Specific Practices of Human Resource Management in the Creation and Development of Micro and Small Firms, Case Studies in Portuguese Firms

Practices of human resource management (HRM) have an impact on business efforts, making the acceptance of risks and innovation more pro-active. It therefore becomes necessary to understand and identify the HRM practices present in the creation of micro and small firms, as well as in their development, and characterise the needs of professional training and new competences. From a qualitative approach, in four micro and small firms, business-people and collaborators were interviewed to identify the specific HRM practices present at the beginning of activity in this type of organisation. Data treatment was through content analysis. Analysis of the organisation’s creation and development stages identified as critical HRM practices recruitment and selection and professional training. Performance assessment was identified at the time of firm development, increasing in formalization and complexity over time and as the number of collaborators grows. The formalization of rewards and bonuses is affected by increased firm size, at the two stages. At the moment of creating the firm, training actions in financial management and HRM are necessary. Organisational development requires technical competences in each area of business, and also continuity and deepening of the areas of overall management and human resource development.