Abstract
ICT in SME development, especially in the human resource function, is crucial to business growth and sustainability. During COVID-19, SMEs had to very quickly migrate to more digital platforms. COVID-19 affected the business arena world-wide, small businesses included. SMEs were very hard hit by COVID-19 because of the harsh lockdowns and shut downs by governments during the pandemic. Not all businesses in South Africa were allowed to operate during some of the Levels 5 and 4 and even 3 lockdowns. As more information was being filtered during 2020 by the World Health Organization, who provided direction on the pandemic, decisions were made by governments accordingly to keep their citizens safe and at home during the lockdowns so that the over-burdened medical sectors would not collapse. This chapter explores ICTs in SMEs, ICTs utilized in SME HR function, how ICTs impacted organizations during COVID-19, and how SMEs adopted to digitization and online-training to survive in a disruptive environment like the pandemic.
Top2. Background Into Human Resource Function Within Sme’S In Sa Prior To Covid-19
SME owners and managers are fluent about the importance of having a sound human resource function within their business. Ogunyomi and Bruning (2016:66) indicated that the core HRM functions include “(1) planning and recruitment, selection and induction; (2) performance management; (3) learning and development and (4) recognition and reward”. Sheehan (2014) reiterates that the success of any business small, medium or large depends highly, on the management of its employees and a proper established structure within the business. If it is a formal SME business, HR policy needs to be in place that serves as a guide to both SME owners and their employees of what is expected of both parties within the business.
Mokomane (2018) argues that although HR practices in SME’s in SA are done informally, a small business still encounters several challenges to the successful implementation of HRM functions. Some of these challenges include limited budgets, lack of resources and capacity, inadequate systems, poor relationships between employer and employees and lack of HR knowledge and business instability. Research conducted by Krishnan & Scullion (2017) and by Nolan & Garavan, (2016) on South African SME’s reiterates that there are several reasons for the lack of implementation of HRM functions in small and medium companies. Some of the reasons identified are: (1) a lack of guidelines or procedures to assist employees in understanding and practising HRM functions; (2) lack of HRM professionals to help organisations to implement the functions effectively; (3) insufficient managerial skills; (4) lack of trained staff; (5) poor financial management; (6) a limited budget to implement functions; and (7) lack of experience, skills and competence to perform and manage HRM functions, (Krishnan & Scullion 2017 & Nolan & Garavan, 2016). Darcy, Hill, McCabe & McGovern (2014) stated that it is often the lack of financial resources, by small and medium enterprises that negatively impacts these companies to adopt some of the HRM functions. Amaral, Jorge, & Pecas (2019) argue that although it is understandable that many small and medium enterprises do not see the need or have the resources to implement ICT’s within their business operations, this perception should change as SME’s in SA are operating in the 4th industrial revolution and as such should be incorporating technology in their business activities.
Key Terms in this Chapter
Training: This refers to providing skills and development to staff within an organisation.
ICTs: This refers to computer tools and devices used by an organisation or business enterprise in their everyday business activities.
SME: This refers to small-to-medium enterprise. Each country has legal regulations governing size and turnover of SMEs.
COVID-19: This is a highly infectious disease caused by the SARS-CoV-2 virus. It appeared in 2019. It has caused the greatest global pandemic, known to mankind.
Staffing: This refers to hiring of staff for an organisation or enterprise.