Volume : IV, Issue : IV, April - 2014

Management Development Needs in SMEs in India

Dr. G. N. Salunke

Abstract :

 The Small and Medium enterprises play a vital role in the Indian economic structure due to its significant contribution in terms of output, exports and employment. For a developing nation like India, where the labour is abundant and capital is scarce, the small sector is a major source of employment for millions of people. Keeping in view the importance of SMEs, the Indian government has included this sector in its five–year plans. The SMEs are still hampered by the problems of finance, marketing and low quality. In addition to this there are other problems also like employee development, career and growth opportunity and particularly development programmes for managers. Employee is a key element of the organization. The success or failure of the organization depends on employee performance. Therefore, organizations are investing huge amount of money on employee development. This paper analyses the views related to management development needs in SMEs.

Taking into account the enormous potential of the small sector, the entrepreneurs and the policy–makers must act collectively to facilitate growth in this sector.

 

Among the many reasons for small business failure or slow growth, a lack of management skills within smaller businesses has been highlighted as a contributory factor. In recognition of this training provision and management development have dominated much of the academic and policy debate on small firm development since the late 1980s. No research has given theoretical explanations for what and how management skills are developed in organisations and the impact of such efforts. Whereas researchers assume that management development and training can be directly related to managerial performance, the focus has been on management development as a holistic intervention. According to some authors, the SME sector is not homogeneous and therefore identifying development needs and delivering training support is contextually specific and dependent on a variety of factors.  Firm size and age is said to be one of the main determining factor for the extent and approach to training and development in SMEs and therefore will be explored in this paper.

The research is based on the results of a survey of 50 SMEs in India. The results indicate that while firm size influences the utilisation of management development techniques, firm age, business ownership or development responsibility has also such influence.

  This suggests that the nature of management development has to be tailored according to needs of the group and organisation. The research also highlighted the positive relationship between management skill development and organisational performance. It appears that much of the observed difference between successful and unsuccessful firms lies in their decision to train and develop management skills/ techniques, the contribution of which varies according to the size of the business.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Dr. G.N.Salunke Management Development Needs in SMEs in India Indian Journal of Applied Research, Vol.IV, Issue. IV

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