Why the human resource management is important in small- medium Entrepreneur in UK BY Delano 13 Why the human resource management is important in small-medium Entrepreneur in UK Introduction The article analyzes the way of HARM practice in small-medium enterprises(Seems) and the reason why it is important element for Seems. 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 Seems but with small scale of big enterprises.
However, HARM, as an important part of a company, is utilized in tremendous different says between large and Seems firms. Seems are reluctant to use HARM when considering high cost and time. This situation brings a lot of issues. Unfortunately, very few of the research for HARM in Seems have been published till now(Domingo Ribose Syrians,et all,2011) for example, according to the US academic journals from 1988 to 1998, more than 207 papers had been written about HRS recruiting ,etc. However, just 7 of the articles mentioned about Seems in Journal of Applied Psychology, Academic of Management Review and Personnel Psychology;.
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For these reasons,it is important to investigate the study Of HARM in Seems. Negative and positive arguments about HARM practice in Seems rage amount of Debates about the efficiency of HARM in Seems are illustrated in the earlier studies. Small business see few advantages of HARM when comparing to the large firms(Akron 1995,adapted by Classes. C et all, 2002 ). Especially in the training ,Storey and Washed described that the employees in the Seems have few chances to get involved in structured training. (1997,adapted by Classes.
C et all, 2002) After conducting several cases, Holiday also mentioned that training is not utilized well in Seems(1995,adapted by Classes. C et all, 2002). Classes. C, et both interviews and telephone survey to a number of Seems, and conclude that HARM practices especially selection and training process are transferring to other department in informal ways. They also found that 53% of Seems that they investigated in recruited their employees via relatives or friend’s recommendation. It means HARM is not very formal in Seems. In another word, HARM in Seems are full of different issues.
But according to the following study HARM indeed bring some benefit to companies. In 1 995 Lectureship, and Storey (adapted by Classes. C et all, 2002)did a study which comparing the preference between traditional HARM 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, Seems might be developing better when they employ formal HARM practices.
For example, during the study of HARM of Seems,Williamson, Cable, , (2002,adapted by Patella, C. P, et all, 201 0) found that that Seems can be more competitive and legitimated with formal HARM activities since it helps firms attract more high quality employees. HARM can also create harmonious group culture, highlighting the relationship between employers and companies. (Cameron & Quinn, 1999,adapted by PATELLA, C. 2010). Data analyze In order to explore whether it is beneficial for companies when they use formal HARM practices, I conclude the research which was done by PATELLA, C.
P et did a research to discover the relationship between HARM and company productivity. In this study, high group culture means that a strong team works and effective working environment, which is usually created by strong HARM. That it surveyed 145 firms and 6 industries including different size of firms. The correlation can be described by the following charts. Charta suggests: under high group culture, companies increase the use of HARM when market competition increase; Product market competition (chart 1 ,adapted by PATELLA,C. P,ands. CORDON,S. M ) HARM intensity (chart 2, adapted by PATELLA, C.
P,and S. CORDON,S. M) Under high group culture, Charta indicated that HARM intensity can enhance the labor productivity To sum up, when the market is in the growing competition, HARM can boost the labor productivity. It also implied that the firms should keep the high group culture environment in order to keep the effectiveness of HARM. High group culture is from strong HARM practices. In my opinion from the data analyze, when HARM is utilized in Seems in formal ways might bring significant benefit to company. As Walsh and Whites (1981) point out same idea as well.
They suggest that same regulation of HARM should be utilized among those companies but small scale in Seems. Author opinion As far as my consideration, HARM is a very important part for Seems.