An Examination of the Relationship Between Strategy and Human Resource Management Practices among Small Businesses

Although it has been asserted that an organization's strategy is, or should be, a major determinant of its human resource management practices, little empirical research has addressed this linkage in small businesses. Therefore, we do not know whether managers of small firms have devoted resources to design, implement, and support human resource management practices that are aligned with firm strategy. Accordingly, the purpose of this paper is to examine the nature and extent of the relationship, if any, between strategy and human resource management practices among small businesses. The results offer little evidence of a consistent relationship. This suggests that an opportunity to build future competitive advantage may be realized through strategically managing human resources