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(HRM IN SMALL AND MEDIUM ENTERPRISES)
Sub: HUMAN RESOURCE MANAGEMENT Submitted to: Miss.CHANJYOT KAUR Submitted by; Mohammad Abbas Roll No. RS-1904A24 10906034
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Acknowledgements I am thankful to Miss.CHANJYOT KAUR for providing me the task of preparing the Term Paper of human resource management. We at Lovely believe in taking challenges and the term paper provided me the opportunity to tackle a practical challenge in the subject of human resource management. This term paper tested my patience at every step of preparation but the courage provided by my teachers helped me to swim against the tide and move against the wind. I am also thankful to my friends and parents for providing me help at every step of preparation of the Term Paper.
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CONTENTS; INTRODUCTION OF HRM INTRODUCTION OF SMALL ENTERPRISES ADVANTAGES OF SMALL AND MEDIUM ENTERPRISES PROBLEMS FACED BY SMALL AND MEDIUM ENTERPRISES
HRM in SMEs - deficient or different?
PRACTICES IN SMALL AND MEDIUM ENTERPRISES • RECRUITMENT • SELECTION • ORIENTATION • DEVELOPMENT & CONTINUED EMPLOYEE INVOLVEMENT • RETENTION
HRM IN SMALL AND MEDIUM ENTERPRISES IN BRIEF
CONCLUSION
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The definition of human resource management The function of human resource management (HRM) in large organizations involves a wide range of activities, and crucial ones among them include deciding on what staffing needs a firm has and whether to use Independent contractors or hire employees to meet these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include management approaches, employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or non profit) have carried out these activities themselves because they can't yet afford part- or full-time help.
INTRODUCTION A small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships. The legal definition of "small" varies by country and by industry. In the United States the Small Business Administration establishes small business size standards on an industry-byindustry basis, but generally specifies a small business as having fewer than 100 employees. In the European Union, a small business generally has under 50 employees. However, in Australia, a small business is defined by the Fair Work Act 2009 as one with fewer than 15 employees. By comparison, a medium sized business
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or mid-sized business has fewer than 500 employees in the US, 250 in the European Union and fewer than 200 in Australia.
In addition to number of employees, other methods used to classify small companies include annual sales (turnover), value of assets and net profit (balance sheet), alone or in a mixed definition. These criteria are followed by the European Union, for instance (headcount, turnover and balance sheet totals). Small businesses are usually not dominant in their field of operation. Small businesses are common in many countries, depending on the economic system in operation. Typical examples include: convenience stores, other small shops (such as a bakery or delicatessen), hairdressers, tradesmen, lawyers, accountants, restaurants, guest houses, photographers, small-scale manufacturing etc. The smallest businesses, often located in private homes, are called micro businesses (term used by international organizations such as the World Bank and the International Finance Corporation) or SoHos. The term "mom and pop business" is a common colloquial expression for a single-family operated business with few (or no) employees other than the owners. When judged by the number of employees, the American and the European definitions of a micro business are the same: under 10 employees. There is a notable trend to further segment different-sized micro businesses; for instance, the term Very Small Business is now being used to refer to businesses that are the smallest of the smallest, such as those operated completely by one person or by 1-3 employees.
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Advantages of small business 1. A small business can be started at a very low cost and on a part-time basis. Small business is also well suited to internet marketing because it can easily serve specialized niches, something that would have been more difficult prior to the internet revolution which began in the late 1990s. 2. Adapting to change is crucial in business and particularly small business; not being tied to any bureaucratic inertia, it is typically easier to respond to the marketplace quickly. 3. Small business proprietors tend to be intimate with their customers and clients which results in greater accountability and maturity. 4. Independence is another advantage of owning a small business. One survey of small business owners showed that 38% of those who left their jobs at other companies said their main reason for leaving was that they wanted to be their own bosses. Freedom to operate independently is a reward for small business owners. 5. Many people desire to make their own decisions, take their own risks, and reap the rewards of their efforts. Small business owners have the satisfaction of making their own decisions within the constraints imposed by economic and other environmental factors. However, entrepreneurs have to work very long hours and understand that ultimately their customers are their bosses.
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6. Several organizations also provide help for the small business sector, such as the Internal Revenue Service's Small Business and Self-Employed One-Stop Resource.
