Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

HR Practices in Rural Micro Enterprises-An Empirical Investigation


Affiliations
1 Assistant Professor, MET’s College of Advanced Studies, Mala, Kerala, India
     

   Subscribe/Renew Journal


Micro enterprises provide a large economic and employment generation platform which makes them unavoidable in any economy. The number of employees associated with micro enterprises in most countries will be a much higher figure than small and medium enterprises. This reflects the relevance of the study about HR Practices in micro enterprises. Employment to the lower layer in the economy is usually provided by the microenterprises. It is the hub where unskilled, illiterate and lower income category prefers for a job. In the survey result of fourth all India censes of MSME, rural enterprises occupy 55.34% of the total MSME’s (MSME Annual Report 2016-17). Knowledge about the HR practices prevailing in this area will be highly beneficial for the academic sector for framing much finer practices through which the rural micro entrepreneurs can increase their productivity. The government will be able to design policies and frame rules and regulations in order to protect and utilize the larger sector of employment generation for building up the economy. In this paper the importance of rural micro enterprises in the economy, recruitment sources, selection process, training methods, working hours, employee benefits, health and safety measures, wages provided, Performance appraisal, employee retention and termination of an employee is discussed in detail with the help of an empirical investigation of 35 rural micro entrepreneurs. This will provide a better platform for a further detailed research among the HR practices in rural microenterprises.

