A profile of human resource personnel and practices in micro, small, and medium sized enterprises.

Pearson, Terry R. ; Summers, David F. ; Mills, LaVelle 等

ABSTRACT

Human resource management (HRM) practices, support systems, personnel profiles and desired education, and credit methodologies were examined in micro, small, and medium sized enterprises (MSMEs). The investigation is an exploratory descriptive study employing a discussion of the results of a questionnaire. The results suggest that human resource management practices, support systems, and HRM personnel profiles impact HRM education needs. The research findings demonstrated that MSMEs perform a wide variety of basic HRM practices internally, utilize a flexible informal style of management, require employees to execute HRM duties along with other job responsibilities, and typically employ inadequate support systems. However, a majority of the firms are adopting management information system processes that may advance the concept that MSMEs are using technology instead of HRM personnel. HRM personnel in MSMEs have multiple years of HRM experience, although the data would proport that improvement in HRM professional expertise and education through succinct seminars or web-based courses that result in certification or continuing education credit is indicated.

INTRODUCTION

Are people our most important asset? Will businesses seek sustainable competitive advantage through sophisticated human resource management practices? Large organizations have long recognized human capital as part of the mix for superior performance as well as national economic growth (Price, 2004). Entrepreneurs have always been dependent on human capital when compared to financial or physical capital (De Kok, 2003). Micro, small, and medium sized enterprise (MSME) success will depend on recruiting and retaining human capital.

Human capital has become the new buzzword for companies in today's knowledge-based economies. Labor shortages for qualified employees and the need for highly skilled employees to fuel this knowledge-based economy has become apparent (Audretsch and Thurik, 2000; Audretsch and Thurik, 2001; Audretsch et al., 2002). Small and medium sized enterprises (SMEs) form an important component of our modern knowledge-based economies, however SMEs are very divergent from large enterprises along many considerations (De Kok, 2003).

Research on HRM and performance illustrates that HRM practices can impact performance which further strengthens the need for HRM investigation (Boselie et al., 2001; Boselie, 2002). Due to the importance of SMEs to the economies of the world, it is somewhat discouraging and problematic to discover the dearth of SME research concerning HRM practices in SMEs (Heneman, 2000). Therefore, what HRM advice can be offered to SMEs, "not as much as we'd like" (Katz et al., 2000). The investigation of HRM personnel and practices in MSMEs is divided into the literature review; data collection and methodology; results and discussion; implications; limitations and future research directions; and the conclusion.

LITERATURE REVIEW

A review of human resource management related literature for the past twenty years repeatedly indicates that some scholars realize the importance of the role of HRM practices in SMEs (Hornsby and Kuratko, 1990; Deshpande and Golbar, 1994; Heneman, 2000; Katz et al., 2000). Research findings have demonstrated that managers of small firms have ranked personnel management as the second most important management activity behind general management activities (Hornsby and Kuratko, 1990). From information presented in the literature; the extent of the utilization of traditional human resource management functions; outsourcing trends; the level of support systems; the education, experience and expertise of the employee(s) responsible for human resource actions; and human resource education requirements in MSMEs is substantially lacking. As a result, the goals of this study are as follows:

 Goal One (G1)--Identify the breadth that traditional human resource
 practices are currently being utilized by MSMEs and determine
 whether these practices are performed by the firm internally or
 outsourced. (This finding may impact the level of education,
 experience or expertise required of the staff in MSMEs).

 Goal Two (G2)--Ascertain the support MSMEs provide to HRM as
 reflected by the number of full and part-time employees assigned
 to human resource activities and the use of support systems such as
 formal management information systems (MIS), employee handbooks,
 legal advice, and communication processes employed by the firms'
 HRM personnel. (This finding may directly or indirectly effect the
 HRM education needs of MSMEs.)

 Goal Three (G3)--Confirm the level of education and experience of
 the human resource workforce, and establish the employees
 self-perceived level of expertise in selected human resource
 practices. (This data alone may have the greatest impact on HRM
 education needs in MSMEs.)

