SME Sector and HRMS

HR is the department that manages the employees of a company and every company is run by the collective efforts of an employee therefore it is vital to have a department that manages and looks after a company’s employees.

Small and medium sized enterprises are considerably informal in their Human Resource Management (HRM) practices. SMEs generally do not have proper HRM, as the size of the company is small, hence the management is concentrated. Therefore, interactions are usually informal, so, managing the human resource is generally done on ad-hoc basis.

This helps firms avoid legal regulations and allow companies to ignore the provision of employees’ proper working hours, minimum wage and adequate working conditions. Additionally, since SMEs are not very big organizations and have informal interactions, roles may not be defined properly enough and may overlap.
This practice may also make it difficult to measure employee output. Since output per employee cannot be measured, there is a possibility of a company being overstaffed.

In addition, Strom HRM enables a firm to be more productive and efficient with Strom HRM Appraisals and performance tracking. In SMEs generally, employees tend to multi-task on projects and may be working on tasks that they are not fully skilled to do. This may lead to poor performance and inefficiency.

An HR department will match the right person to the right job, using every employee’s expertise to their full potential which increases productivity and efficiency.

HR departments are responsible for keeping employees motivated and focused on their jobs. This can increase the productivity of firms. Not having an HRM system or having an HR managed on excel sheets which fails to motivate a company’s employees will result in having employees that are demotivated, and as a result: unproductive. It may also increase employee turnover.

Conclusion

Having an HR department is crucial to all firms but the need varies depending on the size and the nature of the firm. It is absolutely imperative that companies recognise the need to manage and take care of their employees; the resource that runs the company.

Strom HRM plays vital role in managing human resources in a very easy way and allow productivity.