Challenging the Dehumanisation of HRM: Developing an Alternative Resilience Scaffold to the Theory of Firm’s Application in SMEs

This chapter focuses on the resource constraints smaller firm managers face when implementing HRM, particularly employee selection and retention practices. This topic is crucial because there is a lack of theoretical exploration of how SMEs and their management address resource constraint situations. Previous attempts to contribute to SME crises have varyingly and erroneously relied on understanding akin to Coase’s seminal Theory of the Firm. This logic has paradoxically led to ineffective and inefficient use of constrained resources risking the alienation and dehumanisation of staff. To address the paradox, this chapter uses 85 qualitative interviews to highlight how to (1) humanise HRM practice and policy implementation (2) develop an alternative ‘Integrative Employee Resilience Framework’ and finally, (3) produce a ‘Resilience Scaffold’ for HRM and SMEs in crisis contexts. These contributions provide an alternative set of resources, focusing on the resilience capabilities needed by managers and employees when implementing HRM practices in SME crisis environments. The implications of the proposed framework and impacts on the future of HRM and SME studies are identified and discussed.