9.Edwards, Paul, and Monder Ram. HRM in Small Firms Respecting and Regulating Informality.doc

8/10/2019 9.Edwards, Paul, and Monder Ram. HRM in Small Firms Respecting and Regulating Informality.doc

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HRM in Small Firms: Respecting and Regulating Informality

Paul Edwards and Monder Ram INTRODUCTION

EXTENT AND MEANING OF PRACTICES

UNDERSTANDING MANAGEMENT PROCESSES

UNDERSTANDING EMPLOYEE EXPECTATIONS AND RESPONSES

INFLUENCES ON PRACTICE

CONCLUSION

NOTES

ENTRY CITATION

INTRO!"TION

Writing an account of HRM in !a"" an# !$#iu! i%$# fir! &SME' i $it($r an $a)or a *irtua"") i!+oi,"$ ta-. It i $a) in o far a it i +oi,"$ to "it a $ri$ of/a) in /(ic( SME #iff$r fro! "arg$ fir!. T($) ar$ "$ "i-$") to $!+"o) HR+$cia"it0 !uc( "$ "i-$") to n$gotiat$ /it( tra#$ union0 !or$ "i-$") to r$") oninfor!a" r$cruit!$nt an# a++raia" +ractic$0 an# o on. T($r$ i a"o $*i#$nc$ t(atuc( fact ar$ co!!on acro !an) countri$. Larg$ fir! ar$ trong") (a+$# ,)t($ir nationa" $n*iron!$nt o t(at0 for $1a!+"$0 for!a" $!+"o)$$ r$+r$$ntation ita-$n for grant$# in G$r!an) an# Scan#ina*ia in /a) /(ic( A!$rican !anag$r

!a) fin# it (ar# to un#$rtan# &W$*$r0 2334'. In !a"" fir!0 uc( for!a" intitutiona"$ff$ct ar$ /$a-$r0 an# 5infor!a"it)6 i !uc( !or$ co!!on &Ra!0 23378 Coo-$09::4'.

T($ ta- ,$co!$ #ifficu"t onc$ on$ !o*$ ,$)on# uc( fact to ta-$ account of o!$co!+"$1iti$ in r$"ation to /(at t($) !$an.

T(roug(out t($ in#utria"i%$# $cono!i$0 a,out 3; +$r c$nt of fir! ar$

5!a""6 &t(at i0 $!+"o) f$/$r t(an 4: +$o+"$'0 an# a +ot $ti!at$ of (o/ ona*$rag$ t($) #iff$r fro! "arg$ organi%ation /i"" conc$a" a /i#$ rang$ of*ariation. Ho/ can t(i *ariation ,$ ca+tur$#< Stu#i$ continu$ to $c($/$1+"anation. To ta-$ on$ $1a!+"$0 a tu#) of r$$arc( on !anag$!$nt#$*$"o+!$nt tr$at 5!a"" fir!6 a a (o!og$n$ou cat$gor)8 t(oug( it not$t(at #$*$"o+!$nt n$$# #iff$r0 it off$r no /a) of gra+ing in =ut /(atr$+$ct fir! #iff$r an# /it( /(at con$>u$nc$ &Fu""$r?Lo*$0 9::@'.

Fact n$$# $1+"anation an#0 a /$ /i"" $$0 onc$ on$ !o*$ ,$)on#

traig(tfor/ar# fact uc( a t($ a,$nc$ of HR +$cia"it t($ ignificanc$ offact can ,$co!$ contro*$ria". T(u on$ c"$ar fact i t(at tri-$ ar$ rar$ in!a"" fir!. T(i fa!ou") "$# o!$ o,$r*$r in t($ +at to $>uat$ t($a,$nc$ of tri-$ /it( a "ac- of conf"ict an# to $arc( for an $1+"anation of

+r$u!$# (ar!on) ,$for$ t($ $1it$nc$ of uc( (ar!on) (a# ,$$n

#$!ontrat$# &for $1a!+"$0 Ing(a!0 23;:'.
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Fo""o/ing on fro! t(i +oint0 t($ fact t(at !a"" fir! #iff$r fro! "arg$ on$

#o$ not $ta,"i( /($t($r t($ #iff$r$nc$ i #u$ to i%$ or to o!$ ot($rf$atur$8 an# if i%$ i a caua" factor /$ t($n n$$# o!$ $1+"anation of t(i$ff$ct.

Un#$r")ing t($$ iu$ i a #$$+$r on$ of r$$arc( $*i#$nc$. A gr$at #$a" i

/ritt$n on !a"" fir!0 an# t($r$ ar$ $*$ra" aca#$!ic =ourna" focu$# ont($!. ut0 firt0 att$ntion to HRM +$cifica"") i +ora#ic0 a i""utrat$# ,) t($fact t(at o!$ =ourna" (a*$ f$"t t($ n$$# for +$cia" iu$ on t($ to+ic.S$con#0 t($ "it$ratur$ r$f"$ct$# in t($$ iu$ t$n# to/ar# t($ g$n$ration of

,aic fact on t($ "in$ "it$# a,o*$. T(ir#0 an# !ot i!+ortant0 i t($ana")tica" tarting +oint. Muc( !a""?fir! r$$arc( (a not a#o+t$# a

+$r+$cti*$ ? no/ co!!on in !aintr$a! HRM &$+$cia"") o1a"" an#Purc$""0 9::B' ? in /(ic( t($ fir! i $$n a an organi%ation co!+riing grou+/it( #iff$ring int$r$t in /(ic( +o/$r an# conf"ict ar$ c$ntra". E!+"o)$$int$r$t continu$ to ,$ r$"ati*$") n$g"$ct$#. In 233:0 Curran co!+"ain$# of a"ac- of att$ntion to 5r$a" +$o+"$ in r$a" $nt$r+ri$6 an# t($ 5co!+"$1 /a) in

/(ic( t($ !a"" ca"$ $ctor i int$grat$# into t($ $cono!)6 &233:2B3'. T(ico!+"aint ti"" (a forc$.

It i tru$ t(at an i!+ortant tran# of /riting (a ta-$n a critica" *i$/ of t($ natur$ oft($ $!+"o)!$nt r$"ation(i+ in !a"" fir!0 c"$ar") $1+"o#ing t($ !)t( of (ar!on)an# (ar$# +ur+o$ &Go0 238 Rainni$0 233'.2 Y$t t(i can i!+") in*$rt t($r$c$i*$# /i#o!. T/o $1+$ri$nc$# /rit$r tat$ t(at t($ r$a"it)

can be very different [from harmony]. [E]mployment relations in SMEs [are] more

akin to a black hole or bleak house, characterised by poor conditions of

employment, lo pay, the absence of !ood "or any# personnel practices and

enforced compliance rather than active employee commitment "$lyton and %urnbull,

&''() &**, emphasis added#.

A+art fro! t($ g$t?out c"au$ of 5can ,$60 t(i tat$!$nt +aint a *$r) ,"$a- +ictur$.T($ +r$$nt #icuion (ar$ /it( t($ critica" *i$/ an $ffort to #ig ,$n$at( t($urfac$ o a to un#$rtan# +ractic$ an# t($ !$aning of /or-. ut an a++"ication oft(i *i$/ !$an gra+ing t($ co!+"$1iti$ of co!+"ianc$ an# con$nt0 rat($r t(anr$+"acing on$ i!+"$ i!ag$ /it( anot($r. T(at ai#0 it i tru$ t(at t($ ,"ac- (o"$ i!ag$a++"i$ tosome!a"" fir!0 na!$")0 t(o$ in "o/ *a"u$?a##$# an# $1tr$!$")int$ni*$ $ctor of t($ $cono!) t(oug( $*$n ($r$ t($ ituation i far !or$ co!+"$1

t(an t($ i#$a of 5$nforc$# co!+"ianc$6 can gra+ &E#/ar# an# Ra!0 9::@'. Not$ a"ot(at t(i i#$a (a at "$at a !uc( a++"ication to "arg$ fir! a to !a"" on$0 for$1a!+"$ in r$"ation to int$ni*$ contro" in ca"" c$ntr$ an# 5cu"tura" contro"6 /(ic( cang$n$rat$ int$n$ $1+$ctation on $!+"o)$$ an# #io"*$ /or-?(o!$ ,oun#ari$&Ta)"or $t a".0 9::9'. In#$$#0 "arg$ fir! ar$ +ro,a,") !or$ )t$!atic an# ca"cu"at$#in uc( for! of contro" t(an ar$ !a"" on$0 an# to t(at $1t$nt !a"" fir! !a) "$a*$$!+"o)$$ /it( gr$at$r roo! for #icr$tion.

