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
The purpose of this reflective paper is to show my understanding along with what I have learned about HRM (human resources management) and the different way HRM impacts the success behind every business, along with the rules and regulations that go with it. Over the last five weeks I have learned quite a bit about HRM and will reflect on that throughout this paper. “Human resource management is the managing of human skills and talents to make sure they are used effectively and in alignment with an organizations goals.” (Youssef, 2012). I will be including the things I learned throughout the last five weeks in this
Preston, D (2012), An introduction to human resource management in business, Milton Keynes, The Open University.
Cascio, W.F. (2013). Managing Human Resources: Productivity, Quality of Work Life, Profits (9th ed.) Boston, MA: McGraw-Hill/Irwin
Armstrong, M. 2003, A Handbook of Human Resources Management Practice, 9th Edition, London, Kogan Page
2. Leatherbarrow, C., Fletcher, J. & Currie, D. (2010) Introduction to Human Resource Management. 2nd Edition. London: CIPD
Cascio, W. F. (2013). Managing Human Resources: Productivity, Quality of Work Life, Profits (9th ed.). Boston, MA: McGraw-Hill/Irwin.
Human resources management was defined as ‘a strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations’ by Boxall and Purcell (2003). Noon, 1992 (as cited in Armstrong, 2014 a, p6) drew ‘doubts of whether HRM was a map, a model or a theory. But it is evident that the original concept could be seen as a philosophy’. The human
Buckley, R. M., Fedor, D. B., & Ferris, G. R. (2002). Human resources management: perspectives, context, functions, and outcomes (4th ed.). New York: Prentice Hall.
HRM and performance is part of a wide-ranging area of study in this field. The advancement of theory and research on links between HRM and performance started in the 1980s.There has been a lack of consensus in developing a theory of HRM and performance, (Guest et al, 2012). Boselie et al, (2005) determined that up until his review RBV
Human Resource Management (HRM) is the terminology used to illustrate formal systems devised for the management of people within an organization. It is the method of managing an organization or company that is directly related to the employees of that particular organization. The success of a business often rely heavily on the performance of managing human resource. Maximizing the desires and benefits of an organization and helping a business grow by rewarding employees to help motivate and push them in their performance is one of the main aim of HRM. By doing this, it will have a positive impact on both the company and it’s entire organization.
Alexander, M., 2003. A handbook of Human Resource Management Practice. 9th ed. London: Kogan Page
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)
Human resource management is a study includes anything and everything associated with the management of employment relationships in an organisation. (Boxall & Purcell, 2000) Organisations across the globe now are increasingly exposed to the obstacles, challenges and pitfalls presented by increased turbulent and unpredictable business environment. The march of globalisation, developments in global telecommunications technologies, the precariousness of national economies, and increased mobile workforce have created new challenges for firms, and in particular Human Resources (HR) practitioners. There are two main HR
Much of our knowledge of human resource management involves large organizations with dedicated human resource departments and staff, but what about small organizations? Small organizations recruit, compensate, do performance management, and many of the same tasks as large organizations. There are certain things that can be mapped effectively from large to small organizations, but what happens to the rest that do not map? A small organization can not simply let things slip through the cracks based on size or ignorance of laws, rules, or requirements. This is what makes human resource management not only important in small organizations, but essential for their long term success.
The article analyzes the way of HRM practice in small-medium enterprises(SMEs) and the reason why it is important element for SMEs. Over the past years, small-medium enterprises play an increasingly significant role in European economy. It is mainly because European countries including UK have large amount of SMEs but with small scale of big enterprises. However, HRM, as an important part of a company, is utilized in tremendous different ways between large and SMEs firms. SMEs are reluctant to use HRM when considering high cost and time. This situation brings a lot of issues. Unfortunately, very few of the research for HRM in SMEs have