ABSTRACT
The backbone of any fi rm (be it large or small) is its resources-in particular, its human capital. Frequently, when attempting to understand how best to manage those human resources, models of large fi rm human resource management (HRM) are applied to all fi rms (irrespective of their size). Indeed, the literature on HRM is frequently based upon models of practice that were developed in large fi rms (i.e., ‘little big business syndrome’; Welsh and White 1981), and assumes that small fi rm practice is inferior. Such an approach has subsequently been described as inadequate, especially given the diversity of the small and medium enterprise (SME) sector and the employment relationships within it (Atkinson 2007). The result has frequently been a situation where SME owner-managers implement generic HR practices that come to their attention (which they typically fi nd unsuitable) or don’t implement any practices at all-potentially resulting in diminished fi rm performance (Bacon and Hoque 2005).