 Goal Four (G4)--Discover how human resource practitioners in MSMEs
 would choose to receive human resource related education. (This
 finding was forecasted to be influenced by the data developed from
 G1, G2, and G3.)

The examination of human resource management in SMEs is a recent event and almost non-existent when directed toward micro enterprises exclusively. HRM in micro enterprises may be primarily composed of the social skills and/or leadership styles demonstrated by the entrepreneur or manager instead of various HRM practices utilized by the HRM department or HRM personnel (De Kok, 2003). The deficiency of information concerning human resource management in SMEs is problematic for theory, research, and practice (Heneman et al., 2000).

Empirical data has generally demonstrated that smaller organizations do not have formal HRM departments nor do they adopt traditional HRM paradigms or practices (Barron et al., 1987; Hornsby and Kuratko, 1990; Heneman and Berkley, 1999; Katz et al., 2000; De Kok and Uhlander, 2001; De Kok et al., 2003). Research to date has concentrated on SME determinants of HRM practices, such as: firm size (Ram, 1999; De Kok and Uhlander, 2001; De Kok et al., 2003), sector of the economy the firm competes (Curran et al., 1993; Mowday, 1998; Ram, 1999), business strategy employed (Schuler and Jackson, 1987; Lengnick-Hall and Lengnick-Hall, 1988; Youndt et al., 1996), family firm governance (Fiegener et al., 1996; Aldrich and Langton, 1997; Cyr et al., 2000; Reid and Adams, 2001; De Kok et al., 2003), high performance HRM practices (McEvoy, 1984; Barron et al., 1987; Hornsby and Kuratko, 1990; Kotey and Meredith, 1997; Heneman and Berkley, 1999; Boselie et al., 2001; Boselie, 2002; De Kok, 2003), recruitment (Aldrich and Langton, 1997), training and development (Hendry et al., 1991; Koch and McGrath, 1996; Westhead and Storey, 1997; Westhead and Storey, 1999), performance appraisals (Jackson et al., 1989), specialists employed (Jackson, et al., 1989; Bacon et al., 1996; Wagner, 1997; Heneman and Berkley, 1999) and the development of a business plan (De Kok et al., 2003).

Despite these determinants as well as others an escalating body of research findings would conclude that smaller organizations have less formal HRM practices, but variation among these practices is fairly dispersed (De Kok and Uhlander, 2001). Hill and Stewart (1999) demonstrated this variation by the different levels of the HRM taxonomy of practices and sophistication exhibited by smaller firms. Hill and Stewart (1999) also suggest that smaller businesses need flexibility and less formality to compete in an environment of uncertainty. Hornsby and Kuratko (1990) discovered that HRM practices were more sophisticated than predicted among smaller organizations. Deshpande and Golhar (1994) illustrated that HRM practices in small manufacturing companies were as sophisticated as large organizations. Hendry, Jones, Arthur and Pettigrew (1991) would argue that poor planning for the future or inadequate resources is the rationale for informal HRM practices.

Due to their limited size and resource availability many small firms can not justify full-time HR professionals (Klass, 2000). Cook (1999) and Hirschman (2000) propose that a growing trend for small businesses is to outsource HRM activities to professional employer organizations. The need to outsource HRM functions can be partially explained by the growing complexity of human resource issues and the consequent need for professional expertise (Greer et al., 1999). The SME literature does not specifically address the suggested trend of outsourcing for micro enterprises or the level of education, experience and expertise of the individual or individuals who practice HRM in MSMEs.

Trying to summarize and provide generalizations of the prevailing research regarding HRM practices of MSMEs is difficult. Generalizations are hindered by differences in definitions for micro, small, and medium sized enterprises as it relates to the number of employees and other factors. Furthermore, the definition of MSMEs varies between countries. Problematic for HRM practices are the descriptions for determinants such as "best practice," "high performance," "sophisticated," "professional" and "formal." Research thus far would not substantiate either a best practices or a contingency approach to HRM practices in SMEs (De Kok et al., 2003). Information focused exclusively on HRM practices and personnel in micro enterprises is almost nonexistent. Accordingly, the goals of this research investigation are to extend the knowledge about HRM by developing or confirming information related to HRM personnel and practices employed in MSMEs.