Problems faced by small businesses 1. Small businesses often face a variety of problems related to their size. A frequent cause of bankruptcy is undercapitalization. This is often a result of poor planning rather than economic conditions - it is common rule of thumb that the entrepreneur should have access to a sum of money at least equal to the projected revenue for the first year of business in addition to his anticipated expenses. For example, if the prospective owner thinks that he will generate $100,000 in revenues in the first year with $150,000 in start-up expenses, then he should have no less than $250,000 available. Failure to provide this level of funding for the company could leave the owner liable for all of the company's debt should he end up in bankruptcy court, under the theory of undercapitalization. 2. In addition to ensuring that the business has enough capital, the small business owner must also be mindful of contribution margin (sales minus variable costs). To break even, the business must be able to reach a level of sales where the contribution margin equals fixed costs. When they first start out, many small business owners under price their products to a point where even at their maximum capacity, it would be impossible to break even. Cost controls or price increases often resolve this problem. 3. In the United States, some of the largest concerns of small business owners are insurance costs (such as liability and health), rising energy costs and taxes.
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In the United Kingdom and Australia, small business owners tend to be more concerned with excessive governmental red tape. 4. Another problem for many small businesses is termed the 'Entrepreneurial Myth' or E-Myth. The mythic assumption is that an expert in a given technical field will also be expert at running that kind of business. Additional business management skills are needed to keep a business running smoothly. HRM in SMEs - deficient or different? The most stable insight of empirical investigations into the characteristics of Human Resource Management (HRM) in SMEs compared to larger organizations seems to be an observable lesser degree of institutionalization and formalization regarding HRM procedures and activities (Behrends/Martin 2006; Cassell/Nadin/ Gray/Clegg 2002). As such smaller companies often do not have a separate HR-department (or designated HR-experts) at their disposal, nor do they usually apply many of the elaborated HRinstruments (Behrends 2002 and 2004). Instead, HR-related activities are often limited to a mere processing of administrative tasks (such as pay-rolls etc.); while more strategic matters (if at all) are usually taken care of rather en passant" by senior management. But does this apparently inattentive treatment of HR-related tasks by many SMEs necessarily reveal a management deficit? When taking a closer look at the relevant literature we can find basically two - fundamentally different interpretations (or even: "interpretative paradigms") concerning the linkage between organizational size and HRM. The "deficit model" Many publications tend to construe the observable absence of (formal) HRM in small and medium-size enterprises as a severe management deficit". Thus they stress the need for stronger regulation of HR-related activities by implementing standardized tools and structures. However, this line of argumentation is
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obviously underpinned by a notion that regards the highly differentiated HRMsystems of large corporations as the one best way and therefore as a desirable ideal for SMEs as well. Often already through their empirical design, the respective studies are mainly focused on exploring the degree of proliferation of those modern HRM-practices usually found in large corporations. As a consequence, this view may only inadequately account for the specific structural realities in SMEs and thus lets this type or organizations nearly inevitably appear to be unprofessional and deficient (Curran/Blackburn 2001). The "equivalence model" In contrast to the "deficit model" a second perspective on explaining sizedependent differences concerning HRM - the so called "equivalence model" - is informed by the consideration that there is no one best way for handling the challenges of HRM. Building on a functionalistic understanding of organizations, this research perspective emphasizes the fact that certain indispensable HR-functions have to be fulfilled in any given social system in order to secure its long-term survival (Martin 2001). But as there usually exists a wider range of alternative options for handling these elementary functional requirements (so called functional equivalents), the suitability or appropriateness of an organization's particular approach towards HRM can not be assessed generally but only against the backdrop of its specific context and action requirements (Bartscher-Finzer/Martin 2006; Behrends/Martin 2006). So instead of a priori taking a "large corporations"-research perspective the equivalence model is basically open to the existence of rather different ways of coping with fundamental HR-related challenges. PRACTICES IN SMALL AND MEDIUM ENTERPRISES. Recruitment
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The process of recruitment involves identifying adequate numbers of suitably skilled and competent persons to apply for the position that has become available within the organisation (Cook 1998). Other authors have suggested that it is to draw a group of appropriately qualified people who want to apply for employment vacancies that exists (Crompton, Morrissey and Nankervis 2002). Small business, it is suggested, have lacked the formality found in the recruitment processes that are carry out by big business(Carroll, Marchington, Earnshaw and Taylor 1999). This of course is the result of the fact that recruitment for larger organisations that have specific HR staff and departments to deal with such matters must employ formal strategies to maintain control. On the other hand, it is apparent that in the family owned and managed small business, restraints of time and money may contribute to the lack of formal process involved in the attraction of possible new employees to the business. Notwithstanding this, small business must “attract” a sufficient number of employees from which to select and retain employees within the same competitive environment as large business. Attracting the appropriate employee is the first phase in establishing the relationship between employer and employee. From this, is it possible to identify what characteristics of the small business recruitment processes contribute to effective attraction out comes. Having briefly reviewed recruitment, attention is now turned to staff selection. Selection Selection of staff from those attracted through the recruitment process can often be a more complex experience. The selection process can include activities such as checking references, interviewing in order to obtain an appropriate match between the vacancy and the possible new employee (Worthington 1992). Other selection activities can include testing the employee’s abilities to see if they meet the organisations needs. Cook (1998) recognized that it is important that the candidate selected must be the person who can most effectively contribute to the businesses goals.
