Developing Human Resources Management Performance in Industrial type SMEs

Abstract

The effective management of human resources is a central issue for many companies, particularly small-to-medium sized enterprises (SMEs) in Industry, which often lack a designated HR function. Usually, the HR function and management of HR falls upon the manager, who faces diverse issues that can hinder innovating or implementing a more efficient system of managing HR. This paper addresses the issue of developing sustainable and innovative HR practices in industrial SMEs. The loose structure of the SME facilitates organizational agility but can also bring about disorganization, dysfunction and sub-optimum performance. Using research-intervention, this paper contributes to the literature on the impact of developing HR practices on employee performance in SMEs. It explains the key roles of management and local managers in facilitating and developing a more adapted and efficient HRM interaction.