Managerial and Organisational Problems Small scale firms are generally managed by the owners who very often

does not possess the skills required for the efficient management of the enterprise. There is lack of proper division of work and benefits of specialization are not available. some owner-managers are reluctant to adopt modern methods of organisation and management. There is instability in business because the sickness and dearth of the owner manager directly affects the survival and growth of the small firm. Initiatives undertaken by the government include: Management Training Programmes with the basic objective of improving the productivity/profitability of existing entrepreneurs by upgrading their managerial decision making capabilities and providing them an insight in the latest developments in the area of industrial management, marketing management, financial management, inventory control, human resource development, information technology, and ecommerce, etc. Also, it aims to make them aware about emerging practices in the field of industrial management. National Institute for Micro, small and Medium Enterprises (ni-msme) has taken gigantic strides to become the premier institution for the promotion, development and modernization of the Small and Medium Enterprise sector. An autonomous arm of the Ministry of Micro, Small and Medium Enterprises (MSMEs), the institute strives to achieve its avowed objectives through a gamut of operations ranging from training, consultancy, research and education, to extension and information services.

Human Resources(labor related issues) The managerial skills required for the management of small/ medium firms are not very much different from those necessary in large scale business. The managerial functions of

planning, organising, staffing, directing and controlling are common to both. But, the scale on which various functions are performed by owner and manager are different and in small scale, the degree of complexity is lower. The organization structure of latter firms is simple due to presence of few employees. The owner himself acts as the manager and can exercise personal control. However as the business grows, owner/ manager finds it difficult to manage even small business effectively. For this, it becomes necessary to increase the amount of manpower in the enterprise. Hence, several initiatives and steps are required to be undertaken to recognise the weaknesses in management of small business enterprises, which are largely plagued with difficulties and problems in relation to human resource management. There is lack of trained and experienced employees because small/ medium enterprises find it difficult to afford remunerative salaries as well as to provide adequate training facilities to their employees. Further, they find it difficult to recruit and motivate skilled managerial and technical personnel who tend to look for better opportunities in the large scale industries. Hence, they are not able to get/hold best talent in the industry and/ or have to depend on family members who do not have diversified and technical skills. Although, small and medium sector is the second largest employer of human resources after agriculture, providing employment to large number of people in the rural and urban areas of the country. But, it is right to say that small and medium scale enterprises faces huge problem of recruiting required number of manpower and managing effectively the recruited employees. Thus, more initiatives need to be taken at the Centre and the State level to ensure proper management of human resources in the small and medium scale enterprises sector. This would raise their production capacity, improve their marketing and distribution network, set links with people/ industries within different parts of India and/ or abroad, as well as motivate new and talented manpower to join the sector.

HR in MSME
Outsourcing Human Resources functions like recruitment,training,payroll management have become trend in the indian market for the small and medium sized industries as they have been realized the significance of human resource managemet and retention of right talent for the growyh