard to make them convinced to implement HR system and process but it is of no result.At the same time I want to mentioned that authority is not every thing until unless your management does not want to.
Please give me some idea how to make them convinced.
If the management style of the business leader is traditional then changing them becomes very difficult. In the course of my training, I have seen couple of cases wherein dad is the Managing Director (MD) and son is the Director. Son has differences with the dad and finally he gets into the new business. When dad refuses to oblige his son, do you think that they will accept what paid employees say?
Resistance to change arises out of non-execution strategic plan for their company. Far from making strategic plan, they even do not understand what strategy is. Strategic view diverts attention to the external factors including competitors rather than getting caught in mundane chores.
Therefore, if you wish to convince the management, then rather than convincing them for the introduction of routine HR matters, I recommend you doing it for preparation of the strategic plan. Strategy is nothing but identifying the risks associated with the business and taking timely preventive measures. Strategy is deciding the direction of the enterprise by avoiding the risks that may come in the future.
I conduct 3-day Training on Strategic Analysis of the Enterprise. I discuss the strategic tools thoroughly in this training. Recently I conducted this training programme. Total there were five participants and they were between 40 and 55 years. Though each participant had reasonable experience in the respective function, none had clarity on the strategy. For the last 20-25 years, they had lived in the world of misconception.
In owner-driven companies one often finds a lot of dead-wood, which enjoys extreme confidence of the top management. Such dead-wood resists any change, create obstacles in the way of other managers who are about to bring in the change/s. They do not train the new recruits under them and try to ensure that they are always indispensable. Their asset is their long association with the company / loyalty, with vast knowledge of working of the most of the departments within the company.
With the complexities of the business increasing every day new knowledge (software / laws etc) is what they miserably lac.
One needs a lot of patience and perseverance in dealing with such matters.
First thing spend some time seeing how things work or don't work in your company.
Who are the key people,what are their duties and how they coordinate their work.
After all company has been running for long.
Before change can be brought in,you have to settle down and win confidence of people.
Change is always resisted.
Modern concepts of management can be brought in one by one,keeping the most important changes first.
Sudden radical change will be difficult and not advisable.
Talk to top management about legal compliances and also consequences of not adhering to legal compliances.
I am sure this will ring a bell in the top management and they will be forthcoming.
Once you get support from the top,then things will get a boost.
Patience and diplomacy with clear road map is the way ahead.