SPHR Human Resources

Category - Strategy

Which of the following options is one characteristic of an organization during the startup phase?
  1. Executive benefits are upgraded.
  2. New hires may have less experience.
  3. The compensation package is competitive.
  4. Employees work closely with founders.
Explanation
Answer - D - Employees work the mostly closely with organization founders during the startup phase.

Key Takeaway: In a startup phase there are generally few layers of management, which allows the employees to work closely with founders and leaders of the organization. As an organization becomes more successful during the growth phase, it can afford to provide competitive compensation and benefits for employees. Executive benefit packages are often enhanced during the maturity stage of organizational growth, and also the organization is able to hire new employees with less experience and spend money to train them and allow them to grow into positions.
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