Analysis on the Importance of HR Practices in Managing Organisations Essay

Analysis on the Importance of HR Practices in Managing Organisations - act ExampleAnalysis on the Importance of HR Practices in Managing Organisations The literature suggests of the importance of managing human resources for the emolument of the company, entirely this practice is app bent to the large organizations. HR practice in SME has been the center of research because of the issues raised. The field of study found out that the size of the company is congruent to the choice of implementing HR policies because of resource constraints. This paper analyses the signification of HR practices such as training and development in managing organisations. Resourcing an Organisation SME has captured the attention of researchers due to its speedy growth which contributes to the national economy. Thousands of small businesses be established, which increase the employment of individuals hence, failure of small businesses to remain in their business operation hurt the economy. Europe and UK narrate that two-third of its job are employed in SME, but the enterprises lose a huge number of jobs due to business failure. The business failure of SMEs is caused by the despicable management of resource and informal practices of HRM. Beaver and Hutchings support that SME rejects the value of HR as the source of gaining warlike advantage. Due to their lack of knowledge in the managerial aspect, the growth of the company is sacrificed. Furthermore, majority of small and moderate enterprises believe that HR practices are hindrances to the generation of profits because training and development require budget. ... commitment, adaptability, and consideration of employee. To accentuate commitment, SME should adapt HR policies to strengthen the loyalty of employees and motivate them to render their maximum potential. Thus, it is inappropriate for SME to think that HR policies will lead to unproductive. The management of people is strategic to success (Harney & Dundon, 2006, p.48 ). This statement accentuates the role of HRM in aiding companies to strain their mission statement. The knowledge on HRM is critical in ensuring that sort out employees are recruited and trained at the right time. Zheng, et al. (2009, p.177) confirm that consistent and effective manner of human resources management through recruiting and maintaining competitive staff who are talented will add to the companies competitive advantage and sustain superior performance in the endless term. Therefore, the failure of most companies is rooted to their inability to support HR practices. In UK, the government encourages SMEs to implement HR best practices because of its positive outcome to the organisational performance. Studies have shown that companies employing HRM have attained excellent performance compared to those who are neglecting HR (Bacon & Hoque, 2005, p.1977). According to Pfeffer (1994 cited in Reid, et al., 2002, p.249), successful organisations have common HR practices such as employment security, self-managed teams, ample training, high compensation contingent on organisational performance, recruitment, sharing of information, and reduction of status differences. The HR practices of organisations motivate employees to be competitive and productive in their job design and role designation. Job design and role specifications are crucial in matching the talents of the