The Formality and Informality of HRM Practices in Small Firms
Barrett, Rowena & Mayson, Susan (2008) The Formality and Informality of HRM Practices in Small Firms. In Barrett, Rowena & Mayson, Susan (Eds.) International Handbook of Entrepreneurship and HRM. Edward Elgar, Cheltenham, UK ; Northampton, MA, pp. 111-136.
The formality and informality of HRM practices in small ﬁrms Rowena Barrett and Susan Mayson Introduction The nature of human resource management in small ﬁrms is understood to be characterized by ad hoc and idiosyncratic practices. The liability of smallness (Heneman and Berkley, 1999) and resource poverty (Welsh and White, 1981) presents unique challenges to managing human resources in small ﬁrms. The inability to achieve economies of scale can mean that implementing formalized HRM practices is costly in terms of time and money for small ﬁrms (Sels et al., 2006a; 2006b). These, combined with small ﬁrm owner–managers’ lack of strategic capabilities and awareness (Hannon and Atherton, 1998) and a lack of managerial resources and expertise in HRM (Cardon and Stevens, 2004) can lead to informal and ad hoc HRM practices. For some this state of aﬀairs is interpreted as problematic as the normative and formalized HRM practices in the areas of recruitment, selection, appraisal, training and rewards are not present (see Marlow, 2006 and Taylor, 2006 for a critique). However, a more nuanced analysis of the small ﬁrm and its practices in their context can tell a diﬀerent story (Barrett and Rainnie, 2002; Harney and Dundon, 2006). In this chapter we contribute to our understanding of small ﬁrm management practices by investigating a series of questions in relation to HRM in small ﬁrms.
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|Item Type:||Book Chapter|
|Keywords:||HRM Practices, Small Firms|
|Subjects:||Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Entrepreneurship (150304)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Human Resources Management (150305)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Small Business Management (150314)
|Divisions:||Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Management
|Deposited On:||25 Aug 2014 03:53|
|Last Modified:||27 Oct 2015 16:32|
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