HR Practices in MSMEs of Udyambag, Belagavi

Abstract

Today, the management of human resources plays a critical role in the development of micro, small, and medium-sized businesses. The ideal course of action for the expansion of the MSME is to comprehend and adhere to human resource practices and policies. About 40% of the workforce in India is employed by MSMEs, which considerably increase the GDP. Agility, cost conscience, trust, centralised decision-making, risk-taking capacity, and a culture of doing business through intuition and relationships are the fundamental principles that MSMEs most frequently exhibit. Due to the wide variety of businesses, scarce resources, and lack of professional stratification, MSMEs frequently display some informality in their management practises and procedures. One area where most MSMEs fall short is in the field of human resource management. (Economic Times, Published on Dec 24, 2020). The key HR strategy is to recruit the greatest talent or resources for the business to help it reach its objectives. If a business invests in human resources, it will get more rewards from the efficient and effective use of its resources, which will speed up the process of producing goods and services. As technology and skills advance quickly, one of HR's key responsibilities is to close the skills gap. The majority of today's talents will be obsolete tomorrow. HR's responsibility is to enhance an employee's skill set through training and development initiatives. The success and expansion of MSMEs depend greatly on the selection of the best and most appropriate HR strategy. The objective of this study is to examine the role of human resources (HR) in recruiting, skill development, and fostering a culture where everyone in MSMEs can contribute to the growth of the MSME. The recruitment process, the requirement for skill development, and the impact of an empowered environment in an organization's overall contribution are all investigated through the use of standardised questionnaires that are given to HR managers in these chosen MSMEs in the Udyambag, Belagavi region. There are around 151 MSMEs in Udyambag, Belagavi, and selected 30 samples would be considered for this study.