HR Management in the Small Business Essay Example | Topics and Well Written Essays - 1250 words

HR Management in the Small Business - Essay Example In both small and large businesses, the major functions of HR management are recruitment, selection, training, and compensation of employees (Longenecker et al., 2011). However, not all-small businesses are able to have a full functioning HR management system that can handle the above-mentioned activities in formal and efficient ways. As a result, small businesses are forced to choose to either run these activities informally or outsource them to another organization. The small businesses due to their size and level of income are in most cases not able to adapt new technologies that have been developing to improve efficiency in managing human resources. One of such technologies is the Human Resource Management System that can provide information necessary for effective decision-making (Mathis & Jackson, 2011). As a result, small business is forced to employ the outdated method of decision making which can be inefficient in our current era. Another reason that makes small business not to use such technologies is that they do not prioritize the management of human resources. Majorities of the small businesses are not able to maintain an HR department with fully qualified HR professionals necessary for effective and formal HR management. In such organizations, the owner of the business or a clerical employee who is employed to do so carries out the HR roles. Moreover, in case of new employees who are hired, the supervisors and managers do the recruiting, selecting and training (Mathis & Jackson, 2011). Due to the limitation in the HR knowledge of the people tasked with HR management mandate in small businesses, it is always found out that in most cases they fail to meet standards required. Some of these HR activities are time consuming and, thus, they largely reduce the time the people assigned to undertake them have to focus on their main role in the business. Most of these small businesses decide to outsource most of their HR activities to another organization. The outsourcing process means that a business contracts or hires another business or organization to undertake certain activities in the business on its behalf (Mathis & Jackson, 2011). The outsourced activities might be recruiting, selecting and training of employees as well as managing its HR records and employees compensations. In such a case, this helps the people involved in running the business to focus mainly on their area of specialization and, thus, makes them to be more efficient in their roles. Furthermore, it enables the business to acquire services of HR specialist in undertaking its HR activities that can result in more efficiency despite their size. The major reason why most of the small business chooses not to have an HR department to handle HR activities and issues is the relatively low interest in human resource management in their different stages of operation (Cornelius, 2001). In most cases, it is very difficult to convince a manager or owner about the fundament al contributions of an HR department in the success of their business. This makes them not to prioritize it and most of them only plan to introduce them when their businesses grow to become large corporate. However, these individuals should be convinced about the role that properly managed human resources can play in resolving their