Human resource management in small entrepreneurial firms

What is it about?

Research indicating a positive relationship between effective Human Resource (HR) activities (high-performance work systems (HPWS) and performance has focused primarily on large organizations. The present study provides evidence that the relationship also holds for small firms. As well, the presence of an HR manager is related to having HPWS. However, the effects of firm size on the presence of an HR manager, the incidence of HPWS, and on organizational performance were insignificant. Differences between our findings and similar research are also discussed.

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Why is it important?

Findings indicate that the use of HPWS is positively related with perceived small firm performance and that firm size (assessed as number of employees) does not predict the use of HPWS or having an HR manager.