Human resources management deals with attracting, recruiting, training, and maintaining employees that can contribute to the organisational performance and meet the objectives and strategies.SME considers training as a waste of time and money because employees tend to become unproductive…
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Analysis on the Importance of HR Practices in Managing Organisations
The literature suggests of the importance of managing human resources for the benefit of the company, but this practice is apparent to the large organizations. HR practice in SME has been the center of research because of the issues raised. The study found out that the size of the company is congruent to the choice of implementing HR policies because of resource constraints. This paper analyses the significance of HR practices such as training and development in managing organisations. Resourcing an Organisation SME has captured the attention of researchers due to its rapid growth which contributes to the national economy. Thousands of small businesses are established, which increase the employment of individuals; hence, failure of small businesses to remain in their business operation hurt the economy. Europe and UK narrate that two-third of its job are employed in SME, but the enterprises lose a huge number of jobs due to business failure. The business failure of SMEs is caused by the poor management of resource and informal practices of HRM. Beaver and Hutchings support that SME rejects the value of HR as the source of gaining competitive advantage. Due to their lack of knowledge in the managerial aspect, the growth of the company is sacrificed. Furthermore, majority of small and medium enterprises believe that HR practices are hindrances to the generation of profits because training and development require budget. ...
commitment, adaptability, and consideration of employee.” To emphasize commitment, SME should adapt HR policies to strengthen the loyalty of employees and motivate them to render their maximum potential. Thus, it is inappropriate for SME to think that HR policies will lead to unproductive. “The management of people is strategic to success” (Harney & Dundon, 2006, p.48). This statement accentuates the role of HRM in aiding companies to achieve their mission statement. The knowledge on HRM is critical in ensuring that right employees are recruited and trained at the right time. Zheng, et al. (2009, p.177) confirm that “consistent and effective manner” of human resources management through recruiting and maintaining competitive staff who are talented will add to the companies’ competitive advantage and “sustain superior performance in the longer term.” Therefore, the failure of most companies is rooted to their inability to support HR practices. In UK, the government encourages SMEs to implement HR best practices because of its positive outcome to the organisational performance. Studies have shown that companies employing HRM have attained excellent performance compared to those who are neglecting HR (Bacon & Hoque, 2005, p.1977). According to Pfeffer (1994 cited in Reid, et al., 2002, p.249), successful organisations have common HR practices such as “employment security, self-managed teams, extensive training, high compensation contingent on organisational performance, recruitment, sharing of information, and reduction of status differences.” The HR practices of organisations motivate employees to be competitive and productive in their job design and role designation. Job design and role specifications are crucial in matching the talents of the
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