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Small business owners are repeatedly forced to have a reactive recruitment and selection process due to financial and time constraints (Carlson, Upton and Seaman 2006). Holliday (1995) suggests that often lack of understanding of the requirements of the position impede successful recruitment outcomes. The selection process can be enhanced however through the establishment of a good “fit” between the employee and employer this can contribute to the matching process of the relationship. The prospective employee employer match at this early stage of the association can form the basis for a bond for “attraction” which can develop and will enhance long term economic goals of both parties. Staff orientation is now briefly reviewed. Orientation Orientation must be conducted as soon as possible after the employee commences work within the business. Orientation and induction of new employees has a focus toward “Building the relationship”, that is the employer developing a relationship with the employee, based on the “attraction” that had been established in the recruitment and selection phases. Holton (1996) confirms that orientation is “the most common type of training provided by organisations” and forms part of a socialization for new employees. Orientation has been defined as the “introduction of new employees to their job, their colleagues and the organisation” (Stone 2005). This definition confirms the importance of building on the “attraction” of the recruitment and selection process through the rapid development of the initial employee relationship orientation with not only the other employees but also their relationships within the organisation. An orientation process that is soundly planned can have the intended effect of improved productivity as well as retention levels (Brown 2005). The effect of the family-like relationships found in the small business environment can enhance the new employee’s orientation and ability to rapidly adapt and fit into the organisation.
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Provision of important information as part of the orientation process such as business guidelines, regulations and rules can significantly reduce the possibility of mistakes that can lead to stressful situations. Mentoring and coaching programs established during the orientation process can enhance the relationship match established in the selection process. More experienced employees can enhance the development of relationships by ensuring the new employee understands the relationships necessary to attain goals and desired performance outcomes. Support of new members of staff through encouragement and involvement can enhance the relationship past the orientation process toward a long-term relationship of continual employee involvement (Kram 1985). Staff involvement is enhanced by staff development. Development & continued employee involvement The initial orientation provides the new employee with foundation on which his or her relationship will develop within the organisation, large or small. The importance of the fulfilment of promises made during the recruitment, selection and orientation phases will in turn have a major impact upon the development of the long-term relationship between employee and employer. Employee satisfaction which can be attained through the development and involvement within the organisation leads to long-term retention and in tern rewards and profitability for the employer. Employees must feel that the promises made are being met by the employer. Small firms, it is suggested by (Storey 1994), modify their management style toward the employees and the contributions they can make to the organisation. It is evident therefore that in small business the impact on each member of staff has a much greater level of significance than in larger organisations. Chell (1997) found that by increasing their focus on the relationship with employees, owner/managers of small business developed more effective performance levels.
