HRM in Small Firms: A Humanistic and Sustaina...

HRM in Small Firms: A Humanistic and Sustainable Approach in the Digital Era

Author Name : Shilpi Srivastava

ABSTRACT Micro, Small & Medium Enterprises (MSMEs) are known to be responsible for providing jobs, innovations, entrepreneurship and economic development. The HRM practices in small companies are fairly different from that of large organizations as they have limited resources, no formal structure and flexible working systems. Technological advancements, employee expectations and sustainability issues have further revolutionized HRM in the digital era. In this research study, the author analysed HRM practices in small companies from the three lenses of sustainability, humanistic management and digital transformation. The paper explores the HRM features of MSMEs, key challenges experienced by small businesses and how Greiner's model of organizational growth can be used to understand HR transitions in the creation and direction phases of organizational development. The research also discusses the contribution of digital HR tools like cloud-based HR systems, online recruitment platforms, performance appraisal software and employee engagement technologies, which helps in efficient HR management without much investment. The past five years of research reveal that HRM and humanistic leadership have a significant impact on the well-being of employees, the resilience of organizations, innovation and competitiveness of small organizations. The paper concludes that digital transformation can be effectively combined with human-centered HRM practices and sustainable development to ensure an efficient operation and sustainable growth of MSMEs in the modern business environment.