paper 37

SAJMR Spectrum: A Journal of Multidisciplinary Research Vol.1 Issue 9, December 2012, ISSN 2278‐0637

Pinnacle Research Journals 1

http://www.pinnaclejournals.com

HUMAN RESOURCES MANAGEMENT PRACTICES IN SMALL AND MEDIUM INDUSTRIES – AN INDIAN EXPERIENCE

DR. K. SUNDAR*; P. ASHOK KUMAR**

*Associate Professor,

Commerce Wing, DDE, Annamalai University,

Annamalai Nagar, Tamil Nadu. **Ph.D Research Scholar, Department of Commerce,

Annamalai University, Annamalai Nagar, Tamil Nadu.

ABSTRACT A study on Human Resources Management was made in small and medium industries located in Ambattur industrial estate in Chennai city, India. The outcome of the study indicates that the majority of the units do not have any human resource policy in place. However they pursue same human resources practices like recruitment, selection, training, performance appraisal, compensation, grievance redressal and so on in a haphazard and arbitrary fashion. This paper suggests professional approach to various dimensions of human resource management in the light of various constraints the small and medium units encounter. KEYWORDS: HRM, Human Resource Practice, Small and Medium Industries. ______________________________________________________________________________ INTRODUCTION Small and medium industries are comparatively labour intensive and thus create more employment opportunities per unit of capital employed. This potential to create employment opportunity necessitates effective management of labour force. The professional management of human resource under its fold would ensure scores of benefit both for the enterprises and human resource, namely increasing productivity, prevention of accidents, evolving sound wage policy, effective training, increasing morale and job satisfaction, checking labour turnover and absenteeism, managing labour indiscipline and effective grievance management etc. Most of small and medium entrepreneurs are of the view that professional management of human resources is applicable only to large scale industries. Perhaps the limited size of work force employed in these industries and non-existence of labour unions in a majority of these unions may not force them to think about the necessity of adopting professional practice in regard to human resource spectrum. They are quite unaware of negativities associated with frequent recruitment, labour turnover, poor work performance, inadequate training facilities, poor wage payment and so on. Marlow and Patton (1993) have argued that effective management of human resource is key to the survival of small and medium ventures. Given this significance, research on human resources practices has attracted higher attention in recent years. Hodge’s and Kuratho, (2001) have emphasized the importance of well-motivated, highly skilled work force as




a determinant of small enterprise’s ability to remain competitive in the contemporary business environment.

REVIEW OF LITERATURE

Storey (2007) has emphasized that small and medium firms require different attention in the areas of employment, trades and industrial policy. McEvoy (2006) has observed that HRM should take precedence over accounting, finance, production and marketing in remaining affoat in competitive arena-industries. Hess (2005) has found that owners of small ranked HRM practice as the second most important activity next to general management activity. Julien (2000) HRM, practices do exist and are applicable to small enterprises as well but they are not formalized and extremely diverse in nature. Studies by Duberleg and Welley 2000 shows that HRM practices vary among the small and medium enterprises. They are determined by the ideology and pluralistic goals of the small owner (Koch and Dekok, 1999). A Canadian study by Meki (2007) have noted that small firms are retaining function as the single most important function while large firms rated adjusting and developing human resources as the top most function.

Reid and Adome (2001) on HRM practices of small businesses have suggested that HRM practices in small business are dissimilar to the ones practiced in non family owned large firm in Northern Ireland. The findings of cases, Nadia’s, Grag and elegy (2004) have suggested that there is a considerable diversity amongst the SMES in relation to the use of HR practices. Nauyess and Bryont (2004) have made a study on 89 Vietnamese small firms on the level of formality as a dimension of HR management. The results indicated that firm’s size is positively, related to HR formality and HR formality is positively associated with owners’ perception of firm’s performance, Higgins (2004) has found that SMES are not giving employees what they want from their jobs such as career development, participative management and so on. Kotey and Slade (2005) examined the relationship between the size of the firm and adoption of HRM practices and proved empirically that the firms involuntarily start adopting HR practices like professional recruiting, training, directing and controlling human resources as the size of the units grows up.

