The rationale of a good Human Resource Management (HRM) strategic planning is basically present in order to recruit, select, motivate and retain employees with the required characteristics for the business company success, the ability to work in groups and have the quantitative skills respectively (Deshpande and Golhar 1994). Research studies in most countries which are investigating HRM issues for small business as well as company expansions has been focusing and integrating HRM approaches such as selection, training and development, compensation as well as industrial relations. As Gatewood and Field (1987) propose a model selection program for small business expansions as Curran (1988) suggests several training strategies for the desired business. Fowler and Murlis (1989) present compensation systems as Finney (1987) and Smith (1991) noted personnel challenges faced by HRM managers and propose various strategies for effective HRM practices. Moreover, Ng and Maki (1993) found out that the main difference in company expansion in lieu to human strategic planning greatly implies better employee recruitment and career assessment measures. Morissette (1993) reports a considerable wage difference in terms of company expansion. Hornsby and Kuratko (1990) identify selection and retention of a quality workforce as the most important HRM issue for small and expanding firms. Thus, Amba-Rao and Pendse’s (1985) investigation of compensation practices to the workforce characteristics as it is essential to know whether HRM practices of expanding business between firms differ in ways and functionality range.
Furthermore, such recruitment strategies to be of use for expanding business indicate that companies provide qualified employees an opportunity to obtain better jobs within the organization. It may also indicate a sense of commitment to the employee career growth and development (Dessler and Turner 1992). Henceforth, in the human resource management, the inertia of institutional structures is to inhibit the application of new management prescriptions within the existing legal rules and political conditions. This is due to the fact that human resource management practices are focus to distinctive sets of nationwide regulations to the analysis of labor unions whose strength and attitudes toward management diverge. Hence, opposing to what is postulated in the logically leaning, rigid literature, which assumes high managerial autonomy (Shaw, 1993; Dessler, 1997) as human resource management is an organizational practice that is basically sensitive to the expansion pressures. Moreover, different types of human resource management practices may be determined to a considerable quantity by the crucial of maintaining peripheral authority through adherence to the company expansion arrangement, systems as well as standards as the consequence of disparate general situations per se.
This literature review challenges that the lack of strategic human resource and business planning could be the main weakness within the implementation of business expansion process relating to such needed HR initiatives like for instance, total quality management as it is evident that strategic planning companies due to expansion will achieve better performance than other business company. However, strategic planning has tendency to be a failure because of problems and of barriers being encountered at the expansion stage. The management needs to consider ways of attaining better suitability of human resource strategic planning as the key to eliminating and or reducing expansion barriers in relation to staff employee and management composition through evaluating the area to which the expansion obstacles could be knowledgeable in formal strategic resource planning companies. There needs to examine the extent to which the difficulties are visible by the performing and expanding companies and firms. In addition, in holding to the newest standards in employee recruitment and selection then the human resource areas will have to serve as the companies’ staff and employees training center. HR department is essential within expanding companies due to the fact that HR management are in charge of managing people as some people will argue that human resource “HR” departments are an expanding company’s most valuable division as their approach and association can set the tone for the entire business expansion knowing the reality that the understanding of such ways of the HR processes do really reflects the essential function and role to the business owners amicably.
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