Question
Labour management Chapter summary An overview of labour management practices in small firms in both Britain and Europe. It is evident that the extant evidence
Labour management
Chapter summary
An overview of labour management practices in small firms in both Britain and Europe.
It is evident that the extant evidence and conceptual analysis regarding the employment
relationship in smaller organisations has advanced substantially over recent years. In a
recent critique of academic progress, Barrett and Rainnie (2002) argued this debate
had, in fact, stagnated, with the 'small is beautiful' hypothesis still evident. This
stagnation arose largely from the ongoing ignorance of structural forces and
uncertainties by key researchers. However, in a robust response to this argument, Ram
and Edwards (2003: 720) point to the increasing recognition given to the analysis of
labour management in small firms within leading employment relations texts, research
monologues ('Marlow et al., 2004) and critical empirical research (Workplace
Employment Relations Survey, 1998) as a discrete and crucial area of study. This focus
has been made possible by the expanding body of debate, analysis and empirical
evidence afforded to employment relations practice and policy within smaller firms. As
noted by Ram and Edwards, the theoretical approach has become increasingly
sensitive to the manner in which the tensions surrounding managerial control of labour
are articulated in the smaller organisations; moreover this analysis recognises both
market imperatives and internal managerial strategies. The use of qualitative
methodologies to explore and illustrate those processes that shape the employment
relationship has substantially advanced the understanding of concepts of informality,
negotiation and the prevailing social relations of production. In focusing upon the
creation and recreation of the employment relationship upon a daily basis, this detailed
evidence has also enabled a detailed exploration of the differentiated approaches to
regulatory compliance.
It is recognised that there remains much to do in this area, particularly in the analysis
of heterogeneity; although common trends such as informality have been identified, it is
now essential to explore how this is influenced with respect to specific contexts.
Moreover, although the arguments presented by Barrett and Rainnie (2002) regarding
analytical progress are disputed, it is accepted that the interplay between structure and
action in terms of market constraints and firm context merits further attention. Moreover,
the issue of how firms change in respect to labour management practices,
particularly as they grow, is an area of considerable interest. In the case of European
countries again, commonalities were identified but, equally, the influence of differing
national policy and practice was recognised. Questions arise regarding the impact of
regulation upon smaller firms in France and Germany, why trade unions are influential
in Finland and Scandinavia and, of course, the implications for small firm performance
and standards of employment in these differing cases.
As such, this chapter has provided a flavour of the differences and similarities that
define the employment relationship in smaller firms. Since the 1990s, a growing body
of empirical evidence and a distinct conceptual analytical framework have emerged to
illustrate and explore key issues and it is expected that this extant literature will continue to grow in future in terms of both depth and sophistication.
Questions:
1. Discuss how and why the management of labour in small firms differs from
approaches in larger organisations.
2. Evaluate whether the size of an enterprise can critically affect the tension
inherent in the labour-capital relationship in modern market economies
3. Examine the reasons why the majority of small firm owners and their
management teams adopt an informal ad hoc approach to the management of
employees.
4. Outline the approach of your current government to the management of people at
work and discuss how contemporary attitudes towards managing people in small
firms will accord with such an approach.
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