Title: Comparative study of formal levels of HRM between small manufacturing and small ITES firms

Authors: Mridul Kanti Nath; Shubhasheesh Bhattacharya

Addresses: Symbiosis Center for Research and Innovation, Symbiosis International (Deemed University), Lavale, Mulshi, Pune – 412115, India ' Symbiosis Institute of International Business, Constituent of Symbiosis International (Deemed University), Phase 1- Hinjewadi, Pune – 411057, India

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.

Keywords: human resources; HRM; micro small and medium enterprises; MSME; small firms; small manufacturing firms; small ITES firms; formal levels of HRM.

DOI: 10.1504/IJPSPM.2022.119826

International Journal of Public Sector Performance Management, 2022 Vol.9 No.1/2, pp.48 - 70

Received: 22 Feb 2019
Accepted: 13 Nov 2019
Published online: 22 Dec 2021 *

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