A to /(at i 5!a""60 o!$ tu#i$ inc"u#$ organi%ation /it( a !an) a 4::$!+"o)$$. Ot($r f"ag t($ i!+ortanc$ of !a"" fir!0 ,ut in fact a) "itt"$ a,out t($!8Ac-ro)# &9::9'0 for $1a!+"$0 i#$ntifi$ t($! in a c(a+t$r tit"$ ,ut #$*ot$ on") t/o

+ag$ to r$"$*ant iu$0 /(ic( in an) $*$nt co*$r !ain") fir! /it( u+ to B::$!+"o)$$. Fir! /it( a !an) a B:: $!+"o)$$ ar$ "i-$") to (a*$ !an) tan#ar#
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HR +ractic$ in +"ac$0 an# our focu i t(u on t($ !or$ +$cifica"") 5!a""6 fir!. Aroug( in#ication of t($ i!+ortanc$ of !a"" fir! co!$ fro! officia" U an# UStatitic /(ic( gi*$ t($ #itri,ution ofprivate sector employmentin 9::40 a in Ta,"$B2.2 &SS0 9::@8 LS0 9::4'.

T($$ t/o countri$ ar$ a!ong t(o$ /($r$ SME account for t($ !a""$t +ro+ortionof tota" $!+"o)!$nt. Eti!at$ in countri$ uc( a Gr$$c$ an# S+ain +ut SME$!+"o)!$nt &t(at i0 /it(in fir! /it( 2973 $!+"o)$$' at a,out : +$r c$nt of t($tota"8 an# gi*$n t($ *$r) "arg$ an# oft$n +oor") !$aur$# infor!a" $ctor in t($$countri$ t($ tru$ figur$ !a) ,$ (ig($r &EIRO0 9::@'.

Ta#le $%&% T'e distri#ution of pri(ate sector employment in )**+

!, !S-

S!a""fir! &:73 $!+"o)$$' 7; B:

M$#iu!?i%$# fir! &4:973 $!+"o)$$' 29 23

Larg$ fir! &94: $!+"o)$$ or !or$' 72 42

Our focu i !ain") on 5!a""6 fir!0 /(ic(0 a t($ figur$ in Ta,"$ B2.2 (o/0account for t($ ,u"- of SME $!+"o)!$nt8 /$ /ou"# $$ a fir! /it( u+ to 2::$!+"o)$$ a t$n#ing to ,$ !a"" in t($ !or$ u,tanti*$ $n$ of "ac-ing for!a"(i$rarc(i$ an# +roc$#ur$. Not$ a"o t(at account "i-$ Ac-ro)#0 /(ic( focu on!$#iu!?i%$# fir!0 in fact co*$r on") a !inorit) of $!+"o)$$. W$ u$ $*i#$nc$ t(at#o$ not a"/a) fo""o/ our r$triction0 an# /$ not$ /($r$ r$"$*ant t($ cat$gor) offir! tu#i$#.

W(at i r$gar#$# a a !a"" fir! in a +$cific in#utria" $ctor #$+$n# on t($ r$"ati*$

i%$ of ot($r fir! in t($ a!$ $ctor. Officia" figur$ (o/ t(at !a"" fir! accountfor ;4 +$r c$nt of +ri*at$ $ctor $!+"o)!$nt in contruction ,ut on") 24 +$r c$nt in5financia" int$r!$#iation6 &,an-ing an# t($ "i-$'. A !anufacturing fir! /it( :$!+"o)$$ /ou"# ,$ coni#$r$# !a""0 /($r$a in "arg$ +art of t($ $r*ic$ $ctoruc( a conu"tanc)0 oft/ar$ an# t($ !$#ia an# cr$ati*$ in#utri$0 a fir! /it( t(i!an) $!+"o)$$ /ou"# ,$ coni#$r$# "arg$. T($r$ i no r$a#) r$o"ution of t(i iu$.W$ touc( on it ,$"o/0 for $1a!+"$ in co!!$nting on (o/ HR +ractic$ c(ang$ a afir! gro/. Ot($r/i$0 our a++roac( i to a##r$ fir! t(at "ac- for!a" HR +ractic$

a con#ition t(at /i"" aff$ct t(o$ t(at !ig(t in fact ,$ 5"arg$6 /it(in t($ir o/n$ctor.

A fina" o+$ning co!!$nt i t(at /$ a++roac( t($ iu$ t(roug( t($ $)$ of t($ HR+rof$iona". T(at i0 on$ cou"# /rit$ g$n$ra"") a,out HR iu$ in !a"" fir! (o/#o t($ir +a) an# con#ition #iff$r fro! t($ ituation in "arg$fir!0 ar$ t($) a(ar!oniou a i oft$n c"ai!$#0 an# o on< W$ #ra/ on uc( /riting0 ,ut our c$ntra">u$tion i (o/ can t($ HR +rof$iona"0 ar!$# /it( t($ too"-it of for!a"

+roc$#ur$0 gra+ HR +ractic$ in t($ !a"" fir!0 an# /(at if an)t(ing !ig(t ,$ t($#itinct HR contri,ution in uc( a fir!ua" o++ortuniti$ +o"ici$. For!a"it) i far fro! a,$nt. Tra#itiona" 5in#utria" r$"ation6 ar$ *$r) rar$ in !a"" /or-+"ac$. Co""$cti*$

,argaining co*$rag$ i *irtua"") %$ro0 an# ot($r figur$ (o/ "o/ tra#$ union!$!,$r(i+. R$"at$# to t(i0 +a) $tting i a /or-+"ac$ r$+oni,i"it)8 noton") i t($r$ "itt"$ r$"ianc$ on co""$cti*$ ,argaining ,ut t($r$ i a"o ,)#$finition no (ig($r "$*$" of !anag$!$nt to ta-$ on t($ r$+oni,i"it). Un"i-$in "arg$ fir!0 /($r$ nationa" or in#utr) agr$$!$nt o+$rat$0 or a co!+an)(a a for!a" +a) tructur$ t(at i t($n i!+"$!$nt$# at /or-+"ac$ "$*$"0 in!a"" fir! +a) $tting ta-$ +"ac$ at t($ /or-+"ac$ /it( (ar#") an) #ir$ct$1t$rna" ru"$ a to (o/ it (ou"# ,$ con#uct$#.


5/17

Furt($r r$$arc( ,) t($ /rit$r (a a##r$$# t(i +oint &Stor$) $t a".0 9::3'. It+ro#uc$# an o*$ra"" for!a"it) in#$10 an# foun# t(at it *ari$# ,) ,ot( /or-+"ac$ an#co!+an) i%$. T(at i0 !a"" in#$+$n#$nt /or-+"ac$ ar$ t($ !ot infor!a". ut"arg$r in#$+$n#$nt /or-+"ac$ r$tain a coni#$ra,"$ #$gr$$ of infor!a"it). S!a""/or-+"ac$ o/n$# ,) "arg$ co!+ani$ oft$n (a*$ coni#$ra,"$ for!a"it).

W(at "i$ ,$(in# t(i +ictur$< At on$ $1tr$!$0 o!$ /rit$r $$ !a"" fir! a,$(a*ing in !uc( t($ a!$ /a) a "arg$ on$. Wa) &9::9' r$+ort a US ur*$) of

5(ig( +$rfor!anc$ /or- )t$!60 $!,racing uc( t(ing a $"f?#ir$ct$# t$a! an#=o, rotation0 grou+?,a$# +$rfor!anc$ +a)0 an# for!a" training. H$ fin# t(at t($e-tentof t($$ )t$! #i# not #iff$r ,$t/$$n !a"" an# "arg$ fir!. H$ a"o argu$#t(at t($ir role/a i!i"ar in t(at t($) /$r$ corr$"at$# /it( !$aur$ of +$rfor!anc$in !uc( t($ a!$ /a) a /a t($ ca$ in tu#i$ of "arg$ fir! &uc( a Hu$"i#02334'. A ur*$) of US $r*ic$ $ctor fir! a"o fin# !or$ $1t$ni*$ u$ of 5(ig(co!!it!$nt6 t(an of 5,ur$aucratic6 +ractic$0 an# r$+ort t(at t($ for!$r /$r$co!!on acro a"" i%$ of fir! 5!a"" fir! can no "ong$r ,$ coni#$r$#uno+(iticat$# +ractition$r of (u!an r$ourc$ !anag$!$nt6 &a!an $t a".0 9::27B'.

