Do human resource practices enhance organizational commitment in SMEs with low employee satisfaction?

This paper considers a large matched employee–employer data set to estimate a model of organizational commitment. In particular, it focuses on the role of firm size and management formality to explain organizational commitment in British small and medium-sized enterprises (SMEs) with high and low levels of employee satisfaction. It is shown that size ‘in itself’ can explain differences in organizational commitment, and that organizational commitment tends to be higher in organizations with high employee satisfaction compared with organizations of similar size with low employee satisfaction. Crucially, the results suggest that formal human resource (HR) practices can be used as important tools to increase commitment and thus, potentially, effort and performance within underperforming SMEs with low employee satisfaction. However, formal HR practices commonly used by large firms may be unnecessary in SMEs which benefit from high employee satisfaction and positive employment relations within a context of informality.

A Social Institutionalist Perspective on HR Diffusion: Histrorical and Cultural Receptivity to HRM in a Post-Comminist Context

This research considers cross-national diffusion of international human resource management (IHRM) ideas and practices by applying an emergent frame of sociological conceptualisation – ‘social institutionalism’ (SI). We look at cultural filters to patterns of diffusion, assimilation and adoption of IHRM, using Romania as a case study. The paper considers the former Communist system of employment relations, suggesting that through institutionalisation former ways of thinking continued to influence definitions and practice of people management in post-Communist Eastern Europe. The paper provides a new perspective on HRM by discussing the value of SI as a general model for understanding cross-cultural receptivity to HR ideas, sensitising the HR practitioner and academic to institutionalised culture as a historical legacy influencing receptivity to international management ideas.