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Linking HR formality with employee job quality: The role of firm and workplace size
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posted on 2023-06-08, 08:04 authored by David Storey, George Saridakis, Sukanya Sen-Gupta, Paul K Edwards, Robert A BlackburnThe process of managing a small firm differs from managing a large firm, because small firms face distinct forms of risk and organize their human resources differently, often informally (Kotey & Slade, 2005; Storey, 2002). This paper introduces and tests a new variable, self-reported job quality (SRJQ), as a key link in the causal chain between HR practices and outcomes. In comparing small firms with large ones, we present three key findings: (1) employee reports of job quality are highest in small firms and decrease as firm size increases; (2) in workplaces owned by large firms, job quality is highest in the smallest workplaces; and (3) workers in small workplaces owned by large firms report lower job quality than workers in comparable sized workplaces owned by small firms. Our findings are partially explained by how formally HR practices are implemented. We show that formality increases with firm size and workplace size. Importantly, evidence suggests that employing an HR professional (a key indicator of HR formality) lowers SRJQ in single-site SMEs. Implications for small business owners, HR professionals in large and small firms, and policy makers are discussed.
History
Publication status
- Published
Journal
Human Resource ManagementISSN
0958-5192External DOI
Issue
2Volume
49Page range
305-329Pages
25.0Department affiliated with
- Business and Management Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2012-02-06Usage metrics
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