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Training and development, which frequently in small business takes the form of on-the job training, due to the reduced cost factors in comparison to off-the-job training, can contribute to meeting the promises established during the recruitment, selection and orientation phases (Harris, DeSimone and Randy 1994). The added benefit of on-the-job training is that it develops and enhances relationships at a more personal level and this in turn cultivates and deepening level of trust between employer and employee within the smaller business. Onthe-job training develops the expertise of the trainer and trainee alike, enriching a sense of long-term attachment that creates reductions in turnover. Having identified trust as a factor, the next section outlines the importance of trust in relationships. Retention through development of trust Retention can be enhanced through training and development as well as through the matching of employee, employer and organisational needs and meeting promises and expectations established initially within the relationship (Kram 1985). Trust is however something that can only be attained with a sound understanding of the wants and needs of the employee. Trust is established when a willingness is established and a reliance develops between both employer and employee. Behaviours reflect within the relationship a belief that the employee feels no uncertainty within the relationship with the employer and the employer likewise feels no vulnerability toward the reliance that he or she places within the relationship with the employee. Employees have career expectations that need to be met. If these expectations are not achieved, this can cause dissatisfaction and lead to employees seeking work elsewhere (Herriot 1989).
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HRM IN SMALL AND MIDDLE SCALE INDUSTRIES Small-scale enterprises are important for modern economy and it is widely recognized that they contribute to employment growth. About 99% of all European companies are small and medium sized and they provide 66% of all working places. Over the last decade, enterprises with less than 10 employees provided more new jobs than bigger companies. Surprisingly, personnel management of small businesses is widely ignored in popular textbooks as well as in empirical research .However, employee effectiveness might be even more important in small companies compared to bigger companies. A weakness of small enterprises is their low labour productivity combined with lower than average wages .Improving Company’s effectiveness through rationalization is hardly possible in small companies because of weak financial resources and a limited number of employees. While task differentiation is low in small enterprises, individual employees have to work in various areas. Consequently, the employees and an optimal utilization of their knowledge, capacities, and motivation are essential for small-scale business success. Human resource management (HRM) involves practices that ensure that employees’ collective knowledge, skills, and abilities contribute to business outcomes .The traditional conceptualization of HRM focused on managing, measuring, and controlling organization’s workforces. Tactical or technical .HRM includes selection testing, training, performance measurement and administration of benefits.
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Huselid et al identified empirically a second dimension of HRM activities: strategic HRM includes employee participation and empowerment, communication, team based work design, and development of managers of the organization. Arthur (1994) identified two types of human resource systems similar to those found by Huselid et al (1997): Commitment and control. The human resource system that is based on commitment is focusing on the psychological links between organizational and employee goals. It is associated with higher involvement in managerial decision, participation, providing training and rewards. A human resources system that is based on control focuses on directly monitoring and rewarding employee behaviour or the specific outcomes of that behaviour (Arthur, 1994). The theoretical literature suggests that HRM practices increase productivity by increasing employees’ skills and motivation. Moreover, HRM practices contribute to business objectives through strategic innovation or technical competence. Recent empirical studies on larger companies supported the basic assumptions of HRM theory (Arthur, 1994; Huselid, 1995; Huselid et al., 1997). However, does this theory apply to small-scale enterprises as well? HRM also carries costs and they might neutralize the positive effects of HRM in small-scale enterprises. HRM is an investment, and thus, it costs time and/or money. The current performance of employees may even be decreasing because of the time spent on training. Moreover, HRM can only have effects when employees stay in the company for a certain period of time. Otherwise the company suffers a loss because of the investments in HRM. Thus, the benefits of HRM must exceed costs invested in HRM. Since small-scale enterprises have limited financial resources it is very well possible that large investments in HRM do not pay off. With respect to small-scale enterprises, the literature on personnel issues is more conceptual than empirical/ data based (Hornsby & Kuratko, 1990). However, a few studies have analyzed whether HRM practices
