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Different studies show that several HRM practices at small and medium enterprises are
influenced by organizational contextual variables including ownership, age and size of
firms (Zheng and Morrison, 2009), even though the level of formality of HR practices at
these firms is low (Kotey and Slade, 2007). Using data from micro, small, and medium
firms in Australia leads to the fact that human resource practices increase with
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increasing firm size (Kotey and Slade, 2007).
Factors affecting human resource practice can be summarized at two levels; internal and
external.
A) Internal factors
There are two key reasons why one can find a positive relation between firm size
and formalization of HRM practices: First, if organizations become larger, the need to
decentralize and communicate between employees and departments increases. This, in
turn, requires a certain level of standardization, specialization and formalization of
HRM (Nooteboom, 1993). Second, most formalized HRM practices
require considerable development costs (Klaas et al., 2000). This results in a cost
advantage for larger firms, which is strengthened by the limited supply of financial
resources of many small firms.
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7/11/2017 FACTORS AFFECTING HUMAN RESOURCE PRACTICES | Isaac Onsarigo | Pulse | LinkedIn
b) External factors
Economic Conditions One of the biggest external influences is the shape of the
current economy. Not only does it affect the talent pool, but it might affect your ability
to hire anyone at all. One of the biggest ways to prepare against economic conditions is
to not only know whats happening in the world around you, but also create a plan for
when there is an economic downturn. All companies can make due in a bad economy if
they have a rainy day fund or plan to combat the harsh environment.
Those involved in human resource management does more than hiring and firing, they
make sure that every type of external influence is listened to and proper procedures are
followed to avoid lawsuits and sanctions. If youre in HR make sure that youre paying
close attention to external influences because there is a good chance theyre affecting
your job and the company you work for.
Isaac Onsarigo
HUMAN RESOURCE AND ADMINISTRATION OFFICER at Anti Counterfeit Agency Follow
6 articles
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7/11/2017 FACTORS AFFECTING HUMAN RESOURCE PRACTICES | Isaac Onsarigo | Pulse | LinkedIn
2 comments Newest
LYDIAH JOHN 1y
Financial Advisor at ICEA LION LIFE ASSURANCE
good stu there onsarigo
Like Reply
Michael Ngowi 1y
Administrative/Human Reources Oicer at Muhimbili National Hospital
nice, have got something on this.
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