Does My Business Need a Human Resources Function? A Decision-Making Model for Small and Medium-Sized Firms

Authors

Golbou GhassemiehFollow
Elizabeth "Liz" Thach, Sonoma State UniversityFollow
Armand Gilinsky Jr., Sonoma State UniversityFollow

Issue Season

Spring

Document Type

Article

Abstract

The questions of when and what types of human resource (HR) support are needed tend to be unanswerable for small and medium-sized enterprises (SMEs). This article addresses this gap in the strategic HR literature. Hiring, training, employee retention/satisfaction, wages and benefits programs, and worker’s compensation insurance are important to SMEs seeking to build strong capabilities and resources and to increase their competitive advantage. This article presents an analysis of the existing HR literature for SMEs. It introduces a decision model to help SMEs choose a cost-effective HR strategy, listing a range of options from hiring the HR function to electronic HR (eHR) and outsourcing.

Recommended Citation

Ghassemieh, Golbou; Thach, Elizabeth "Liz"; and Gilinsky, Armand Jr. (2005) "Does My Business Need a Human Resources Function? A Decision-Making Model for Small and Medium-Sized Firms," New England Journal of Entrepreneurship: Vol. 8: No. 1, Article 5.
Available at: https://digitalcommons.sacredheart.edu/neje/vol8/iss1/5