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HRM IN SME¶S

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` Meaning Of SME

` Importance of SMEs

` SSI contribution

` Sectoral distribution` HRM definition

` View points of various authors

` Need for HRM in SSIs

` Crucial Problems with regards to HRM

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Meaning Of SME??

SME , t in ize an a e, are n t nif r a r t e gl e.

In ian efiniti n f SSI i in e t ent e ifi .

W rl Definiti n f SSI i e en ant n:

E l y ent

A et

Sale

inati n f t e a e

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Classification Investment in Plant &Machinery 

` Micro Not Exceeding Rs. 25 lakhs

` Small Rs. 25 lakhs but not exceedingRs. 5 crores

` Medium Rs. 5 crores but not exceeding

Rs. 10 crores

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ClassificationInvestment in Enterprises

Micro oes no exceed Rs.10 lakhs

Small Rs.10 lakhs but not exceeding

Rs.2 crore

Medium Rs.2 crore but not exceedingRs.5 crore

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SSI Contribution

Makes significant contribution towards:

National income

Emplo ment

Export Innovation

evelopmental activities.

Social and economic development objectives

Labour absorption

Income distribution Rural development

Promotion of entrepreneurship

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Contribution by various sectors

Industrial units

Industrial Output

Emplo ment

Value dded bManufacturing Sector 

Exports

N P

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 According to Schemerhom,HRM has been

defined as the "Process of 

attracting, developing, and maintaining atalented and energetic workforce to support

organisational mission, objectives and

strategies"

HRM efinition:

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 According To Gilbert and Jones, HRM

Practices are:

Informal

 Ad hoc

Oppurtunistic

Qualitativel and quantitaivel

different from those of large scale

organisations.

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 According to Thurik,

HRM practices are becoming important in the

³new knowledge based´ econom .

Due to which companies face double

challenge of:Need for more highl trained

emplo ees.

Shortage of qualified labour.

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Need for HRM in SSIs:

To face increasing competition

Compete with larger firms

Better effeciencBetter motivation ensuring better productivit

 Adapt to technological change

Ensure timel training and development

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` Entrepreneur = often HR Manager 

` No background

` Extra responsibilit of entrepreneur 

` No bifurcation of portfolios so no division of work.

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Crucial Problems with

regards to HRM in SMEs:

Talent Management

Hiring  And SelectionTalent Retention

Performance, Training and Reward

Management

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` Pa -roll administration

` Recruitment

` Managing people

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` Management of strategic human resources Coupling HR to business strateg

` Management of transformation and change Creating a new organisation

` Management of the human resources Listen en react to emplo ees

` Management of an administration Rethinking administration-processes

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` www.smeworld.org

` www.google.com