T($ #ata u$# ,) Wa) &9::9' an# a!an $t a". &9::2' co!$0 (o/$*$r0 fro! $"fr$+ort ,) !anag$r to t$"$+(on$ ur*$)0 an# t($r$ /a no +ac$ to a$ /(at t($r$+on#$nt !$ant. So!$ it$! ar$ a"!ot ,oun# to ,$ (ig( in !a"" organi%ation.o, rotation0 t(at i t($ (aring of ta-0 i !ot "i-$") /($r$ t($r$ i no for!a"tructur$ of =o, an# /($r$0 a in !a"" organi%ation0 $!+"o)$$ n$$# to ta-$ onarang$ of #uti$.9 Si!i"ar")0 an) !a"" organi%ation !a) ,$ a 5t$a!6 in t($ $n$ t(at/or-$r /or- tog$t($r. It /i"" not ,$ a t$a! in t($ $n$ of t($ &"arg$ fir!' "it$ratur$on t$a!0 /(ic( +$a- of t($ a,i"it) of t$a! to a""ocat$ ta- a!ong t($!$"*$ an#t($ $"$ction of t$a! "$a#$r. T(i i t($ i!ag$ of an organi%ation /it( a #$*$"o+$##i*iion of "a,our0 in /(ic( t$a! /or- a a !o#$ of /or- organi%ation r$+"ac$ o!$!or$ Ta)"ori%$# )t$! &E#/ar# $t a".0 9::9'. In !a"" fir!0 uc( a #i*iion of

"a,our #o$ not $1it0 an# a 5t$a!6 (a a #iff$r$nt !$aning. A acon $t a". &2339@9' not$ ironica"") in a tu#) tr$ing t($ $1t$nt of for!a" +ractic$ in !a"" fir!
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t$a!/or-ing i 5not a,out cr$ating for!a" /or- grou+ ,ut !aintaining t($ notionof Ja"" /or-ing tog$t($rK6.B

Ot($r it$!0 too0 /i"" !$an #iff$r$nt t(ing. 5For!a"6 training can !$an a"!ot an)-in# of training0 inc"u#ing *$r) ,aic in#uction. T($ U WERS0 /(ic( +$cifi$# t(at

for!a" !$ant off the obtraining0 r$+ort r$"ati*$") "o/ "$*$" in !a"" fir!. T(i#o$ not !$an t(at training i a,$nt0 an# o!$ ur*$) (a*$ att$!+t$# to !$aur$infor!a" training in SME a",$it /it( t($ ri- of in*iting o*$r$ti!ation ,)inc"u#ing !inor on?going acti*iti$ &itc(ing0 233;'. In (ort0 a +ractic$ a !$aur$#

,) a ur*$) !$an #iff$r$nt t(ing in !a"" an# "arg$ organi%ation.

It i u$fu" to $n"arg$ on t(i +oint in r$"ation to o!$ ar$a of HR +ractic$. Coni#$rfirt r$cruit!$nt an# $"$ction. On$ i!ag$ of !a"" fir! i t(at t($) r$") ($a*i") oninfor!a" !$an uc( a +$rona" contact an# r$f$rra" fro! $1iting $!+"o)$$.WERS 9::7 in fact foun# t(at infor!a" r$cruit!$nt !$t(o# /$r$ u$# $>ua"") ,)!a"" an# "arg$ fir! &Fort( $t a".0 9::@ BB'. W$ /ou"#0 (o/$*$r0 a## t(r$$ +oint.

Firt0 t(i fact a) not(ing a,out t($ /$ig(t +"ac$# on +articu"ar !$t(o#. S$con#0actua" +ractic$ !a) #iff$r fro! /(at i r$+ort$# in a ur*$). T(u Ta)"or &9::4'r$+ort fro! four fir! t(at0 t(oug( !anag$r c"ai!$# to u$ for!a" !$t(o#0$!+"o)$$ tr$$# 5,$ing -no/n6 +$rona"") an# t($ ro"$ of -in(i+ "in-. T(ir#0

+ractic$ !a) *ar) accor#ing to t($ t)+$ of !a"" fir!. In r$"ati*$") uno+(iticat$#fir! in $ctor uc( a c"ot(ing !anufactur$ an# (ot$" an# cat$ring0 t($r$ i ($a*)r$"ianc$ on /or# of !out( !$t(o#. T(oug( for!a" !$t(o# !a) a"o ,$ r$+ort$#0t($$ t$n# to ,$ u$# to cr$$n a++"icant0 or /($n a"" $"$ fai". W(at i i!+ortant ian a++"icant /(o i -no/n to t($ o/n$r an# i ,$"i$*$# to (a*$ t($ n$c$ar)co!!it!$nt. T$c(nica" -i"" !a) ,$ "$ i!+ortant t(an (ar#$r to #$fin$ attri,ut$uc( a attitu#$ an# co!!it!$nt. T($$ t$n#$nci$ ar$ ($ig(t$n$# /($r$ fir! ar$run ,) +$o+"$ fro! $t(nic !inoriti$0 /(o t$n# to r$cruit fro! +articu"ar +art of t($"a,our !ar-$t an# for /(o! -in(i+ ti$ ar$ oft$n i!+ortant. Not$ t(at t(i i not afi1$# 5$t(nic c(aract$ritic6 !inorit) ,uin$$ o+$rating in0 a)0 ,uin$ $r*ic$/i"" ,$ !uc( "$ contrain$# ,) -in(i+ ti$8 /(it$ fa!i") o/n$# fir! in tra#itiona"$ctor oft$n r$") on fa!i") an# fri$n#8 an# it i t($ co!,ination of "ocation in a

+articu"ar !ar-$t $g!$nt an# ,ac-groun# t(at "$a# to +articu"ar $!+(ai oninfor!a" r$cruit!$nt c(ann$". A"" t(at ai#0 /$ u+$ct t(at a"" !a"" fir! t$n# to

+"ac$ a r$"ati*$") "arg$ $!+(ai on infor!a" !$t(o# of r$cruit!$nt an# $*$n !or$o /($n t($) ar$ $"$cting $!+"o)$$ /(o0 aft$r a""0 /i"" (a*$ to /or- c"o$") /it($1iting taff an# /(o in#$$# n$$# to 5fit in6.

A $con# -$) ar$a i +$rfor!anc$ a++raia". Ongoing r$$arc( in t(r$$ $ctor foo#!anufacturing0 ICT0 an# t($ !$#ia an# cr$ati*$ in#utri$ i u$fu" ($r$ in t(at itco*$r tra#itiona" an# !or$ !o#$rn +art of t($ $cono!).7 T($ $1t$nt of u$ ofa++raia" /a on a +ar /it( /(at /ou"# ,$ $1+$ct$# fro! Ta,"$ B2.9. E!+"o)$$ a"or$+ort$# t($ +r$$nc$ of a++raia" &/it( @ +$r c$nt r$+orting t(at t($ir +$rfor!anc$/a a++rai$#' an# t(at t($ +ractic$ /a not !$r$ /in#o/?#r$ing of t(o$r$+orting t($ u$ of a++raia" t($ gr$at !a=orit) r$+ort$# a trong or *$r) trong "in-

,$t/$$n (o/ $ff$cti*$") t($) /or-$# an# t($ir a++raia" rating. Y$t t($r$ /a a"o$*i#$nc$ of a "ac- of tructur$ in t($ +roc$. In o!$ fir!0 /or-$r /$r$ unur$/($t($r a++raia" (a# in fact ta-$n +"ac$. In !ot0 t($ +roc$ /a !uc( "$

for!a"i%$# t(an on$ /ou"# $1+$ct in "arg$ fir!0 /it( rat($r "itt"$ #ocu!$ntation ortraining of a++rai$r. P$r(a+ !ot ignificant")0 $*a"uation #$+$n#$# on t($
http://www.sage-ereference.com/hdbk_humanresourcemgmt/Article_n31.html?searchQuery=y%3D0%26searchPage%3D1%26quickSearch%3DHR%26fullSearch%3D1%26x%3D0#fn3n31http://www.sage-ereference.com/hdbk_humanresourcemgmt/Article_n31.html?searchQuery=y%3D0%26searchPage%3D1%26quickSearch%3DHR%26fullSearch%3D1%26x%3D0#fn3n31http://www.sage-ereference.com/hdbk_humanresourcemgmt/Article_n31.html?searchQuery=y%3D0%26searchPage%3D1%26quickSearch%3DHR%26fullSearch%3D1%26x%3D0#fn3n31http://www.sage-ereference.com/hdbk_humanresourcemgmt/Article_n31.html?searchQuery=y%3D0%26searchPage%3D1%26quickSearch%3DHR%26fullSearch%3D1%26x%3D0#fn4n31http://www.sage-ereference.com/hdbk_humanresourcemgmt/Article_n31.html?searchQuery=y%3D0%26searchPage%3D1%26quickSearch%3DHR%26fullSearch%3D1%26x%3D0#fn4n31http://www.sage-ereference.com/hdbk_humanresourcemgmt/Article_n31.html?searchQuery=y%3D0%26searchPage%3D1%26quickSearch%3DHR%26fullSearch%3D1%26x%3D0#fn4n31http://www.sage-ereference.com/hdbk_humanresourcemgmt/Article_n31.html?searchQuery=y%3D0%26searchPage%3D1%26quickSearch%3DHR%26fullSearch%3D1%26x%3D0#fn4n31http://www.sage-ereference.com/hdbk_humanresourcemgmt/Article_n31.html?searchQuery=y%3D0%26searchPage%3D1%26quickSearch%3DHR%26fullSearch%3D1%26x%3D0#fn3n31http://www.sage-ereference.com/hdbk_humanresourcemgmt/Article_n31.html?searchQuery=y%3D0%26searchPage%3D1%26quickSearch%3DHR%26fullSearch%3D1%26x%3D0#fn4n31


