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Hrm in Small Organizations

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Hrm in Small Organizations
Abstract:

Much of our knowledge of human resource management involves large organizations with dedicated human resource departments and staff, but what about small organizations? Small organizations recruit, compensate, do performance management, and many of the same tasks as large organizations. There are certain things that can be mapped effectively from large to small organizations, but what happens to the rest that do not map? A small organization can not simply let things slip through the cracks based on size or ignorance of laws, rules, or requirements. This is what makes human resource management not only important in small organizations, but essential for their long term success.

Human resource (HR) management is an issue that affects every type of organization large and small alike. The majority of research and information that is easily accessible though is for larger organizations with a staff of human resource professionals. While it is true that much of the information for larger organizations can be applied to smaller organizations the majority of things do not. This raises the question: is the practice of human resource management necessary in small organizations or is it simply for the Fortune 500 companies of the world? I propose that not only is human resource management important to small organizations, but it is essential for their long term success.

Traditionally, Small organizations have always had limited resources. Many times they completely overlook the importance of a human resources department. In doing so, they elect to omit the department in their business model. This common oversight shifts the burden of specific HR responsibilities to other members of the staff. Most often, these members of management are not trained or experience in human resource management, nor are they schooled in policies and procedures. Because of this, many HR tasks fall through the cracks. These short falls do not negate laws, rules, and



Bibliography: Balkin, D. B. (2003). Compensation during life-cycle. Columbus, OH: Managing Human Resources in Small, High Banks, M. C., Bures, A. L., & Champion, D. L. (1987). “Decision making factors in small business: Training Cardy, R. (2003). Performance management in SMEs. Columbus, OH: Managing Human Resources in Small, High Growth Deshpande, S. P., & Golhar, D. Y. (1994) “HRM practices in large and small manufacturing firms: A comparative ed. Vol. 1. Detroit: Gale, 2002. 386-388. [Lismore, Australia] 18 Nov. 2008: 11. Custom Newspapers Graham, M. E., Murray, B., & Amuso, L. (2002). “Stock- related rewards, social identity, and the attraction Hatcher, Michael R. (2007) "Building blocks for HR compliance." Community Banker 16.1: 54+

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