Académique Documents
Professionnel Documents
Culture Documents
OF
Submitted to:
Miss.CHANJYOT KAUR
Submitted by;
Mohammad Abbas
10906034
2
Acknowledgements
wind.
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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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-by-
industry 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.
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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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.
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.
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.
Recruitment
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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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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. On-
the-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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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 self-
employed parents (Bruederl et al., 1992). Theoretically, human capital acts as a
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Article Review
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 production-
level 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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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.
It is evident from the findings in this study that high performance practices
in SMEs stand to benefit from modernisation and improvement.
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.
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.
ABSTRACT
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Article Abstract:
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
ABSTARCT
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.
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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