Human Resource Development in SMEs Student's Details- 2020 2020 Working of Human Resource Development in SMEs

RUNNING HEAD: HUMAN RESOURCE DEVELOPMENT 0
Human Resource
Development in
SMEs
STUDENT’S DETAILS-
2020

HUMAN RESOURCE DEVELOPMENT 1
Working of Human Resource Development in SMEs
Human resource development (HRD) is department which works for the development of
skills and competencies of the employees which can be helpful for the employee through the
learning activities and the training. This allows the organization to use training and make
career development efforts which can improve the individual and organizational
effectiveness. Human resource development is important for Small and Medium Sized
(SMEs) Organizations which strives to enhance the capital investment and create a
sustainable competitive advantage by developing efficient human resource (Garavan &
Nolan, 2015). Here, the essay has discussed the development of human resource in SMEs
through various ways. The essay has highlighted the significant approaches to be used by
SMEs in the management of human resources and also through the using use of diverse set of
measures for the undertaking of HRD activities.
Basically, human resource development focus on the learning and development of the
employees in which the organization can increase the human resource capacity into the
organization. The learning in SMEs is distinctive as it elaborates the distinctive
characteristics of managers and the owners of small business. This has later taken into the
direct and indirect approaches of learning to be undertaken by the managers which shows the
distinctive characteristics of SMEs (Coetzer, et al., 2019). Moreover, scope of human
resource development is not only to recruit the employees but also appraising them for the
improving their capabilities. Also, this seeks to set the learning plan which will be undertaken
for the performance of current and future jobs. The key purpose of human resource
development is to maintain higher productivity and better relations within the organization.
This works through the development of new skills which can enhance the knowledge and
attitude of the workforce. Besides, this can be brought up by the creating efficiency culture
making the organization effective which strives to maintain the management of resources
which can be utilized and achieved in a better way (Garavan & Nolan, 2015). This is
directly related to management of the employees through the creation of the opportunity to
enhance the employee programs and also leading to the better human resource planning.
Small and Medium Sized organizations generally suffer from the insufficiency of investment
capital in comparison with other large organizations. SMEs usually suffer from the lack of
sufficient skills and know how, there is huge role of functions under the human resource
development. This provides the significant ways by which these organizations can increase

HUMAN RESOURCE DEVELOPMENT 2
their capacity of the employees by providing the career opportunities to the employees
(Coetzer, et al., 2019). Thus, the human resource development in SMEs work through
addressing the issues of the employees and also making the employees skilled for the
performance of the activities which later brings competitive advantage over the competitors.
SMEs usually make recruitment for hiring the efficient workforce which can add to their
profits. Besides, small businesses strive to make the management strategies which can lead to
the personnel management that can make the employees focused and being more focused on
the business goals.
Further, the perspective of Hubner is different in which the small organizations account for
the networking and creativity which is the best way to leverage the skills and competencies of
the employees and often playing a major role in the HRD process (Hubner & Baum,
2018). Besides, after the research made on the entrepreneurs, it is being observed that the
HRD’s approach is based on the decision-making process in which causation and effectuation
can be undertaken through theorizing about the entrepreneurs. With this context, effectuation
is the creative and means oriented process that leads to the enhancement in the competencies
and on the other hand, causation is described as the process in which goal-oriented steps can
be undertaken by avoiding the contingencies. This majorly affects the decision-making logic
within the organization in which entrepreneur’s communication and the decision-making
process can affect the human resource development. Moreover, there is impact of HRD
approach on the SMEs in which the employees cab be motivated through the maximum
satisfaction of the employees which can later bring on to the attainment of personal and
professional goals (Hubner & Baum, 2018). This has also combined with the undertaking
of the better recruitment strategy and conducting the better analysis of higher motivation of
the employees which is the crucial part of the human resource development.
Further, the human resource function in small organizations can be through the training and
development. SMEs provide the career structure in which the organizations can provide the
guaranteed promotion which reduces the money spent on the recruitment and training of the
employees. The human resource development in SMEs can be through the training for the
increasing morale and retention of the employees. The career structure of the companies leads
to more promotion of the employees which eliminates the need for training. The human
resource function in SMEs works through the overall development of the employees which
leads to better opportunities to gain the personal and professional goals. As the quality of the
human capital is the key factor for the success of more SMEs. Specifically, organizations use