HUMAN RESOURCES MANAGEMENT STRATEGY FOR BUSINESS SUSTAINABILITY IN MSMES

Abstract

Human Resource Management (HRM) is very much needed in Micro, Small and Medium Enterprises (MSMEs) because it can improve HR competency through increasing the knowledge and skills of MSMEs. Managing human resources for MSMEs is a skill that must be possessed by MSME players. HR management in MSMEs includes recruitment, selection, placement, development, compensation (wages), retention, evaluation, promotion and termination of employment. Managing human resources for MSMEs is a skill that must be possessed by MSME players. As the global economy develops, business competition is increasingly competitive. Micro, Small and Medium Enterprises have low competitiveness, one of the causes is low product quality, lack of product innovation and limited mastery of technology. MSME products have not been able to penetrate the free market. One of the causes is the quality of goods that is not yet competitive and technological limitations, even though competitive advantage is very important for the sustainability of MSMEs. Business sustainability is a stability of business conditions, where sustainability is a business continuity system that includes growth, continuity and approaches to protect business continuity and business expansion. Business sustainability in MSMEs can be implemented by responding to rapid changes in technological innovation, focusing on long-term interests, producing environmentally friendly products and striving for the preservation of natural resources and efficient use of technology.