Small companies can emphasise HR management by incorporating functions related to it into everyday management. The doctoral dissertation by Essi Saru, M.Sc. (Econ. & Bus. Adm.) researching human resources management in small companies will be defended at the Turku School of Economics on 10 December 2009. The dissertation of economic science Sewn as a patchwork. How bits and pieces from the HRM, HRD and OL perspectives can improve performance in small enterprises belongs to the field of Management and Organisation.
According to the research, in small enterprises HR management may only be given secondary importance, even though investment in the well-being of staff is important from a point of view of productivity.
– Often in small businesses, people consider that they do not have adequate financial resources or expertise for HR management. And if there is no evidence that, by investing in HR management, the company's operating conditions and performance can be improved, people would rather concentrate on coping with fierce competition or a tight financial situation, says Saru.
The research involved two small companies operating in different fields.
Unofficial practices work
Efforts have been made to apply the HR management models of large enterprises to the operations of small enterprises. These cannot, however, be applied directly to small enterprises, and should be tailored to the situation, business and needs of the companies. The research shows that a significant way for a small company to invest in HR management is to incorporate its related functions into everyday management and activities. The role of a company's owner or director is central to the creation of an atmosphere that encourages good work, and thereby also to the improvement of company performance.
– In small enterprises, unofficial practices work best. In everyday activities, messages about the company's values and attitudes can be conveyed to the staff, and an image of a just and fair company can be created, in which every job has its own value. Open communication in particular was considered a key factor in the companies being studied.
The research also emphasised the great significance of recruitment in HR management in small enterprises. A single poor recruitment might spoil the atmosphere within the whole company, weaken the job satisfaction of others and thereby adversely affect the productivity of the entire organisation. Resources and time invested in unsuccessful recruitment are wasted and consume the resources of future recruitment projects.
– In a small company, it is important that new employees fit into the company's existing team, either by complementing their expertise or by preserving the company's harmony by being the same as the others, says Essi Saru.
Further information
Essi Saru
0400 313 039, essi.saru(a)tse.fi