HRM in Small- and Medium-Sized Enterprises (SMEs)

Chapter 9 will examine the role, nature and functions of human resource management (HRM) among small- and medium-sized enterprises (SMEs). The chapter starts by critically assessing HRM in context, by reviewing different meanings and interpretations of HRM and how these may differ in smaller organisational settings. The importance of SMEs to the economy is reviewed, both globally and locally, and the HR approaches found among SMEs is then reported on. The chapter argues that much analysis about HRM in SMEs is often polarised between one of two perspectives: The ‘small is beautiful’ versus ‘bleak house’ scenarios. A review of research evidence charts current practices within SMEs, including the importance of informal relations, recruitment patterns, communications and employee involvement.