Human Resources : Constraints of growth-oriented enterprises

Human resources are very important for enterprise growth (see e.g. PAPA, 2000). This becomes increasingly important the higher up in the organization one gets. Thus, the general manager will be the key person. A good manager will pick the right people, ensure that the staff gets the right incentives, and maintain adequate controls. S/he will also make sure that complacency in work performance does not spread throughout the organization.

It became apparent from the Focus Group Discussions that enterprises would benefit greatly from seeing their employees as resources rather than as inputs. Seeing the value of having a well-trained and committed staff, larger enterprises are generally more prone to invest in the development of employee skills. They not only by provide them with on-the-job training, but also send them for training outside of the company. Since the kind of training required often cannot be found within the country, workers are frequently sent abroad. The managers also agree that the employees need to be paid well in order to maintain a qualified workforce.

For all three categories of enterprises, the main employee problem relates to skills and commitment. This problem often starts with recruitment. Thus, for the enterprises to grow successfully they must learn how to identify and select the employees they require (given the level of salary they are willing to offer). They must also learn how to identify what skills should be obtained, either by acquiring them from outside or developing them in-house. Furthermore, the entrepreneurs would benefit from learning how they can retain employees in whom they have invested. Systems for controlling theft and encouraging commitment are also required. In general, for enterprises to grow, their senior managers must develop adequate personnel management skills. The owner/managers must also improve their own attributes, primarily to become more pro-active and to delegate to a greater extent.

Constraints of growth-oriented enterprises in the southern and eastern African region Journal of Developmental Entrepreneurship, Oct 2002 by Trulsson, Per

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