The performance challenges facing the Small & medium Enterprise (SME’s) and the Family Managed Business (FMB’s) are quite distinct and different from the large Corporate and Multi-national companies. The primary issues faced are in translation of vision, strategic planning, goal deployment and performance management. People related issues include moving from entrepreneur driven company to a professionally managed company. From rewarding loyalty, the company needs to start rewarding performance also. From valuing effort, the company needs to value results also.
This unique challenge of the SME’s and FMB’s segment has increased the scope of the Human Resources function and demands higher levels of creativity and closer working with the management goals. In effect, HR needs to become a strategic partner in the business. HR needs to interface closely with Technology and Quality and start dealing directly with efficiency and productivity issues.