ABSTRACT

This chapter examines the role for human resource management (HRM) in small business. Much of the current literature has suggested that the employment relations and/or management of human resources in small business is fundamentally different from that of large business and this can primarily be attributed to the lesser financial and time resources available to small businesses. We acknowledge that many small businesses may have too few employees to ever viably consider the creation of an actual HRM department or even allocate one individual to the role of HRM functions, yet effective management of human resource is necessary for any organisation. We do not suggest that what is good for a large business may not necessarily be good for a small business. However, it is our contention that there is still much that small business may learn from HRM literature and practice and that HRM policy and practice may inform small business through its strategic focus on people development.