Problems of Human Resource Management in Rapidly Growing Companies

by John Kotter, Vijay Sathe



The article identifies common problems of human resource management that seem to plague rapid growth companies, and then discusses solutions that some of the more successful ones have used to deal with them. It is based on experiences with twelve companies that have grown on the average at 40 percent per year for five or more years. Rapid growth companies that is, companies that grow at an average rate greater than 20 percent per year in number of employees, for at least four or five years in a row, are of considerable importance to managers, investors, and the public at large. They offer managers an exciting place to work and significant career advancement opportunities. It is not uncommon to find young managers in top spots in these companies. They offer the investor the chance for a much greater than average financial return. Rapid growth companies offer the public at large a significant source of expanding employment. Just a few rapidly growing companies in the same geographic region can sometimes make the difference between a stagnant economy with high unemployment and a robust economy with low unemployment.

California Management Review

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Published at Berkeley Haas for more than sixty years, California Management Review seeks to share knowledge that challenges convention and shows a better way of doing business.

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