Abstract
In the XXI century, one of the most valuable resources of any organization is human capital. The effectiveness of the organization and the use of other resources depend on the formation quality and the use of the human capital. Today, many factors affect small and medium scale enterprises that lead to their rapid bankruptcy and liquidation, significant staff turnover, and reduced productivity. Under these conditions, attracting and retaining highly qualified personnel as the primary determinant of economic development and growth of small and medium scale enterprises is significantly relevant. Minimizing the negative impact of external and internal factors made by small and medium scale businesses requires recognition of the value of the human resources in improving the enterprise’s competitiveness and the effective management tools implementation. The study identifies the main factors influencing the implementation of human resource management practices in small and medium scale enterprises in Kwara, Nigeria. Methodological tools of this study are methods of analysis and synthesis, comparative and regression analysis. The study covers 200 small and medium scale enterprises in the Kwara Central Senatorial District and registered in the National Association of Small and Medium Enterprises (NASME). The factors influencing the use of human resources by small and medium scale enterprises in the article are studied in the following logical sequence: using a structured questionnaire developed in the form of the Rensis Likert scale, an array of primary data is forme. The hypothesis (at the level of 5% of weight) regarding the relationship between the efficiency indicators and human resources management policy is tested using multiple regression analysis with statistical software STATA 11.0. The results of the survey are analyzed, summarized, and interpreted using descriptive statistical methods. The results of multiple regression analyses confirm a statistically significant relationship between the analyzed indicators (p = 0.000 and R2 = 0.8128). The study shows a significant impact of financial security of the organization (β = 0.76; t = 8.63; p) and its size (β = 0.46; t = 4.66; p) on the implementation of personnel management practices on the example of small and medium scale enterprises in Kwara). The study results confirm that the small and medium scale enterprises in Kwara actively use personnel management under the influence of environmental factors. The study empirically confirms and theoretically proves the feasibility to consider such variables as the funding availability, the size of the firm, and the type of ownership in the business management process. Keywords: Human Resources, Human Capital Theory, Management, Nigeria, Small and Medium Scale Enterprises.
Highlights
Human resources are the most important resources or asset an organization can boast of in the 21st century workplace since organization are run and steered by people
Ojokuku (2012) opined that recent research attention had revealed the increased interest that scholars place on the pivotal role that Human Resource Management (HRM) plays in Small and Medium Scale Enterprises (SMEs)
The study has offered a new dimension for a better understanding of how HRM practices can contribute to the success of SMEs, especially in Kwara State, Nigeria
Summary
Human resources are the most important resources or asset an organization can boast of in the 21st century workplace since organization are run and steered by people. Ojokuku (2012) opine that it is very difficult for any organization to succeed without managing its human resources effectively. Ojokuku (2012) opined that recent research attention had revealed the increased interest that scholars place on the pivotal role that Human Resource Management (HRM) plays in Small and Medium Scale Enterprises (SMEs). HRM is becoming increasingly important in the new “knowledge-based” economy, as companies constantly require the need for highly trained employees. It has subsequently reinforced the need for effective HRM practices in small firms (Audretsch & Klepper, 2000). SMEs just like any other enterprise needs employees with certain skills, training and specific experience
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