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were used in small firms.Golhar and Deshpande (1997) found that many HRM practices of small and large manufacturing firm were similar. However, bigger firms used external sources of recruitment, written tests, and panel interviews more frequently. In small firms, employee’s ability to inspect their own work was more important than in large firms. Similarly, Hornsby and Kuratko (1990) found that the perceived concern over the most important future human resource issues is not affected by firm size. However, larger companies (up to 150 employees) used questionnaires, application blanks, benefits, and performance appraisal more frequently than small businesses (1–50 employees). The authors concluded that “personnel practices of smaller firms are much more sophisticated than the literature leads one to believe” (p. 16). However, the more interesting question is whether HRM practices affect small business success positively. To our knowledge, there are no studies about the relationship between HRM and success of small-scale enterprises. Welbourne and Andrews (1996) found that HRM predicted long-term survival of mid-sized initial public offering firms. The literature on larger companies also suggests that there is a positive relationship between HRM and success (Arthur, 1994; Huselid, 1995). Therefore, our first hypothesis is: Hypothesis 1: HRM practices have positive effects on small-scale business success. Human resources do not just have to be developed but there is, of course, already a certain amount of human capital in each firm consisting of the human capital of employees and of the owner. Human capital consists of skills, knowledge and experience that help in the tasks of getting one’s work done. General human capital consists of aspects, which are not specifically related to a particular job, for example years of schooling, years of work experience (Bruederl, Preisendoerfer, & Ziegler, 1992). Specific human capital must be adapted to a specific task or a specific firm. Specific human capital of business owners consists of self-employment experience, industry specific experience, leadership experience, and selfemployed parents (Bruederl et al., 1992). Theoretically, human capital acts as a
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resource to the small firm. It makes business owners/employees more efficient in doing their work, which results in business success. A second mechanism of human capital is due to selection effects. For example, people with higher human capital had higher earnings prior to self-employment, and therefore, can set up larger and better financed businesses (Bruederl etal., 1992). Several studies on small-scale business owners supported the basic assumptions of human capital theory (see reviews by Cooper & Gimeno-Gascon, 1992; Rauch & Frese, 2000). While entrepreneurship research was frequently concerned with human capital of business founders/owners, the human capital of employees of small enterprises has been widely ignored. However, the theoretical assumptions of human capital theory should hold for employees as well. Thus, the human capital of employees makes the employee more efficient in their daily work and this should, in turn, affect business success. Human capital of business owners has a positive effect on business success Human capital of employees has positive effects on small business success. While the positive relationship between human capital of business owners and success is well established the relationship is no high enough to make human capital the decisive factor for business success. Analyzing seven studies Quantitatively, Rauch and Frese (2000) found an average correlation of .09 between human capital and small business success. Given the small effect of human capital on business success, it may be useful to look whether human capital impacts on the effect of HRM on success. With respect to HRM, human capital of business owners is important because better educated people are expected to be more receptive to new ideas and novel ways of leading people (Sagie, 1997, p. 401), to be able to consider recommendations of employees, to communicate specific goals and objectives, and to use better strategies in leading employees. Therefore, HRM is more effective when business owners have high human capital.
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Moreover, employees’ human capital should also be a moderator of the relationship between HRM and success for two reasons: First, employees with a high level of education can effectively contribute to decision making and goal setting (Sagie, 1997). Second, HRM provides a tool to increase firm-specific skills that are not available in the labour market. Better educated and qualified employees should be able to increase their firm specific skills and knowledge quicker and more easily than less educated and qualified employees. Therefore, human capital of employees moderates the effect of HRM on success. Drawing on the above rationale. Human capital of business owners moderates the effect of HRM on business success. Human capital of employees is a moderator in the relationship between HRM and business success. Article Review 1. AUTHOR: rosemary batt Abstracts This paper examines variation in the use of high involvement work practices in service and sales operations. I argue that the relationship between the customer and front-line service provider is a central feature that distinguishes productionlevel service activities from manufacturing. In particular, through strategic segmentation, firms are able to segment customers by their demand characteristics and to match the complexity and potential revenue stream of the customer to the skills of employees and the human resource system that shapes the customer-employee interface. Unlike manufacturing, where high involvement systems have emerged in a wide variety of product markets, therefore, service organizations are likely to use high involvement systems only to serve higher value-added customers because of the high costs of these systems and the labour-intensive nature of services. Data from a nationally random sample of 354 call centres in US telecommunications documents this pattern: from classic mass production approaches for back office workers and