7/17

=u#g$!$nt of !anag$r0 /(o !a) a"o ,$ o/n$r of t($ fir!. Ta)"or &9::4' i!i"ar")r$+ort for four fir! t(at a++raia" targ$t an# aociat$# r$/ar# r$f"$ct$# c"o$

+$rona" int$raction an# /$r$ u"ti!at$") in t($ (an# of !anag$r. T(i i not to a)t(at t($ +roc$ i n$c$ari") i!+") u,=$cti*$ or ,ia$#0 an# "itt"$ #icont$nt a!ong$!+"o)$$ o*$r t($ iu$ /a r$cor#$# in t($$ tu#i$. T($ -$) +oint i t(at t($

+roc$ i !or$ +$rona"i%$# an# infor!a" t(an t($ t$r! 5a++raia" c($!$6 t$n# tocon*$).

A t(ir# iu$ i +a)!$nt )t$!. A not$# a,o*$0 t($$ ar$ i!+ortant in t(at it ifir!?"$*$" #$ciion t(at aff$ct +a) /(i"$ for!a" +a) tructur$ $$! to ,$ rar$. Agr$at #$a" i t(u "$ft to c(oic$. S!a"" fir! a++$ar to #$a" /it( t(i c(oic$ t(roug(ru"$ of t(u!,0 /(ic( turn on /(at $$! to ,$ t($ going rat$ tog$t($r /it( o!$ i#$aof /(at i fair. At t(i +oint0 /$ n$$# to ,$ c"$ar a to /(at i in t($ +a) +ac-ag$.So!$ o,$r*$r +r$$nt t($ !a"" fir! a a it$ of (ar$# ,$n$fit ,$t/$$n o/n$r an#/or-$r0 a !ig(t ,$ in#$1$# ,) +rofit?(aring c($!$ or ,onu arrang$!$nt. Y$tt($ r$$arc( =ut !$ntion$# foun# r$!ar-a,") f$/ )t$! of t(i -in#0 a #i# $ar"i$r

r$$arc( on !ain") "o/ *a"u$?a##$# fir! &Arro/!it( $t a".0 9::B'. Co1 &9::4'r$+ort fro! a tu#) of four r$"ati*$") "arg$ &29:74: $!+"o)$$' fir! t(at #i# u$*aria,"$ +a) c($!$ t(at !anaging ,ot( t($ +roc$#ura" an# #itri,uti*$ a+$ct of*aria,"$ +a) +ro*$# *$r) #ifficu"t. In (ort0 for!a"it) an# infor!a"it) int$ract.

!NERST-NIN/ M-N-/EMENT PRO"ESSES

T($ ca$ for an 5int$grat$#6 a++roac( (a ,$$n a#*anc$# ,) Wrig(t an# o/$""&9::9' in t($ir r$*i$/ of !aintr$a! HRM r$$arc(0 an# r$c$nt") ,) Harn$) an#Dun#on &9::@'0 /(o focu +$cifica"") on !a"" fir!. To arr$t t($ +r$*ai"ing

t$n#$nc) to 5#$$gr$gat$6 HRM0 Wrig(t an# o/$"" &9::9' a#*ocat$ t($ "in-ing oforgani%ationa" an# in#i*i#ua" "$*$" of ana")i8 an# tr$ t($ i!+ortanc$ of *i$/ingHR +ractic$ a +art of an HR )t$! rat($r t(an #icr$t$ $ntiti$. Harn$) an#Dun#on &9::@' ugg$t t(at an 5o+$n )t$!6 +$r+$cti*$ i ,$t +"ac$# to ca+tur$t($ co!+"$1it) of HR +ractic$ in !a"" fir!. T($$ aut(or tr$ t($ int$r$ction of$1t$rna" inf"u$nc$ uc( a t($ +ro#uct !ar-$t an# int$rna" trat$gic c(oic$ in$1+"aining t($ co!+"$1it) of !a"" fir! +ractic$. Y$t t($r$ i on$ -$) $"$!$nt a,$ntfro! t($ir "it t($ fa!i"ia" cont$1t &E#/ar# an# Ra!0 9::@8 E#/ar# $t a".0 9::@'.

W$ (a*$ $$n t(at !ot !a"" fir! ar$ fa!i") o/n$#. An# !an) t(at ar$ not fa!i")fir! ar$ "i-$") to ,$ar t($ i!+rint of t($ir foun#$r0 for $1a!+"$ t($ !an) fir! in

$ctor uc( a ,ioci$nc$ t(at /$r$ foun#$# a +in?off fro! "arg$ fir!. T(i /a$*i#$nt in Hannan $t a". &2334 42B' tu#) of 2:: )oung (ig( t$c(no"og) fir!8 t($aut(or foun# 5tart"ing #i*$rit) in foun#$r6 $!+"o)!$nt !o#$" $*$n a!ong tart?u+ co!+ani$ /it(in t($ *$r) a!$ in#utr)0 co!+$ting #ir$ct") againt on$ anot($r.Four t)+$ of $!+"o)!$nt r$"ation /$r$ i#$ntifi$#

a 5factor)6 !o#$"0 /(ic( $!+(ai%$# +$cuniar) attac(!$nt an# !anag$ria"

contro"8 a 5co!!it!$nt6 !o#$" ,a$# u+on +$$r an# 5cu"tura"6 contro"8

a +rof$iona" !o#$" t(at tr$$# attac(!$nt to /or-8 an#

an 5$ngin$$ring6 !o#$" t(at $1(i,it$# a !or$ intru!$nta" a++roac( to /or-r$"ation.


8/17

T($ 5,"u$+rint6 of co!+an) foun#$r /$r$ -$) to $1+"aining t($ *ari$t) an##ura,i"it) of t($$ a++roac($.

H$nc$0 !anag$!$nt +roc$$ /i"" ,$ trong") (a+$# ,) t($ +r$f$r$nc$ an#au!+tion of t($ o/ning grou+. T(i i not to a) t(at t($r$ /i"" ,$ on$ co!!on

*i$/. In on$ fir! t(at /$ tu#i$# t($r$ /a a "ongtan#ing #i+ut$ ,$t/$$n on$!$!,$r of t($ o/ning fa!i") an# anot($r o*$r t($ natur$ an# $1t$nt of for!a"it)0/it( on$ arguing for a !or$ )t$!atic a++roac(0 inc"u#ing t($ $!+"o)!$nt of an HR

+rof$iona"0 an# t($ ot($r +r$f$rring tra#itiona" fa!i") /a). T($ +oint i t(at +ur$")+$rona" +r$f$r$nc$0 /(ic( ar$ not n$c$ari") rig(t or /rong0 /i"" +"a) a "arg$r ro"$t(an in "arg$ fir!. Gi"!an &9::@' r$+ort a fir! t(at u$# +)c(o!$tric t$ting

,$cau$ it foun#$r t(oug(t t(at t($ !$t(o# /a a goo# i#$a.

