Managing Human Resources in New Zealand Small Businesses

Abstract

This paper reports on research into human resource management practices in small businesses in New Zealand. Owner-managers of 80 small businesses were interviewed on aspects of managing their human resources and on how they dealt with significant statutory requirements. The results indicate that HR practices in small businesses were predominantly informal, but largely effec tive. The research found that there were sound reasons for the informal approaches in the context of the small business and 'mainstream' HRM prac tices were inappropriate. The research concluded that it is difficult to gener alize about small business HRM practices and that important contextual factors, such as geographic location, influence the way a small business manages its human resources.