Professionalising Indian Family
Firms: An Analysis of the Role of
HR—Current Reality and Future
Perspectives
Tulsi Jayakumar
1
Abstract
A critical challenge in the long-term survival and growth of family businesses is the adoption of
professionalisation. The latter itself, when viewed as a multi-dimensional construct, would involve a
critical role assigned to HR and HR control systems.This article then seeks to undertake an exploratory
research to understand the current reality and the future perspectives of professionalisation in Indian
family businesses through the lens of HR and HR control systems. Six caselets explore the experiences
of six representative family businesses with regard to their professionalisation journey. The article
finds that while the next-generation views professionalisation as imperative for scaling up, HR is still
in its infancy stage in these Indian family firms. This would have ramifications for the outcomes of such
professionalisation. The article concludes that HR would need to be assigned the role of a regenerative
function, rather than a back-end administrative role that seems to be the current reality.
Keywords
Delegation of power, founder involvement, human control systems, professionals
Introduction
The transformation of family businesses from entrepreneurial start-ups which are owner managed
to more formal, structured organisations is a major research issue in family business literature. Such
transformation involves a process of professionalisation, with its attendant opportunities and challenges.
A major constraint is the binary sense in which professionalisation is perceived as the presence/absence
of professionally qualified people in business.
However, a more appropriate way of looking at professionalisation is by considering it as a multi-
dimensional construct (Dekker, Lybaert, Steijvers, & Depaire, 2015). Viewed thus, the role of HR in
designing and implementing effective HR control systems becomes a vital aspect of such
NHRD Network Journal
13(1) 25–37, 2020
© 2020 National HRD
Network, Gurgaon
Reprints and permissions:
in.sagepub.com/journals-permissions-india
DOI: 10.1177/2631454119894754
journals.sagepub.com/home/nhr
Article
1
S. P. Jain Institute of Management and Research (SPJIMR), Mumbai, Maharashtra, India.
Corresponding author:
Tulsi Jayakumar, S. P. Jain Institute of Management and Research (SPJIMR), Dadabhai Road, Munshi Nagar, Andheri West,
Mumbai 400058, Maharashtra, India.
E-mails: tulsi.jayakumar@spjimr.org; tulsijayakumar@gmail.com