Employee Relations: An International Journal

Adrian Wilkinson

1999 Employee Relations: An International Journal

doi: 10.1108/01425459910273062

Most of the HRM literature is based on large firms despite the growing significance now accorded to smaller firms. In this paper, we explore employment relations in SMEs and argue that the existing literature tends to polarise into a “small is beautiful” or “bleak house” perspective. The paper examines some of the key issues in relation to employment relations in SMEs.

Nick Kinnie; John Purcell; Sue Hutchinson; Mike Terry; Margaret Collinson; Harry Scarbrough

1999 Employee Relations: An International Journal

doi: 10.1108/01425459910273071

The changing environment within which SMEs are operating is examined by reference to detailed case studies of three medium‐sized firms (one in the pharmaceutical sector and two in engineering). Following the development of a framework for analysis the cases are discussed to illustrate the direct and indirect ways in which pressures in the network of business relationships affect the management of employment relations. Particular attention is given to the effects of these pressures on management structure, work organisation and human resources policies and practices. Far from enjoying greater discretion following the decline in institutional arrangements and labour market deregulation, managers in SMEs find themselves constrained in new ways. It is argued that employment relations in these firms is shaped strongly by specific customer requirements exercised through the supply chain rather than being driven by broad market forces.

Marilyn Carroll; Mick Marchington; Jill Earnshaw; Stephen Taylor

1999 Employee Relations: An International Journal

doi: 10.1108/01425459910273080

The article summarises findings from recent case study research into recruitment in small firms. The research aims to ascertain whether small firms follow the procedures outlined in the prescriptive literature on recruitment, and to what extent they rely on informal recruitment methods. It finds little evidence of the adoption of the recommended systematic procedures and a high use of “tried and trusted” methods including word‐of‐mouth recruitment and the hiring of “known quantities”. The implications of this are examined. While these methods have certain advantages, they may also give rise to a number of problems. The study argues that the adoption of more formal procedures and methods could reduce staff turnover in small firms and its associated costs. However, it concludes that many small employers would remain unconvinced by the case for opening up recruitment channels, and may find their existing approaches more cost effective in the short term.

Tony Dundon; Irena Grugulis; Adrian Wilkinson

1999 Employee Relations: An International Journal

doi: 10.1108/01425459910273099

Using a single case study approach this paper provides empirical evidence about managerial practices in a small, non‐unionised firm which represents many of the features characteristic of the black‐hole of “no unions and no HRM”. The efficacy of recent union organising strategies is explored against the “context” of pleasant and unpleasant employee experiences, paternalistic management and labour and product markets. It is argued that the ideology of a “family culture” is a significant barrier to a new organising model of unionism. Consequently, the evidence supports the case that small family‐run firms can be exploitative and state support may be necessary to extend voice and collective representation.

Monder Ram

1999 Employee Relations: An International Journal

doi: 10.1108/01425459910273107

A key characteristic of small business service firms is their capacity to draw on similar businesses or self‐employed professionals in order to compete with large organisations. This paper presents a qualitative account of the ways in which three small firms from the business services sector managed the critical relationship with associates. The rationale, recruitment and management of associates is explored. It is argued that “matching” approaches that suggest an easy alignment between the firms’ competitive strategy and use of associates fail to appreciate tensions inherent in the relationship. Rather, relations between such enterprises and associates have to be managed in a manner that recognises the particular expectations of the parties, the dynamics of “in‐house” work relations, and the often conflicting pressures occasioned by having to operate in a dynamic and unpredictable market environment.

Harry Matlay

1999 Employee Relations: An International Journal

doi: 10.1108/01425459910273125

This article draws on a three‐year comparative study of employee relations in small, medium‐sized and large organisations in Britain. It sets out to identify, record and analyse the nature and extent of employee relations in micro‐businesses. The preliminary results that emerged from the study illustrate that owner/managers of micro‐businesses tend to exhibit highly personalised and mostly informal management styles. Employee relations strategies in this type of firm appear to follow similar patterns and can be as diverse as the characteristics, personalities and preferences of the owner/managers themselves.

John Loan‐Clarke; Grahame Boocock; Alison Smith; John Whittaker

1999 Employee Relations: An International Journal

doi: 10.1108/01425459910273134

The topic of management training and development (MTD) in small businesses is relatively under‐researched, and an increased understanding of the factors influencing the purchase of MTD by small businesses is needed. Therefore, a survey of 551 small businesses in the Midlands region of the UK sought to: identify influences on MTD investment and preferred MTD activities; and establish whether small businesses perceive a link between investment in MTD and business success. Interviews were also conducted with 12 organisations. Results show that the organisational characteristics of ownership, size, number of managers and family management have a significant influence on MTD investment. Of the sample organisations, 85 per cent considered investment in MTD to be linked to business success and 80 per cent of organisations engaged in some form of MTD. However, promoters of MTD to small businesses need to recognise that organisations in this sector are not homogeneous and desire customised training.

Rowena Barrett

1999 Employee Relations: An International Journal

doi: 10.1108/01425459910273152

Industrial relations in small firms, when they are defined in terms of their employment size, are generally described as harmonious. Industrial relations in small firms operating in the Australian information industry are explored in this paper, as are reasons for those industrial relations. Although the study reported here can be used to support the “small is beautiful” view, this ignores the fact that industrial relations in large firms in this industry are not greatly different. How size affects industrial relations in one small firm is examined and it is proposed that, on its own, size does not provide an adequate explanation for industrial relations in small firms in the Australian information industry.

Bob Horstman

1999 Employee Relations: An International Journal

doi: 10.1108/01425459910273170

This article analyses the recent move from highly centralised and regulated Australian industrial relations processes towards a decentralised and deregulated system which emphasises enterprise and individual employee level determination of pay and conditions. The article focuses on the Western Australian Workplace Agreement system designed to take account of the interests of small business. Statistical analysis and case studies are used to identify the extent to which small service sector enterprises have used this more “flexible” framework to implement improved HRM processes. An evaluation of HRM “best practice” literature and case study analyses of successful small, service enterprises are used to analyse the questionable relevance to this sector of existing HRM “best practice” models. The omission of “functional” and “numerical” flexibility from many models is identified as being particularly problematic. The article outlines a research programme to identify the strategic use made of these forms of flexibility in other sectors.