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Adapting to Change: Strategic Evolution of Human Resource Management Practices in SMEs Amidst Shifting Market Dynamics
Abstract
This chapter explores the adaptation of human resource management systems (HRMS) in small and medium enterprises (SMEs) in response to shifting market dynamics, particularly influenced by the COVID-19 pandemic. The pandemic prompted SMEs to embrace flexible work arrangements, leading to the rise of remote and flexible workplaces. However, challenges such as limited resources, resistance to change, and technology integration persist. To tackle these hurdles, a strategic approach is vital. Effective HRMS planning, communication, technology utilization, and external expertise can help SMEs overcome these challenges. Strategic alignment of HR practices with organizational goals, clear change management, and technology-driven measurement methods are essential for successful HRMS implementation. Ultimately, this chapter underscores the importance of strategic HRMS evolution for SMEs in a dynamic business landscape.
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