HRM in 21st century small organizations: a midrange typology to describe, contrast and contextualize the phenomenon

Abstract

The diversity of practices observed in small enterprises demands a new evaluation of HRM with respect to its phenotypes and functions. By bringing HRM back to its functional requirements as represented by the need to control the human side of work as well as the differentiation and integration of tasks, we develop a configurational model of eight ideal types of HRM, that resonate in previous research as well as in emerging organization types in the networked economy. Based on varying positions along the hierarchy, formalities and input-or output-oriented dimensions of control, we discern craft employers, traditional owner-managers, and strategic-, knowledge-, and bleak house entrepreneurs from subcontracted work, alliances and partnerships. Because control serves as a bridge between agency and structure, the proposed classification offers an analytical starting point for detecting, describing, contrasting, comparing and contextualizing empirically observed HRM configurations in a broad diversity of small enterprises. The approach offers a mid-range theory, which allows for generalization across small enterprises without the risk of losing peculiar responses to enacting HRM.

Towards a more inclusive human resource community: Engaging ethnic minority microbusinesses in human resource development programmes targeted at more productive methods of operating

“…They are influential in the networks of microbusinesses in the two sectors focused on here: catering and creatives. Caterers are ‘traditional owner‐managed firms’ described by Kroon and Paauwe (2021), with highly informal and personalised work relationships. Creatives are more like ‘alliances’ between very small firms or self‐employed professionals.…”

“…They tend to be informal, directed at critical business needs and priorities, and embedded in everyday routines and working practices (Nolan et al., 2020). Second, HR comprises an interrelated flow of activities rather than single practices (Kroon & Paauwe, 2021). Informality runs through many parts of the operation of EMMBs.…”

“…Such personal and collective ambitions, and their implications for HR practices, rarely attract the importance they merit in standard accounts of HR in small firms (Edwards & Ram, 2019). This is despite the fact that small business goals are diverse, with attendant implications for HR practices (Kroon & Paauwe, 2021).…”

“…For present purposes, we view ‘more productive methods of operating’ as explicit or structured attempts by employers to link their HR practices with business strategy. HR practices are the controls used to deal with the functional requirements of firms (Kroon & Paauwe, 2021). They are of two kinds: employment practices (practices used to recruit, deploy, motivate, and retain workers) and work practices (comprising work organisation, training, leadership and change management processes).…”

“…Such an undertaking is challenging for conceptual and practical reasons. Conceptually, ‘integrative’ (Kroon & Paauwe, 2021) models of HR and employment in small firms (Edwards et al., 2006; Harney & Dundon, 2006; Mayson & Barrett, 2017) suggest the contextual conditions of many EMMBs – comprising tough market competition and a restricted labour market, limited resources and a preoccupation with survival – limit the scope for HR development. Practically, EMMBs and microbusinesses per se, are often portrayed as lacking in HR capabilities and uninterested in external support (Gherhes et al., 2016) – this suggests there is a limited role for academics, HR and business support intermediaries to engage such firms in programmes to reassess their approaches to HR.…”