HRM Practice Clusters in Relation to Size and Performance: An Empirical Investigation in Canadian Manufacturing SMEs

Outsourcing and the HR function: an examination of trends and developments within North American firms

“…Formal HR programmes and investment in workforce development has traditionally been emphasized more within larger firms (Baron, Burton and Hannen 1996;Fabo, Louis and Lacoursiere 2007). In part, this is because smaller firms can rely on alternative means by which to influence employee behaviour.…”

Finding Employees and Keeping Them: Predicting Loyalty in the Small Business

“…Way (2002) reported that using formal HR practices was correlated with reduced voluntary turnover, but Sels et al's (2006) analyses uncovered no relationship between these two factors. Fabi, Raymond and Lacoursière (2007) also found that the use of formal recruitment, job descriptions and performance appraisals had no impact on employee retention. In discussing their null findings, Sels et al (2006) explained that the lack of relationship might have emanated from an extreme shortage of qualified staff in the then-current economic situation.…”

“…Having formal staffing practices (holding other HR practices constant) was linked with higher perceived productivity in Way's (2002) study;and Fabi, Raymond and Lacoursière (2007) reported that a cluster of HR practices that included recruitment, job descriptions and performance appraisals was related to higher sales growth. However, Kerr, Way and Thacker (2007) found that recruitment effectiveness (the number of applicants for each job opening) was unrelated to perceived productivity, and there was just a weak, marginal link between the use of screening tests and productivity.…”

“…A paper by Jack and her colleagues (Jack, Hyman and Osborne, 2006) supports the notion that, in small firms, an individualist ideology on the part of the owner and a preference for informality are predominant characteristics. Fabi et al (2007) also surmise that the owner-manager's profile might be a predictor of HR activities. Along the same lines, Leung's (2003) interviews led him to suggest that future research should examine the personality of business owners, and how it might influence their recruitment preferences.…”

The adoption of human capital services by small and medium enterprises: A diffusion of innovation perspective

“…Thus, such an approach is likely to require less in the form of employee skill level and also less in the form of commitment to organizational goals. Further, such an approach is likely to be viable for both SMEs that are very small as well as those that are at the larger end of the SME size distribution (Batt, 2000;Fabo et al, 2007).…”