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28 June 2023 Articles

HUMAN RESOURCES (HR) AS THE FIRST STEP TO THE SUCCESS OF MSMEs

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MSMEs in Indonesia today have become a very important sector in the economy. MSMEs play a role as the main driver of economic growth, create jobs, and improve people's welfare. In carrying out its operations, MSMEs need to realize that one of the keys to their success lies in the effective management of human resources. Quality human resources will be a strong foundation for the success of MSMEs.


In the era of globalization and increasingly fierce competition, HR management is not only a must, but also an investment for the success of MSMEs. Human resources who are competent, motivated and have relevant skills will help MSMEs to survive and grow in a dynamic market.


Launching from goukm.id, HR management is matters related to planning for the development, improvement, and evaluation of employees so that they are directed to move forward. With more focused employee performance, even a small business can produce big results. However, to achieve this goal, good and effective HR management is needed.


HR refers to the previous explanation, are individuals who work in an organization, including business owners, managers, employees, and freelancers. HR also includes the knowledge, skills, experience, and work attitudes possessed by the individual. In this context, human resource management involves the process of recruiting, training, developing and managing employees as a whole.


There are many factors where HR for MSMEs is considered important as the key to its progress. Therefore, to support the progress of qualified human resources, human resources also need to have many processes and reasons that place them as the main figures of the directed MSMEs, some of which are;


Implementation of proper selection and recruitment


Selecting qualified employees and according to needs is an important first step. MSMEs need to ensure that employees have the skills and knowledge appropriate to their jobs. By recruiting the right employees, MSMEs can optimize their potential for productivity and creativity in developing their innovations.


There is training and development


MSMEs need to provide training for employees in order to improve employee competencies and skills. Training not only helps employees to master the job, but also increases their motivation and loyalty to the company. By providing career development opportunities, MSMEs can build a competent and experienced team.


Motivation and appreciation for HR


MSMEs are important for building a positive work culture and motivating their employees. MSMEs can provide awards, incentives or other benefit programs to reward good employee performance. By giving recognition for their achievements, MSMEs can increase job satisfaction and retain talented employees with the aim of developing innovation within the company.


Effective communication and leadership


Effective communication and the creation of an open and mutually supportive work environment among all employees are essential in HR management. In addition, effective leadership also plays a role in directing, motivating, and inspiring employees to achieve common goals.


Continuous change


MSMEs must be able to adapt to changes that occur in the market and business environment. Changes in technology, consumer trends, or government regulations can affect MSME operations. By having human resources that are adaptive and capable of learning, MSMEs can quickly adjust their business strategy to remain competitive.


Quoting from the Ministry of Cooperatives and SMEs of the Republic of Indonesia, quality human resources will contribute to innovation and development of new products or services. SMEs that are able to produce innovative products or services will have a strong competitive advantage in the market. In today's competitive economic era, innovation is one of the keys to the success of SMEs.


This is in line with what YDBA has implemented so far, mentoring and developing human resources for MSMEs as a form of prioritizing innovative skills and critical thinking skills that are able to present new ideas, identify market opportunities, and develop products or services that can meet customer needs.

 

Reference


Nely Merina. 2019. goukm.id. HR Management for Successful SMEs. Viewed 28 June 2023.
https://goukm.id/management-sdm-untuk-ukm/


Hasibuan Malayu S.P. 2000. Human Resource Management. Jakarta: PT. Script Earth


Ministry of Cooperatives and SMEs of the Republic of Indonesia. 2022. smesta.kemenkopukm.go.id. Making Human Resources the Key to Success for SMEs. Viewed June 27, 2023.
https://smesta.kemenkopukm.go.id/Jadikan-sdm-As-Key-Kemenkopukm.ukm/

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