DATA COLLECTION AND METHODOLOGY

How do MSMEs manage their employees? The focus of this investigation is on developing a profile of human resource personnel in MSMEs, the HRM practices performed by the personnel in MSMEs and HRM educational needs. Consequently, the investigation is an exploratory descriptive study employing a discussion of the results of a questionnaire. The rationale for this focus is due to the inconsistency discovered by Heneman, Tansky and Camp (2000) between the concerns of small and medium sized enterprises and human resource researchers.

The data for this study was collected as a comprehensive research project of human resource personnel and practices in micro, small, and medium sized firms. The comprehensive research project entailed developing a questionnaire, pilot testing the questionnaire, and mailing 3,073 questionnaires to businesses. A cover letter requested that the person responsible for human resource practices, functions, and activities complete the instrument. A follow-up telephone communication was performed to randomly selected businesses to increase the response rate. Most of the survey area is rural but contained one SMA with a population of approximately 170,000. The mailing list utilized was provided by the local Better Business Bureau that serves the area and included both members as well as non-members of the bureau. Of particular interest is the large rural component of the survey respondents. The European Commission's (EC) definition for micro, small, and medium size enterprises is based upon several criteria, but employee size was the single criteria of the EC used for this study. To be classified as an MSME by the European Commission, an enterprise must satisfy the following criteria for the number of employees: micro 0-9, small 10-49, and medium 50-249 (McQuaid, 2003). The second criteria applied in this research investigation only allowed firms that are considered independent and not functioning as a subsidiary of a larger organization to comprise the sample. One hundred and forty-one respondents successfully returned the completed instrument and met the requirements of size and independence.

The questionnaire contained six major divisions: 1) firm demographic data, 2) human resource management practices and functions, 3) human resource management personnel demographics, 4) personal data about the primary HRM staff, 5) perceptions of HRM expertise by the principal HRM employee(s), and 6) preferences for sources of education in human resource topics. Demographic data included size as measured by the number of employees; type of business such as retail, service, and so on; whether the firm was independent or functioning as an extension of another organization (this allowed for a check of independence); and if the organization was partially or completely unionized.

Respondents were asked to indicate whether a variety of human resource practices were performed by the organization, outsourced, or not performed. If the MSME outsourced certain practices or functions, the participant was to estimate the percentage of the practice that was outsourced. The practices or functions were grouped into four categories: staffing, training and development, employee evaluation and reward, and employee maintenance. Each of the four categories was divided into specific practices with a total composite of seventeen separate activities. The sample was queried about the use of formal communication methods, employee handbooks, formal management information systems, and if legal advice was solicited concerning HRM activities.

Respondents were asked about the firm's commitment of personnel to HRM practices. They were inquired about the number of full-time and part-time individuals devoted to HRM practices and functions. For the employees denoted as part-time, the participants were requested to estimate the percentage of the individual's time that was allocated to HRM activities. The principal HRM employee(s) was asked about his or her years of experience, level of education and if she or he had any type of HRM certification.

The principal HRM employee(s) was requested to rank his or her level of expertise in a variety of HRM areas. These included fifteen separate areas such as strategic human resource planning, recruitment, job design, and employee relations. The ranking extended from one (very little expertise) to five (extensive expertise) with three being the average.

Last, the sample was questioned about their preferences for obtaining additional HRM education. Specifically, they were queried about the format of delivery such as on-site seminars, web-based courses, formal classroom instruction, concise off-site seminars, or other respondent suggested alternatives. Additionally, they were questioned on the type of credit they sought for supplementary education which included: college credit, certificate credit, continuing education credit, no credit, or participant suggestions for credit.

