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Why the human resource management is important in small-medium Entrepreneur in UK

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  • October 2014
  • 1368 Words
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  • Course: Human Resource Management
  • School: manchester university
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Why the human resource management is important in small-medium Entrepreneur in UK

Introduction
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 been published till now(Domingo Ribeiro Soriano,et all,2011) .For example, according to the US academic journals from 1988 to 1998, more than 207 papers had been written about HR recruiting ,etc. However, just 7 of the articles mentioned about SMEs in Journal of Applied Psychology, Academic of Management Review and Personnel Psychology;. For these reasons,it is important to investigate the study of HRM in SMEs.

Negative and positive arguments about HRM practice in SMEs
Large amount of Debates about the efficiency of HRM in SMEs are illustrated in the earlier studies. Small business see few advantages of HRM when comparing to the large firms(Akroyd1995,adapted by Cassell.C et all,2002 ).Especially in the training ,Storey and Westhead described that the employees in the SMEs have few chances to get involved in structured training. (1997,adapted by Cassell.C et all, 2002) .After conducting several cases, Holiday also mentioned that training is not utilized well in SMEs(1995,adapted by Cassell.C et all, 2002). Cassell.C, et all(2002)did both interviews and telephone survey to a number of SMEs, and conclude that HRM practices especially selection and training process are transferring to other department in informal ways. They also...
Why the human resource management is
important in small-medium Entrepreneur
in UK
Introduction
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 been
published till now(Domingo Ribeiro Soriano,et all,2011) .For example, according to the US
academic journals from 1988 to 1998, more than 207 papers had been written about HR
recruiting ,etc. However, just 7 of the articles mentioned about SMEs in Journal of Applied
Psychology, Academic of Management Review and Personnel Psychology;. For these reasons,it is
important to investigate the study of HRM in SMEs.
Negative and positive arguments about HRM practice in SMEs
Large amount of Debates about the efficiency of HRM in SMEs are illustrated in the earlier
studies. Small business see few advantages of HRM when comparing to the large
firms(Akroyd1995,adapted by Cassell.C et all,2002 ).Especially in the training ,Storey and
Westhead described that the employees in the SMEs have few chances to get involved in
structured training. (1997,adapted by Cassell.C et all, 2002) .After conducting several cases,
Holiday also mentioned that training is not utilized well in SMEs(1995,adapted by Cassell.C et all,
2002). Cassell.C, et all(2002)did both interviews and telephone survey to a number of SMEs, and
conclude that HRM practices especially selection and training process are transferring to other
department in informal ways. They also found that 53% of SMEs that they investigated in
recruited their employees via relatives or friend’s recommendation. It means HRM is not very
formal in SMEs. In another word, HRM in SMEs are full of different issues. But according to the
following study HRM indeed bring some benefit to companies.
In1995 Leicestershire, and Storey (adapted by Cassell.C et all, 2002)did a study which comparing
the difference between traditional HRM and new practices among the large and small companies.
The result of 15 cases implied that although the initiative of every employee in large companies
has more opportunities to be enabled, it is more sustainable process in small-medium firms.
In my opinion, SMEs might be developing better when they employ formal HRM practices. For
example, during the study of HRM of SMEs,Williamson, Cable, &Aldrich, (2002,adapted by
Patel, C. P, et all, 2010) found that that SMEs can be more competitive and legitimated with
formal HRM activities since it helps firms attract more high quality employees. HRM can also