Role of Human Resource Management in MSMEs

Dr. Sheetal Nair

Dr. Sheetal Nair

New Delhi/ 17th September 2020: An HR professional many a times may end up getting questioned on the productivity being offered by them. Especially when the questions are asked by the management of a small factory pretty much affected by the present satiation. The metrics for the same even though they exist are still not much in vogue in smaller organizations.

Does this mean a smaller organization can do away with this function?

Probably make it a secondary function to the more primary ones of Finance, Operations & Marketing.

In this era where India has emerged from the shadows of being an economy heavily dependant on Agriculture, it is pertinent to understand what drives this economy?

As Hemingway put it, “The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.”

Since our economy is not burdened with either of these unlike Venezuela or the US, we need to understand that our economy is held together by not only giants like Tata, Reliance, Wipro, Adani or Mahindra; it is held together by your neighbourhood IDC or SEZ which is populated by the ever-growing MSME sector buoyed by the Start-up India & Make In India scheme.

So, in such a scenario what can the HR of such a MSME company do?

Well, for one, it is pertinent to let go off the ideology that HR is a support function only & become a business partner. I can probably write a thesis on this subject but to put it short let me shortlist 3 factors wherein HR can not just make a difference but also drive the business.

  1. Workforce Planning

Recruitment is not just a function in a small company but if planned properly one can ensure not just an economical benefit but also a productive output. If Engineers can end up doing Technical Recruitment, sound planning by the HR can ensure better productivity for organization as a whole.

  • Benchmarking Compensation & Benefits

Designing a C&B plan for deep pockets is easy but an entire sectors C&B plan can be benchmarked for an MSME in turn allowing the organization to manage the manpower better & at ass better cost, thus increasing the bottom-line.

  • Evolving Performance Management Dynamics

Similar to ensuring a better C&B plan, the HR can design a PMS plan which can be in line with the way an organization needs to progress. Being a QMS lead auditor one thing which I have realised is that a better policy & proper execution can save a lot of money for the organization & also result in better satisfaction for the internal stakeholders.

Eventually all business managers & entrepreneurs must remember that nothing we do is more important than managing people. In the end as a business owner, “You bet on people, not strategies.”

The Author is Corporate Head of DSS Group of Companies.

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