Managing Labour in Small Firms

Are the HR responses of small firms different from large firms in times of recession?

“…Many commentators have suggested that SMEs are distinctive from large organisations in terms of both their general management and HR approaches, and in terms of the latter, smaller firms tend to be more informal and flexible (Marlow, 2005;Kotey and Slade, 2005;Storey, 2002). In times of recession, informal HR may be double-edged.…”

Informality and Formality in Medium‐sized Companies: Contestation and Synchronization

“…In such contexts, as Marlow (2002, p. 4) Q6 notes, 'both labour and management have recourse to a set of rules, should they feel it appropriate to use them'. Care must be taken, however, not to construct a simplistic dichotomy between informality/formality and small/large firms respectively (Marlow, Patton and Ram, 2005). As Ram et al (2001, p. 846) argue, informality and formality are dynamic constructs which coexist in differentiated forms in time and space such that 'informality in small firms is a matter of degree and not kind'.…”

“…It is an article of faith that small firms are generally managed on a more informal basis than larger organizations (Barrett and Sexton, 2006;Gilman et al, 2003;Marlow, Patton and Ram, 2005;Ram, 1994). Q3 Within small firms, informality is more likely to be the managerial norm because the organization is usually overseen by the owner or one general manager, often working without formal professional understanding and few formalized systems (Harney and Dundon, 2006;Wilkinson, 1999).…”

“…Gilman et al, 2002;Marlow, Patton and Ram, 2005;Moule, 1998;Ram, 1994;Ram and Edwards, 2003;Ram et al, 2001;Wilkinson, 1999). It is said to represent 'a key exemplar of analytical advance [where] research has made empirical and analytical progress' (Ram and Edwards, 2003, p. 719).…”

“…It is said to represent 'a key exemplar of analytical advance [where] research has made empirical and analytical progress' (Ram and Edwards, 2003, p. 719). Empirical evidence suggests a notable tendency to informality in managerial action, perhaps as a result of spatial and social proximity of owners, managers and labour and blurred power relations (Edwards, 2003;Marlow, 2005). Q2 Small firm owners are said to have a preference for personal supervision of employees, enabling close performance monitoring but also strengthening social ties (Mazzarol, 2003).…”