RESULTS AND DISCUSSION

Characteristics of the sample

The general characteristics of the sample can be observed in Table 1. The responding organizations in the sample reported 64.6% were engaged in either retail or service type businesses. The majority of the sample had less than 49 employees (91.5%). Approximately two-thirds of the firms were located in the survey area's main urban community (a population of 170,000) and one-third were situated in the surrounding rural area. Only four firms reported any type of union representation of the employees resulting in 97.1% of the sample being non-union.

Location where HRM practices and functions are performed

Respondents were queried as to the type of HRM practices and functions performed internally by the organization or an outside entity. The functions and practices were divided into four categories: staffing, training and development, employee evaluation and reward, and maintenance. Table 2 contains summary statistics of the participants' responses. First, the subjects were asked to indicate which HRM functions and practices were not performed at their location.

Only a few firms indicated that some specific HRM functions and practices did not apply to their location. Some firms may be too small to have employees or the practice is performed at another company location. Coping with employee benefits received the highest response rate of "does not apply" (eight or 5.7%).

The results indicate that over 90% of the reporting firms perform all or part of the HRM functions and practices. The only exception was training current employees which fell below 90%, with 86.6% reporting that they perform this practice at their location. MSMEs do not appear to outsource many HRM functions and practices. With the exception of training current employees less than ten percent outsource any HRM functions or practices.

The organizations that did outsource certain HRM functions and practice were asked to estimate the percentage of the functions and practices that were outsourced. For example, four firms indicated that they outsource administration of benefits and these four organizations reported a range of twenty percent to one hundred percent of this practice being outsourced.

Overall, the results illustrate that MSMEs perform most of the HRM functions and practices internally. Those MSMEs that outsource do so on a limited basis.

The level of HRM support systems

A series of questions were proposed to the sample about the presence of formal communication methods, formal management information systems (MIS), employee handbooks and if they consistently solicited legal advice. Table 3 presents the results of the HRM support systems survey questions. It is interesting to note that more firms have formal management information systems (60.3%) than use employee handbooks (51.9%). Considering the current dynamic and complex legal environment, it was surprising to discover that only 43.8% of the firms sought legal advice.

Personnel devoted to HRM

The respondents were requested to indicate how many full and part-time employees perform HRM functions and practices. Table 4 indicates the outcome of this inquiry. The firms in the sample disclosed that 60.4% had no full-time HRM personnel and 32.8% reported having only one full-time HRM employee. Furthermore, 57.8% of the firms indicated utilization of at least one or more part-time HRM employees. The respondents denoted that part-time personnel consumed an average of 16.4% of their time performing HRM functions and practices. The findings suggest that MSMEs do not deploy any significant numbers of their staff to accomplish HRM practices.

Level of HRM education and experience

The respondents had a mean of 16.3 years of HRM experience, with a range of less than one year (9 respondents) to three respondents declaring fifty years of experience. Table 5 depicts the participants' source and level of education and if the respondents had any type of HRM certification. The majority of MSME personnel rely heavily on teaching themselves the basics of HRM. Only 22.7% of the sample attained a college degree and a small percentage (9.9%) held any type of HRM certification.

Perceptions of expertise

Each participant was inquired to rate herself or himself as to the extent of knowledge she or he possessed concerning a variety of human resource activities. The responses could range from one (1) (very little knowledge) to five (5) (extensive knowledge) with three (3) being the average. Table 6 is a summary of the answers provided by the participants. The sample rated their knowledge of strategic human resource planning (2.24 mean), career development (2.83 mean) and recruiting (2.85 mean) the lowest expertise they possess. The three highest rated perceptions of expertise were employee training (3.53 mean), employee communications (3.56 mean) and employee relations (3.66 mean). The results may not be surprising after considering that many of the respondents are from organizations employing less than 49 employees. The small firm atmosphere would foster a sense of excellent employee communications and relations, and training would typically be on the job.

