Role of Human Resource Management in Development


This written assignment is divided into two parts. The first part explores the context of the project which aims to identify the choice of future profession. The objective of the second section of this assignment is to represent a project proposal identifying a critical issue that showcases and outlines the Role of Human ResourceManagement in the development of SMEs in Australia. Therefore, the HRM of any company should be very efficient and hyperactive to cope up with the present business situation for the sake of survival.

The Context

The chosen profession is of being a Human Resource (HR) since there is the immense scope of progressing and succeeding in the profession. The role of the HR professionals is to assist in employing the prospective employees and assist in growing the company (Bowen, 2013). The HR professionals are accountable to read and evaluate job descriptions and create job vacancy advertisements to seek for probable candidates who are appropriate and best suitable for the required skill set. The role of the HR is also to understand the policy changes so that they can be explained to the employees if changes take place, and the presence of the HR professionals is necessitated when some disciplinary actions are required to be taken (Snell et al., 2015).

The role of the HR is also to partake in such activities where employee frictions arise; the HR will have to keep a proper and comprehensive record of the actions of employees in the company. If applying for a position as HR, traveling in this job also comes as an added thing. The HR professionals hold some essential functions in the company. Space, where they can grow, is to event planning, benefits management, training managers and compensation (Stone, 2013). HR professionals are such that they can gain such proficiency and they fit in those qualifications which make them ready and appropriate for many administrative roles and if these HR managers can get some more education on this, transitioning in other positions becomes easier.

There are so many small and big companies, and the role of human resource management is one of the most important and essential roles which is required in a company. HR professionals are acknowledged as significant people for the success of the company. The work is very appreciable and interesting as well (Monks et al., 2013). The HR needs to manage the employee services and discuss the strategic planning sitting with higher executives of the organization. The human resource professionals are a link between the management of the organization and the human capital.

This profession for me is the best suited for the required capabilities and skills that are there me. It is an interesting job and since there are many new companies which are growing and coming up, and also expanding their functioning; human resource job prospects are immense. They also hold a wider scope than other job profiles (Padham & Aujla, 2014).

Project Proposal

Background of the Problem

The topic that will be researched is the role of human resource management in the development of small and medium enterprises in Australia. Recently, there have been several types of research on the importance of SMEs in Australia and across the world. While previous studies have focused on the integration of information and communication technology and development of human resource management in the small and medium enterprises, there are only a few studies present that focus on the role of HRM in the growth and development of SMEs in Australia. Human resources in small and medium enterprises are not considered as an asset but a source that carries out the activities (Bratton and Gold, 2012). The owners do not take into consideration the welfare of the employees due to which there is low motivation among the employees. This results in low performance and development of these organizations in Australia. There is a diverse workforce in the nation, and therefore it is important to address the needs of every individual and ensure maximum performance from them by motivating them and engaging in the growth of the companies (Cute et al., 2012). This dissertation will focus on how human resource management helps in growing and developing the small and medium enterprises.

Aims and Objectives

The research aim of the paper is to identify and study the role of human resource management in the development of Australian SMEs.

The following are the objectives of the study:

·   To investigate the importance of SMEs in Australia

·   To investigate the present condition of HRM in Australian SMEs

·   To study and analyze the importance and role of HRM in the development of Australian SMEs.

·   To present recommendations for strengthening the HRM practices in SMEs for its growth in the market

Literature Review

This section would review different themes about the research topic. The themes that are reviewed for this paper are selectedby the keywords – human resource management, small and medium enterprises and Australian SMEs. Studies have shown that small and medium enterprises in Australia are important organisations for the growth of the economy (Coyte et al., 2012). This is the major reason why the government supports the development of small and medium enterprises in Australia (Ehnert et al., 2013). However, only funds and other resources are not the factors for thesuccessful development of the SMEs; it is also important for the company to have motivated and driven human resources. For SMEs, it is very difficult for the companies to invest in latest and advanced technologies because of limited funds but they have the opportunity to exploit the human resources (Inyang, 2013). However, in SMEs, employees are considered as workers and not assets. This is the major disadvantage for the stagnant development of the sector. It is highly important for the companies to understand the importance of human resource since they are responsible for carrying out the activities of the company that helps in growth and development (Nolan and Garavan, 2016). The second theme that will be explored in this research is the present human resource practices in Australian SMEs and the manner in which they either exploit or motivate them for building performance. Previous studies have also shown that the importance of motivated base of employees would not only result in enhanced performance but would also help the company to reduce cost. Therefore, the last theme that will be analysedis the importance and role of human resource management for the development of SMEs in the nation (Teo et al., 2014).


The researcher will adopt a positivist philosophy for the paper because the social actors of the research are independent of the study and the research intends to test a generalized theory (Bryman, 2015). By this, the researcher will use a deductive approach because the hypothesis of the study is based on the general theory that HRM is very important for the development of a company. This theory will be tested to identify whether it is true in the case of SMEs as well or not.

H1: There is a significant importance of HRM role in the development of Australian SMEs.

Primary and secondary data is collected for the study (Bryman and Bell, 2015). Primary data is the one that would be collected through structured questionnaires to get new information from the targeted sample where secondary information is gained from previous studies to develop a generalized theory. The sample of the paper will be 25 SMEs chosen from Perth, Sydney and Melbourne region using stratified sampling (Zikmund et al., 2013). The questions asked would be from top management executives about the importance and present and future role of HRM in the development of SMEs.

Data Analysis

SPSS will be used for the analysis of the information collected. Frequencies, descriptive statistics, cross-tabulation; chi-square and independent t-tests will be conducted.



1.                        Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave Macmillan.

2.                        Bowen, H. R., 2013. Social responsibilities of the businessman. University of Iowa Press.

3.                        Bryman, A. (2015). Social research methods. Oxford university press.

4.                        Bryman, A., & Bell, E. (2015). Business research methods. Oxford University Press, USA.

5.                        Coyte, R., Ricceri, F. and Guthrie, J., 2012. The management of knowledge resources in SMEs: an Australian case study. Journal of Knowledge Management16(5), pp.789-807.

6.                        Ehnert, I., Harry, W. and Zink, K.J. eds., 2013. Sustainability and human resource management: Developing sustainable business organizations. Springer Science & Business Media.

7.                        Inyang, B.J., 2013. Defining the role engagement of small and medium-sized enterprises (SMEs) in corporate social responsibility (CSR).International business research6(5), p.123.

8.                        Monks, K., Kelly, G., Conway, E., Flood, P., Truss, K., & Hannon, E. (2013). Understanding how HR systems work: the role of HR philosophy and HR processes. Human resource management journal23(4), 379-395.

9.                        Nolan, C.T. and Garavan, T.N., 2016. Human resource development in SMEs: a systematic review of the literature. International Journal of Management Reviews18(1), pp.85-107.

10.                    Padham, M., & Aujla, I. (2014). The relationship between passion and the psychological well-being of professional dancers. Journal of Dance Medicine & Science18(1), 37-44.

11.                    Snell, S. A., Morris, S. S., & Bohlander, G. W., 2015. Managing human resources. Nelson Education.

12.                    Stone, R. J. (2013). Managing human resources. John Wiley and Sons.

13.                    Sparrow, P., & Otaye-Ebede, L., 2014. Lean management and HR function capability: the role of HR architecture and the location of the intellectual capital. The International Journal of Human Resource Management25(21), 2892-2910.

14.                    Teo, S.T., Reed, K.K. and Ly, K., 2014. Human resource involvement in developing intellectual capital. The Service Industries Journal34(15), pp.1219-1233.

15.                    Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2013). Business research methods. Cengage Learning.

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