SMALL BUSINESS

Organising and managing small business focused on the management of human resources

Organising and managing small business focused on the management of human resources

Chapter 1: Introduction

Topic

The topic of this dissertation is organising and managing small business focused on the management of human resources. Organising and managing a business requires in-depth strategic analysis for the strategy to be effective and practical. To explore this topic and reach to significant conclusion, relevant theories will be considered so as to make sure that that the strategies and management tactics that are focused on in this research are practical and beneficial for a small firm involved in the management of the human resources, in the long run. People are the primary asset a firm possess and if a firm involved in the human resource provision service is not properly organised and managed, it is not only their business that will collapse but also their clients'.

Background

Managing and organising practices that are pursued by organisations are usually faltered as a result of which firms start to face consequences in less than a year after its development and operations. This problem is increased for organisations who are involved in outsourcing businesses such as businesses focused on providing human resources to their clients. Furthermore, considering smaller firms, they usually do not follow formal approaches and employees working in those firms are less concerned with the viability of the operations of the firm. The environment is found to be less formal and hence the operational efficiency of the firm is negatively impacted. The gravity of the issue is apparent in the statistics indicating that number of smaller businesses is consistently increasing, majority of which are found to be involved in outsourcing solutions. Furthermore, when this situation is considered in the light of the deteriorating economy, immediate research into the domain is highlighted as the need of the hour.

This ineffective attitude adapted by the small organisations are deteriorating to their client in that they continue to supply their clients with ineffective and incapable employees which subsequently impact that organisations' operational efficiency and productivity while making them pay to that employee, provided by a small outsourcing organisation, for that reduced productivity. In addition to their need for effective management and organisational strategy, these firms are required to have effective business strategy, where their core business as considered in this research is providing human resource services. Smaller firms which are operating devoid of proper chain of command or organogram needs to operate in tandem with the multinationals and international firms for the element of competition and economical regression does not never provided leverage to local firms who are not operating effectively, and considering the current scenario, this can impact the bottom-line as well as the longevity of the firm significantly.

Voluminous amount of literature has been conducted in the field of SHRM or strategic human resource management and majority of them have focused on the context as well as the impact of the human resource ...