Bleak house or bright prospect? Human resource management in Australian SMEs

Abstract

This study fills the gaps in existing research on HRM in Australian SMEs by considering a wide range of standard human resource (HR) practices and some industrial relations practices. The small business sector has been regarded as the natural home for 'bleak house' human resource management practices typified by low uptake of human resource practices, little or no collective representation of employees and little or no employee participation. The results, reporting a national study (n = 1435) on human resource management practices in Australian SMEs, reveal a moderate take-up of human resource management practices. These findings by themselves do not support what Storey has called the 'bleak house' scenario in Australian SMEs. However, there are factors that may have a negative impact on the relative positive picture portrayed in this study, when the impact of organisational size, the presence of a HR manager and prevalence of a strategic plan on the uptake of HR practices in SMEs are considered, together with low unionisation, low employee participation and a low incidence of collective practices.

Australian small and medium sized enterprises (SMEs): A study of high performance management practices

“…Although 92 percent said they had identified specific goals and objectives as part of the strategic plan, only 47 percent said they had altered its practices in order to achieve the goals and objectives identified in the strategic plan. This supports the research by Wiesner and McDonald (2001) that that SME managers do not tend to take a strategic approach to HRM.…”

“…However, the adoption rate may be ameliorated by SME characteristics accorded small business by previous research (Chapman 1999;Granovetta 1984;Welsh & White 1981;Heneman & Berkley 1999;Callus et al 1991;Olsen & Terpstra;Bacon et al 1996;Wiesner, 2001). Characteristics of SMEs that make them different from their larger counterparts include: informality of organisational structures, reporting relationships and processes, availability of capital, role in the marketplace, degree of management skills and time and business planning, environmental scanning and strategic planning affect the ability and capability of SMEs to respond to the demands of the competitive environment (Jennings & Beaver 1997;Joyce, Woods, McNulty & Corrigan 1990;Johns, Dunlop & Sheehan 1989;.…”

“…However, despite the importance of small and medium size businesses to the economy and the growth in human resource management (HRM) practices in Australian organisations (Fisher, Dowling & Garnham 1999;Wiesner 2001), there has been a shortage of data during the past decade concerning the broad nature of the patterns and trends in human resource management and more specifically high performance management practices in SMEs.…”

High Performance Management Practices and Sustainability of SMEs. Evidence from Manufacturing and Services-based Industries in Pakistan

“…De Kok and Uhlaner (2001) and Wiesner et al (2007) argue that small firms tend to adopt more informal HPMP in comparison to large firms. This notion has widely been acknowledged in research studies indicating the positive relationship between firm size and the adoption of HPMP (De Kok & Uhlaner, 2001;Delery & Doty, 1996;Lawler et al, 1995;Marlo, 2000;Wiesner & McDonald, 2001;Wiesner et al, 2007). However, informality in small firms reflect their needs and types of management and thus are more dependent on informal interactions which integrate their norms and direct behaviours.…”

The relationship between HRM avenues of political influence and perceived organizational performance

“…First, organizational size affects the strategic role assigned to HRM. Smallmedium organizations in Australia are less likely than larger organizations to have formal HRM practices and a strategically active HRM department (Kotey & Sheridan, 2001;Michelson & Kramar, 2003;Nankervis, Compton, & Savery, 2002;Wiesner & McDonald, 2001). Second, organizational sector affects the strategic role of HRM, as private-sector organizations more often include the function in a strategic business partner role (Robertson, 1994;Teo, 2002).…”