1

OF

(HRM IN SMALL AND MEDIUM ENTERPRISES)

Sub: HUMAN RESOURCE MANAGEMENT

Submitted to:

Miss.CHANJYOT KAUR

Submitted by;

Mohammad Abbas

Roll No. RS-1904A24

10906034
2

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.

 3

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
 4

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-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
 5

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.
 6

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.
 7

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.
 8

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
 9

obviously underpinned by a notion that regards the highly differentiated HRM-

systems 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 size-
dependent 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
 10

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.
 11

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.
 12

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.
 13

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).
 14

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.
 15

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
 16

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
 17

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.
 18

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 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
 19

increasingly for front office residential service agents, to greater involvement

for small business service providers and high involvement practices for middle-
market 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 make-
over 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

 20

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
 21

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
 22

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
 23

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 medium-

sized 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
 24

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]
 25

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.
 26

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.
 27

REFERENCE;-

http://findarticles.com/p/articles/mi_hb6005/is_2_12/ai_n29363485/

http://joe.sagepub.com/cgi/content/abstract/18/1/95

http://www.highbeam.com/doc/1G1-71204018.html

http://apj.sagepub.com/cgi/content/abstract/40/2/260

http://www.highbeam.com/doc/1G1-189703904.html

http://www.apmforum.com/emerald/human-resource-asia.htm

http://doras.dcu.ie/14937/

http://epubs.scu.edu.au/cgi/viewcontent.cgi?article=1078&context=gcm_pubs

http://www.bibsonomy.org/bibtex/2d088153cbca325b81a9632ebc8f97123/puslit

http://epubs.scu.edu.au/cgi/viewcontent.cgi?article=1078&context=gcm_pubs

www.uni-giessen.biz/content/publications/196.pdf
 28

www.siop.org/tip/backissues/TipOct01/pdf%20tip/392_058to063.pdf

www.informaworld.com/index/727698452.pdf

emerald2010.cjb.net/Insight/viewContentItem.do;jsessionid..

www.unescap.org/tid/publication/indpub2565_chap3.pdf