Keywords

Rural Micro Entrepreneurs, Micro Enterprises, HR Practices.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Alam, S. (2015). Employee turnover in MFIs: Reasons & Remedies. Retrieved from https://mpra.ub.uni-muenchen.de/68646/
  • Barber, A. E., Wesson, M. J., Roberson, Q. M., & Taylor, M. S. (1999). A tale of two job markets: Organizational size and its effects on hiring practices and job search behavior. Personnel Psychology, 52(4), 841-868.
  • Bartram, D., Lindley, P. A., Marshall, L., & Foster, J. (1995). The recruitment and selection of young people by small businesses. Journal of Occupational and Organizational Psychology, 68(4), 339-358.
  • Becker, G. S. (1975). Human capital: A theoretical and empirical analysis, with special reference to education (Human behavior and social institutions).
  • Behrends, T. (2004). Personalmanagement in klein-und Mittelbetrieben. Handwörterbuch des Personalwesens, 3, 1575-1583.
  • Behrends, T. (2007). Recruitment practices in small and medium size enterprises. An empirical study among knowledge-intensive professional service firms. Management Revue, 18(1), 55-74.
  • Benzing, C., & Chu, H. M. (2009). A comparison of the motivations of small business owners in Africa. Journal of Small Business and Enterprise Development, 16(1), 60-77.
  • Berg, J., Ernst, C., & Auer, P. (2006). Meeting the employment challenge: Argentina, Brazil, and Mexico in the global economy. Geneva: International Labour Organization.
  • Bird, B. J. (1989). Entrepreneurial behavior. Glenview, IL: Scott Foresman & Company.
  • Bosch, C., & Godfre, S. (2006). Labour legislation and SMME’s: The impact of sectoral determination 1: Contract cleaning sector South Africa on the growth of small, medium and micro enterprise (Doctoral dissertation, University of the Western Cape).
  • Boxall, P., & Steeneveld, M. (1999). Human resource strategy and competitive advantage: A longitudinal study of engineering consultancies. Journal of Management studies, 36(4), 443-463.
  • Braden, B. R., & Hyland, S. L. (1993). Cost of employee compensation in public and private sectors. Monthly Labor Review, 116, 14.
  • British Chambers of Commerce. (1998). Evidence to trade and industry select committee’ mimeo.
  • Brüderl, J., Preisendörfer, P., & Ziegler, R. (1992). Survival chances of newly founded business organizations. American Sociological Review, 57(2), 227-242.
  • Carr, A. E., & Tang, T. L. P. (2005). Sabbaticals and employee motivation: Benefits, concerns, and implications. Journal of Education for Business, 80(3), 160-164.
  • Carroll, M., Marchington, M., Earnshaw, J., & Taylor, S. (1999). Recruitment in small firms: Processes, methods and problems. Employee Relations, 21(3), 236-250.
  • Chu, H. M., Benzing, C., & McGee, C. (2007). Ghanaian and Kenyan entrepreneurs: A comparative analysis of their motivations, success characteristics and problems. Journal of Developmental Entrepreneurship, 12(03), 295-322.
  • Cooper, A. C., & Gascon, F. J. (1992). Entrepreneurs, Processes of Founding, and New Firm Performance in Donald Sexton and John Kasarda. In The State. of the Art of Enterpreneurship. Boston: PWS-Kent Publishing.
  • Cooper, A. C., Gimeno-Gascon, F. J., & Woo, C. Y. (1994). Initial human and financial capital as predictors of new venture performance. Journal of Business Venturing, 9(5), 371-395.
  • Cosh, A., & Hughes, A. (1998). Enterprise Britain. In ESRC Centre for Business Research. Cambridge: University of Cambridge.
  • Curran, J., & Blackburn, R. (2001). Researching the small enterprise (SAGE Series in Management Research).
  • Curran, J., Blackburn, R., Kitching, J., & North, J. (1996). Establishing small firms’ training practices, needs, difficulties and use of industry training organisations. HMSO.
  • David, J. M., & Christopher, W. (2006). Do entry costs provide an empirical basis for poverty traps? Evidence from Mexican Microenterprises. Economic Development and Cultural Change, 55(1), 3-42.
  • Dennis, W. J. (1998). Business regulation as an impediment to the transition from welfare to self-employment. Journal of Labor Research, 19(2), 263-276.
  • Dutton, G. (1997). Are you technologically modern?. Management Review, November, 152-161.
  • Dyke, L. S., Fischer, E. M., & Reuber, A. R. (1992). An inter-industry examination of the impact of owner experience on firm performance. Journal of Small Business Management, 30(4), 72.
  • Eswaran, M., & Kotwal, A. (1986). Access to capital and agrarian production organisation. The Economic Journal, 96(382), 482-498.
  • Faundez, J. (2009). Empowering workers in the informal economy. Hague Journal on the Rule of Law, 1(1), 156-172.
  • Forastieri, V. (1999). Improvement of working conditions and environment in the informal sector through safety and health measures. Occupational Safety and Health Branch Working Paper, OH/9907/08 Geneva, ILO.
  • Frempong, G. (2009). Mobile telephone opportunities: The case of micro-and small enterprises in Ghana. info, 11(2), 79-94.
  • García, N. E. (2007). A boom in a heterogeneous economy, Peru 2002-2006. CEPAL Review.
  • Gray, C. (1997). Management development and small firm growth. In national small firms policy and research conference (pp. 226-236). Cranfield School of Management.
  • Harris, R. I. (1999). The determinants of work-related training in Britain in 1995 and the implications of employer size. Applied Economics, 31(4), 451-463.
  • Heneman III, H. G., & Berkley, R. A. (1999). Applicant attraction practices and outcomes among small businesses. Journal of small business management, 37(1), 53-55.
  • Hill, R., & Stewart, J. (2000). Human resource development in small organizations. Journal of European Industrial Training, 24(2/3/4), 105-117.
  • Honig, B. (2000). Small business promotion and microlending: A comparative assessment of Jamaican and Israeli NGOs. Journal of Microfinance/ESR Review, 2(1), 6.
  • Hussain, D., & Yaqub, Muhammad, Z. (2010). Micro-entrepreneurs: Motivations, success factors, and challenges. International Research Journal of Finance and Economics, 56, 22-28.
  • ILO, (2001). General Survey - Night Work Conventions, p. 91.
  • ILO, (2006). General Survey - Labour Inspection, p. 9.
  • Johnson, S. (1999). Skills issues for small and Medium sized Enterprises. Skills Task Force Research Paper 13. Retrieved from https://scholar.google.co.in/scholar?as_q=&as_epq=% E 2% 80% 9C+Skill+issues+for+Small+and+medium+ enterprises%E2%80%9D&as_oq =&as_eq =&as_occt=any&as_sauthors=Johnson+Steven&as_publication=&as_ylo=1999&as_yhi=1999&hl= en&as_sdt=0%2C5
  • Klein, J., Alisultanov, I., & Blair, A. K. (2003). Microenterprise as welfare to work strategy: Two-year findings. Microenterprise Fund for Innovation, Effectiveness, Learning and Dissemination (FIELD), Aspen Institute.
  • Kotey, B. (1999). Human resource management practice of gold coast small firms with reference to the prescribed models. International Journal of Employment Studies, 7(1), 79-104.
  • Kotey, B., & Sheridan, A. (2004). Changing HRM practices with firm growth. Journal of Small Business and Enterprise Development, 11(4), 474-485.
  • Lepak, D. P., & Snell, S. A. (1999). The human resource architecture: Toward a theory of human capital allocation and development. Academy of Management Review, 24(1), 31-48.
  • Loan-Clarke, J., Boocock, G., Smith, A., & Whittaker, J. (1999). Investment in management training and development by small businesses. Employee Relations, 21(3), 296-311.
  • Lussier, R. N. (1995). A nonfinancial business success versus failure prediction model for young firms. Journal of Small Business Management, 33(1), 8.
  • Marchington, M., Wilkinson, A., Ackers, P., & Goodman, J. (1994). Understanding the meaning of participation: Views from the workplace. Human Relations, 47(8), 867-894.
  • Monahan, M., Shah, A., & Mattare, M. (2011). The road ahead: Micro enterprise perspectives on success and challenge factors. Journal of Management Policy and Practice, 12(4), 113.
  • Mosley, P. (2001). Microfinance and poverty in Bolivia. Journal of Development Studies, 37(4), 101-132.
  • MSME Annual Report. (2016-17). Retrieved from https://msme.gov.in/sites/default/files/MSME%20ANNUAL%20REPORT%202016-17%20ENGLISH.pdf
  • MSMED, A. (2006). Government of India. Retrieved from http://www. smallindustryindia.com/MSMED-Act.htm
  • Mwobobia, F. M. (2012). The challenges facing small-scale women entrepreneurs: A case of Kenya. International Journal of Business Administration, 3(2), 112.
  • Omar, S. S. B., Arokiasamy, L., & Ismail, M. (2009). The background and challenges faced by the small and medium enterprises. A human resources development perspectives. International Journal of Business and Management, 4(10), 95-102.
  • Orlando, M. B., & Pollack, M. (2000). Microenterprises and poverty: Evidence from Latin America. Washington, DC: Inter-American Development Bank.
  • OSB. (2000). Annual Review of Small Business 2000. Office of Small Business. Canberra: Paragon Printing.
  • Pfeffer, J. (1994). Competitive advantage through people. California Management Review, 36(2), 9.
  • Pinnington, A., & Edwards, T. (2000). Introduction to human resource management. OUP Catalogue.
  • Pretes, M. (2002). Microequity and microfinance. World Development, 30(8), 1341-1353.
  • Rainnie, A. (1989). Industrial relations in small firms. London: Routledge.
  • Rauch, A., & Frese, M. (2000). Psychological approaches to entrepreneurial success: A general model and an overview of findings. International Review of Industrial and Organizational Psychology, 15, 101-142.
  • Saini, D. S., & Budhwar, P. S. (2008). Managing the human resource in Indian SMEs: The role of indigenous realities. Journal of World Business, 43(4), 417-434.
  • Shaw, J. (2004). Microenterprise occupation and poverty reduction in microfinance programs: evidence from Sri Lanka. World Development, 32(7), 1247-1264.
  • Singh, M., & Vohra, N. (2005). Strategic human resource management in small enterprises. The Journal of Entrepreneurship, 14(1), 57-70.
  • Stanciu, D. R. (2012, September). About the human resources activities within the SME sector. In Proceedings of the 3rd Review of Management and Economic Engineering Management Conference “A New Dilemma: Between East and West”, Cluj-Napoca (pp. 149-157).
  • Stanciu, R. D. (2014). Do Romanian small and medium-sized enterprises use performance management? An empirical study. Procedia-Social and Behavioral Sciences, 124, 255-262.
  • Stanworth, J., & Curran, J. (1989). Employment relations in the small firm. In Small Business and Entrepreneurship. Basingstoke: Macmillan.
  • Storey, D. J., & Johnson, S. (1987). Job generation and labour market change. Springer.
  • Temu, S. S., & Kessy, S. (2010). The impact of training on performance of micro and small enterprises served by microfinance institutions in Tanzania. Research Journal of Business Management, 4(2), 103-111.
  • Timmons, J. A. (1999). New venture creation: Entrepreneurial for 21st century. Homewood, IL.
  • Varghese, D. (2017). Nurturing and retaining creative behavior at the entrepreneurial level. ICTACT Journal on Management Studies, 3(3), 553-561.
  • Williamson, O. E. (1984). Efficient labour organization. In Firms, organization and labour (pp. 87-118). London: Palgrave Macmillan.
  • Živković, Ž., Mihajlović, I., & Prvulović, S. (2009). Developing motivation model as a strategy for HRM in small enterprises under transitional economy. Serbian Journal of Management, 4(1), 1-27.

