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Critically Assess Whether Human Resource Management Is Any Different In Sme's Than Large Organisations

Critically assess whether Human Resource Management is any different in SME's than large organisations?

"The study of human resource management has been invigorated by the promise that there is a best-practice, high-involvement management that can guarantee superior organisational performance" (Wood, 1999).

This paper is structured to critically assess the differences of human resource management (HRM) in small to medium sized enterprises (SME's) with comparison to large organisations. Initially this will provide the fundamental processes involved with the implications of HRM in all organisations. The differences, or lack thereof, of HRM polices, are derived from the vast difference in the sizes of the respective organisations. Research shows that HR practices also vary extensively between small firms (Dumberlry and Walley, 1995; Julien, 1998; Bacon et al, 1998) and are often determined by the ideology and pluralistic goals of the small business owner (Kock and De Kok, 1999; Wagar, 1998). Anderson (2003) takes this one step further by claiming that HRM in SME's is not ambiguous and homogenous phenomenon. On the other hand, HRM in large organisations is more about the relationship between strategic management and employee relations in the firm, and focuses on the overall direction of the organisation in pursuit of its stated goals and objectives. Other central issues examined are recruitment, training, performance, pay, management theories, flexibility, and employee retention.

There are around 4.3 million SME's including 3.1 million sole-traders or partners with no employees, and they are the driving force behind a large number of innovations and contribute to the growth of the national economy through employment creation, investments and exports. Smalls firms, (0-49 employees) represent 99.3% of all UK businesses, and over 51% of all UK economic activity. Only 26,000 medium sized (50-250 staff) and 6,000 large firms (250 or more staff) exist in the UK...