STUDIES IN INDIAN CONTEXT

Subba Rao and Gangathara Rao (2000) found that sound employer - employee relation exits in SMES. Kamble (2005) in his study found that the SMEs soley banked on advertisement as a source of recruitment and observed that there is no HR planning, promotion training and development programme for employees in a majority of firms under study. Panda (2000) made a study on hotel industries under small scale sector and concluded that most of the small and medium noted units are dark about HR planning policies and labour practices pursued by the study units were heart rending. The study by Jothi (2004) has identified that small units made recruitment through their own network of friends and relatives; majority do not spend a pie on training and development aspect; there is no HR policy at all; there is no linkage between performance and reward. Eresi (2001) explored that SSI units are hardly putting in place human resources management policy and wages determination and promotional decisions were utter confusing and arbitrary.




The aforesaid studies highlight the fact this professional HR systems is not in existence in SMEs in our country. Ambattur industrial estate abounds in small and medium industries. Till date, a very limited study has been conducted on human resource dimension of their functioning. The present study intends to bridge the gap left by the carlier studies.

STATEMENT OF THE PROBLEM

The key to the successful functioning of any entity hinges on the quality of man power employed therein. However there is also a view that human resources practices are not relevant to small and medium industries in view of limited scale of operation. However, an efficient management of human resources is supposed to address most of fundamental issues and challenges in various domains of business units irrespective of the size of the unit. Only a very limited study has been made in the human resources management aspect of small and medium industries in Indian context. Therefore the present study intends to examine the status of human resources management in small and medium units located in Ambattur industrial estate, Chennai. In other words, whether the human resources management practices exist or not; If they exist, whether they are professionally practiced or they are approached in a haphazard fashion is the problem that merits study.

SIGNIFICANCE OF THE STUDY

The outcome of the present study is expected to throw light on HRM practices pursued in industrial units. The suggestions made in this minor research may be of use to fine tune the human resources spectrum of the units concerned. The workers might get positive benefits in the form of better pay, up graded safety, uniform, effective training, counselling, and better work environment and so on. The results of the study may enlighten the top echelons of institutional frame work in small and medium industries’ domain.

OBJECTIVES OF THE STUDY

The present study has the following objectives.

1. To explore the practices pursued in various dimensions of human resources management in the study units.

2. To suggest suitable measures to tone up the functioning human resources management in the sample units.

METHODOLOGY

SAMPLE

But of the 124 units functioning in the Ambattur industrial estate in Chennai city, 55 units were chosen for the study. It works out to 44 %. The units located were stratified in terms of industrial activity. Fifty percent of units engaged in different types of manufacturing activities were taken up for the present study. Thus stratified random sampling was followed. Table 1 displays the different types units forming the sample.




DATA COLLECTION

The data for the study was collected through structured questionnaire designed for the purpose. Both primary and secondary data were gleaned. The owners and officers concerned co-operated with the research.

Results And Discussion

Profile Of The Sampled Units

TABLE 1 BASIC PROFILE OF SMES

S. No Items Number of Units Percentage %

1. Year of establishment a. 1960 -1980 20 36% b. 1980 – thereafter 35 64% Total 55 100%

2. Nature of Business a. Automobiles 18 33 b. Iron foundry 5 09 c. Fabrication 6 10 d. Machine Tooling 4 07 e. Polymer 3 05 f. Welding 4 07 g. Chemical 5 09 h. Food Processor 2 04 i. Electronics 8 15 Total 55 100

3. Annual Turnover a. Rs. 1 crore and below 15 27 b. Above Rs.1 crore to Rs.5 crore 35 64 c. Rs.5 crore and above 05 09 Total 55 100

4. Employee Strength a. Below 50 workers 40 73 b. 50-100 workers 10 18 c. 100 workers wand above 5 9 Total 55 100

Source: Primary Data

A close scrutiny of the table 1 reveals that a majority of units i.e. 64 percent of the units surveyed were started after the year 1980. Across the units of different sectors, the automobile units are dominating with 33 percent closely followed by electronics units with 15 percent. Food processing and polymer are least represented due to the small number of unit operating over




there. As regards turnover, sixty four per cent of units numbering 35 are reporting turnover ranging from Rs. 1 crore to 5 crores. The units clocking in turn over exceeding Rs. 5 crore are nine. As far as strength of employees is concerned, forty units forming 73 per cent are having a work force strength of below 50. It is only 5 units forming 9 per cent where work force exceeds 100.

