Globalization In Hrm

978 Words4 Pages
In the rapidly changing management scenario, HRM has an important role to play HR is a highly productive corporate asset and the overall performance of companies and corporations depends upon the extent to which it is effectively developed and utilized. Human resource is certainly important even in this age of extensive use of computer technology. There exists a lack of professional approach towards Human Resource (HR), and the managers are unaware of the developments taking place in management in general and HR Management (HRM) in particular. The HRM practices in small and medium firms were found to be very different, and previous literature also shows that the results vary with countries. This paper attempts to study the HRM practices
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Most definitions rely on statistical criteria. Turnover is sometimes used, but the most common criterion is the size of the workforce. This criterion will also be used in the current study. Boundaries that distinguish Sis’s from large firms vary between 100 employees (Statistics Netherlands), 250 employees (Eurostat), and 500 employees (U.S. Small Business Administration). Within the group of Sis’s, a more detailed classification into micro, small and medium-sized enterprises can be made. Again, the boundaries between these categories vary between (and within)…show more content…
Two main arguments can be made, which together justify the specific attention for this subpopulation of private enterprises. The first is a quantitative argument: Sis’s form a large and vital part of modern economies. The second argument is more qualitative: despite the heterogeneous character of the SSI’’s sector (Audretsch et al., 2002); Sis’s differ from large enterprises in many respects. Put more formally, the contextual dimension “firm size” is related to the other dimensions of organizational characteristics. For example, firm size can influence the structural dimensions of organizations. If organizations become larger, the need to decentralize and communicate between employees and departments increases. This requires a certain level of standardization, specialization and formalization (Daft, 1988; Nooteboom, 1993). Also, smaller firms have less financial resources than larger firms have, and often have more difficulties in obtaining external financial resources (Fu et al.,
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