Human Resource Management : Managing People in Smaller Organisations

Although previous studies of human resourcemanagement (HRM) techniques have focused on large companies, HRM ideas andpractices may be used to help smaller companies achieve competitiveadvantage.Case studies of four United Kingdom companies employing fewerthan fifty people are used to illustrate managerial and employee experiences ofpeople management.The case studies, along with survey data collectedfollowing the implementation of recent employment legislation in smallerorganizations, reveal that small business managers are primarily concerned withthe practical aspects of recruiting, training, monitoring, and rewardingworkers within an often resource-poor environment. Although contemporary HRM discourse has dismissed small firm managerialpractices as idiosyncratic and backward, we must regard HRM as individualizedmanagerial practice rather than a linguistic and theoretical puzzle in order tosee that small businesses actually do participate in HRM "culture."Theories of HRM and the ways in which employment relations are legally definedmay be seen as two aspects of people management in smallerorganizations.Because small firm managers may resist HRM and employmentlegislation, the best way to promote effective people management in smallbusinesses is to focus on practice rather than to force compliance withemployment legislation or to struggle with definitions of HRM.(SAA)