Small Firms Embrace Formal HR Practices, Transforming Workplace Dynamics
The article explores how small firms in Australia change their human resource management practices as they grow. The researchers surveyed 371 small to medium-sized firms and found that as firms get bigger, they start using more formal HR practices like division of labor and hierarchical structures. Unlike large firms, small firms adapt their HR practices as they grow, with changes happening early on and faster than in later growth stages. Interestingly, formal HR practices are adopted quicker at the operational level than at the managerial level in smaller firms.