Human resource management plays a crucial role in long-term performance of small and medium-sized enterprises. That is according to a study by the British HR professional organization Chartered Institute of Personnel and Development (CIPD) called Sustainable Organisation through HR performance in SMEs. The study also identified six key areas HR in small and medium-sized enterprises should focus on.
1. The ability to predict
HR must fully understand the context of the organization, its strategy and values, anticipate key changes associated with its growth and modify the human resource management strategy and procedures accordingly.
2. Consolidation and development of corporate values
Another role of HR is to maintain and develop the values and vision of the company's founder or owner by incorporating them into the daily work and all the processes of people management in the company.
3. Linking people management with ambitions of corporate leaders
The interest of the leaders in intangible HR issues may not be big, especially when the company have just started. The more it is up to you to persevere and links your strategy with their ambitions.
4. Simple structure and clean people management processes
Simplicity protect innovation and entrepreneurial spirit. While more complex procedures will be necessary as the time goes, your task is to keep the right balance between HR practices and bureaucracy.
5. Sustainable growth
Sustainable growth requires your willingness to abandon the existing processes and aspects of human resource management which no longer correspond to your corporate culture, its values and priorities.
6. Laying cultural foundations of the company for the future
Do not concentrate only on immediate operational matters, think in the long term.
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