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Small firms startup is good option for every entrepreneur who wants to enter in the market, but the problems behind these small firms are also unavoidable. These firms are facing many standard problems due to internal and the external both factors exist in the market. This study after analyzing the problems of small firms tries to recommend suitable suggestions to them like the companies should adopt new methodologies by choosing the customized HR practices in managing their manpower. The suggestions recommended in this study for small firms might not be suitable in every small-scale industry because the result of these practices may vary due to the impact of many other factors, which can affect these practices applications. HR practices adopted by these companies are beneficial, or the wastage of time is still a controversial topic. This study also highlights the pros and cons by reviewing the previous studies and tried to find out the collective rational for this study.
Some myths regarding the HR practices application in small firms are listed below:
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Increased the cost to the company like training set up cost.
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HR practices does not result in the form of direct output for a company
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People engaged in extra co curricular activities
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Perception errors towards these practices
The reason of choosing the Small and medium size enterprise is that India is a developing country and SME’s is a part of the main components in the list of contributing factors towards the economic growth of the nation (Kota, 2018). The SME Chamber of India mentioned that small businesses are growing very fast in India from the last five decades. These companies are supporting the large part of GDP growth by providing the employment opportunities to the large unemployed population of India. But along with the fast growth, these companies are also facing many problems like lack of raw material, skilled workforce, insufficient capital, proper HR department, high employee turnover, government rules and regulations, inadequacy of facilities, etc. (Kota, 2018).
Only 8% of the SME’s have proper HR department and rest 70% of these industries don’t even have the proper HR department and the work of this department mostly managed by the third party in the form of outsourcing from outside the company or by the owner itself (Pingle & Sudhakar, 2014).
This study is based on the researching about the electrical goods manufacturing firms and the reason is that NCR region having these types of SME’s in larger number. The SME’s of electrical goods means the companies engaged in manufacturing the switchboards, wire, panels, gauges, etc.
25 Lakh to five crore annual turnover companies are the main concerned area for this research because these are included in small and medium size enterprise.
Some main objectives of this study are mentioned below:
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To understand about the employee benefit schemes which can act as motivating and satisfying factor for the employee working in SME’s
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To find out the customized and role-based training methods use in SME’s in achieving the good quality and increased productivity.
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To identify the role of creativity and innovation diffusion among the employees of small firms at their workplace.
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To understand the employee involvement practices impact over the employee satisfaction and productivity level.
These are some main objectives of this qualitative paper and on the basis of these objectives results can be easily interpreted. The result of this study also helps the SME’s in clearing their thoughts that all the HR practices chooses by them may not suitable for their employees and organization which also gives result in different form. They have to choose the HR practices very wisely by considering the fixed and uncontrolled factors with the limitation of their organization like funding, timing constraint, employee skills, etc.