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Challenges for HRM in Internationalized SMEs

Paper Type: Free Essay Subject: Business
Wordcount: 1047 words Published: 2nd Jul 2018

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1. Introduction

The international SMEs have some problem in human resource management structure, the mobility of personnel is fast, the salary compensation is weak, the employee education, training and teamwork management is not enough. In the international market, these problem need to be solved as soon as possible, therefore, some international SMEs have to make a revolution in its management structure, as some international SMEs often focus some process that can profitability immediately, and dont care about the future benefit, and their management structure is overstaffed and complex. So the international SMEs have to develop the new management structure to adapt the competitive in the international market, decentralization is the trend, which can motivate the employee and managers active and responsible, decentralization firstly requires the manager who have good knowledge and skill in management. The motivation system can raise the employees motivation, the equalitarianism is not appropriate, so the international SMEs need a change in their management structure.

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2. The variation in the organization structure

Most international SMEs have the problem in organization structure, the variation is quite big. Usually, the organization structure is line, the result of which can cause the overstaffed, bureaucracy, and the low efficiency. Therefore, the organization structure has to simplify the organization structure, reduce the hierarchy. A flatten of an organization is one of the solution, but not the only one, and it could not be enlarged forever. The purpose of the flatten is to reduce the cost of the management, more communication between up layer and down layer, it is necessary in the international SMEs, the company originally has the problem in the management, so this method of management can increase the efficiency, it is convenient to the top manager.

3. The globalization of HRM

In term of the element of the law and policy, the international SEMs should make a completed investigation on the policy environment, including the characteristic of the labor organization, and it is necessary to make a survey in the law and regular of the employment. If it does not do like these, it will suffer from the criminal charge upon the labor discrimination and the right of the labor, and the labor dispute also need to pay more litigation cost, which damages the reputation of the company in labor market.

In the part of culture, the international SMEs have to integrate in the business process, due to the different cultures in the different countries, the international SMEs have to adapt the culture�s differentiation, except respect their culture, it also need to understand and study the local custom and culture. This is the long �term program, the conflict will happen in the future, but the company should pay more attention on the culture, and base on it, creating its own corporate culture in the globalization market.

In the aspect of economic, the achievement of the international SMEs depends on the labor cost, the fluctuation of the currency. In the international market, the corporate need to consider which country�s employees should be employed, the home national, the local people or the expatriate, and the benefit of the company and the labor cost balanced.

4. Government intervention in the HRM

As the international company, no matter the size of the enterprise is big or small, when the market has some movements or the policy changed. The international SMEs should adapt the different situation and then make a right decision at the right time, but this process is quite hard for them. Because the government in order to protect the right of the labor, which sets a lot of policy or regular to limit the behavior of the corporate. The government intervention in HRM will increase the cost of transaction between the employee and the employer, at the same time, in order to cut the cost, the international SMEs need to recruit the professional personal who studies the government� labor policies and labor law as the law consultant to manage the HR. if the company can react the government policy as soon as possible, it will achieve the great successful.

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5. The reputation of the company in the HR marketing

In the HR marketing, many candidates want to find a company which has good reputation in the market, and it has comfortable work environment, high salary, excellent management experiences and future development opportunity. But all of the above, the Small-Medium enterprises cannot afford to the employees. Because of it is lack of enough capital, and successful human resource management experience and the capability of the executive.

Without enough capital, the SMEs just only can employed the candidates who are lack of the professional skill and professional knowledge, as they have no money, so they also don�t want to waste more money on training these employees, or the opportunity for training is not regular. And then the employees who have not accepted the opportunity of training, they will lose working motivation, so the work efficient will be down. And the other hand, the employees who have more experiences want to leave the company, because the company cannot provide excellent working treatment. So the SMEs are easier to lose their good human resource.

The successful human resource management experience and the capability of the executive are very important to the enterprise. But the Small-Medium Enterprises are weak in these, their management experience is quite limited and obsolete, most of that is traditional management approach. As we know, the excellent leader can change the life of the company, so the executive capability is the standard of measuring a good or bad leader. If the good leader will set up the strategy objective, during the process of the strategy, he or she will lead his or her company go in the right direction and make a right decision immediately according to the different changes, which can attract their employees, and work hard for the company.


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