Desired sources of HRM education

The participants were requested to state a preference for the source and type of HRM education they require to increase their knowledge-base. Table 7 represents the sample's reactions to this examination of knowledge acquisition methodologies. Educators should note that only 5% of the sample desired formal classroom instruction. By far, the ideal form of instruction was succinct seminars (63.8%) followed by web-based instruction (39%). Respondents desire credit toward HRM certification (37.6%) and continuing education (35.5%) compared to obtaining college credit (16.3%). This would suggest that MSME personnel are interested in education that will assist them in attaining HRM certification and possibly a more practical orientation. One could conclude that this type of education would improve the percentage of certified HRM professionals in MSMEs. However, 23.4% of the respondents elected no credit at all for their educational initiatives.

DISCUSSION OF RESULTS

The data implies that the majority of MSMEs execute all of the basic HRM practices internally. The firms that indicated they are not engaged in some form of basic HRM functions and practices are presumably too small to have employees or do not need the activity due to the limited number of employees. For example, the largest number (eight or 5.7%) of "does not apply" responses delineated that managing employee benefits was not performed. This would indicate that either there are no employees or MSMEs do not provide benefits. Furthermore, nearly all of the MSMEs that perform HRM practices accomplish these practices internally and do not utilize outsourcing. This would tend to support the findings of Hornsby and Kuratko (1990) that entrepreneurs of small firms tend to manage HRM activities themselves. For those very few businesses (less than 10%) that do outsource some HRM functions and practices, the most likely function is training of current employees followed by other training and development activities. The outsourcing of training could indicate a lack of training ability by internal personnel. The limited number of MSMEs that outsource could signify a lack of resources required to outsource HRM practices and functions. Consequently, the observed trend in small firms to outsource additional HRM practices (Cook, 1999; Hirschman, 2000) is not apparent in MSMEs. While it may be true that MSMEs lack sophistication and formality in their HRM practices the majority of MSMEs represent that they are capable of performing the basic HRM functions and practices internally, and the majority engage in all of the basic HRM activities found in larger organizations.

Potential weaknesses considering today's complex legal environment are: only 51.9% of the firms utilize an employee handbook and just 43.8% seek legal advice. This finding would bolster the assumption that MSMEs lack sophistication in HRM practices. However, a large number of firms (60.3%) use formal management information system processes than employee handbooks or legal advice. It is possible that firms are using commercially available management information systems to assist with legal and employee issues. Considering the small size of the firms and the opportunity for informal communication with employees, it is valuable to note that 54.8% use some type of formal communication processes such as newsletters, regularly scheduled meetings, or email.

MSMEs, as a general concept, do not devote significant numbers of the organization's staff to HRM activities. The finding that only 60.4% of the firms have no full-time HRM employee(s) and 57.8% use one or more part-time employees to perform HRM functions and practices confirms this concept. The part-time employees spend a relatively small fraction (an average of 16.4%) of their time on HRM practices. Thus, for many MSMEs, HRM is not considered to be a full-time occupation within the organization and can be performed in addition to other job duties by part-time employees and by formal MIS processes. These findings tend to confirm subsequent research by Coulter (2003) that developed the perception that organizations do not have a human resource department or an individual solely dedicated to human resource activities until the organization evolves to a sufficient size (employees) to justify the position or department.

The personnel that perform HRM activities have a surprising amount of experience (an average of 16.3 years), although there is a wide range in experience levels. Nine respondents reported less than a year of experience, but three reported fifty years of experience. Moreover, their time is not devoted entirely to HRM and many have been performing these functions for a significant period of time.

The years of HRM experience are not a reflection of the level of formal education attained by the primary HRM staff member(s). Only 22.7% possess college degrees and even fewer have any HRM certification (9.9%). What knowledge the HRM personnel have obtained is predominantly from self-study or brief seminars. Consequently, there appears to be a need for additional education and certification opportunities for HRM practitioners.

The self-ratings of HRM expertise provided useful insight to the research. The sample rated themselves fairly low on the following HRM activities: strategic human resource planning, career development and recruitment. Of the three areas, recruitment is the most problematic considering the findings developed in the literature which suggest that selection and retention of employees are the most critical HRM practices for SMEs. The other two activities that were rated low are probably more dependent on firm size.

