Systematic Management: The Remedy for Inefficiency in SMEs

And Why Human Resource Management is at the Core of It  

Fredric Winslow Taylor, often regarded as the father of scientific management, once profoundly observed that “the remedy for inefficiency lies in systematic management, not in searching for some unusual or extraordinary individual.” This principle, introduced over a century ago, holds timeless relevance—particularly for Indian SMEs today, where scalability and efficiency often fall prey to people-dependency and informal systems. 

The Myth of the Superhuman Employee 

In many small and medium-sized enterprises (SMEs), the common reaction to operational struggles is to look for a “hero” employee—someone who can juggle everything from sales to finance to delivery. This tendency stems from a belief that the right person will fix the system. 

However, this approach is not only risky, but also unsustainable: 

• Human Limitations: No individual, however skilled, can compensate for a broken or missing system. 

• Scalability Issues: A people-dependent model collapses when key individuals exit or burn out. 

• Inconsistent Results: Without defined processes, outcomes vary with personalities, not planning. 

Here’s where systematic management comes in—not just as a tool for process improvement, but as a philosophy of building business around replicable systems and empowered teams. 

Why Systematic Management is the Key 

Systematic management refers to creating clear, replicable, and measurable systems that ensure consistent performance. Taylor’s scientific management framework emphasized: 

• Standardized Processes: Repeatable methods that ensure consistent quality. 

• Defined Roles and Responsibilities: Clarity in accountability, reducing overlap and inefficiencies. 

• Measurement & Feedback Loops: Metrics that help identify, analyze, and improve bottlenecks. 

But there’s one modern element Taylor couldn’t fully anticipate—human resource management. In today’s world, HRM is the strategic arm that enables systematic management to succeed. It is not merely an administrative function, but a core lever for operational excellence. 

Integrating Human Resource Management into Systematic Management 

For systematic management to work in SMEs, human resource management must play an enabling role at every level: 

1. Process Documentation through HR Support

HR can lead the initiative to document SOPs (Standard Operating Procedures), job descriptions, workflows, and KRAs. When employees have access to documented clarity, productivity naturally improves. 

2. Structured Delegation and Role Design

HR ensures that roles are not just filled, but also well-designed and strategically aligned with business goals. Clear roles reduce conflict, duplication, and dependence on individuals. 

3. Training and Capability Building

One of the biggest hurdles in implementing systems is lack of skill. HRM plays a pivotal role in upskilling employees to align with systematic processes, tools, and technologies. 

4. Driving a Culture of Continuous Improvement

Beyond policies, modern HR practices promote feedback, collaboration, and learning. A strong HRM function institutionalizes a growth mindset across teams. 

How SMEs Can Implement Systematic Management (with HR at the Core) 

• Document Your Processes: HR teams should work with business heads to formalize operational SOPs and onboarding manuals. 

• Delegate with Clarity: Use HR tools like role matrices and KPIs to eliminate ambiguity in execution. 

• Leverage Technology: HR tech, like performance management systems or skill trackers, integrates seamlessly into process workflows. 

• Train and Coach: Schedule regular learning sessions, led or coordinated by HR, to develop adaptive and process-aligned teams. 

• Audit and Review: HR can anchor quarterly performance and process reviews for better alignment and accountability. 

Benefits of a System-Driven SME with HR as the Enabler 

When systematic management is combined with strong human resource management, SMEs can: 

• Minimize people dependency and increase team autonomy 
•  Scale operations without losing control 
•  Institutionalize culture, discipline, and ownership 
•  Attract and retain talent with clarity and growth pathways 
•  Build high-performing teams ready for future challenges 

Taylor’s Legacy Meets Today’s HRM 

Fredric Winslow Taylor’s insight—that inefficiency stems from system failure, not people failure—could not be more relevant today. But in the context of 21st-century SMEs, we now know that people systems are the heart of business systems. And that’s where human resource management becomes your greatest asset. 

Talent is essential—but with great HR practices and systematic thinking, even ordinary people can produce extraordinary outcomes. 

🔑 Final Thought: 

“The next time you feel tempted to hire a ‘superhuman’ to fix your SME, ask instead—can my systems, supported by great human resource management, empower ordinary people to deliver extraordinary results?”