European Management Review - 2022 - Wang - Do small firms fare better without a professional human resource manager.pdf (361.46 kB)
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Do small firms fare better without a professional human resource manager?

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journal contribution
posted on 06.05.2022, 10:43 by Wen Wang, Roger Seifert, Nicholas Theodorakopoulos

We examine the direct and indirect effects of human resource (HR) informality—that is, not having a professional HR manager in post—on employee outcomes in growth-oriented small firms. Drawing from literature of principal–agent relationship and trust, we theorise a moderated-mediating model between HR informality and unfavourable employee outcomes through owner-manager's distrust during firm growth. Based on matched employer–employee data from 543 small firms and their 4853 employees in the United Kingdom, the empirical results show a positive and significant association between HR informality and owner-managers' distrust of staff, especially in multiple-site (often a manifestation of growth-oriented) small firms. Through this path, HR informality has a significant and adverse indirect effect on firm recorded staff voluntary turnover, absenteeism, number of dismissals and staff perceived collective trust in management, which counteracts its weak positive direct effect, thus leads to an overall negative impact. The theoretical and practical implications are discussed. 

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Citation

Wang, W., Seifert, R. & Theodorakopoulos, N. (2022) Do small firms fare better without a professional human resource manager? European Management Review, 1– 14. https://doi.org/10.1111/emre.12508

Author affiliation

School of Business

Version

VoR (Version of Record)

Published in

European Management Review (EMR)

Pagination

1-14

Publisher

Wiley

issn

1740-4754

eissn

1740-4762

Acceptance date

13/02/2022

Copyright date

2022

Available date

02/03/2022

Language

en

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