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Cardon12 suggests that small and/or new companies might face problems in recruiting theemployees because they lack the resources and the stature. Williamson13 also reaches theconclusion that without candidates having heard about the company, about its practices or itsmembers, it is difficult for small companies to find the necessary employees. In a survey upon120 German companies with 1-50 employees, Rauch et al.14 found a significant positive impactof the human resources development upon the small companies’ benefits.It is said that HR practices do not influence directly the company performance but only througha variable interim causal chain15. The basic idea is that the performance can be differentiated onhierarchical levels, the net result of a level causing the performance of the next level. In spite ofsome evident inconsistence in the specialized literature – concerning the number of hierarchicallevels or the used criteria –the generated models suggest that HR practices have the biggestinfluence upon the employees’ motivation, knowledge, skills, competences16. In its turn, achange in these components influences productivity. It goes without saying that the variation ofthe productivity influences the company’s performance. De Kok and Den Hartog17 undertook asurvey on a sample of 800 small companies from Netherlands which proved a positivecorrelation between HPWS and the innovation capacity (which is so crucial for smallcompanies). Furthermore, they also found a positive correlation between HPWS and workproductivity, which has a positive effect upon the organisation profitability. This suggests thatHPWS is able to increase the small company’s ability to select, develop and motivate a labourforce able to produce superior results.Sels et al.18 carried out a survey on a sample of 416 Belgian companies which had between 10and 100 employees, following the HRM impact upon the productivity and financialperformances of small companies. As we have mentioned before, the company performancescan be differentiated on hierarchical levels. The authors of the survey opted for three levels,namely:1. behaviour variable (staff voluntary fluctuation);2. employees performance (labour productivity);3. company performance (financial results).
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