T($ "ong$r t$r! #$*$"o+!$nt of a fir! i a"o "i-$") to r$f"$ct +$rona" c(oic$. So!$fa!i") fir! conciou") c(oo$ to r$!ain !a"" ,$cau$ t($) "i-$ t($ fa!i")at!o+($r$ an# ,$cau$ t($r$ i no +$rona" a!,ition to #$*$"o+ t($ ,uin$. Ot($r

rationa"$ for r$!aining !a"" inc"u#$ t($ f$ar t(at0 onc$ a fir! ,$co!$ ignificant0 it/i"" ,$ t($ targ$t of a ta-$?o*$r ,) a "arg$ fir!. Muc( /i"" #$+$n# on t($ +$rona"a!,ition of o/n$r an# /($t($r or not t($) /i( to #$*$"o+ t($ ,uin$ for t($ n$1tg$n$ration. Suc( a!,ition0 an# t($ir i!+"ication for (u!an r$ourc$ +ractic$0rar$") attract t($ i!+ortanc$ t($) !$rit in tan#ar# account of (u!an r$ourc$!anag$!$nt in !a"" fir!. Y$t t($) ar$ c$ntra" to an a++r$ciation of t($ #)na!ic of

,uin$ #$*$"o+!$nt in !a"" fir!. W($$"oc- an# ain$ &233a 9::'0 for$1a!+"$0 !aintain t(at t($ ur*i*a"0 !aint$nanc$0 an# gro/t( of t($ !icro,uin$cannot ,$ fu"") a++r$ciat$# /it(out #$*$"o+ing 5an un#$rtan#ing of t($ r$"ation(i+/it(in t($ (ou$(o"# in /(ic( t($ ,uin$ +$ron i ,a$#6. A"#ric( an# C"iff&9::B' 5fa!i") $!,$##$#$n$ +$r+$cti*$60 $c(o$ t(i a++roac( in it $1+"ication oft($ *ari$t) of /a) in /(ic( #$*$"o+!$nt in t($ fa!i") can inf"u$nc$ t($ tra=$ctor)of t($ $nt$r+ri$. In #$tai"$# ca$ tu#i$ of r$taurant0 Ra! $t a". &9::2a' foun# t(att($ #$*$"o+!$nt of t($ ,uin$ o/$# !uc( to t($ #)na!ic of r$"ation /it(in t($(ou$(o"#. Man) (ou$(o"# /or-$# to/ar# t($ ur*i*a" of t($ fa!i") $nt$r+ri$&a"t(oug( t($r$ /$r$ #iff$r$nc$ ,$t/$$n fa!i") !$!,$r'. Suc( an i!+$rati*$!i"itat$# againt t($ u,tanti*$ 5gro/t(6 of t($ ,uin$. Ho/$*$r0 t(i #i# not !$ant(at t($ ,uin$ r$!ain$# tatic8 t($ -$) factor a++$ar$# to ,$ t($ +rioriti$ of(ou$(o"# !$!,$r at an) on$ +articu"ar +oint in ti!$. T($ +r$$nc$ of $con#?g$n$ration fa!i") !$!,$r in !an) of t($ r$taurant ugg$t$# a #$gr$$ ofcontinuit). Ho/$*$r0 t($r$ /$r$ !an) t$nion in t($$ fir!0 /(ic( !$ant t(at an

unco!+"icat$# tranition fro! on$ g$n$ration to anot($r0 an# !oot( $!+"o)!$ntr$"ation ,$t/$$n fa!i") !$!,$r0 cou"# not ,$ ta-$n for grant$#. T($ 5"if$?cour$6 of#iff$r$nt fa!i") !$!,$r /i"" inf"u$nc$ t($ (a+$ an# for! of t($ !a"" ,uin$(ou$(o"#. D$*$"o+!$nt in t($ir #o!$tic "if$ circu!tanc$0 #i$nc(ant!$nt /it(t($ oft$n?on$rou natur$ of r$taurant /or-0 an# int$r?fa!i") t$nion !i"itat$# againtun+ro,"$!atic continuit) of t($ fa!i") ,uin$.

!NERST-NIN/ EMP0O1EE E.PE"T-TIONS

-N RESPONSES


9/17

A furt($r +i$c$ of t($ =iga/ conc$rn /(at $!+"o)$$ $1+$ct. Do t($) /ant for!a"+roc$#ur$0 in /(ic( ca$ an HR !anag$r !a) /$"" fin# for!a"i%ation to ,$ a$ni,"$ trat$g)0 or #o t($) +r$f$r infor!a"it)u$nt i!+acton /i#$r $!+"o)!$nt +ractic$.

Family owners'ip and personal control

A r$gu"ar fin#ing in !a"" ,uin$ r$$arc( i t(at t($ +ri!ar) r$aon for tarting a,uin$ i +$rona" in#$+$n#$nc$. T(i !$an t(at a u,tantia" nu!,$r of !a""

fir! /i"" +r$f$r !a""?ca"$ infor!a"it) an# /i"" "ac- $1+"icit HR +o"ici$. ot$) an#S"a#$ &9::4' r$+ort t(at B@ +$r c$nt of 5!icro6 $fin$# ($r$ a f$/$r t(an 4


12/17

$!+"o)$$' an# 73 +$r c$nt of 5!a""6 &423 $!+"o)$$' fir! (a# ,$$n in $1it$nc$at "$at t$n )$ar. T($$ ar$ "i-$") to ,$ !atur$ ,uin$$ not $$-ing furt($r gro/t(0an# HR +ractic$ /ou"# n$$# to r$f"$ct a #$ir$ for continu$# infor!a"it) ,a$# on

+$rona" r$"ation(i+. Fa!i")?o/n$# fir! u$ f$/$r for!a" HR +ractic$ t(ani!i"ar")?i%$# non?fa!i") fir! $ o- $t a".0 9::@8 R$i# an# A#a!0 9::2'.

Fa!i") o/n$r(i+ i "i-$") to $1$rci$ o!$ c"$ar $ff$ct0 of /(ic( t($ !ot o,*ioui t(at non?fa!i") $!+"o)$$ !a) ,$ una,"$ to c"i!, to t($ to+ of t($ fir!0 /it(i!+"ication for car$$r #$*$"o+!$nt. In o!$ ca$ uua"") in t($ !or$ tra#itiona"an# "o/?/ag$ $ctor t($ fir! !a) ,$ u$# to fin# =o, for !$!,$r of t($ fa!i")0/(ic( can c"o$ off o++ortuniti$ for ot($r $!+"o)$$ a /$"" a (a*ing c"$ari!+"ication in t(at fa!i") !$!,$r !a) "ac- r$"$*ant ,uin$ -i"" an# $1+$ri$nc$.

Mu""(o""an# &233;' tu#) of /$""?$ta,"i($# fa!i") ,uin$$ in a *ari$t) of$ctor ugg$t t(at uc( +roc$$ ar$ not n$c$ari") confin$# to 5"o/ *a"u$ a##$#fir!6. Mu"(o""an# $1a!in$# $ntr$+r$n$uria"0 !anag$ria" an# +r$$r*ation trat$gi$

c(aract$ri%ing ucc$fu" &!i##"$?c"a' fa!i") ,uin$$0 #ra/n fro! !a=orit)/(it$ an# !inorit) $t(nic co!!uniti$. In on$ of t($$ ca$0 o/n$# ,) an $t(nic!inorit) fa!i")0 t($ $1+anion of t($ ,uin$ coinci#$# /it( t($ incor+oration of t($foun#$r fi*$ i,"ing. Mu"(o""an# &233; @34' argu$ t(at t($ $!+"o)!$nt of !a"$i,"ing i conit$nt /it( t($ !anag$!$nt +ractic$ c(aract$ritic of in#utria" fa!i")ca+ita"i!0 +ro*i#ing car$$r +at(0 /(i"$ a"o af$guar#ing againt "a,our !ar-$t#icri!ination t(at $t(nic !inoriti$ +ot$ntia"") fac$. Suc( o++ortuniti$ ar$ rar$")a*ai"a,"$ to non?fa!i") !$!,$r an# ar$ a"o trong") g$n#$r$#.

It (ou"# ,$ not$# t(at iu$ of 5ini#$r?outi#$r6 t$nion ar$ not "i!it$# to !a""fir!. It i a co!!on+"ac$ t(at "arg$ a+an$$ MNC t$n# to fa*our ini#$r&a+an$$ nationa"' o*$r outi#$r in fi$"# uc( a +ro!otion. T($ iu$ for an HR!anag$r i not o !uc( /($t($r or not a fir! i fa!i")?o/n$# ,ut t($ i!+ortanc$

+"ac$# /it(in a fir! tra#ition on acri+ti*$ c(aract$ritic &!$!,$r(i+ of a+articu"ar in?grou+' a o++o$# to ac(i$*$!$nt an# !$rit.

A r$gu"ar fin#ing in !a"" ,uin$ r$$arc( i a t$nion ,$t/$$n +$rona" contro" an#for!a" HR +ractic$. A fir! !a)0 for $1a!+"$0 (a*$ r$ac($# a i%$ at /(ic( itfor!a"i%$ it +roc$#ur$0 ,ut if t($ o/n$r !aintain #$tai"$# $ngag$!$nt t($$

+ractic$ !a) in $ff$ct ,$ o*$rri##$n. Gi"!an &9::@' r$+ort t(i t$n#$nc) ignificant") in a tu#) not of tra#itiona" fir! ,ut of ucc$fu" (i?t$c( co!+ani$.

