Adoption of Human Resource Practices Within a South African Small Business: A Case Study

Abstract

Until recently, human resource management has been considered inappropriate and too costly for small businesses and consequently research in this direction has been at a relatively minimum level. It is also evident that the effectiveness and competitiveness of SMEs can be increased through the application of sound HRM practices. In order to establish how SMEs can successfully apply HRM, the objective of this study is to establish, in an exploratory manner, the applicability of HRM in a small business in order to ensure its effective operation and consequent competitiveness. The research method applied is an interpretive and qualitative approach by means of a single case study of a photographic equipment store. The owner-manager perceives that personnel problems pose a major barrier to the success of the business; however, he also believes that outside aid in HRM would not resolve the problems. The HRM process of the SME growth model adds value in the sense that it also illustrates the relationship between the owner-manager's personal characteristics, external market conditions, nature of the work environment, and the business structure. Given the small business-specific problems that were identified, the information obtained in this study paves the way for a quantitative study of a number of SMEs and comparative research.

A quarter‐century review of HRM in small and medium‐sized enterprises: Capturing what we know, exploring where we need to go

“…While not a direct consideration of any article reviewed per se, a review of findings reveals that the introduction of HR in SMEs is most likely as a result of a defining moment, presenting issue, HR challenge or crisis. The range of “presenting issues” (Figure 1) found to directly impact HRM includes a change of ownership, succession, the introduction of professional managers, a decline of performance (Bacon et al, 1996), corporate shocks (Cassell et al, 2002), underperformance and intensified competition (Harney & Dundon, 2006), venture capital influence (Dietz et al, 2006), or the perception of HR as a problem or challenge (Barrett & Meyer, 2010; Festing et al, 2013; Tocher & Rutherford, 2009; Werner & Herman, 2012). These point to the significance of exploring presenting issues and catalysts for the introduction of HRM in SMEs, thereby gaining a better appreciation of HR issues in SMEs.…”

“…Australia and New Zealand made up 16% of studies, while only 8% explored China. While South Africa, Nigeria, and parts of South‐Eastern Asia were represented (Khavul, Benson, & Datta, 2010; Ogunyomi & Bruning, 2016; Werner & Herman, 2012), there was nothing written about other parts of Africa and Asia, specifically the Middle East region irrespective of the popularity of SMEs as an essential backbone for the economy in these contexts.…”

Las prácticas de capital humano en las Pymes de la Ciudad de México

“…Para el caso de México, seguramente, no todas las Pymes exitosas utilizan todas las prácticas señaladas por dichos autores, especialmente, las relacionadas con: formación, gestión de la carrera profesional y evaluación del rendimiento. Esto se debería específicamente a que los estudios antes señalados se realizaron en España y Sudáfrica respectivamente, donde la clasificación de Pymes es diferente y donde también este sector empresarial cuenta con apoyos gubernamentales enfocados a sus necesidades específicas (Carrasco & Rubio, 2007;Werner & Herman, 2012).…”

The Relationship between Human Capital and the Competitiveness of SMEs in Mexico City, Mexico

“…In the framework of the knowledge-based economy, human capital has become the main pillar of the competitiveness in the business. Human capital is composed by the knowledge, skills, values, attitudes and competencies that are individually and collectively the organizations to generate and apply the knowledge; determines their ability to create new products and services, to access new markets, to implement and realize the full potential of technological change, to stay and grow in the market [19,20].…”

“…In this reagrd, Werner & Linde [20] underwent a study in Sout Africa to evaluate human resource management in SME's as a tool to gurantee it's efficentcy in achieveing competitivness. The results of this study point out that managers of SME`s perceive that human resource problems are an importatn obstacle to the sucess of the Company; however, in addition ti the fact that they do not seek external assistance there is an exisiting deficit in the use of human resource management practices.…”