Human Resource Management With Small Firms; Facts And Explanations
AbstractThis study examines determinants of the formalization of HRM practices with small firms. We derive five hypotheses that identify possible determinants of the level of formalization, including firm size, family business, the availability of an HRM department or HRM manager, and the existence of a formal business plan. We test these hypotheses using data on more than 700 Dutch small firms. We find that, within this sample of small firms, larger firms apply more formalized HRM practices than smaller firms do. However, once we take certain contextual variables into account, the direct relation with firm size becomes substantially less. Indirect relations with firm size also exist: firm size is a determinant of the probability that an HRM department is present, which in turn is related to the formalization of all HRM scales. Finally, family businesses apply less formal HRM practices, as do businesses without a business plan.
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Bibliographic InfoPaper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2003-015-STR.
Date of creation: 19 Mar 2003
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firm behavior; personnel management; labor relations; small and medium-sized enterprises;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-12-07 (All new papers)
- NEP-ENT-2003-12-07 (Entrepreneurship)
- NEP-LAB-2003-12-07 (Labour Economics)
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