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

1365 Words Sep 27th, 2014 6 Pages
Why the human resource management is important in small-medium Entrepreneur in UK

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
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It also implied that the firms should keep the high group culture environment in order to keep the effectiveness of HRM. High group culture is from strong HRM practices. In my opinion from the data analyze, when HRM is utilized in SMEs in formal ways ,it might bring significant benefit to company. As Walsh and Whites (1981) point out same idea as well. They suggest that same regulation of HRM should be utilized among those companies but small scale in SMEs.
Author opinion
As far as my consideration, HRM is a very important part for SMEs. The reason can be explained by following aspects.
Firstly, Many SMEs firms in UK have informal HRM activities rather than totally absence (Culley et all, 1998, adapted by Cassell.C, et all, 2002).However, the way SMEs conduct these kind of practice reduce its’ actual benefit. For example, if recruiting and training procedure are not completed by the HR, other department need to expense time and cost to implement those processes. Consequently, it divides the cost of HR department into other team. In fact, it increases the cost of companies in long term prospective. Therefore, SMEs may increase benefit if they employ formal HRM practices from long prospective.
Secondly,According to the charts (1&2), HRM has vital influence on labor productivity when fierce

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