MSME · MSME · Chapter 7

Human Resource Management

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Small and Medium Enterprises in India — Certificate Course on MSME.

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Q

What is the strategic definition of Human Resource Management (HRM)?

A

HRM is the strategic approach to managing people in an organisation so that they help the business gain a competitive advantage.

Q

How many MSMEs exist in India, and how many people do they employ?

A

More than 6.3 crore MSMEs employing 11 crore people

Q

Why is HRM considered doubly important for MSMEs compared to larger firms?

A

The owner-manager typically wears multiple hats, and a small team means every person's performance is amplified or impaired across the entire enterprise.

Q

On which date were all four new labour codes notified?

A

21 November 2025

Q

What is a key characteristic of HRM in MSMEs regarding who makes HR decisions?

A

Most HR decisions are taken by the founder due to owner-manager dominance.

Q

Which four labour codes replaced the older labour legislation in India?

A

Code on Wages 2019, Industrial Relations (IR) Code 2020, OSH Code 2020, and Social Security Code 2020

Q

How is recruitment typically conducted in MSMEs due to resource constraints?

A

MSMEs commonly rely on word-of-mouth, personal networks, and informal processes rather than formal HR departments.

Q

Which Act did the OSH Code 2020 replace in governing workplace safety?

A

The Factories Act, 1948

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