Management of the Issues Related to the HRM - Essay Example

?HR Management Table of Contents Introduction 3 The Issues Relating to SMEs In Terms Of Personnel Management and HRM 3 Management of the Issues Related To the HRM in SME’s 5 Conclusion and Recommendations 7 References 8 Introduction Small and Medium-sized Enterprises (SMEs) play a vital role in the economy of most of the countries. The major cause behind this has been that most of the smaller firms have been considered as an important source of employment generation. In addition to this, the method of managing the personnel can be regarded as important for maintaining the competitive position of the firm as well as the industries. It can be revealed that the definition of the abbreviation ‘SME’ depends upon the number of the employees that the organization employs. Smaller firms tend to differ in terms of the people they take up and the work done by them. The nature of the firm may be different depending upon the market context (Collings & Woods, 2009). It has been evident that the employees working with the smaller firms tend to display greater level of satisfaction in comparison to the larger firms. The major issue related to this fact is the difficulty to comprehend if the satisfaction has been derived from the size of the organization or it has been as a result of other contributing factors such as the leadership style, the familial culture or the role of the management (Collings & Woods, 2009). The Issues Relating to SMEs In Terms Of Personnel Management and HRM For the small and medium sized enterprises management of the human resources tends to become a cumbersome task. In such firms, the training program plays a vital role in assisting the small firms to set up their business. In addition to this training assists the firms in improving the working as well as operation of the overall business. Irrespective of the size of the firm, there is requirement of the skilled, qualified and committed workers as well as the managers in order to maintain the competitive position of the firm. It has been observed that the employees such as the workers or the managers are becoming increasingly mobile all around the globe and they tend to keep themselves updated with the new employment opportunities. In this context, the biggest challenge for the SMEs may be its inability to compete with the larger firms in terms of the payment of salary. They may also be more reluctant to train the managers since they are scared of poaching (Mittelstadt & Organization for Economic Co-Operation and Development, 2007). It can be mentioned that there is requirement of the technical as well as the managerial skill-development. There is further requirement of the highly specialized knowledge and greater degree of the training flexibility in order to provide the training support to the SMEs (Zanko, 2002). Even though the adoption of the human resource management related practices and methods may enhance the output as well as the survival of the small and medium-sized organization, it has been noted that there is high informality in small and medium sized organizations in comparison to the larger organizations. It can be revealed that the small and medium enterprises may not consist of enough abilities to establish the HRM practices, however with the employment of the skilled labours as well as the employees and with the interconnection with the other organization the SMEs can adapt to such practices (Bacon & Hoque, 2011). The strategic human resource management plays a considerable role in the small and medium enterprises. However, there are many SMEs that face serious human resource related troubles, while it can further be analyzed that it is the human resources that assist the organization in the expansion and sustaining of the competitive organization. The literatures on HRM fail to address the specific dilemmas of the small firms. Therefore, there is a need to point out the dilemma and solve them so that the people in the small and medium enterprises can be effectively managed (Brand & Bax, 2002). The management of the human resource may come across various issues if they are opened up to innovative and new ideas which are constructive and are beneficial by its nature (Goss & Et. Al., 1994). Management of the Issues Related To the HRM in SME’s There is great potential of the human resource departments within the small firms. Although there are evidences that stresses on the fact that the HR problems faced by small firms are basically because of its size, it cannot be said that the formalized approach to HRM cannot provide solution to the problems. It can be demonstrated that most of the small and medium organizations take on an informal approach to solve the problems that they face, however the informal approach must not be used to manage the people since it might introduce various other complexities (Goss & Et. Al., 1994). In order to analyze the human resources related problems in the SMEs, the application of the SLPA (Strategic Labour Allocation Process) model, most commonly understood as strategic labour allocation process, can be suggested (Brand & Bax, 2002). Conclusion and Recommendations Tod’s luxury shoes while expanding themselves need to pay due attention towards the human resource management. It has been evident from the above literature that human resource management plays a major role in SMEs. If the Tod’s luxury shoes don’t show its interest in the human resource management then it might loose out to larger companies in the competition of the knowledge along with the skills. If the human resource management is unresponsive then it may discourage Tod’s luxury shoes from opening, continuing as well as expanding the business (Andersen, 2003). In order to avoid the labour turnover, the Tod’s luxury shoes need to adapt to various HRM strategies and provide ample scope for the development of the career of the labours. This will reduce the likelihood of the employees leaving the job for better opportunities. A company specific training programme needs to be instituted in this regard. The implementation of the management approaches such as JIT (Just-In-Time) and TQM (Total Quality Management) can be of great help to the Tod’s luxury shoes. The HRM can assist the small firms in adapting to the altering taste as well as preference of the consumers (Brand & Bax, 2002). References Andersen, T., 2003. HRM in SME’s –First Findings on Structure and Practices. Introduction. [Online] Available at: http://www.lok.cbs.dk/images/publ/Torben%20Andersen.pdf [Accessed May 18, 2011]. Bacon, N. & Hoque, K., 2011. “HRM In The SME Sector: Valuable Employees and Coercive Networks”, The International Journal of Human Resource Management. Vol: 16, Iss: 11, pp: 1976-1999. Brand, M. J. & Bax, E. H., 2002. "Strategic HRM For SMEs: Implications for Firms and Policy", Education + Training, Vol. 44, Iss: 8/9, pp.451 – 463. Collings, D. G. & Woods, G., 2009. Human Resource Management: A Critical Approach. Taylor & Francis. Goss, D. & Et. Al., 1994. "Small Firms And HRM: Exceptions That Prove The Rule?", Journal Of Small Business And Enterprise Development, Vol. 1 Iss: 2, Pp.2 – 8. Mittelstadt, A. & Organisation for Economic Co-Operation and Development, 2007. SMEs in Mexico: Issues and Policies. OECD Publishing. Zanko, M., 2002. The Handbook of Human Resource Management Policies and Practices in Asia-Pacific Economies, Volume 1. Edward Elgar Publishing. Read More