How do companies with “self-managed” employees make HR decisions?

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manpreet Tuteehub forum best answer Best Answer 2 years ago

 

I recently read about Morning Star Tomato. According to this video, their employees are entirely self-managed and contribute to the company in whatever way they see fit. Decisions like equipment purchasing are made by consensus.

While this seems like an interesting idea, I have to wonder how they make HR decisions. I assume they make hiring decisions by reaching some href="https://forum.tuteehub.com/tag/sort">sort of consensus that the individual is or isn't a good fit. But if someone isn't pulling their weight, how might they go about disciplining or firing them? And how would they work out how much to pay people? Wouldn't making these decisions by committee create a toxic work environment (i.e., turn discipline/firing and salary decisions into a popularity contest)? I've read interviews with former employees of Valve that claimed that cliques formed within the company, making the management structure less "flat" in practice that it would appear to be.

It's worth noting that this company is very successful. They process a significant portion of California's tomato crop.

Does anyone have experience working at a company with this kind of structure or know someone who does?

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manpreet 2 years ago

I am working in software industry and the current employer doesn't have any HR people, which is not unheard in smaller companies simply because there's no need for it. It might be different in other industries or very large corporations.

Hiring. Yes, the interviewers share their notes and opinions and make the decision together. Usually there's a decision maker (e.g. founder, senior manager, etc) who makes the final decision. The interviewers are the potential colleagues of the candidate and they have the expertise in the field, so they are in a good position to make a correct decision. HR wouldn't help much with hiring decisions, often they simply help to filter out the candidates who have very little to no chance to be hired.

Firing / Promotion / etc. HR presence doesn't really change anything here either. If someone is not efficient enough, it is noticed by managers rather than HR as they have expertise to make judgement. Same goes for promotions. If there are legal issues when in it comes to firing, read the next paragraph. Often, the managers are in a better position than HR to make an informed decision and HR presence doesn't stop the popularity contest.

Some legal stuff and paperwork. That's the main difference, as that's what is handled mostly by HR. In companies without a HR department, lawyers are hired on retainer in case some advice is needed.


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