HR DEPARTMENT AND HR POLICY

TABLE 2 HR DEPARTMENT AND HR POLICY

1. Person incharge of HR Affairs No.of Units

Percentage

a. HR Professional 5 9 b. Manager 5 9 c. Owner himself 45 82

Total 55 100 2. Existence of formal HR Policy

a. Yes 10 8 b. No 45 82

Total 55 100 Source: Primary Data

As furnished in table 2, the absence of HR policy and rare presence of professional HR managers are lamentable. This shows the least importance given to HR aspect. It is patently evident that the owner himself seems to be all rounder in a vast majority of units say 82 per cent in managing various domains of business. However five units have appointed qualified HR managers. There units are the ones having a turn over crossing Rs.100 crores. It is ascertained that the limited scale of operations has not permitted a majority units to afford functional specialists.




HUMAN RESOURCES PLANNING

TABLE 3 HR PLANNING

1. Requirement for additional Man power No.of Units

Percentage

a. Yes 40 73 b. No 15 27

Total 55 100 2. Reasons for HR Planning

a. Expansion 32 58 b. Technological charge 3 6 c. Increase in Turnover 20 36

Total

55 100

3. Existence of HR Planning Practice a. Yes 40 73 b. No 15 27

Total 55 55 4. If yes, nature of Planning a. Long Term 5 9 b. Short Term 50 91

Total 55 100 *5. HR Forecasting Technique

a. Instant Decision 40 73 b. Extra Portion 10 18 c. Work Study Method 15 27 d. Ratio Trend Method 09 16

e. Any other Method - 6. Nature of Staffing

a. Over staffed 10 18 b. Optimally staffed 15 27 c. Under staffed 30 55

Total 55 100 *7. Reason for over staffing

a. Unexpected reduction in the production 8 80 b. Absenteeism 6 60 c. Unplanned expansion 7 70

Note : each response is divided by 10 *8. Reasons for Under staffing

a. Non-availability of specified skill 20 36 b. Employee Turnover 18 33 c. Financial Constrains 10 18

Each response is divided by 30 Source: Primary Data

*Note: Total percentage does not tally with 100 as units gave more than one response. Each response is divided by total sample of 55 units.




It is apparent from the table 3 that 73 per cent of units under study have felt the need for additional man power in near future. The factors such as expansion and anticipated increase in turnover are driving the units for fresh infusion of human resources. These units numbering 40 (73 per cent) are planning human resources in tune with changes in the human resources inventory. But 9 per cent of the units are making only short term assessment. The instant decision is made by 40 units (73 per cent) Nevertheless, 27 per cent (15 units) project manpower needs through work study method. Ten units (18 per cent) estimate man power by extrapolating relevant factors and nine units (10 per cent) follow ratio method. It is only in 15 units (27 per cent) staff strength is optimal. The fact of understaffing is evident in 30 units (55 percent). Ten units have excess staff owning to unexpected fall in the level of production and unplanned expansion activities. The reasons like non-availability of workers possessing a given skill set and employee turnover are greatly contributing to under staffing to the extent of 67 per cent and 60 per cent respectively.

RECRUITMENT AND SELECTION PRACTICE

TABLE 4 RECRUITMENT AND SELECTION PRACTICE *1. Sources of Recruitment Number of units Percentage

a. Network of friends and relatives 20 55 b. Advertisement 25 45 c. Washing 34 62 d. Contractors 10 18

*2. Steps in Selection Process a. Interview 40 73 b. Trade Test 30 55 c. Straight Appointment 8 15

*3. Final Selection Criteria a. Acceptance of terms of service contractor 20 36 b. Recommendation 17 30 c. Potentials 15 88 d. Prior experience 48 27

4. Probation Practice a. Yes 40 73 b. No 15 27

Total 55 100 5. Length of Probation

a. Below 1 month 40 73 b. Above 1 month below 3 month 3 5 c. Above 3 months and below 6 month 8 15 d. Above 6 month below 1 year 4 7

Total 55 100

6. Orientation Programs a. Yes 42 76 b. No 13 24

Total 55 100 Source: Primary Data




Note: Total percentage does not tally with 100 as units gave more than one response. Each response is divided by total sample of 55 units.

The sample units make recruitment through sources like private agencies, network of friends and relatives and advertisement. The walk in interviews and contractors are playing a little role in recruitment activity. The respective percentages worked out in the table 4 bear testimony to the aforesaid observation. It is observed from the table that the candidates eligible are selected through interview and (73 per cent) trade test (55 per cent). The prior experience is the most important criterion in making a final selection (88 per cent). The other factors are influencing the selection to the extent of 30 percent on an average. The selected ones are placed under probation. The duration of probation is one month in most cases (73 per cent). The new hire his given induction (76 per cent).

