Human Resource Management Function in Micro, Small and Medium Enterprises

1. HUMAN RESOURCE MANAGEMENT
FUNCTION

2. HUMAN RESOURCE MANAGEMENT
• The management of men is a challenging task because of dynamic nature of the
people. No two men felt similar things like mental abilities, liking, disliking, values,
faiths, perceptions, sentiments, actions, reactions and behaviour.
• HRM job is a crucial job because managing people is the heart and essence of being
a manager.
• In order to realize SME full potential and to progress towards fulfilling their vision,
SMEs eventually have to inter-wine indigenization and formulation for their people
management approaches.
• Personnel management is that part of management which is concern with people at
work and with their relationship within the organization.

3. FEATURES OF HRM
• It is a part of general management
• It concern with management of human resources
• It helps in the maximum development of personnel abilities so that they may feel
satisfaction with their work
• It establishes human relations at all levels in the organization
• It includes planning, organizing, control, and direction of manpower
• It is advisory in nature, it contributes to the success and growth of an organization
by advising the operating departments on personnel matters.

4. OBJECTIVES OF HUMAN RESOURCE
MANAGEMENT
• The goal of personnel management is the creation of a workforce with the ability and
motivation to accomplish the basic organizational goals.
• Attaining economically and effectively the organizational goals
• Serving the individual goals to the highest possible degree and
• Preserving and advancing the general welfare of the community
• According to Scott, the objective of PM is to obtain maximum individual development,
desirable working relationships between employers and employees and to affect the
moulding of human resources as contrasted with physical resources.
• The main objective of HRM in SME is the create the work force effectively in order to
accomplish enterprise goals.

5. IMPORTANCE OF HRM IN SME
• Human resource management helps the SME to increase its efficiency for the achievement of the business objectives.
• The important aspects of HRM is to help the individual and organization with efficiency, morale, costs and ongoing
continuity of the business practices.
• HRM strategy used in the flowing key areas like;
budget control
conflict resolution
training & development
employee satisfaction
recruitment
performance indicators
establishing principles

6. SCOPE OF HRM
• The field of personnel management is very wide as it is called by several terms such as,
Labour Management, Manpower Management, Human relations, Human Resource
Management and so on.
• The scope for personnel management as follows;
the welfare aspects: working conditions, and amenities such as canteens, crèches,
restrooms, lunch rooms, housing, transport, education, medical, health and safety, washing
facilities, recreational facilities etc.
the Labour or Personnel aspects: it concern with recruitment, selection, placement,
induction, transfer, promotion, demotions, termination, t&d, lay-off, and retrenchment,
wage, salary administration, incentives, productivity etc.
the industrial relations aspects; it concern with TU, negotiations, settlements of
disputes, joint consultations and collective bargaining.

7. FUNCTIONS OF HRM
• HRM functions are broadly classified into two types
• Managerial functions and
• Operative function
1. Managerial functions:
planning
organizing
directing
controlling
2. Operative functions
procurement
development
compensation
integration
maintenance and
records, research, and audit

8. ROLE OF HR MANAGER
• A HR Manager plays a variety of role in accordance with the need of the situations like
counsellor, mediator, etc.
• The conscience role: reminds their moral and ethical obligations
• The counsellor role: encourage to consult frequently to their mental physical & career
• The middlemen role: tries to settle disputes b/n labour & mgnt, linking-pin b/n depts.
• The communicator role: spokes person to communicate information
• The problem solver role: issues related to HRM, overall orgl planning.
• The change agent role: introducing and implementing major changes, he is an innovator
• The housekeeper role: he looks after safety, health, welfare etc.
• The decision making role; taking decisions regarding major and minor issues
• The executive role: executing HR policies, decisions, and programmes
• The clerical role: time-keeping, calculating wages, salaries, allowances, incentives,
compensation and maintenance of records.

9. HRM IN SMES
• SME can accomplish its business objectives effectively and efficiently through
setting up good human resource management system in business. The following
activities are takes place;
• Human resource or manpower planning
• Recruitment, selection, and placement of personnel
• Training & Development of employees
• Appraisal of performance of employees
• Remuneration of employees
• Setting general and specific management policies for the organization
• Developing and maintaining motivation for workers through incentives.