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.