Suggestion How To Upgrade Hr In Sme

Suggestion How To Upgrade Hr In Sme

1.0) ABSTRACT

  2.0) INTRODUCTION

Nowadays, regardless of industry SME’s must strive to face high competition by competitors. To develop a competitive advantage, it is important that they are truly leveraged on the workforce as a competitive weapon. Because of that, a strategy for improving workforce productivity to drive higher value for them has become an important focus. Hence, SME’s seek to optimize their workforce through comprehensive human resource practice not only to achieve their business goals but most important is for a long term survival and sustainability. That means, SME’s not only must achieve their business goal, but also survive with fully optimize the human capital as an asset to organization through practice human resource management as a weapon to retain in long term business.
Term or concept of SME has not been clearly defined. Most often,   when   defining   SME,   economists   go   from legally   determined   provisions   relating   to   small   business   in specific       countries.   There       are   many       such     definitions     and therefore there is no unique attitude or position in defining of the concept of small business. Beside considerable number of factors taken into consideration in different countries in defining of SME, the following three are common in most of the countries such as total annual income or revenue, number of employees, and shareholders sum.
Every owner of SME aspires to have successfully organized   enterprise which is competitive on the market and realized high profits with employees which have high level of motivation in regard to the successful operating of the enterprise. Since     employees are very important factor of development, strategy of human resource management become a priority to the company nowadays. Human         resources management   is potentially   business function which has become a key element of the strategy of every SME in   their   efforts   to   establish   and   maintain...