Management beyond a critical threshold of employees: evidence-based HR solutions for SMEs

Abstract

PurposeThis research identifies human resource (HR) management challenges and associated solutions of a medium-sized organization that reached a critical threshold of employees and required formalized HR systems. HR solutions focused on using labour efficiently, linking pay to performance and motivating or rewarding desired employee behaviour are identified.Design/methodology/approachThis case study involved HR data analysis and 50 semi-structured interviews (SSIs) over 4 successive phases: HR audit, problem identification and job description validation, solutions analysis and feedback on outcomes. Additionally, HR files and schedules were reviewed to determine labour usage, organizational structure and compensation.FindingsHR problems and solutions associated with job analysis (e.g. role identity, role conflict), HR planning (e.g. scheduling, motivation), employee performance management (e.g. validity, employee empowerment) and compensation (e.g. inequity, turnover intentions) issues are clearly identified.Research limitations/implicationsTraditionally, HR theory or concepts are presented in a limited or isolated manner. However, this research provides an integrative assessment of numerous interrelated, complex, core HR concepts including role conflict, equity, employee empowerment, motivation, consensus building, accountability, change champions, communication and coaching.Practical implicationsThis multi-phased, multi-stakeholder approach to small and medium enterprise (SME) management informs organizational leaders about HR problems and solutions they may encounter as they grow and require formalized HR systems. The proposed solutions can help safeguard organizational survival.Originality/valueThis research bridges HR theory with HR practices focusing specifically on SMEs. In addition, SMEs can benefit from the HR process information presented to conduct similar evidence-based HR problem and solution assessments.