When it comes to stability and growth, challenges encountered by small and medium enterprises include but they are not limited to hiring of skilled manpower, etc. (Cooper and Burke 2011, 17). In my opinion, all these are challenges can be handled effectively by a human resource management department.
Yet another critical or important role that human resource management plays has got to do with employee training and development. In the opinion of Bohlander and Snell (2007, 143), training needs can easily be identified by observing the "discrepancies between the knowledge, skills, and abilities...demonstrated by the jobholder and the requirement contained in the description and specification for the job." Most small business owners regard employee training and development as a preserve of larger businesses. Worse still, some small businesses choose to allocate this important role to other unskilled individuals within the business. Employee training and development is critical to the success of any small business. Indeed, in the opinion of Gitman and McDaniel (2008, 211), most businesses train their employees (both new and existing) so as to ensure that the said employees have the prerequisite skills and knowledge required to perform optimally. This is more so the case when it comes to cross-training members of staff so as to equip them with the skills required to handle several job functions.
Recommendations and other Considerations
It is important to note that for some small businesses, the cost of hiring a fulltime human resource manager may seem too prohibitive. Indeed, as Heneman and Greenberger (2002, 61) point out, based on their limited size, many small businesses do not find it reasonable to hire full-time human resource management professionals. Some small businesses try to circumvent this by allocating the human resource management function to existing employees who are in most cases unskilled when it...
Although most small businesses do indeed make some cost savings by adopting this approach, the consequences of such an approach to human resource management could be disastrous and more costly in the long-run.
Those businesses that find themselves without adequate resources to support a fully fledged human resource management department should consider other alternatives or approaches to this issue. One such alternative is outsourcing. In the words of Heneman and Greenberger (2002, 61), "in areas where a firm's internal HR staff is deficient, HR outsourcing provides an opportunity to acquire specialized expertise and expert knowledge." This cost effective approach to human resource management allows an enterprise to seek and engage an external human resource management support service. With an external human resource manager, a small business has at its disposal an individual skilled enough on the subject at hand to help manage staff recruitment and retention, disciplinary issues as well as efficiency and productivity. According to Heneman and Greenberger (2002, 61), outsourcing of the HR function could even enhance an entity's competitive advantage. Small businesses should also view outsourcing of the HR function as a cost cutting measure. As Heneman and Greenberger (2002, 61) further point out, cost savings in this case could result from both shared risk and efficient access to technology. With an external human resource manager, a business can concentrate on its other core activities so as to further enhance its performance.
Conclusion
In conclusion, it is important to note that when it comes to the continued success of a small business, the relevance of human resource management cannot be overstated. The success of many small businesses is often anchored on their human capital. The only way to ensure that this human capital contributes effectively to the overall…
