Strong leadership and management needed in SMEs

6/22/2012



People management has the potential to be a key player when it comes to driving long-term performance in small-to-medium enterprises (SMEs) - regardless of their current state of growth, reports freshbusinessthinking.com.

That's according to the latest research by the Chartered Institute of Personnel and Development (CIPD), titled 'Sustainable organisation performance through HR in SMEs'.

The research highlights a number of insights for HR or HR-related managers to think about, including the anticipation of business growth, managing people in line with leaders' expectations - such as those of a CEO - and looking beyond operational issues to 'take the time opportunity to lay the organisation's cultural foundations for the future'.

Dr. Jill Miller, research advisor at the CIPD, commented on the need for strong leaders; stating that the skills of managers and leaders become paramount when trying to look after a growing team.

She additionally stated, cited by hrmagazine.co.uk: "SMEs are vital to the UK economy, but with limited material and financial resources, good people management is fundamental to their long-term performance and growth.

"With larger teams, the skills and capabilities of managers become of paramount concern, and maintaining people's strong engagement with the organisations purpose and vision becomes more challenging as the distance between the owner/founder and employees increases," she added.














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