Beyond HRM intensity: Exploring intra-function HRM clusters in SMEs

Peter A. Innes · Retha Wiesner

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Human Resource and Talent Management Management and Organizational Practices Employer Branding and e-HRM

Abstract

Human resource management (HRM) clusters have been studied in large organisations, however it is a relatively new direction of research in SMEs. Through the large-scale tracking of 110 HRM practices within five HRM domains across 1230 SMEs, the objective of this paper is to firstly undertake a quantitative exploratory analysis into the clustering of practices within recruitment, selection, training and development, remuneration and performance appraisal, and secondly to examine how the intra-function HR bundles are differentiated by contextual factors such as size, presence of a HR manager, whether the owner-manager is present and industry. This approach is in contrast to existing research which is premised on HRM intensity: that more HR practices are better. Our results show a strong multiple clustering of practices within HRM functions in SMEs, except for training and development. The predictors of HR practices show the liability of firm smallness and the difficulties firms face in the absence of HR professionals.

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1977Institutionalized Organizations: Formal Structure as Myth and Ceremony 2004The iron cage revisited institutional isomorphism and collective rationality in organizational fields 1995THE IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON TURNOVER, PRODUCTIVITY, AND CORPORATE FINANCIAL PERFORMANCE.1995Human Resource Bundles and Manufacturing Performance: Organizational Logic and Flexible Production Systems in the World Auto Industry 1999The Human Resource Architecture: Toward a Theory of Human Capital Allocation and Development 2002Examining the Human Resource Architecture: The Relationships Among Human Capital, Employment, and Human Resource Configurations 1995Understanding Human Resource Management in the Context of Organizations and Their Environments 2002Desegregating HRM: A Review and Synthesis of Micro and Macro Human Resource Management Research

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