Human Resource Management Plan for SMEs: Importance and Impact on Business Growth

Managing Human Resources
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Word count: 2560

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TABLE OF CONTENTS
EXECUTIVE SUMMARY......................................................................................................................................2
INTRODUCTION....................................................................................................................................................4
FINDINGS SECTION.............................................................................................................................................6
HUMAN RESOURCE MANAGEMENT PLAN...........................................................................................................6
CONCLUSION........................................................................................................................................................9
RECOMMENDATIONS.......................................................................................................................................11
REFERENCES.......................................................................................................................................................12

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Executive Summary
It will be discussed in this document how Human Resources Management Plan is essential
for all companies that what to maintain business progress and evolution throughout years.
What is a Human Resource plan?
 Human resource planning (HRP) can be defined as the set of activities which are
performed by an organization in order to maintain good and highly skilled employees
and avoiding employee shortage or their surpluses.
 A good HRM strategy of an organization leads it to have better productivity and
higher profitability which makes it thrive.
 There are four main steps are taken in order to carry out HRM process efficiently.
Present supply of employees, determination of the future of workforce, maintaining
balance between the demand and supply, development of plan in attempt to support
the business goals.
What are the purposes of HRM plan?
 Human resources planning ensures a great balance in term of employees and the jobs
so can avoid any types of surplus or shortage of manpower.
 They take some key steps which are four in number, these stages are helpful to make
the organizational practises highly productive and fulfilling their requirements of
manpower. The main aims it perceives is to bring strong productivity to the
organization.
What impact a Human Resource management plan has on SMEs companies?
In the present scenario, the interest is getting up pertaining to take the benefits which may be
accrue to the organization, they can take extensive help of highly formal and effective
human resources. With strong HRM practises the organizations or firms can hike their
performance and human capital. It paves way to structure the jobs in a manner which leads
to hike the employee participation and the undertaken process improvement, soaring
motivation and guiding employees to make bigger contribution to achieve the goals.
This research is focused on evolution of effectiveness of performance, for instance- training,
recruitment process, quality of work, team work efforts, appraisal and practise of incentive
pay etc.
What SMEs need to do to have a successful?

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SMEs can get foster by abiding with some notions, which are described as four fundamental
key for success:
1) Applying technology
2) Agility
3) accelerated innovation
4) Attracting talent.
1
Many SMEs are developing growth strategies by focusing their expertise in niche markets,
driving sales growth at home and abroad. Finance remains a key challenge for SMEs and a
significant opportunity exists for financial providers to assist growing SMEs.
There are some salient stakeholders who can help to bring such predicaments favouring
SMEs practises. Such as policymakers, government, and some other types of agencies.
There is need to perceive the fact that different SMEs have their individual needs as suits to
their nature.
UK recent SMEs statistics
In UK around 6.0 million Small and Medium sized organizations are getting operated. Is
constitutes around 99% of the businesses. In Micro 0-9 employees are considered. Across
5.7 million such Micro business are there by the year 2020 which constitutes around 96%.
Yet these businesses are accounting around 33% and 21% of the total employees.
Large businesses are approximately 8000 have more than 250 workers. It accounts 0.1% of
the businesses but have 39% employees and 48% turnover. (GOV.UK, 2021)
Introduction
SME an acronym used for stating Small and Medium Size enterprise. In the UK it is
considered a SME a company with fewer than 250 employees (Nascimento, C.M.R. da S. do
2017) Small and medium sized enterprises (SMEs) play quite significant role in the nation’s
economy. This SMEs are having their great share in the nation and are constituting around
99.9%. They outnumber large firms considerably, employ numbers of people and are
generally full of entrepreneur atmosphere, helping shape innovation.
How SMEs operate?
As it has been seen that SMEs are having their key focus on sort of single of multiple
services or products in order to make the tasks simpler, so the founders or other
organizations want to bring the almost same or similar products into the market. These