Comparative study of formal levels of HRM between small manufacturing and small ITES firms Online publication date: Wed, 22-Dec-2021
by Mridul Kanti Nath; Shubhasheesh Bhattacharya
International Journal of Public Sector Performance Management (IJPSPM), Vol. 9, No. 1/2, 2022
Abstract: Small firms form an integral part of the economy of a country. They are present in millions and are responsible for large scale employment. Access to resources is a constant challenge. This study attempts to segregate small firms into two categories: manufacturing and ITES; and understand if there is a difference in the way they manage their human resource practices. Comparative study reveals that owners of small manufacturing firms manage their human resource function differently compared to owners of small ITES firms. In manufacturing firms, the owner takes on the additional role of a HR champion and drives HR practices. However in ITES firms, due to the nature of the workforce, rate of growth and other important demands of the business; a significant investment is made in creating a distinct human resource function staffed with professionals for implementing formal HR practices. For a small firm that constantly faces shortage of resources, we see two contrasting approaches in managing human resources.
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