PERFORMANCE MANAGEMENT

TABLE 5 PERFORMANCE MANAGEMENT

1.Appraisal System Number of units

Percentage

Appraisal Method a. Observation 38 69 b. Rating From 10 18 c. customers’ feed back 7 13 Total 55 100 2. Appraising Authority a. Immediate Boss 28 51 b. Both immediate boss and Head 2 4 c. Immediate Boss Head and Owner 3 5 d. Owner himself/ herself 22 40 Total 55 100 3. Periodicity of Appraisal a. No specific person 10 18 b. Daily - - c. Monthly 28 51 d. Quarterly 3 4 e. Half yearly 2 5 f. Annually 12 22 Total 55 100 4. Outcome of Appraisal a. Pay Revision 38 09 b. Promotion 19 35 c. Rewarding desirable behaviour 15 27 d. Initialing Disciplinary Action 3 5 Total 55 100 Source: Primary Data




The appraisal practice pursued by all the units is commendable. Table 5 shows the results of performance management practice. Observation method is prevalent among the respondent units. Around 69 per cent assess performance by observation method. The other ones like ‘rating’ form and customer feedback are not quite popular among the units. The immediate boss (51 per cent) and owner himself (4 per cent) are assessors. Joint appraisal is rare. As regards periodicity, monthly appraisal and annual appraisal are practiced. Ten units use to appraised whenever they feel convenient. The motive behind the appraisal is to decide on pay related matters, promotion matters and training matters. They do not undertake merit rating for punishing the underperformer and for rewarding the best performer.

PROMOTION PRACTICE

TABLE 6 PROMOTION PRACTICE

1. Promotion Practice Number of units

Percentage

a. Yes 19 35 b. No 36 65 Total 55 100 2. Basis of Promotion a. Performance – based 14 73 b. Seniority – based 5 27 c. Performance and Seniority based - - 19 100 Source: Primary Data

Table 6 illustrates the promotional practice followed by the sample units. The conspicuous non-existence of promotional practice is deplorable. Around 65 per cent of the units do not follow it either because of acute turnover of employees or because of apathy towards the career growth of employees. However promotion awarded by the minority unit namely 35 per cent is based on performance and potentials of the employees. A seniority-based promotion is not in vogue.




TRAINING AND DEVELOPMENT

TABLE 7 TRAINING OF EMPLOYEES

1. Methods of assessing the Training needs Number of units

Percentage

a. Observation 5 9 b. Appraisal System 13 24 c. No formal system 37 07 Total 55 100 2. Training Facilities Availability a. Yes 14 25 b. No 41 75 Total 55 100 3. Practice of Imparting Training a. Yes 18 33 b. No 37 67 Total 55 100 4. Training Method a. Job 36 72 b. Off the job 14 21 Total 55 100 5. Venue of the job training a. Own facility 6 43 b. Tie up with institutions 8 57 14 100 Source: Primary Data

The picture of training and development looks sordid in that 67 per cent of units do not have any formal system to diagnose training needs of employees. The rest of the unit i.e. 33 percent do have some mechanism to find out the training requirements. Similarly 41 units (75 per cent) do not have training facility. However 91 per cent of the units forming 50 in absolute figure pursue the practice of training their employees. But out of 50 units 36 units train their employees in-house while the units namely 28 percent impart training off the job. Out of 14 units practising “off the job training,” eight units have a tie up agreement with external agencies like Anna Institute of Training National Institute of Technology, National Metallurgical Laboratory, Indo Danish Tool Room Training Centre six of them have their own training facility.




EMPLOYEE COMPENSATION

TABLE 8 COMPENSATION

Average Compensation Rs. a. Manager 10,320 b. Supervisor 8,650 c. Clerks 5,320 d. Workers 4,030 Average 7,080 Source: Primary Data * Approximate figure given by the management.

The mechanism for fixation of compensation for employees is widely varied. As for workers, it is the unilateral decision of management. As far as employees in managerial cadre are concerned, it is the bargaining power of managers that play a role in fixation. Employers comply with the provisions of minimum wages Act 1948. The investigator was not allowed an access to the pay register of the units. Hence only figures of average salary could be obtained. The overall average salary paid works out to Rs.7080. With regard to wage differential among the four categories, it is found that there is 61% difference between manager and workers. The wage differential between manager and supervisor is 16 percent while it is 24 percent between clerks and workers.

