Strategic human resource management framework for Korean small and medium enterprises' sustainable growth

Abstract

As Small and Medium Enterprises in Korea play a pivotal role in Korean economy, their sustainable growth is critical for Korea's development. One of drivers that enable SMEs to pursue sustainable growth is Human Resource Management. Since "People" is one of the most valuable assets in a company, its survival could depend upon strategic utilization of human resource. Korean economy has a Chaebol conglomerates centric business structure where Small and Medium Enterprises are difficult to compete with them for their survival. Especially, the human resource-related issues are the most significant and urgent for them to solve. Therefore, I would like to suggest possible and feasible strategic Human Resource Management framework for Korean Small and Medium Enterprises for their sustainable growth. In this thesis, the points that I will be focusing on are: i) Analyzing on Korean SME's problems on HRM ii) Deriving lessons from successful HRM cases iii) Coming up with Strategic HRM Framework that Korean SMEs can apply. 1. Do successful corporations have their unique Human Resource Management strategy? 2. How can Korean Small and Medium Enterprises acquire human resource-related core competency within Chaebol conglomerates-centered economy in Korea? To find answers to these questions and to develop a proper Human Resource Management Framework for Small and Medium Enterprises, case studies on Talent Management Wheel, Hidden Champions, and Yuhan-Kimberly were used as examples of successful Human Resource Management. In this case studies, it became clear that one of the key drivers for successful companies is a well-organized Human Resource Management system. Lastly, I conclude by suggesting a strategic Human Resource Management framework that Korean Small and Medium Enterprises can adopt for their sustainable growth and the significance of successful Human Resource Management system that creates invaluable virtuous circles in the society.