Abstract Views: 310

PDF Views: 0




  • HR Practices in Rural Micro Enterprises-An Empirical Investigation

Abstract Views: 310  |  PDF Views: 0

Authors

Dipu Varghese
Assistant Professor, MET’s College of Advanced Studies, Mala, Kerala, India
P. B. Chinnu
Assistant Professor, MET’s College of Advanced Studies, Mala, Kerala, India

Abstract


Micro enterprises provide a large economic and employment generation platform which makes them unavoidable in any economy. The number of employees associated with micro enterprises in most countries will be a much higher figure than small and medium enterprises. This reflects the relevance of the study about HR Practices in micro enterprises. Employment to the lower layer in the economy is usually provided by the microenterprises. It is the hub where unskilled, illiterate and lower income category prefers for a job. In the survey result of fourth all India censes of MSME, rural enterprises occupy 55.34% of the total MSME’s (MSME Annual Report 2016-17). Knowledge about the HR practices prevailing in this area will be highly beneficial for the academic sector for framing much finer practices through which the rural micro entrepreneurs can increase their productivity. The government will be able to design policies and frame rules and regulations in order to protect and utilize the larger sector of employment generation for building up the economy. In this paper the importance of rural micro enterprises in the economy, recruitment sources, selection process, training methods, working hours, employee benefits, health and safety measures, wages provided, Performance appraisal, employee retention and termination of an employee is discussed in detail with the help of an empirical investigation of 35 rural micro entrepreneurs. This will provide a better platform for a further detailed research among the HR practices in rural microenterprises.

Keywords


Rural Micro Entrepreneurs, Micro Enterprises, HR Practices.

References