Human Resource Management Practices in MSMEs-An Analysis of Hubli Region

Today, the functions, procedures and practices of the Human Resource management are very essential for the growth of Micro, Small and Medium Enterprises. Understanding and following human resource practices and policies is the best strategy for the growth of the MSME. MSME' hire 40% of the country's workforce(Economic Times June 2013) and they pay less attention towards human resource management. The important strategy of HR is to hire the best talents or resources to the company to achieve its goals. If the company invests money in HR then the company can get more profits when the resources are used efficiently and effectively as it increases the production process of goods and services. As the technology and skills are developing very fast, so the important job of HR is to fill the skill gap. Most of the skills today will be outdated tomorrow. It is the job of HR to improve the skill set of an employee through training and development programs. Choosing right and best kind of HR strategies is very important for the success and the growth of the MSMEs.The objective of this research paper is to study the role of the HR in recruitment, skill development and creating an atmosphere for everyone in the MSMEs to contribute for the development of MSME. The research methodology involves structured questionnaires administered to HR managers in these selected MSMEs in the Hubli region with an objective of ascertaining the recruitment process, Skill Development needs and role of empowered atmosphere for overall contribution of the organization. There are around 436 MSMEs in Hubli, and selected 30 samples would be considered for this study.