The family-like atmosphere of many MSMEs may be reflected in the ranking of employee relations and communications. The high ratings for employee training may demonstrate that job skills needed for MSMEs could be fairly simple to coach and the small number of employees reflects on the constant interaction and continuous job training that transpires (OJT). It is interesting to observe, however, that employee training was the primary HRM activity that was outsourced.

The results of the research suggest that HRM practitioners perform a wide range of practices within their firms and do very little outsourcing. A potential weakness is that approximately half of the MSMEs use employee handbooks and less than half seek legal advice on HRM issues. Only 39.6% of the MSMEs in the sample employ a full-time HRM staff member, but may utilize formal management information systems instead of HRM personnel. Furthermore, MSMEs incorporate HRM functions and practices along with the other required job duties of their employees. A preference was expressed for HRM education in succinct seminars and web-based instruction, and there appears to be a need for some type of HRM certification or continuing education credit.

IMPLICATIONS, LIMITATIONS AND FUTURE RESEARCH DIRECTIONS

HRM educators should evaluate the following: HRM practices employed; support systems utilized; and the level of education, experience and expertise MSME personnel exhibit in order to determine HRM classes and course content required. Realizing that information acquisition may be difficult because practitioners are busy and somewhat skeptical of academicians (Price, 2004). MSMEs prefer concise seminars or web-based courses that result in certification or continuing education credit. MSMEs desire education methodologies that are easily incorporated into the life style of entrepreneurial driven organizations.

The research has encountered several limitations worth noting. The data was collected from a region that would be considered in many respects rural area with only one SMA in the sample. The primary economic stimulus is agriculture. The results cannot be generalized to reflect HRM practices of MSMEs in densely populated metropolitan or urban centers. The research is primarily composed of firms (91.5%) in the sample that employ 49 or less individuals, and therefore is skewed heavily toward micro and small firms. The study did not measure MSME performance in relation to HRM practices nor sophistication or effectiveness of HRM practices. A model was not developed to determine the relationship between G1, G2, G3, and their impact on G4.

The objectives of this study were to provide a research agenda for extending the knowledge of HRM practices and support systems utilized by MSMEs, as well as develop new and additional data concerning the profile of HRM personnel in MSMEs and the preffered educational methodologies and credit desired. Future research could address such questions as, what level of HRM sophistication exists in MSMEs? What is the relationship between firm effectiveness and performance when contrasted to HRM practices utilized by MSMEs? What differences exist, if any, between rural MSMEs and urban/metropolitian MSMEs in HRM practices? What would a model that tested G1 + G2 + G3 = G4 reveal? What HRM classes and course content should be developed for MSMEs? The results of such research questions regardless of outcomes may clarify relationships for the benefit of both academicians and practitioners.

CONCLUSION

MSMEs perform basic HRM practices and functions internally that are normally incorporated in large organizations. MSMEs believe they are capable of accomplishing most basic HRM practices. The number of HRM practices was more advanced than forecasted by the researchers, especially with a sample primarily composed of firms (91.5%) with less than 49 employees (Hornsby and Kuratko, 1990; Deshpande and Golhar, 1994; Hill and Stewart, 1999).

The research findings tended to support the literature's conclusions on formalization. The results of the study would suggest disaffirmation of the literature to date concerning increased outsourcing trends (Cook, 1999; Greer, et al.;1999). Handbook utilization, legal advice solicitation, and the limited number of employees performing full-time or part-time HRM practices would further confirm de-formalization assumptions. Technology may be assisting MSMEs with HRM practices through management information systems and commercially available HRM software.

A negative relationship can be claimed for professional HRM practices, departments, and employees performing HRM activities in MSMEs due to resource limitations, small firm size, and reduced internal complexity. The basic HRM practices employed by MSMEs implies that MSMEs do realize the importance of HRM in recruiting and retaining employees as well as firm performance and competitive advantage. Possibly, HRM practices in micro and small firms can be synthesize down to the social and leadership skills of the entrepreneur, family member, or manger instead of a HRM department, formalization, or dedicated HRM employee(s).