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increasingly for front office residential service agents, to greater involvement for small business service providers and high involvement practices for middlemarket service agents. 2Author: Jim mc Donald Abstracts: While there is extensive management and academic literature on the topic area of high performance management internationally, research on high performance management practices in the Australian context is limited. Furthermore, research on high performance management practices has focused predominantly on large organisations and is largely a new direction for research in SMEs. This study attempts to fill some of the gaps in existing studies by considering a wide range of high performance management practices in Australian SMEs. Owing to the dearth of national data on high performance management in Australian SMEs, the results of this study are used to determine whether there is any evidence of a ‘high performing' scenario in relation to management practices in Australian SMEs. The results, reporting a national study (N=1435) on employee management in Australian SMEs, reveal a moderate take-up of high performance management practices. The findings by themselves do not support a ‘high' performing scenario in relation to management practices in SMEs; however the low application of participative practices in the context of low unionization, and a low incidence of collective relations, indicates that many SMEs need a makeover if they are to meet the demands of competition. It is evident from the findings in this study that high performance practices in SMEs stand to benefit from modernisation and improvement. 3Author: david birchall Subject: personal and human resource management
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Abstracts: Some staggering figures can be found if one looks, for the numbers of individual’s whoare working, but may not be receiving training. However, if we listen to some of the players in the 'Learning' market, we may hear that HRD is a very competitive area and that colleges, practitioners, consultants, and the Business Support Network are vying for position in satisfying the need, whilst complaining about the poor take up or response to developmental programmes by the most prolific area of the economy, the Small&Medium Sized Enterprise (SME). But should we really be surprised? In this article the author questions existing policy/practice and presents a number of facts, with anecdotal evidence to bring to 'the table' for discussion some concerns which he believes deserve more research. The objectives are to establish the current position, promote a learning culture within SME's, and by better understanding of the SME by practitioners, create a climate for growth and the ability to tap into a major market for education in all its forms which hitherto appears to be disenfranchised. 4 Author: paula m.caligiuri:linda k.stroh Subject: personnal and human resource management Abstracts: This paper examined the relationship between multinational corporations' global management strategies and the resulting international human resource practices. Four global strategies, which vary in their extent of global integration and local responsiveness, were examined (ethnocentric, regiocentric, polycentric and geocentric). Data from international human resource professionals in forty-six companies generally supported the hypothesis that HR practices (recruitment, selection, socialization) varied by global strategy. In particular, strategies varied especially between the ethnocentric and geocentric companies. These strategies were further found to be related to a composite Multinational Corporation Success Index of economic
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variables (return on capital, sales growth, return on equity, profit margin). Companies which had ethnocentric strategies were found to be less successful than companies operating under any of the other three strategies. Findings suggested that local responsiveness should be incorporated into the global strategy of multinational companies. Recommendations for international human resource practices based on these results have been given.
5 Authors: Nicolas Bacon; Peter Ackers; John Storey; David Coates Abstracts: it has become widely acknowledged that, during the past decade or so, large mainstream companies in the UK have adopted a new agenda for managing people. Relatively little is known about the impact of this new agenda on small businesses. The small business sector has been long regarded as the natural home for 'bleak house' employment relations practices typified by direct management control, poor terms and conditions, high staff turnover and little training. In March 1993, however, a large survey of 560 companies in Leicestershire revealed a surprisingly high take-up and awareness of new management ideas among small business managers. These findings are at odds with a crude 'bleak house' scenario. This large-scale telephone survey was then followed up with detailed case study research. This article presents and reflects upon the evidence and reformulates ideas about people management in small businesses.
