Management beyond a critical threshold of employees: evidence-based HR solutions for SMEs

PurposeThis research identifies human resource (HR) management challenges and associated solutions of a medium-sized organization that reached a critical threshold of employees and required formalized HR systems. HR solutions focused on using labour efficiently, linking pay to performance and motivating or rewarding desired employee behaviour are identified.Design/methodology/approachThis case study involved HR data analysis and 50 semi-structured interviews (SSIs) over 4 successive phases: HR audit, problem identification and job description validation, solutions analysis and feedback on outcomes. Additionally, HR files and schedules were reviewed to determine labour usage, organizational structure and compensation.FindingsHR problems and solutions associated with job analysis (e.g. role identity, role conflict), HR planning (e.g. scheduling, motivation), employee performance management (e.g. validity, employee empowerment) and compensation (e.g. inequity, turnover intentions) issues are clearly identified.Research limitations/implicationsTraditionally, HR theory or concepts are presented in a limited or isolated manner. However, this research provides an integrative assessment of numerous interrelated, complex, core HR concepts including role conflict, equity, employee empowerment, motivation, consensus building, accountability, change champions, communication and coaching.Practical implicationsThis multi-phased, multi-stakeholder approach to small and medium enterprise (SME) management informs organizational leaders about HR problems and solutions they may encounter as they grow and require formalized HR systems. The proposed solutions can help safeguard organizational survival.Originality/valueThis research bridges HR theory with HR practices focusing specifically on SMEs. In addition, SMEs can benefit from the HR process information presented to conduct similar evidence-based HR problem and solution assessments.

Key HRM Challenges and Benefits

Whilst HRM is responding to organizational challenges, HRM tutors have to deal with avoiding labour imposition (Mather et al., 2007) and ensuring that their students are well prepared for society. The chapter's findings involve linkages between people, HR systems and the workplace in an HR Scaffolding that is argued to contribute to resolving the challenges caused by ‘the black box' of organizational performance (Becker & Huselid, 2006). Four steps of research extrapolate lessons to be learnt.

THE DARKSIDE OF IDIOSYNCRATIC DEALS: HUMANISTIC VERSUS NEOLIBERAL TRENDS AND APPLICATIONS

"Theory-building on workplace flexibility is extended, based on a critical Human Resource (HR) systems framework and paradox (conflict) perspective on employee-oriented vs. capacity-oriented flexibility. Differentiated are variabilities in HR practices by: a) content (functional, temporal, spatial, numerical, financial); b) control (employer, employee); and c) creation (top-down, bottom-up). Hybrid types of bottom-up initiated and top-down authorized flexibility, idiosyncratic deals (i-deals), describe mutually beneficial, negotiated agreements on non-standard working conditions between employees and employer. If their real-world manifestations reflect idealized assumptions, however, remains obscure. Integrating institutional logics, HR systems embody values of humanistic ideals vs. neoliberal ideology: (1) individuation vs. individualism; (2) solidarity vs. competition; (3) emancipation vs. instrumentality. Reflecting these antipodes, construed ideal-type and anti-type i-deals facilitate: (a) self-actualization vs. self-reliance (needs vs. interests); (b) common good vs. tournament situations (triple-win vs. winner-take-all); (c) social transformation vs. economic rationalization (development vs. performance). In humanistic management theory, i-deals increase employee-oriented flexibility, but, in reality, risk being co-opted for economic rationalization and divisive labor-political power strategies. Antagonistic applications involve: humanization vs. rationalization goals; egalitarian vs. elitist distribution; relational vs. transactional resources; need-based vs. contribution-based authorization; procedural vs. distributive justice; supplementing vs. substituting collective HR practices. Instrumental adoption in high-performance work environments likely facilitates harmful internalizations as subjectification and self-exploitation."

The Enhancement of HR Systems Through Entrepreneurial Succession in Family SMEs

This chapter aims at shedding light on the “hidden relationship” between the process of entrepreneurial succession in family SMEs and the development of the HR management system in such firms. Starting from a literature review, the authors develop a reflection based on evidence from a sample of Italian family SMEs, collected through a longitudinal qualitative inquiry. They question if and how the change at the helm of the family firm may constitute an opportunity to develop or strengthen the HR management system. The ultimate goal of the chapter is to lay the foundation for building a conceptual framework in which some possible relationships between the variables involved are outlined.

South African MNCs and HR

This chapter explores how three South African MNCs ventured north into Africa and what this meant for their practice of HRM. The chapter highlights how each company developed their HR systems under late apartheid, and how they have been adapted since then. It explores what their investments meant for local firms and for workers more generally in their countries of operation. Two of the three firms have placed a strong emphasis on internal HRD and human resource planning orientated towards developing the careers of their staff up to senior management; the third has followed a more mixed model that has not been without controversy.