Pa) an# +ro!otion ar$ i!+ortant ar$a in /(ic( t(i (a++$n0 /it( t($ o/n$r /antingto !a-$ #$ciion a (a a"/a) ,$$n #on$0 oft$n $1+r$ing i!+ati$nc$ /it(+roc$#ur$.

P$rona" contro" a"o (a /i#$r an# !or$ u,t"$ $ff$ct. A ton$ $1tr$!$0 it cang$n$rat$ a +att$rn i!+ortant") i#$ntifi$# a 5frat$rna"i!6 ,) Sca$ an# Goff$$ &239'in t($ir tu#) of t($ contruction in#utr). In t(i +att$rn0 o/n$r an# $!+"o)$$ /or-a"ongi#$ $ac( ot($r a $>ua" an# t($r$ i a trong $n$ of (ar$# i#$ntit) ,a$# noton") on t($ fir! ,ut a"o t($ tra#ition of a /(o"$ occu+ation. To t($ $1t$nt t(at fir!($r$ (a*$ a for!a" HR +r$$nc$0 HR +ractic$ /i"" n$$# to r$cogni%$ $ga"itariani!an# +oi,") a*oi# or a#a+t )t$! uc( a a++raia".


13/17

At t($ ot($r $1tr$!$0 +$rona" contro" can i!+") autocrac). E*i#$nc$ of $1tr$!$autocrac) i in fact "i!it$# to c$rtain $ctor /($r$ /$at(o+ con#ition ar$ !ot$*i#$nt &Ho$"0 239'. W$ a/ a,o*$ t(at in g$n$ra" !a""?fir! /or-$r r$+ort (ig("$*$" of =o, atifaction. Mor$o*$r0 $*$n in /$at(o+ con#ition t(at i0 /($r$/ag$ ar$ "o/ an# !ar-$t co!+$tition i int$n$ autocrac) i co!!on") !o#$rat$#

to +ro#uc$ 5n$gotiat$# +at$rna"i!6 &Ra!0 2337'. T($ -$) r$aon i t(at $!+"o)$rn$$# a #$gr$$ of /or-$r co?o+$ration. Mor$o*$r0 fa!i") an# -in conn$ction !$ant(at t($r$ ar$ !utua" o,"igation ot($r t(an t($ +ur$") $cono!ic0 o t(at traig(tautocrac) i "i!it$#.

$t/$$n t($$ t/o $1tr$!$ "i$ ituation in /(ic( +$rona" contro" i on$ f$atur$ of aco!+"$1 +att$rn of r$"ation(i+. T($ $*i#$nc$ ($r$ i far fro! c"$ar0 not "$at

,$cau$ it i oft$n +r$$nt$# to attac- a t$r$ot)+$. A tan#ar# i!ag$ of t($ fa!i")fir! i t(at of 5cu"tura" unit) an# int$gration6 &Ain/ort( an# Co10 9::B 27@B'. It it($n +oi,"$ to un#$r!in$ t($ i!ag$0 a in t($ tu#) =ut cit$# $*i#$nc$ fro! t/oAutra"ian fa!i")?o/n$# fir! (o/ t(at unit) an# int$gration co?$1it$# /it( t($

$1+$n#a,i"it) of $!+"o)$$0 an# t($r$ /$r$ a"o u,t"$ #i*iion ,$t/$$n t($i!!$#iat$ fa!i") an# !or$ #itant -in. T($ #ang$r0 a not$# at t($ tart of t($c(a+t$r0 "i$ in in*$rting t($ i!ag$ of unit) to tr$ 5contro"6 in t($ t/in $n$ of#o!inanc$ ,) o/n$r an# t($ ucc$fu" +uruit of t($ o/n$r goa". Suc( a i!+"$r$a#ing of t($ $*i#$nc$ (ou"# ,$ a*oi#$#. Ain/ort( an# Co1 &9::B 27;@0 27:' infact off$r a !or$ u,t"$ *i$/ of cu"tur$ in !a"" fir!. Firt0 $!+"o)$$ (a# a $n$ ofco!!it!$nt8 in t($ /or# of on$0 5t($)r$ a !a"" ,uin$ tr)ing to !a-$ a "i*ing o)ou ar$ a ,it !or$ r$+oni,"$6. S$con#0 t($ cu"tur$ /a not i!+o$# ,ut /a $nact$#an# contitut$# acti*$") ,) *ariou grou+.

T(i +oint can ,$ ta-$n furt($r t(roug( a tu#) of a "arg$r fir!0 a oft/ar$conu"tanc) /it( 24: $!+"o)$$ &Grugu"i $t a".0 9:::'. Training an# #$*$"o+!$nt oftaff /a tr$$#0 an# t($ fir! $*$n (a# a 5cu"tur$ !anag$r6 &a++ar$nt") in +r$f$r$nc$to t($ HR #$ignation'. In $"$cting n$/ taff0 c(aract$r an# attitu#$ /$r$ tr$$#o*$r t$c(nica" -i"". T($ cu"tur$ /a on$ of /or-ing (ar# an# +"a)ing (ar#0 an#$!+"o)$$ /$r$ /$""?+ai# an# $n=o)$# atif)ing =o,. Contro" #i# not !$an#o!ination. At t($ a!$ ti!$0 (o/$*$r0 t($r$ /a a trong $1+$ctation to fit into t($#$!an# of t($ fir!0 an# $!+"o)$$ foun# it (ar# to !aintain a "in$ ,$t/$$n /or-an# (o!$. Contro" /a u,t"$ an# it /a +art of a )t$! +ro#ucing ,$n$fit0 ,utit/a non$ t($ "$ r$a".

S$*$ra" HR i!+"ication tan# out. Grugu"i $t a". &9::: 2:2' tr$ t(at +ractic$ int($ fir! /$r$ $ffort to 5intitutiona"i$ i!+"$0 +$rona" contro"6 an# t(at t($ fir!#$+"o)$# 5o+(iticat$# HR +ractic$6. T($ ta- /ou"# t($n ,$ to #$ign co!,inationof +ractic$ t(at !aintain$# a cu"tur$ /(i"$ a"o $ta,"i(ing for!a" !$c(ani!conit$nt /it( it. T($r$ !ig(t a"o ,$ t$nion to a$. T(u it i r$+ort$# t(at t($r$/a a +a) tructur$ of a -in#0 ,ut t(at t(i /a -$+t *$r) $cr$t an# t(at $!+"o)$$

,$"i$*$# t(at t($) /$r$ +ai# +ur$") a in#i*i#ua". A t($ fir! #$*$"o+$#0 t($ r$"$*antt$nion !a) /$"" (a*$ gro/n0 an# ,a"ancing a c"$ar +a) tructur$ /it( t($ fr$$#o!to r$/ar# in#i*i#ua" a !anag$r a/ fit !ig(t ,$co!$ a c$ntra" iu$.

Si2e and growt' orientation


14/17

A US tu#) r$+ort t(at0 at t($ tart?u+ of ,uin$$0 HR i a!ong t($ !a=orit) of!anag$!$nt function t(at r$!ain in t($ (an# of t($ o/n$r &Ar#ic(*i"i $t a".0 233'.A fir! gro/0 $t of -$) function t$n# to ,$ #$"$gat$# at t($ a!$ ti!$0 an##$"$gation of HR t$n# to ,$ aociat$# /it( t(at of !an) ot($r function. T($i!+"ication #ra/n i t(at0 at t(i +oint0 an HR ro"$ /i"" ,$co!$ i!+ortant an# t(at a

-$) +art of t($ ro"$ /i"" ,$ t($ training an# #$*$"o+!$nt of t($ n$/ ca#r$ of!anag$r. T($ turning +oint tat$# i 2 !i""ion in a"$0 /(ic(0 /it( a""o/anc$ forinf"ation0 !ig(t act a o!$ -in# of ,$nc(!ar-0 t(oug( t($ +oint i "i-$") to #iff$r/i#$") accor#ing to ,uin$ $ctor an# +oi,") a"o countr).

