HR Issues Towards Managing MSMEs Operating in India During Globalization Trends (with Special Reference to HR Outsourcing): An Extended Review

HR Issues Towards Managing MSMEs Operating in India During Globalization Trends (with Special Reference to HR Outsourcing): An Extended Review

Tweena Pandey, Abhishek Singh Chauhan
DOI: 10.4018/ijabim.2014070101
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If you have never entered the world of subcontracting it seems a puzzling blend of products, rigid selling and in the past has carried a bad reputation. Today, when grooming with different parameters of economies is becoming harder for every industrialist day by day, it is for sure that this disaster of cost- knitting is affecting one of the upcoming sectors of present commercial age and that is SMEs. If one talks about Medium and Small Enterprises, one can simply say that they also act as feeder to the large scale enterprises, which are into support production activities for the big enterprises. As it is known that they have a small gestation period (processing period), i.e. stalk in- product out, which further acts fast profit generation to the domestic scale of production as compared to large enterprises. But still if one focuses upon its competency mainly in comparison to the globalized standards, nevertheless one stands far behind, irrespective of availability of sufficient resources. Here the big question arises that in what terms and why? This review is an attempt to navigate some upcoming disasters in concern with managing the workforce employed in these small and medium enterprises, especially with respect to manage the cost incurred over the human capital- “A key capital for strengthening the enterprise's credentials”.
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2. Aim And Objective Of Study (Review Need)

The motive of this research is:

  • 1.

    Primarily to observe the existing trends of functioning and managing the workforce, especially with respect to the up- shooting Small and Medium Enterprises (SMEs) in present corporate earth;

  • 2.

    Secondly, it is an attempt to extract and report some possible alternatives for these Medium Sized Firms, to think beyond the common hemispheres of average functioning of its staff concerned (whatever the reason be, beside there being an average performer);

  • 3.

    This study is also an attempt to draw the attention of the concerned employers towards the other possible alternatives of staffing process, and the one among those trend which upcoming to the heights of popularity is “HR- Outsourcing”, which is positively being considered to be the one of the productive attempt for reducing the capital budget/ cost of especially the SMEs operating in today’s business world.

Thus, not only from the Employee’s perspective, by opening the doors of more probable opportunities of employment, the re- observations reported via this paper will also lay down the grounds (as the possible alternatives of hiring and budget- lowering) from the Employer’s perspective as well.

These grounds will provide the possible measures to the organizations and employees to deal with the issues of Management of Human Capital in Small and Medium Enterprises.


3. Literature Review

As per the information accessed via MA Consulting (accessed from:- http/, An HR department is a decisive constituent of employee welfare in any business. It is not an issue that how small. Human Resources responsibilities comprise payroll, remuneration, appointing, dismissal, and keeping up to date with tax and employee laws. Any blend concerning these issues can cause severe legal troubles for your business, as well as major employee disappointment. But small enterprises often don't have the workforce or the financial plan to appropriately handle the basics details of Human Resources. Thus in majority, their inclination is bending towards availing the assistance from HR Outsources, instead of staffing the permanent employees for their Human Resource tasks.

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