Page 179 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management Amit Kumar Sharma, Lovely Professional University

Notes Unit 12: HRM in Small Business

CONTENTS
Objectives

Introduction
12.1 Importance of HRM
12.2 Human Resource Development

12.3 Industrial Relations Pricing
12.4 Labour Laws
12.5 Pollution Control Laws

12.6 Summary
12.7 Keywords
12.8 Review Questions

12.9 Further Readings
Objectives

After studying this unit, you will be able to:
Describe the importance of HRM
Explain the human resource development

Discuss the industrial relations
Define the labour laws
Discuss the pollution control laws

Introduction

Many small businesses operate with no employees. One person handles the whole business
with perhaps occasional help from family or friends. Making the leap to hiring someone to help
is a big one because all of a sudden you need to worry about payroll, benefits, unemployment
insurance, and what seems like a myriad of other details. And, this does not even take into
consideration the host of problems that can arise from personality conflicts and loss-of-control
of all the processes in running your business.
People are the real assets of an organization. If treated well, they can take organizations to
commanding heights. Two plus two could be four or even ten. Organizations are, generally,
driven by a set of predetermined goals. They employ physical, financial and human resources in
order to achieve the goals. These goals have no meaning unless people understand the underlying
philosophy, translate them into concrete action plans and put their heart while realizing the
targets. Organizations, thus, depend on people for their survival and growth. In a similar way,
people need organizations.
The vast majority of people work to support themselves and their families. But people work for
many reasons other than economic security. For example, they may also work to keep busy and

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