BONUS PRACTICE

TABLE 9 BONUS

Bonus No. of Units Percentage a. a. 8.33% 32 58 b. b. 10% 12 22 c. c. 12% 3 6 d. d. 15% - - e. e. 17% 8 14 f. f. 20% - - Total 55 100

Source: Primary Data Average = 18.86

As regards bonus, a majority of units, viz 58 per cent comply with minimum bonus payment. The rest of the units pay bonus ranging from 10 percent to 15 per cent. The overall average bonus is 19 per cent.

INDUSTRIAL RELATION




TABLE 10 INDUSTRIAL RELATION

*1. Grievance Areas Number of units Percentage a. Lower pay 38 69 b. Delayed payment of salary 7 13 c. Unpleasant working conditions 28 51 d. Unsafe working conditions 32 58 e. Absence of clear cut policy 40 73 *2. Grievance Redressal a. Counselling 22 40 b. Through Redressal Mechanism 9 16 c. No formal procedure 40 73 *3. Incidents of Indiscipline a. Quarrelling 12 22 b. Negligence - - c. Chronic Absentecism 20 36 d. Theft - - e. Insubordination 12 22 f. Alcoholism 8 15 g. No serious misconduct 38 69 4. Action for Misconduct a. Personal counselling 35 64 b. Verbal warning 8 15 c. Show cause notice 5 9 d. Discharge 7 12 Total 55 100 5. Unionization a. Yes 8 15 b. No 47 85 Total 55 100 6. Union Management Relation a. Cordial relation 8 100 b. Strained relation - - 8 100 Note: The total percentage does not tally with 100 as units give more than one response. Each response is divided by the sample of 55 units.

A perusal of table 10 unearths the fact that absence of clear cut HR policy, lower pay, unsafe working conditions and unpleasant working condition are breeding grievances in the sample units. These grievances are redressed through counselling to the extent of 40 per cent and through a formal mechanism in place by 16 per cent of industries. It is disheartening to observe the absence of such mechanism in a vast majority of units, 73 per cent. As regards indiscipline, the climate sounds good with 38 units (69 per cent) reporting no serious indiscipline in their units. Among 10 other grievances, absenteeism is to be combated seriously. It is also commendable to address the misconduct through personal counseling (64 per cent). The non-existence of union may be due to the lack of co-ordination among the workers working in




different industrial units functioning in the estate or due to migratory character of workers working in each unit. The absence of strained relations in units which permit union activity augurs well for healthy industrial relation climate.

ABSENTEEISM AND EMPLOYEE TURNOVER

TABLE 11 ABSENTEEISM AND EMPLOYEE TURNOVER

1. Length of Absenteeism Number of units

Percentage

a. 1-2 days 9 16 b. 3-4 days 18 33 c. 5-6 days 3 5 d. More than 6 days 10 18 e. Not a problem 15 27 Total 55 100 *2. Reasons for absenteeism a. Attending part time job 37 67 b. Festivals 5 9 c. Sickness 19 35 d. Alcoholism 28 51 e. Incompatibility with supervisor 36 65 d. Any other reason specify - - 100 *3. Measures to address Absenteeism a. Pay cut 45 82 b. Reward for regularity in attendance 5 9 c. Issue of warning / memo for unauthorized leave 24 44 d. discharge 7 13 *4. Annual Employee Quits per year (Operative Level) a. No quitting 18 33 b. 1-2 - - c. 3-4 2 4 d. 4-5 7 13 e. More than 5 28 50 Total 55 100 *Note: The total percentage does not tally with 100 as units give more than one response. Each response is divided by the sample of 55 units

*Reasons for quit Number of units Percentage 1. Offer of higher pay 37 100 2. Family consideration 20 54 3. Personal consideration 24 65 *Note: The total percentage do not tally with 100 as units give more than one response. Each response is divided by the sample of 55 units.




An attempt is made to figure out the rates of absenteeism and labour turnover in the units under study. But these units do not keep proper record and do not calculate the rate. However, based on information furnished by the proprietors or their representatives, it is not a serious problem for 15 units forming 27 per cent. It may be due to the engagement of contract labourers or ready supply of the labourers by contractors as and when required. Employees absent themselves from duty for a period ranging from 1 to 6 days in the rest of 30 units (54 percent) (16% + 33% + 5%). This problem is alarming in 10 units where the absenteeism extends beyond the period of 6 days. Doing part time job elsewhere, incompatibility with superior officers and alcoholism are said to be contributing to absenteeism. This menace is countered through ‘pay cut’ by the majority of units and by the issue of written warning to the errant employees. However, positive measure i.e. reward for regularity is in place in 5 units.

