Two divergent ways to manage HR and to get to the top: an exploratory study in micro firms

Aim of the paper: The purpose of this paper is to examine human resources management practices (HRM practices) in small firms and to improve the understanding of the relationship between this kind of practices and business growth. This exploratory study is based on the resource-based view of the firm and empirical work carried out in two small firms by relating HRM practices with the firms’ results. Contribution to the literature: This is an in-depth study of HRM practices and its impact on performance growth in micro firms, isolating and controlling for most of the contextual and internal variables considered in the literature that relate HRM to growth. Firm growth analysis was broadened by the use of several dependent variables: employment growth and operational and financial performance growth. Some hypotheses for further research in identifying HRM practices in small business and its relation with firm growth are suggested. Methodology: Case study methodology was used to study two firms. The techniques used to collect data were semi-structured interviews to the owner and all the employees, unstructured observation at the firms’ facilities (during two days), entrepreneur profile definition (survey answer) and document data collection (on demographic characterization and performance results). Data was analyzed through content analysis methodology, and categories derived from the interviews’ protocols and literature. Results and implications: Results revealed that despite the firms’ organizational characteristics similarities, they differ significantly in owners’ motivation to grow, HRM practices and organizational performance and growth. Future studies should pay special attention to owner willingness to grow, to firms’ years of experience in business, to staff’s years of experience in their field of work and turnover. HRM practices in micro/small firms should be better defined and characterized. The external image of management posture relating to longitudinal financial results and growth should also be explored.

Generic competencies and practices of managing by competencies: an exploratory study in different organizational contexts

Given the increasingly demanding labor market, today’s professional should act according to certain generic competencies, which allows him to perform as required by the contemporary world. In parallel, human resource management (HRM) current trends, highlight the importance that managing by competencies has in the organizational context, in the sense that it impels a more strategic and integrated HRM. The evidence of the theoretical and practical pertinence of this theme resulted in an exploratory study of a qualitative nature, which findings lead us to conclude that the most valued generic competencies by firms are flexibility, interpersonal relationship, adjustment to change and teamwork. Another finding is that HRM managing by competencies practices is characterized by informality. Managing by competencies is more frequent presence in processes as: recruitment, retention and in the employees’ development plans.