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This paper is on the growing importance of Strategic Human Resource Management (SHRM) for small and medium-sized enterprises (SMEs). Many small firms encounter serious human resource problems, while at the same time these human resources play a vital role in developing and sustaining their competitive advantages. In (S)HRM literature specific issues concerning small firms are rarely addressed. This paper explores this issue further. We conclude that the available knowledge on HRM in small firms is highly descriptive and fragmented. We propose the application of the Strategic Labour Allocation Process-model (SLAP) as a tool to analyse HRproblems in SMEs. This model focuses on the balance between the supply of and the demand for labour on a firm level. The application of the SLAP-model produces two strategic scenarios for Dutch SMEs presently confronted with a tight labour market. In the first scenario, the small firm chooses for labour supply oriented policies, that lead to a corrosion of the firms distinctive competencies. In the second and more optimistic scenario, the small firm creatively organises its labour demand. The latter turns out to strengthen the small firm's position on the labour market, ultimately sustaining its competitive advantage.
This paper is on the growing importance of Strategic Human Resource Management (SHRM) for small and medium-sized enterprises (SMEs). Many small firms encounter serious human resource problems, while at the same time these human resources play a vital role in developing and sustaining their competitive advantages. In (S)HRM literature specific issues concerning small firms are rarely addressed. This paper explores this issue further. We conclude that the available knowledge on HRM in small firms is highly descriptive and fragmented. We propose the application of the Strategic Labour Allocation Process-model (SLAP) as a tool to analyse HRproblems in SMEs. This model focuses on the balance between the supply of and the demand for labour on a firm level. The application of the SLAP-model produces two strategic scenarios for Dutch SMEs presently confronted with a tight labour market. In the first scenario, the small firm chooses for labour supply oriented policies, that lead to a corrosion of the firms distinctive competencies. In the second and more optimistic scenario, the small firm creatively organises its labour demand. The latter turns out to strengthen the small firm's position on the labour market, ultimately sustaining its competitive advantage.
PurposeThe purpose of this paper is to explore what owners of small firms are looking for from new employees. The aim is to pursue this in light of the debate around formality and informality of small firm HRM, exploring the extent to which the small firms studied had formalised HRM practices.Design/methodology/approachThe data reported here were collected in discussions with the owner(s) of 27 small firms in the Latrobe Valley region of South East Victoria, Australia. These firms were participating in the federal government‐funded small business assistance program and data were gathered through a series of visits and discussions with the owners over the period of the assistance program.FindingsIt was found that in those firms where they had formalised HRM practices, which linked directly to their strategy, employers were more able to “sell” their vision for the business to potential employees.Research limitations/implicationsResearch has shown that there is a positive relationship between small firm growth and the formalisation of HRM policies. However, this paper is based on discussions with people who were taking action to acknowledge and address issues affecting their business and so their experience may not be generalisable to other small businesses.Originality/valueThis paper makes an original contribution of exploring the area of HRM in small firms and is hopefully a reminder to small business owners that HRM issues and small business advisers can play a critical role in the structure of their HRM practices – helping them to decide whom they want to recruit and how to go about it.
Purpose -The purpose of this article is to emphasise the development, importance and pressures on the under-researched area of Chinese small and medium-sized enterprises (SMEs) and human resource management (HRM) and provide a review and research agenda, especially relating to the debate on convergence vis-à -vis divergence. Design/methodology/approach -Recent research papers are discussed and possible convergence and the pressures on HRM and its practice in Chinese SMEs are examined. Key elements in Chinese HRM are highlighted. Four main dimensions of HRM are compared in terms of western and Chinese characteristics and their cultural impacts and problems. A conceptual framework to locate influences on Chinese HRM is outlined as well as a set of propositions for future research and examination of key HRM areas. Findings -The continuing influences on HRM suggest that a distinctly Chinese HRM approach combining western practice with Chinese characteristics may be one way for SMEs to develop. Originality/value -It is central to a better understanding of Chinese SMEs and helps fill some of the gap in the analysis of HRM in Chinese SMEs. It also offers insights which managers, policy makers and Chinese government can use to construct and reform the supporting system for SMEs.
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