Fundamentals of Human Resource Management, 5/e

Leveraging Small Size: Familiarity, Flexibility, Fairness, Informality, and Hrm

Learning Objective 3

1. List five ways entrepreneurs can use their small size to improve their HR processes.

Because small businesses need to capitalize on their strengths, they should ­capitalize on their smallness when dealing with employees. Smallness should translate into personal familiarity with each employee’s strengths, needs, and family situation. And it should translate into the luxury of being able to be relatively flexible and informal in the human resource management policies and practices the company follows. Smaller businesses must quickly adapt to competitive challenges. This often means that raises, appraisals, and time off tend to be administered ...