A model of small business HR growth management

Abstract

Substantial work has been undertaken in the field of human resource management (HRM) as it applies to large organizations. However, for small business these models frequently do not apply. The small business lacks adequate systems to ensure the efficient management of human resources. Further, most small businesses are the product of their owners, whose personality and personal involvement dominate. Drawing upon evidence from four case studies of small business owners who have experienced growth the aim of the paper is to examine the point at which these owners became aware of the need for team building and delegation within their companies and how they responded. All have found finding, motivating and retaining good staff a critical bottleneck in their business growth. Of importance, appears to be their beliefs, attitudes and values. A shift in these areas was necessary before change could be undertaken. The point of awareness for many came from the managerial training programs but was tempered by their beliefs and the growth cycles of their companies. Prior to change being possible these owner‐managers needed to develop skills and competencies in leadership, coaching and management before effective delegation and team building could take place. These findings are linked to the existing body of knowledge relating to HRM. A theoretical model of the small business HR process for small business growth is presented. Future, implications for small business management and research are discussed.