Critically Assess Whether Human Resource Management Is Any Different in Sme's Than Large Organisations

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Critically assess whether Human Resource Management is any different in SME 's than large organisations?

"The study of human resource management has been invigorated by the promise that there is a best-practice, high-involvement management that can guarantee superior organisational performance" (Wood, 1999).

This paper is structured to critically assess the differences of human resource management (HRM) in small to medium sized enterprises (SME 's) with comparison to large organisations. Initially this will provide the fundamental processes involved with the implications of HRM in all organisations. The differences, or lack thereof, of HRM polices, are derived from the vast difference in the sizes of the respective organisations.
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The behavioural competencies of the large workforce can be determined and gradually modified by the management to fashion issues such as team working and company culture. Attention has switched from rigid lists of individual skills and abilities that are much more valuable for SME 's, to broader-based competences. In general, there is greater regard for personal flexibility and adoptability – a reorientation from present to future stability (www.hrmguide.co.uk). In stark comparison to large organisations, SME 's often rely on extended social networks in attracting and retaining employees, as many owe their survival to low labour costs (Hilbert et al, 1994) "The importance of the recruitment and selection process which is essential of organisational competitiveness and a failure to approach this function effectively will have consequences for future job performance," as was aptly recognised by Nankervis, Compton & McCarthy, (1999). "A good recruitment system is crucial to the organisation, because the recruitment of suitable employees will improve retention and morale among the existing workforce by accentuating to those both inside and outside the organisation the importance it attaches to people" (Hall et al 1991). Large organisations usually have an intense recruitment system composing of various styles of interviews such as the behavioural based criterion, the

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