Improving Competitiveness Strategy for SME’s through Optimization Human Resources Management Function

Lila Bismala (Engineering Department, University of Muhammadiyah Sumatera Utara, Indonesia)
Susi Handayani

Proceedings of Annual International Conference Syiah Kuala University - Social Sciences Chapter
Vol 7 (2017): 7th AIC in conjuction ICMR 2017 Universitas Syiah Kuala October 2017

This research intends to explore the strategy of increasing SME’s competitiveness through the optimization of human resource management function. Human resource management is often forgotten by SME’s, whereas effective human resource management will be able to be competitiveness for SME. Methods of data collection conducted are to make observations, questionnaires, in-depth interviews, as well as literature review. The sample of this research is 69 small and medium industries. The results showed that the competitiveness of SME can be improved by optimizing the human resource management function. The human resource management function referred to is procurement (paying attention to skills, knowledge and abilities), maintenance (paying attention to compensation and some aspects of organizational behavior, such as organizational climate, organizational culture, employee commitment), human resources development, performance appraisal (preparing indicators and a fair performance appraisal system, objective and accurate)