Human Resource Management - Small and Medium Enterprises

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2.1 Background of SME

Earlier on in Malaysia, there was no recognized interpretation of what are the Small and Medium Enterprises (SMEs). Different organizations and financial association establishments categorize SMEs as indicated by their own measures (despite the fact that there is a noteworthy level of cover incriteria).In 2005, nonetheless, the National SME Development Council (NSDC) expanded two fundamental criteria which is the annual sales turnover and number of employee.

New Definition of SMEs (2015) Sri Mohd Najib Tun Haji Abdul Razak has declared another meaning of SMEs which will be successful 1 January 2014. For the manufacturing divisions, SMEs are characterized as firms with deals turnover not surpassing RM50 million (at present: not exactly RM25 million) or job not surpassing 200 specialists (right now: under 150 laborers). For the services and other divisions, the edge was additionally raised, as firms with deals turnover not surpassing RM20 million (right now: not exactly RM5 million) or livelihood not surpassing 75 laborers (at present: under 50 specialists).

Although a few banks additionally list the measure of shareholder's assets present as another foundation, these criteria were to be received by all Government services and organizations, alongside money related foundations. Small & Medium Enterprises (SME) in Malaysia (2015) These criteria apply to all SMEs of different divisions: agriculture, manufacturing and services.

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2.2 Issue of Safe & Healthy Workplace for Employee

Commonly, Safe & Healthy Workplace for employee is consider as the Occupational Health & Safety (OHS). OHS is ensure the safety, health and wellbeing of employee within the company. Providing a preserved and healthy workplace is basic for good achievement to your business, and is one of the most ideal approaches to keep good staff and amplify profitability. In spite of the fact that it may cost to execute safe practices and introduce secure working environment, the impact of not making any move can be extreme. So, as the company, we should take 'every practicable stride's to guarantee the wellbeing of employees while they are grinding away. This incorporates work environment in addition to some other place, for example, providing a safety and health precautions, where they do work for you.

By preparing and conducting attainable steps, we can prevent someone from being harm and ensure the safety of that person. Doing anything understandable will be conditioning the health and safety in a sensible and safer way, this could cause a major chaos if someone that could be harmed, and by what chance it is, how can we avoid it and what are the options for safer ways that is accessible. We should also be noted that some issue such as our company's explicit threats that might happen and affect our workplace.

Here are some evidence showing the reason of OHS must exist and enforced: Workplace damage and sickness demolishes personal satisfaction, social and family exercises, influences employment prospects and professional success. An Australian specialist is genuinely harmed each 2-3 minutes .In 2009/10, 567 500 specialists were harmed while at work however just 38% got laborers' remuneration .It is assessed that around 7000 passed away every year are identified with business related ailments. This is four times the yearly national street toll.( What is OHS?,2015)

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Besides that, there is an existence of 2 laws that indicates every company must create safe and healthy workplace for employee. Employment Relations Act 2000 advances great confidence connections among managers, workers and unions. The Health and Safety in Employment Act 1992 requires managers and others in the work environment to control perils so nobody is hurt as a consequence of work.( Keeping Safe at Work,2015)

3.1 Challenges face by SMEs on providing safe & healthy workplace for employees

SMEs find it difficulty in providing the safe & healthy workplace for their employees. SMEs endeavors confront various troubles in agreeing to word related Occupational health and safety (OSH) regulations attributable to less resources in providing the complicated framework of security in workplace. SMEs normally find out in difficulties in less of resources because the absence of experience of both managers and workers due to the reason of the shorter life-cycle of SMEs and the more prominent predominance of non-perpetual workers, contrasted and bigger organizations, and occasional examinations and control of company. Sometimes, worker OSH officer are much of the time lacking, particularly in small-medium organizations, making it much hard to actualize the participatory methodology imagined by the 1989 EU Framework Directive within health and safety.( Health and safety at work in SMEs,2015)

SMEs are also less familiarity with the expenses of non-compliance as far as higher risk in dangers. There also will be some consequences of non-comply with OSH regulations. It will incurred interference of production quickly after accident, staff time brought up with examining and get ready, reports on the mischance, recruitment and preparing expenses for substitution laborers, reduced nature of enrollment pool, reduction in item quality after the mishap, reduced efficiency of harmed laborers on light obligation, overhead expenses of extra limit kept up to decrease the potential impacts of any mishaps.( Authors Roxane L. Gervais, 2009)

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3.2 Ways to overcome OSH issue face by SMEs

Promote

Company should promote the implementation of OSH in SMEs. "Implementation" can be characterized as a strategy taken to put into utilization such as a thought, choice, methodology or system (Klein and Sorra, 1996). OSH implementation that is measured here would be executions that is taking after in any lowest requirement the base necessities plot by the Occupational Safety and Health Act (OSHA) 1994. The thought of OSHA 1994 is all the more a self-regulation of word related to safe & healthy (DOSH, 2006). This implies both boss and worker share the obligations in the execution of OSH at the work environment. Implementation OSH must be associated and composed among the numerous offices, work environment and areas. Promote health &safety will be done through fund. This fund joins financial support with the procurement of skill by the system of area of company for the advance of work conditions