The personnel that administer HRM practices and functions in MSMEs have more experience than would be anticipated. However, formal education and certification are lacking. The levels of experience and education of MSME human research management personnel are not correlated. The areas of weaknesses and strengths identified by the self-ratings of HRM expertise conforms to the literature identification of strengths and a weaknesses of HRM practices in SMEs.

Therefore, due to this informal flexible HRM style; a wide range of HRM practices and functions performed internally; support systems; and level of education, experience and expertise of the employees would advance that educational opportunities exist. Moreover, this education should be directed toward HRM certification or continuing education credit by means of succinct seminars or web-based instruction. Yes, MSME employees have busy lives with little time for education.

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Terry R. Pearson, West Texas A&M University David F. Summers, University of Houston--Victoria LaVelle Mills, West Texas A&M University

Table 1: Sample Characteristics

 Frequency Percent of Sample

Type of Business:
 Retail 39 27.7
 Industrial 28 19.9
 Service 52 36.9
 Financial Services 9 6.4
 Health Care 13 13.2

Size:
 0 - 9 Employees (a) 78 55.3
 10 - 49 51 36.2
 50 - 249 12 8.5

Location:
 Metropolitan/Urban Area 94 66.7
 Rural Area 47 33.3

Firms that have Union Representation (b) 4 2.9

n = 141

(a) The 0 point is included because some firms reported no employees
other than the owners.

(b) The percent of employees represented by a union ranged from 33.3%
to 66.7% within the individual firms.

Table 2: Location HRM Functions/Practices are Performed

 Frequency % of Frequency % of
 of Does Sample * of Your Sample *
 Not Apply Location

Staffing:

Who
determines
the number 5 3.5 130 99.2
and types of n = 141 n = 1
employees?

Who
identifies
potential job
applicants? 3 2.1 130 97.7
 n = 141 n = 133

Who makes
the final
employment
decision? 2 1.4 132 99.3
 n = 141 n = 134

Training &
Development:

Who
conducts
employee 2 1.4 127 94.8
orientation? n = 141 n = 134

Who is
responsible
for training 2 1.4 125 93.3
new n = 141 n = 134
employees?

Who is
responsible
for training 2 1.4 116 86.6
current n = 141 n = 134
employees?

Who is
responsible
for helping
employees 4 2.8 119 90.2
develop n = 141 n = 132
skills,
knowledge,
and abilities?

Who
discusses
advancement 6 4.3 129 99.2
opportunities n = 141 n = 130
with
employees?

Employee
Evaluation and
Reward:

Who decides the
knowledge, skills,
and abilities for 3 2.1 130 97.7
each job? n = 141 n = 133

Who evaluates
the performance 97.7
of each 4 2.8 129 n = 133
employee? n = 141

Who determines
the salary levels 97.7
for salaried 4 2.8 129 n = 132
employees? n = 141

Who determines
the hourly rates 98.5
for hourly 4 2.8 130 n = 132
employees? n = 141

Who determines
employee 98.5
benefits? 4 2.8 130 n = 132
 n = 141

Who administers
the benefits
program? 8 5.7 123 97.6
 n = 141 n = 126

Maintenance:

Who is
responsible for
ensuring 5 3.5 126 98.4
employee health n = 141 n = 128
and safety?

Who is
responsible for
communicating 4 2.8 129 98.5
human resource n = 141 n = 131
information to
employees?

Who is
responsible for
maintaining 4 2.8 128 97
personnel n = 141 n = 132
records?

 Frequency % of Range of %
 of Sample * Outsourced
 Outsourced

Staffing:

Who
determines
the number 0 0 0
and types of n= 141
employees?

