For most small businesses, human resource management often ranks low in priority as compared to other aspects of operation such as finance, production, fund procurement distribution and marketing, which take precedence. However, personnel management is as crucial for small businesses as focusing on other areas since nurturing and retaining talent in the organisation is necessary to drive business growth.
Crucial for increasing competence
Resource management is essential for businesses – small, medium or large – as it is interrelated to a company’s organisational performance and its long-term success. Effective management helps small firms to tap better growth opportunities and enhance competitiveness.
Personnel management includes crucial aspects such as hiring effective resources, job planning, ensuring all employees’ involvement, proper work allocation, delegation and team work production system, among others.
“Ensuring proficient people management can help small businesses to improve profitability and enhance their operational effectiveness. Paying adequate attention to staffing and meeting employee requirements is essential to ensure that businesses can run without the risk of losing their top talent,” said Sunil Goel, director of Global Hunt India, a recruitment consulting firm in New Delhi.
Making optimum utilisation of the qualities and capabilities of employees within an organisation is necessary to get the required output and ensure better productivity results.
“Forming effective human resource policies, keeping in mind the interest of employees alongside the organisational goals, will be good for small businesses to achieve their desired performance targets,” said Vijay Jajoo, human resource manager of Tax Consultants, a small-sized financial consultant firm in Mumbai.
Introducing training programmes and sessions to nurture the existing skill sets of employees are also part of talent management and required to enable small businesses expand and grow.