A U tu#) of !anag$!$nt #$*$"o+!$nt foun# t(at !a"" fir! /it( a trongori$ntation to/ar# gro/t( /$r$ t($ !ot "i-$") to tr$ !anag$!$nt #$*$"o+!$nt&T(o!on $t a".0 233;8 a"o Patton an# Mar"o/0 9::9'. A US tu#)0 uing an o,=$cti*$!$aur$ of gro/t( &rat$ of incr$a$ of a"$'0 foun# t(at (ig(?gro/t( fir! +ut !or$$!+(ai on HR +ractic$ t(an #i# "o/?gro/t( on$ &Car"on $t a".0 9::@'. Loo-ing atUS fir! t(at (a# r$ac($# t($ tag$ of !a-ing an Initia" Pu,"ic Off$ring on t($ toc-

!ar-$t0 W$",ourn$ an# An#r$/ &233@' r$+ort t(at fir! tr$ing HR (a# r$"ati*$")(ig( ur*i*a" rat$.

Ho/$*$r0 it i i!+ortant to not$ t(at incr$a$# for!a"it) i not an in$*ita,"$con$>u$nc$ of !a"" fir! gro/t(. It i not unco!!on for ,uin$ o/n$r to $t u+ot($r !a"" *$ntur$ to +uru$ gro/t( o,=$cti*$. T($ $ta,"i(!$nt of 5at$""it$6$nt$r+ri$ /a a notic$a,"$ f$atur$ of La%$ron &23' tu#) of !a""!anufacturing fir! in t($ Ita"ian r$gion of E!i"ia Ro!agna. T(i gro/t( trat$g)$na,"$# o/n$r to !aintain contro"0 $cur$ "a,our !ar-$t f"$1i,i"it)0 an# ac(i$*$organi%ationa" $ffici$nci$. I!+ortant")0 a -$) factor /a t($ continu$# $1it$nc$ of$1t$n#$# fa!i"i$0 /(ic( +ro*i#$# a foun#ation for $cono!ic r$"ation ,a$# oncoo+$ration an# trut0 5T($ i!+ortanc$ of uc( non?!ar-$t r$"ation for $cono!icucc$ $1+"ain t($ ($a*) r$"ianc$ $1?/or-$r o/n$r +"ac$ on turning to fri$n#an# for!$r co""$agu$ in t($ir $arc( for $!+"o)$$6 &La%$ron0 23 B2'. Ac-ro)#&2334' account of !a"" 5#)na!ic6 U ,a$# infor!ation t$c(no"og) fir! off$rfurt($r u++ort for t(i modus operandi.5Infor!a" trat$gic affi"iation6 an#5t$!+orar) a""ianc$6 ,$t/$$n in#i*i#ua" an# organi%ation of a i!i"ar i%$ /$r$int$gra" f$atur$ of t($$ fir!8 gro/t( /a ac(i$*$# ,) 5r$+"ication6. Suc( +ractic$/$r$ crucia" to t($ fir! a,i"it) to c(ang$ an# #i*$rif) t($ ca"$ of t($ir o+$ration.

An ori$ntation to/ar# gro/t( i not n$c$ari") r$trict$# to t($ r$"ati*$")

o+(iticat$# fir!. W$ (a*$ tu#i$# a !a"" ,a-$r)0 /(ic( (a# ,$$n in $1it$nc$ foro*$r B: )$ar. It /a run ,) t/o !$!,$r of on$ fa!i") an# in !an) r$+$ct /a(ig(") tra#itiona" an# a*$r$ to for!a" HR )t$!. Y$t it (a# gro/n0 an# t/o -$)#$*$"o+!$nt /$r$ to $!+"o) a +ro#uction !anag$r fro! outi#$ t($ fa!i") an# to

,ring in a n$/ #ir$ctor /(o$ ro"$ /a +$cifica"") to c(a""$ng$ t($ $1iting #ir$ctoran# to $ncourag$ n$/ /a) of t(in-ing. Ra! $t a". &9::4' tu#) of $t(nic !inorit)

,uin$$ in t($ (ig(") co!+$titi*$ r$taurant $ctor furt($r (ig("ig(t t($ +ot$ntia"for gro/t( in $$!ing 5"o/ *a"u$ a##$#6 fir!. T($ +o+u"ar it )of$t(nic cuiin$ (ar$u"t$# in $t(nic r$taurant ta-ing an incr$aing (ar$ of ra+i#") incr$aingconu!$r $1+$n#itur$. Y$t0 a t($ tu#) #$!ontrat$0 t($ +$rc$i*$# attracti*$n$ oft($ r$taurant tra#$ (a cau$# t($ u++") of Aian $ntr$+r$n$ur to out?run $*$n a

*igorou") $1+an#ing #$!an#0 r$u"ting in !ar-$t aturation. E*$n o0 i!+"),$cau$ t($ cit)?/i#$ an# r$giona" !ar-$t ar$ $1+ani*$0 $ntr$+r$n$ur ar$ grant$#


15/17

o!$ co+$ to (a+$ t($ tra=$ctor) of t($ ,uin$. Ra! $t a". #ocu!$nt$# intanc$of ,uin$ o/n$r #$*$"o+ing n$/ !ar-$t0 a#a+ting $1iting nic($0 an# r$?ori$nt$#/or-ing +ractic$. Fir! t(at (a# uffici$nt r$ourc$ $1+an#$# ,) o+$ning !or$out"$t8 t($) (a# r$"ati*$") 5o+$n6 +ractic$ to r$cruit!$nt an# !anag$!$nt8 co!+"i$#/it( $!+"o)!$nt r$gu"ation8 an# a#o+t$# !or$ inno*ati*$ a++roac($ to n$/

+ro#uct #$*$"o+!$nt. Ot($r fir! gr$/ ,) conc$ntrating on +ro#uct #iff$r$ntiationrat($r t(an !u"ti+"$ ,uin$ o/n$r(i+. H$nc$0 rat($r t(an in*$ting in n$/

+r$!i$0 t($$ fir! conc$ntrat$# t($ir $ffort on r$fining t($ir +ro#uct an##$*$"o+ing r$"ation(i+ /it( -$) taff t(at /ou"# nurtur$ 5aut($nticit)6.

It i of cour$ an o+$n >u$tion a to /(at #$t$r!in$ a gro/t( ori$ntation. To o!$$1t$nt0 it i contrain$# ,) $ctora" "ocation. Fir! in #$c"ining $ctor uc( a +artof !anufacturing0 an# t(o$ t(at ar$ #o!inat$# ,) *$r) !a"" fir!0 uc( ar$taurant0 /i"" fin# it (ar# to gro/. It i a"o trong") (a+$# ,) fa!i") o/n$r(i+.To t($ $1t$nt t(at t($ o/ning fa!i") u$ t($ ,uin$ to $cur$ a atifactor) "$*$" ofinco!$0 gro/t( /i"" not ,$ +uru$#. Gro/t( a"o ,ring c(a""$ng$ of !anaging

$1+anion t(at !a) ,$ a*oi#$#. A !or$ +oiti*$ *i$/ !a) ,$ #$*$"o+$# conciou"),) o/n$r /it( #iff$r$nt c(aract$ritic0 or $!$rg$ a a n$/ g$n$ration ta-$ o*$r0 or#$*$"o+ $*$n !or$ ,) c(anc$ if a +articu"ar !ar-$t nic($ o+$n u+ an# a""o/ t($fir! to fi"" it.

"'ange management

In t$r! of t($ HR ro"$ in gro/t( an# c(ang$ !anag$!$nt0 t($r$ ar$ !or$o++ortuniti$ t(an !ig(t a++$ar at firt ig(t. Y$t t($$ n$$# to ,$ a##r$$# in a

+articu"ar /a). A acon $t a". &233 9@:' +ut it0 ,a$# on $*$ra" ca$0 t($

c(a""$ng$ /a 5!anaging t($ intro#uction of t($ for!a"i%ation n$c$ar) to r$tain!anag$!$nt contro" /(i"$ not #$tro)ing t($ infor!a"it) an# t($ cu"tur$ of t($ !a"",uin$6. It /a not a !att$r of $n#ing infor!a"it) ,ut c(anging it natur$ an#!a-ing it !or$ +rof$iona".

A #$tai"$# ca$ tu#) of a foo# !anufacturing fir! i r$"$*ant ($r$0 not "$at ,$cau$it /a in a 5tra#itiona" !anufacturing6 $ctor in Scott $t a". cat$gori%ation an# )$t/a a,"$ to carr) out t($ +roc$$ #$cri,$# ,) acon $t a". &$$ Ra! $t a".0 9::2,'.T($ r$u"t0 a on$ !anag$r in t($ fir! +ut it0 /a t(at t($) (a# 5gon$ fro! ,$ing *$r)"ai# ,ac- to ,$ing "ai# ,ac-6. A +$ronn$" !anag$r /a r$cruit$#0 an# for!a"

+roc$$0 not on") in HR ,ut a"o in t($ contro" of o+$ration0 /$r$ intro#uc$#.

