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Human resource focus needed

SMALL business managers need to focus more on the development of formal human resource management systems, a new study has found.

The Characteristics of Small Business Human Resources – A Comparison of Small and Large Firms, a research paper by Curtin Business School’s Management School head Professor Lawson Savery and Small Business Unit director Tim Mazzarol also found small businesses were less likely to be unionised.

Dr Mazzarol said firms with less than 100 employees could operate effectively without a human resources manager. But a HR manager becomes necessary when they exceed 150 staff and more critical once the staff exceeds 200.

“A lack of adequate managerial expertise – particularly in HR – can impede growth,” Dr Mazzarol said. “The faster a small firm’s growth, the more likely it will experience HR problems.

“Owners must communicate their vision, mission and values to their employees along with an understanding of how to achieve these,” he said.

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