With regard to labour turnover, 18 units constituting 33 percent have reported zero quits. This turnover problem is a cause for concern in 28 units (50 per cent). Allurement of higher pay and family considerations are stated to be reasons for quits.

SUGGESTIONS AND CONCLUSION

Irrespective of size and volume of business of the unit, institution of proper HR policy would weed out the majority of human resources related problem. The HR policies facilitate prompt actions in respect of HR decision, consistency of action in the place of whimsical action and freedom from personal bias. Therefore all units will do well to chart out clear out HR policy.

As regards recruitment, those small and medium units can tap human resources through campus recruitment as it is comparatively cheaper source of recruitment than recruiting through advertisement, contractors and private employment exchanges. Moreover freshers from the educational institutions may work with zeal and commitment. However the experienced hands may be hired through walk-in interviews.

Man power decisions may be arrived at with the help of professionals instead of instant decisions. This would ensure optimal staffing.

Performance appraisal should be conducted by the persons actually observing the performance of workers. The periodicity may be determined cadrewise. Daily monitoring may suit worker categories while monthly appraisal may be applied to supervisory cadre. Managerial cadre may be appraised every quarter. Non-technical category may be assessed annually. The rating mechanism need to be evolved in consultation with the HR consultants or academicians serving in the educational institutions. Appropriate remedial measures need to be applied on the basis of outcome of the appraisal, namely rewarding efficient workers and training the less efficient worker. The discharge should be the last option.

Small and medium units under review may enter into a tie-up with Government agencies like Small Industries Development Corporation, National Metallurgical Laboratory, Indo Danish Tool room and Training Centre, Tata Motors, Navanthi Technical Institute etc. It




is also cost effective to have the employees trained through Business Schools of our country. The choice of the training institute depends on the nature of skill and the level of competency required to be imparted. Another alternative to off the job training is to hire academic faculties or trained and skilled experts in order to retool the skills of the employees. Thus periodical training of the employees is sure fire way not only to boost the morale of the employees and but also to increase the productivity and also to strengthen the bonds between employer and employee.

Small and medium industries can include variable pay component to their pay structures. Apart from the regular pay scales, pay-hike linked to performance may be integrated. Pay decisions should have a linkage with the outcomes of performance appraisal mechanism in force. The practice of paying a consolidated pay at present in vogue need to be replaced with regular pay structure. Similarly these SMES should put in place individual and group incentive schemes. The units may take consultancy from the business schools, at a nominal charge in this regard.

A majority of small and medium units under review do not follow promotion system. This may be one of the reasons for larger quits. The performance of employee is deeply connected with his career advancement. These units may adopt appropriate promotion policy. A seniority may be the basis for promotion decisions for non-technical nature of work and ‘performance’ ought to be the criterion for the skill and competency based jobs.

The present study has surfaced the fact that sampled units do not have formal grievance redressal system. Therefore it should put in place a system to handle complaints in a professional way i.e. designating an officer for grievance redressal; reporting the grievance; acknowledgement of grievance; setting time limit for grievance settlement; giving feed back to the complaints attended and provision for appealing to higher ups in case of unsatisfactory resolution of grievances.

Absenteeism in the units seems to be rooted to poor pay offered by the units and the lack of professional approach on the part of superiors in dealing with the workers. More over negative motivation i.e. pay cut could not address the issue. Hence SMEs may think of instituting positive measures like counseling, reward system, improving work environment, training, providing safety devices and so on for tackling issue of absentecism.

CONCLUSION

The study has highlighted flaws in the functioning of human resources system in the sample units. The absence of HR policy is the root cause of most of anomalies in HR spectrum. They desperately need professional consultation on various dimensions of human resources management. The haphazard and arbitrary management of HR functions in SMEs is evident in our analysis. A tie up with business schools, management training institutes and technical educational institutes. Seeking HR expertise from HR consultants on critical issues, etc. could help to streamline their functioning. A serious consideration and implementation of suggestions




made in the study would undoubtedly impart professionalism in the functioning of HR domain of SMEs.

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