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Level of formalisation of human resource management in small enterprises in India
In this article, the current state of management of human resources in Small and Medium Enterprises (SMEs) in India is explored. The owner-managers play important roles in managing human resources in SMEs. The direct involvement of the owner manager also leads to ad hoc and informal HR practices. Ho...
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| Format: | Article |
| Language: | English |
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The Journals of Entrepreneurship
2009
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| Online Access: | http://library.ediindia.ac.in:8181/xmlui/handle/123456789/1057 |
| LEADER | 02222nab a22002177a 4500 | ||
|---|---|---|---|
| 008 | 160615b2009 xxu||||| |||| 00| 0 eng d | ||
| 999 | |c 38329 |d 38329 | ||
| 100 | |a Singh, Manjari | ||
| 245 | |a Level of formalisation of human resource management in small enterprises in India |c Singh, Manjari. | ||
| 260 | |c 2009 |b The Journals of Entrepreneurship | ||
| 300 | |a 95-116 | ||
| 520 | |a In this article, the current state of management of human resources in Small and Medium Enterprises (SMEs) in India is explored. The owner-managers play important roles in managing human resources in SMEs. The direct involvement of the owner manager also leads to ad hoc and informal HR practices. However, formal HRM systems can help increase performance. This study specifically examines the level of formalisation of human resource management in small and medium enterprises in India. Formalisation is defined as the extent to which regular and written-up procedures exists, a stated policy is in place, and a specialist designs and executes the HR systems. Data were collected using a questionnaire from 89 small enterprises and 54 medium enterprises on the level of formalisation of twelve HR functions. It was found that the level of formalisation of HRM systems in SMEs was low and owner-managers played a central role in the HR functions of their enterprises. Compared to small enterprises, the level of formalisation was found to be higher for medium enterprises. The level of formalisation increased with increase in employee strength. An inverse relationship between the extent of involvement of the owner manager in managing human resources and the existence of a formal policy for HRM was evidenced. Implications of decisions by owner-managers to keep HR functions informal or formal in small and medium enterprises are discussed. It is necessary for SMEs to find ways in which formal and flexible systems can co-exist. | ||
| 650 | |a India | ||
| 650 | |a Small And Medium Enterprises | ||
| 650 | |a Sme | ||
| 650 | |a Hrm | ||
| 650 | |a Human Resource Management | ||
| 700 | |a Vohra, Neharika | ||
| 773 | |a The Journal of Entrepreneurship |d Jan-Jun | ||
| 856 | |u http://library.ediindia.ac.in:8181/xmlui/handle/123456789/1057 | ||
| 942 | |2 ddc |c AR | ||