Hr Practice

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SAJMR 
Spectrum: A Journal of Multidisciplinary Research 
Vol.1 Issue 9, December 2012, ISSN 2278‐0637 

 

HUMAN RESOURCES MANAGEMENT PRACTICES IN SMALL AND
MEDIUM INDUSTRIES – AN INDIAN EXPERIENCE
DR. K. SUNDAR*; P. ASHOK KUMAR**
*Associate Professor,
Commerce Wing, DDE,
Annamalai University,
Annamalai Nagar, Tamil Nadu.
**Ph.D Research Scholar,
Department of Commerce,
Annamalai University,
Annamalai Nagar, Tamil Nadu.

ABSTRACT
A study on Human Resources Management was made in small and medium industries located in Ambattur industrial estate in Chennai city, India. The outcome of the study indicates that the majority of the units do not have any human resource policy in place. However they pursue same human resources practices like recruitment, selection, training, performance appraisal, compensation, grievance redressal and so on in a haphazard and arbitrary fashion. This paper suggests professional approach to various dimensions of human resource management in the light of various constraints the small and medium units encounter. KEYWORDS: HRM, Human Resource Practice, Small and Medium Industries. ______________________________________________________________________________

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INTRODUCTION
Small and medium industries are comparatively labour intensive and thus create more employment opportunities per unit of capital employed. This potential to create employment opportunity necessitates effective management of labour force. The professional management of human resource under its fold would ensure scores of benefit both for the enterprises and human resource, namely increasing productivity, prevention of accidents, evolving sound wage policy, effective training, increasing morale and job satisfaction, checking labour turnover and absenteeism, managing labour indiscipline and effective grievance management etc. Most of small and medium entrepreneurs are of the view that professional management of human resources is applicable only to large scale industries. Perhaps the limited size of work force employed in these industries and non-existence of labour unions in a majority of these unions may not force them to think about the necessity of adopting professional practice in regard to human resource spectrum. They are quite unaware of negativities associated with frequent recruitment, labour turnover, poor work performance, inadequate training facilities, poor wage payment and so on. Marlow and Patton (1993) have argued that effective management of human resource is key to the survival of small and medium ventures. Given this significance, research on human resources practices has attracted higher attention in recent years. Hodge’s and Kuratho, (2001) have emphasized the importance of well-motivated, highly skilled work force as  

SAJMR 
Spectrum: A Journal of Multidisciplinary Research 
Vol.1 Issue 9, December 2012, ISSN 2278‐0637 

 

a determinant of small enterprise’s ability to remain competitive in the contemporary business environment.
REVIEW OF LITERATURE

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Storey (2007) has emphasized that small and medium firms require different attention in the areas of employment, trades and industrial policy. McEvoy (2006) has observed that HRM should take precedence over accounting, finance, production and marketing in remaining affoat in competitive arena-industries. Hess (2005) has found that owners of small ranked HRM practice as the second most important activity next to general management activity. Julien (2000) HRM, practices do exist and are applicable to small enterprises as well but they are not formalized and extremely diverse in nature. Studies by Duberleg and Welley 2000 shows that HRM practices vary among the small and medium enterprises. They are determined by the ideology and...
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