Page 182 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Unit 12: HRM in Small Business

developmental needs, and provides meaningful feedback to his or her employees is far more Notes
likely to be successful than the owner who is neglectful in any of these areas.

Caselet Employees are the New Corporate Heroes?

eople are central to an organization. To achieve corporate goals, they have to put
their heart into everything and work with zeal, enthusiasm, dedication and
Pcommitment. Without positive and creative contributions from people,
organizational goals may remain pious dreams, existing only on paper. The knowledge,
skills, experience possessed by employees and their wholehearted support to organizational
work, in most cases, would spell the difference between success and failure.
The organization’s talent pool is its most valuable corporate resource and is the primary
source of competitive advantage. The quality of human capital (i.e., collective knowledge,
skills, abilities and attitudes of total workforce within an organization) and its effective
management (by placing the right man on the right job) would go a long way in enhancing
productivity and reducing costs. In knowledge based industries, human resources could
make or break a company. Most importantly, the knowledge, skills and attitudes of
workforce cannot be duplicated or imitated by competitors. They remain with people
and, therefore, become a source of rare competitive strength when the organization offers
the right kind of environment and atmosphere. In organizations where fairness, equity,
justice and autonomy are fiercely guarded and people are treated with respect, love and
affection – work becomes fun and people come out with outstanding results, surpassing
all mathematical calculations. One plus one could be two, twenty or even two hundred!
One man’s dream – it could be Ratan Tata, Anand Mahindra or K.M.Birla – becomes a life
and death struggle for many. The result could be an Indica, a Nano or a Scorpio – the result
of outstanding contributions from ordinary people trying to convert a passion/dream
into a concrete reality.
To gain the edge, however, the organization needs to invest in its human resources –
through training and development programmes and creating growth opportunities within
the company from time to time. The competency gaps of employees need to be identified
and bridged through appropriate training and development programmes. HR policies
and programmes must be in sync with the business plans of the organization and with
each other.
Source: Rao.V.S.P.(2010), “Human Resource Management”, Excel Books Pvt. Ltd.

Self Assessment

Fill in the blanks:

1. An organization’s success increasingly depends on the ………………..of employees.
2. ………………..alerts the company to the types of people it will need in the short, medium
and long run.

3. A ……………….. can lend a small business some protection in the event that its management
or operating procedures are questioned in the legal arena.

12.2 Human Resource Development

Human Resource Development (HRD) is a positive concept in human resource management. It
is based on the belief that an investment in human beings is necessary and will invariably bring

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