T($$ #$*$"o+!$nt r$f"$ct$# ,ut a"o r$inforc$# t($ fir! !o*$ to/ar# !or$ (ig(*a"u$?a##$# +ro#uct0 an# a"o r$f"$ct$# t($ +$rona" t)"$ an# a!,ition of it o/n$r.T($ i!+"ication of not att$n#ing to t($ a"t$r$# #)na!ic of infor!a"it) t(at ari$fro! ,uin$ gro/t( ar$ $*i#$nt in Ra! &2333' $t(nogra+() of a !a""!anag$!$nt conu"tanc) fir!. During t($ cour$ of t($ tu#)0 t($r$ /a !uc( ta"- of5gro/ing t($ ,uin$60 +articu"ar") a!ongt t($ #ir$ctorat$. To t(i $n#0 t($ o/n$rintro#uc$#a for!a" ,uin$ +"an tot($ r$t of t($ organi%ation in /(ic( ($ out"in$#(i *i$/ on (o/ t($ fir! (ou"# #$*$"o+. T($ un#$r")ing !oti*ation for t($ ,uin$

+"an0 /(ic( /a t($ firt for!a" on$ t(at t($ co!+an) (a# intro#uc$# inc$ itinc$+tion0 /a ,oun# u+ /it( t($ o/n$r +$rona" circu!tanc$. In $$nc$0 ($/ant$# to r$tir$ in fi*$ to $*$n )$ar8 an# a ($ a++roac($# t(at ti!$0 ($ #i# not /ant

to ,$ ,ur#$n$# /it( /or-ing t($ 4:@: (our +$r /$$- t(at ($ curr$nt") (a# toto"$rat$. Sinc$ t($ co!+an) /a ti"" in (i na!$0 t($ o/n$r +oint$# out t(at it /a


16/17

n$c$ar) to coni#$r t($ iu$ of 5ucc$ion60 an# /a) in /(ic( t($ co!+an) cou"#,$ r$?configur$#. On$ of t($ o+tion /a gro/ing t($ co!+an) uffici$nt") o t(at itcou"# ,$ o"# to a "arg$r conc$rn. Mo*ing to/ar# t(i -in# of 5$1it trat$g)6 /ou"#0accor#ing to t($ o/n$r0 r$>uir$ a !or$ transparently mana!edorgani%ation t(at (a#a++ro*$# >ua"it) tan#ar# acro a rang$ of ar$a. So!$ nin$ !ont( aft$r t($

intro#uction of t($ ,uin$ +"an t($r$ /a "itt"$ if an) ta"- of gro/t(. T($r$ (a# ,$$n"itt"$ if an) att$ntion accor#$# to acti*$") !anaging t($ +roc$ of c(ang$0 /it( on$conu"tant ,$!oaning t($ "ac- of 5!anag$!$nt6. To/ar# t($ $n# of t($ fi$"#/or-0t($r$ /a ta"- of 5r$#un#anci$60 an# t($ o/n$r #$c"ar$# (i!$"f cont$nt to ,$co!$ a5fr$$"anc$r6 an# ($nc$ not havin! to pay the mort!a!es of si- or seven staff . It$$!$# t(at (i a+iration for r$tir$!$nt /ou"# (a*$ to ,$ ac(i$*$# ,) /or-ing a afr$$"anc$r (i!$"f in t($ futur$ rat($r t(an $""ing a u,tantia" ,uin$.

"ON"0!SION

W$ (a*$ #icu$# for!a"it) an# infor!a"it)0 an# argu$# t(at t($ *i$/ t(at !a""fir! ar$ infor!a"0 an# t(at t(i i a /$a-n$0 i incorr$ct infor!a"it) i not tota"0an# it ,ring ,$n$fit not "$at in t$r! of $!+"o)$$ r$+on$. Mor$o*$r0 !uc( of t($focu in "arg$fir! in t($ "at t$nort/$nt) )$ar can ,$ ana")$# in t$r! of a $arc(for infor!a"it) coni#$r #$"a)$ring an# #$c$ntra"i%ation at trat$gic "$*$" an# t$a!/or- an# $!+o/$r!$nt in HR. T($r$ ar$ +ractic$ t(at can ,$ "$arnt fro! !a""fir!. A acon $t a". &233 9@;' conc"u#$0 co!!unication i #ir$ct0 an# "in-

,$t/$$n $!+"o)$$ ,$(a*iour an# fir! +$rfor!anc$ r$"ati*$") c"$ar an# i!!$#iat$0/(i"$ c(ang$ +rogra!!$ ar$ !or$ 5organic6 an# 5aut($ntic6.

T(i #o$ not !$an t(at infor!a"it) /itc($ fro! ,$ing a in to a *irtu$. A Gra) an#

Ma,$) &9::4 7:' r$!ar-0 infor!a"it) can 5co?$1it /it( confuion an# unc$rtaint)6.S!a"" fir! a"/a) fac$ t($ #ang$r t(at a #$ciion /i"" ,$ !a#$ out of +$rona"

+r$f$r$nc$ or in (at$. T(i i +articu"ar") t($ ca$ /($n t($) co!$ into contact /it(t($ for!a"iti$ of tat$ r$gu"ation in uc( !att$r a ($a"t( an# af$t) an# in#i*i#ua"$!+"o)!$nt rig(t. Infor!a"it) n$$# to ,$ -$+t in c($c-0 =ut a too !uc( for!a"it)in "arg$ fir! can "$a# to inaction. Infor!a"it) an# for!a"it) ar$ $nact$# an#n$gotiat$#8 t($) ar$ not $t$rna" unc(anging c(aract$ritic.

A for !o#$" of HRM0 W$",ourn$ an# An#r$/ &233@' !a-$ t($ int$r$ting r$!ar-t(at HRM0 +articu"ar") in it Strat$gic for!0 i!+"i$ a co!+"$10 an# in#$$# *irtua"")i!+oi,"$0 ta- of continua"") fitting t($ co!+on$nt of t($ HR )t$! tog$t($r an#

$nuring a 5fit6 /it( ,uin$ trat$g). In our *i$/0 t(i i on$ of t($ g$n$ra" +ro,"$!of t($ SHRM +ara#ig!. It i +articu"ar") a"i$nt in !a"" fir!0 /(ic( not on") "ac-t($ r$ourc$ t($ $ngin$$r 5fit6 ,ut /(ic( ar$ a"o "i-$") to $n#ang$r t($ir infor!a"it)an# f"$1i,i"it) if t($) tr) to #o o. It !a-$ !or$ $n$ to t(in- of HR +ractic$ a

,$ing ,roa#") ti$# tog$t($r. T($principlesof SHRM ar$ r$"$*ant in $ncouragingfir! to t(in- acti*$") a,out t($ir HR +ractic$ an# /($r$ it !ig(t conn$ct to ,uin$trat$g). A ra+i#") gro/ing oft/ar$ fir!0 for $1a!+"$0 !ig(t ,$ a#*i$# to $nur$t(at it (a a +a)!$nt )t$! t(at go$ ,$)on# t($ !$r$") ad hoc. ut !or$co!+"$1it) cou"# ,$ count$r?+ro#ucti*$. T($ g$n$ric r$cognition t(at fir! (a*$5i#io)ncratic co!+$t$nci$60 an# /i#$r int$r$t in t($ r$ourc$?,a$# *i$/ of t($fir!0 i!+") t(at an) fir! n$$# to g$n$rat$ it o/n !o#$" &o1a"" an# Purc$""0 9::B'.T(i i +articu"ar") tru$ of !a"" fir!0 /($r$ +$rona" r$"ation(i+ an# t($ a,$nc$of tan#ar# a++roac($0 ar$ c$ntra". HR in uc( fir! n$$# to r$cogni%$ t($


17/17

contraint t(at ari$0 ,ut a"o t($ +oi,i"iti$ of $ngaging f"$1i,") in t($#$*$"o+!$nt of t($ fir!.

NOTES

2 T(i tran# a++$ar to ,$ "arg$") Euro+$an in it origin0 /it( US r$$arc( ,$ingur+riing") innoc$nt of it &Ra! an# E#/ar#0 9::B'. Our #icuion n$c$ari")fo""o/ t(i fact in #ra/ing ($a*i") on Euro+$an0 +articu"ar") U0 $*i#$nc$.

9 W$ "oo-$# at t(i in WERS 9::70 /(ic( (a #ata on t($ +ro+ortion of $!+"o)$$train$# to #o =o, ot($r t(an t($ir o/n an# t($ +ro+ortion actua"") +$rfor!ing uc(

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9.Edwards, Paul, and Monder Ram. HRM in Small Firms Respecting and Regulating Informality.doc

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