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HR in small organisations-Business Manager
Human Resources » Organization Development

Chrm Message From: anil kaushik Total Posts: 78 Join Date: 19/03/2006
Rank: Manager Post Date: 01/04/2011 06:05:37 Points: 390 Location: India
Dear Sir, SMEs (small & medium enterprises) sector no more operates in a protected zone and consequently subject to the same challenges as large enterprises. In the open economy playing field is the same for both but unfortunately resources and expertise to handle different domains differ. ‘Business Manager’-HR magazine recently conducted an opinion survey to find out status of HR function, HR issues which continue to hamper growth of small and medium organizations and how entrepreneurs view these challenges. Survey was conducted on 524 small and medium organizations of NCR (National Capital Region) ranging from manufacturing, ancillaries, sales / services and hospitality industries with 10 to 100 employees strength and the findings are not much surprising. Broadly, HR function nowhere stands in this sector. 70% organizations have no formal HR department or exclusive person for this function. Pay Roll / Attendance / Statutory compliance are either completely out sourced or part timers perform record maintenance functions or owner controls himself this function. In these units there is no formal performance management system. 22% industries have time office persons who represent ‘HR’ of the organization - mainly do record keeping / pay roll / statutory compliance / liaison and employee grievance handling. Only 8% industries have formal HR person taking care of HR administration and employee relations. In 91% industries - there is no empowerment to this function. All HR / employee relations policies are owner driven. Increment / promotions are totally decided by the owner on his gut feel and personal understanding of the employee. His like-dislike plays an important role in this function. Only 9% industries have some formal system / process of recruitment / induction / performance evaluation and training. Problem starts at this point: Small / Medium organizations can’t afford to setup / operate HR function with that expertise and the way big organizations do and invest in this function. One side SMEs need to be more competitive, aligning themselves to new ideas, process and acquire a professional approach by adopting the best management practices and change the ways of managing business but on the other side neither they have such mind set nor financial resources to establish people centric systems and processes to build up their Human capital. Country’s employment regulations also act as deterrent and their complexities keep them on back foot. HR issues in small and medium organizations is the cover feature of April 2011 issue of "Business Manager" which is an attempt to unfold various people issues SMEs face and provide them ways and means to spot solutions. Entrepreneurial businesses can’t afford more to neglect people issues in their organizations. From some point it has to move on. Any one interested in subscription of the magazine, may also request for free trial copy before subscription by providing complete postal address at regds anil kaushik chief editor,BUSINESS MANAGER B-138,Ambedkar Nagar,alwar-301001 (raj) india Landline;0144-2372022 Mob;09829133699 YOUR TODAYS PROBLEMS ARE YESTERDAYS WRONG DECISIONS
The attachment file can be viewed at Business Form >> BM-April 2011-Highlights.pdf
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