Who
identifies
potential job
applicants? 2 1.4 50%-75%
 n = 139

Who makes
the final
employment
decision? 0 0 0
 n = 141

Training &
Development:

Who
conducts
employee 6 4.3 10%-25%
orientation? n = 135

Who is
responsible
for training 7 5 10%-50%
new n = 134
employees?

Who is
responsible
for training 16 11.3 5%-90%
current n = 141
employees?

Who is
responsible
for helping
employees 11 7.8 10%-50%
develop n = 141
skills,
knowledge,
and abilities?

Who
discusses
advancement 0 0 0
opportunities
with
employees?

Employee
Evaluation and
Reward:

Who decides the
knowledge, skills,
and abilities for 2 1.4 25%-50%
each job? n = 141

Who evaluates
the performance 2 2.3 10%-20%
of each n = 132
employee?

Who determines
the salary levels 1 0.7 10%
for salaried n = 141
employees?

Who determines
the hourly rates 1 0.7 10%
for hourly n = 141
employees?

Who determines
employee 1 0.7 20%
benefits? n = 141

Who administers
the benefits
program? 4 2.8 20%-100%
 n = 141

Maintenance:

Who is
responsible for
ensuring 4 2.8 25%-100%
employee health n = 141
and safety?

Who is
responsible for
communicating 1 0.7 50%
human resource n = 141
information to
employees?

Who is
responsible for
maintaining 3 2.1 50%-75%
personnel n = 141
records?

* The n is slightly different because some firms did not answer all
questions.

Table 3: The Presence of HRM Support Systems

 Frequency Percent of Sample

Formal Communication Process 74 54.8
Formal MIS System 82 60.3
Employee Handbook 70 51.9
Seek Legal Advice 60 43.8
n = 141

Table 4: Personnel Devoted to HRM

 Frequency Percent of Sample

Number of full-time personnel: n = 134

 0 81 60.4
 1 44 32.8
 2 7 5.2
 8 1 0.7
 21 1 0.7

Number of part-time personnel: n = 127

 0 54 42.2
 1 36 28.1
 2 20 15.6
 3 11 8.6
 4 4 1.6
 5 1 0.8
 7 2 1.6
 8 1 0.8

Table 5: Source and Level of HRM Education

 Frequency Percent of Sample (a)

Continuing Education 54 38.3
College Credit Courses 43 30.5
Company Sponsored Training 36 25.5
Seminars 70 49.6
College Degree 32 22.7
Self-taught 91 64.5
HRM Certification Type of
certification SHRM 14 9.9

(a) The percentages do not add to 100% because the respondent could
indicate all that applied.

Table 6: Perceptions of Expertise

 Mean Std. Deviation

Strategic Human Resource Planning 2.24 1.19
n = 132 (a)

Career Development 2.83 1.24
n = 134 (a)

Recruiting 2.85 1.14
n = 135 (a)

Job Design 3.07 1.24
n = 134 (a)

Employee Orientation 3.16 1.19
n = 135 (a)

Compensation 3.24 1.17
n = 135 (a)

Selection 3.26 1.12
n = 135 (a)

Employee Development 3.26 1.18
n = 135 (a)

Employee Benefits 3.26 1.28
n = 134 (a)

Performance Appraisals 3.28 1.27
n = 134 (a)

Personnel Records 3.34 1.29
n = 134 (a)

Safety and Health 3.35 1.17
n = 135 (a)

Employee Training 3.53 1.12
n = 136 (a)

Employee Communications 3.56 1.12
n = 135 (a)

Employee Relations 3.66 1.13
n = 134 (a)

(a) The n is slightly different because some respondents did not answer
all of the questions.

Table 7: Desired Source and Type of HRM Education

 Frequency Percent of Sample (a)

Formal Classroom Instruction 7 5

Concise Seminars 90 63.8

Web-Based Instruction 55 39.0

On Site Instruction 11 7.8

College Credit 23 16.3

Certificate Credit 53 37.6

Continuing Education 50 35.5
Credit (CEU)

No Credit 33 23.4

(a) The percentages do not add to 100% because respondents wereallowed
to check all that apply.