Strategic alignment of HRM practices in manufacturing SMEs: aGestaltsperspective

Abstract

Purpose -This paper seeks to take a Gestalts perspective to analyze the alignment between the HRM practices and strategic capabilities of SMEs. Design/methodology/approach -Based on Miles and Snow's adaptive cycle, this study examines the coherence of HRM practices with the strategic capabilities of manufacturing SMEs (n ¼ 176) in terms of products, markets, and networks. A principal component factor analysis was first made to reduce the HRM practices into a lesser number of factors. A clustering algorithm was then used to determine three groups of SMEs or Gestalts. Finally, an a posteriori examination of the performance of each group was made. Findings -SMEs align their HRM practices with their realized strategy within three configurations, namely local, international, and world-class SMEs. Regardless of their strategic choices, these SMEs achieve comparable levels of performance.Research limitations/implications -The Gestalts perspective seems effective in its capacity to describe the role of the HRM function. While the firms surveyed are fairly representative of Canadian manufacturing SMEs, there might yet exist a bias in that these are firms that have chosen to undertake a benchmarking exercise. Originality/value -The study is one of the first to use Miles and Snow's adaptive cycle as a foundation to specify the type of activities that researchers should consider in assessing the SME's overall degree of strategic alignment. A practical implication for owner-managers is that their strategic choices in terms of product innovation, market expansion or network extension must be inter-linked with the development of their HRM practices.

A three-fold framework for understanding HRM practices in South-Eastern European SMEs

“…SMEs do not generally have HRM departments and major decisions are usually made solely by the owner or managing director (Fabi et al, 2009;Kotey and Slade, 2005;Marlow and Patton, 2002). Even in the minority of cases where HRM specialists are employed, it is still the owner or managing director who is generally seen to be in charge of HRM (Kroon et al, 2013;Singh and Vohra, 2009).…”

The Alignment of Information Technology Applications with Non‐Technological Competencies of SMEs in Africa

“…This perspective of a gestalt is also consistent with that of Fabi et al (2009);Miller and Friesen (1977);and Venkatraman (1989). As specified by Miller (1981), a gestalt perspective does not seek linear relationships among variables, but "trying to find frequently recurring clusters of attributes or gestalts" (p. 5).…”

“…A gestalt is "an organised entity or whole in which parts, though distinguishable, are interdependent; they have certain characteristics produced by their inclusion in the whole, and the whole has some characteristics belonging to none of the parts" (Gould and Kolb, 1964). This perspective of a gestalt is also consistent with that of Fabi et al (2009);Miller and Friesen (1977); and Venkatraman (1989). As specified by Miller (1981), a gestalt perspective does not seek linear relationships among variables, but "trying to find frequently recurring clusters of attributes or gestalts" (p. 5).…”

Aligning Work Practices, Mobile Technology and Strategy for Performance Improvement: The Case of SMEs in Uganda

“…Therefore, researchers on alignment and contingency studies have modeled several such relationships, for instance, the degree to which HRM practices and HRM systems are aligned (Heneman and Milanowski, 2011: 46). Another perspective of alignment is that of "Gestalts" (Miller and Friesen, 1977;Venkatraman, 1989;Fabi et al, 2009). Gestalts may be defined as configurations or patterns of organizational elements, constructs or variables that have attained an adequate level of coherence, fit or unity with one another.…”

“…Gestalts may be defined as configurations or patterns of organizational elements, constructs or variables that have attained an adequate level of coherence, fit or unity with one another. Given the interplay between work practices, technology and strategy, whereby each of these elements may affect the other and also given the fact that organisations may combine these elements in various ways to achieve improved performance, the present study adopts the perspective of alignment as a gestalt (Miller and Friesen, 1977;Venkatraman, 1989;Fabi et al, 2009). Vaast and Walsham (2005) argue that agents will appropriate specific features of technological artifacts that fit their situation.…”