6-Human resource management in SMEs by Terry R. Pearson, Donna Y. Stringer, LaVelle H. Mills, David F. Summers | July, 2006
ABSTRACT
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Human resource management (HRM) practices, support systems and personnel profiles were examined in urban and rural enterprises. The investigation is an exploratory descriptive study employing a discussion of the results of a questionnaire. The authors' hypotheses are that urban and rural small and medium sized enterprises (SMEs) would differ significantly in HRM practices, support systems, and personnel profiles. Data were analyzed using t-tests and chi-square tests, as appropriate, to detect statistically significant differences between urban and rural SMEs. No interventions were performed; data were self-reported responses to questions on a survey instrument. The research findings suggest the authors' hypotheses are generally incorrect. The results from the study may advance the concept that technology and information availability have developed equity in HRM activities and functions in both urban and rural enterprises. Moreover, rural firms are performing at a higher level of sophistication and experience in HRM practices, support systems and personnel profiles. 7-Management training in small and medium-sized enterprises: methodological and conceptual issues Article Abstract: Small and medium-sized business establishments achieve obvious benefits from management training programs. Managers are reluctant to invest in training, however, because business training benefits are not easy to quantify in financial terms. Businesses which have already invested in management development strategies are less likely to achieve as much as those which have not. Other aspects of training are considered. 8-The Construction of Human Resource Management System in Small and Medium-sized Private Enterprises Jieyun Zhang, Juhong Gong
Abstract The small and medium-sized private enterprises (SMEs) play an increasingly important role in creating output value and providing new employment opportunities, but there are a lot of problems with human resources in SMEs, such as poor quality of business owners, lack of strategic planning on human
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resources, etc. It’s necessary, therefore, for SMEs to strengthen the setup of human resource management system. This paper puts forward some implementation details according to "human resource evaluation, assessment, & examination methods" and "job evaluation table", and draws up the diagram on implementation of these steps, both vertically and horizontally evaluating human resource management system in SMEs
9-Human Resource Management within small and mediumsized firms
ABSTARCT Human resources are recognised as one of the main sources of economic growth. The management of these resources (HRM) is therefore an important issue. However, while roughly half of all employees are employed in small and medium-sized enterprises, scientific studies on HRM are to a large extent limited to large enterprises. This thesis is an attempt to increase our understanding of how small and medium-sized enterprises manage their employees. The thesis examines main determinants of HRM practices within small and medium-sized enterprises, and how certain differences in HRM practices may affect an enterprise's performance and size 10-Strategic HRM in Small and Medium Enterprises: A CEO's Perspective?
Recent research studies in Australia have reported a gradual but apparently growing convergence between the theory and practice of strategic HRM, especially in larger organizations and from the perspectives of HRM practitioners themselves. Little empirical evidence has been produced on HRM
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strategies and practices in small and medium enterprises (SMEs), or on the opinions of their chief executive officers (CEOs). This article reports the findings from a sample of CEOs in Australian SMEs in an attempt to add more pieces to the jigsaw of this desirable convergence. While the findings are not as encouraging as earlier presented, there are signs that SMEs may eventually reflect such models of SHRM.
11-Exploring human resource management practices in small and medium sized enterprises Author(s): Catherine Cassell, Sara Nadin, Melanie Gray, Chris Clegg Abstract: The paper reports on empirical work recently conducted about the use and effectiveness of HRM practices in small and medium sized enterprises (SMEs). A telephone survey was conducted with 100 senior managers of SMEs to ascertain their use of a range of human resource practices and the extent to which they had found those practices successful in aiding the achievement of company objectives. Additionally in-depth interviews were conducted with senior managers from a further 22 SMEs. Findings suggest that there is considerable diversity amongst SMEs in relation to their use of HR practices. A model is provided that identifies the key criteria that underlie the adoption of HRM practices, and the implications of the model are discussed. 12-The relationship between total quality management and human resource management in small and medium-sized enterprises [In special issue: Small Business, Entrepreneurship and Enterprise Development]
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There is an extensive body of received wisdom in the literature on both total quality management (TQM) and human resource management (HRM). This paper examines past research as it affects small firms. Conclusions are drawn as to the linkages between TQM and HRM in small and emerging businesses. It is accepted that effective HRM policies are essential if TQM programmes are to deliver any of their benefits. However, there has been less research on small organizations, even though both are recognised as strategic issues in the pursuit of business development. Only a truly professional approach to creating a culture that is soft, individualistic and user-focused will provide the conditions for total quality enhancement to become a reality. 13-Human Resource Management within small and medium-sized enterprises Abstract: Human resources are recognised as one of the main sources of economic growth. The management of these resources (HRM) is therefore an important issue. However, while roughly half of all employees are employed in small and medium-sized enterprises, scientific studies on HRM are to a large extent limited to large enterprises. This thesis is an attempt to increase our understanding of how small and medium-sized enterprises manage their employees. The thesis examines main determinants of HRM practices within small and medium-sized enterprises, and how certain differences in HRM practices may affect an enterprise's performance and size.
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Conclusion The purpose of this paper has been to provide some evidence regarding the SMEs’ managerial practices and problems. With respect to the practices, the findings suggest that SMEs are generally not aware and most likely will not utilize the various managerial practices. Among the managerial problems, it seems that the problems tend to revolve around high product cost, high overhead cost, undedicated employees, difficulty of finding good workers, and SMEs faces stiff price competition.
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