This document discusses human resource management considerations for small and medium enterprises. It outlines typical HR challenges SMEs face, such as centralized decision making and high dependency on existing resources. It emphasizes that the CEO plays a key role in HR. The document also provides tips for SMEs in areas like organizational design, hiring, performance measurement, and training. It introduces Husys, an HR consulting firm that provides outsourced HR services to help SMEs address their people management needs.

1. HR @ Small & Medium Enterprises
(SME/SMB)
By
GR Reddy – Founder & Chief Facilitator
Husys
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2. What Inputs you can Expect
• Typical HR Challenges @ SME’s
• Why Focus on HR
• Key HR @ SME is the CEO
• Building Business Effectiveness (3P’s Model)
• HR Focus @ SME
• Top 7 Characteristics of HR @ Small & Medium
Business
• Steps in HR Setup @ SME
• Role of HR @ SME
• HR Tips for SME’s
• Introduction to Husys
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3. A Typical SME Challenges for People
• Centralized Decision Making
• Every Employee access & personal touch with Management
• High dependency on Existing Resources
• Instant & Infectious Communication (Perception)
• Can’t Sustain Low Performance / High Loyalty based
approach
• HR Activities by :
– CEO/Owner
– Spouse/Relative
– Admin/Finance
• Challenges of First Generation and Gen-Y Combinations
• Dynamic and instant Feedback
• Anything spent on Non-Revenue Base is Waste
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4. Why HR Focus
• Bring Professionalism in the Organisation
• Attract Professionals and Retain
• Support for Entrepreneur/Owner in building People
Organisation
• Support & Advise Business Managers
• Business Focused HR Strategies
• Reduce Operating Costs
• Technology Implementation for Productivity
• Building Internal Leadership for Business Support
• Attract, Retain and Grow Talent
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5. Key Human Resource is CEO @ SME
Key success Factors for CEO @ SME’s
– Getting The Senior Team Right
– Find Failure Fast
– Align the brands of CEO,Sr.Team & Company
– Communicate
* By Marjan Bolmeijer : Business Editor : 1000 CEO’s Proven strategies for success from the world’s smartest executives
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6. Importance of HR Function
People are only the DIFFERENTIATORS for BusinessToday
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7. Building Business Effectiveness (3P’s Model)
SME
Business
Effectiveness
• Clear Process
• Resources with Multitasking
• Planning for uncertainty
• Reducing customer dependency on single resource
• Statutory Laws in time
• Leverage Programmed Technology
• Other people development activities
© 3P’s is a Copyrighted model by Husys for SME Business Effectiveness
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8. HR Focus @ SME’s
1. Employee Data Management & Agreements
2. Employee Related Statutory Compliances based on the Growth &
Applicability
3. Organizational Design with Clear Role and Responsibilities
4. Manpower Planning, Attracting & Selecting the Best Talent
5. Setting the Expectations Right First Time
6. Internal Policy Guidelines for Engagement of Teams
7. On-Time Performance Reviews and Creating Career
Progression(easier @ SME for faster growth)
8. Building Cost Effective Training & Development Programs
9. Managing Exits
10. Build & Sustain Quality Business through People
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9. Top 7 Characteristics of HR @Small & Medium
Business
HR Organisation
Planning Design
HR Information Recruitment
HR @ SME
Learning &
Employee Relations
Development
Performance
Management
* This is Part of © HRFM service is copyrighted by Husys Consulting Pvt Ltd
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10. Basic Steps in HR @ SME
• Establish Basic Employee Data
• Give Organizational Inputs to Employees on Joining
• List basic Job Responsibilities
• Assign Job and Measure at a Frequency
• List Basic Policies & Provide Guidelines
• Identify the Needs for Improvement of Performance & Execute
• Create appreciation for Good work
• Build Competencies for Future Growth
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11. Role of HR @ SME
Attracting & Retaining Profitable Employees
• Hiring through Incubation & Just-In-Time Acquisition
• Employee Management through Long-Term Ownership
• Building HR Support System to sustain the Growth
• Need based and Dynamic Employee Engagement Methods
• Personalized Incentive/Reward Mechanism
• Challenging Work Environment with Multiplicity of Role
• KPI / KRA’s to IRA( Individual Revenue Addition) or IPI
(Individual Performance Value Addition)
• High Growth Oriented Career Plans
• Hands-on (On-Job) Competency Enhancement
• Timely Process Based Approach (Based on Size & Growth)
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12. HR Tips for SME’s
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13. Tips - Organizational Design
• Create Simple Job Responsibilities
• Create Reporting Relationships in Organisation
• Create simple Job Responsibilities as people join and map
to Reporting Structure
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14. Tips - Hiring
• Identify Sources of Cost Effective Recruitment
– College Networks & Use their Infrastructure to
Research/Backoffice
– Govt. funded/NGO networks focus on
livelihood/employment generation schemes
– Pool the JobSite Cost with other SME’s
• Interact with Various Colleges, Networking Groups to
Create a Brand
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15. Tips - Employee Guidelines
• List some of the Key issues related to employees taking
away time.
• Create 8-10 guidelines for each of the Issue (Eg.: Travel,
Conveyance etc.,)
• Make a Note that the final authority is Management for any
interpretation/deviation from guidelines.
• Spend few minutes with Staff joining organisation. Explain
the expectations and also organisational outlook.
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16. Tips on Performance Measurement
• Create Simple Job Responsibilities
• Create Reporting Relationships in Organisation
• Create simple Job Responsibilities as people join and map
to Reporting Structure
• Set the Deliverables for each person
• Monitor and Review at Regular Intervals
• Reward the best performance (Based on Expected Vs.
Actual)
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17. Tips on Training
• Identify the key resources who has expertise
• Create orientation sessions with other members with Experts
• Identify Networking opportunities for Sr.Management related to
business
– Various external Trainings
– External Seminars
– Industry Association Events
– Let the Sr.Manaement Share their experiences in Groups
• Create a task force (Give them right Tools & Empowerment) for
on the job improvements
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18. About
Husys
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19. Your
HR
Department
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20. Our Vision
“Synergizing Human
Potential for Business &
Society”
Our Mission
“To be the leader in deploying & delivering high quality,
innovative, profitable and time sensitive business
Services, leveraging human potential for the advancement of both
business and society”
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21. Husys
Since 2002
150 Organisations
15 Industries
26 Yrs Avg Age
9 Indian Locations
4 Business Incubations
Only HR Company Rated by CRISIL (S&P Company)
100000 hrs of HRFO Experience
+140000 hrs of HR Expertise
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22. Our Services
HR
Strategic
Consulting
HR
Function
Outsourcing
Business
Incubation
PEO/ AMS
Executive
Search
Competency
Enhancement
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23. HRFM* Representation
Traditional HR With Husys
CEO & Other Functions
CEO
Other
Head HR
Functions
HR
Manager
HR HR HR
Executive Executive Executive
* © HRFM or HRFO – HR Function Outsourcing © service is copyrighted by Husys Consulting Pvt Ltd
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24. Thank You
091-99480-78937
Email: reach@husys.net
www.husys.net
Reach Partners : http://www.husys.net/reachus.htm
Useful Information for CEOs: http://hrsme.blogspot.com
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