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The relationship between formalization of HRM function and HRM intensity in SMEs: An empirical investigation in Sri Lanka

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Abstract

Human resource management (HRM) intensity is important for any type of business in which human resources play a vital role. However, little is known about HRM intensity in the context of small and medium-sized enterprises (SMEs). The aim of this study is to investigate the relationship between the formalization of HRM function and HRM intensity. The sample of the study consists of medium-sized enterprises operating in Sri Lanka. The results show that although the formalization of HRM function is low, HRM intensity is high. The findings also show that higher levels of formalization lead to a greater intensity in HRM practices.

Suggested Citation

  • Wickramasinghe, Vathsala, 2022. "The relationship between formalization of HRM function and HRM intensity in SMEs: An empirical investigation in Sri Lanka," Small Business International Review, Asociación Española de Contabilidad y Administración de Empresas - AECA, vol. 6(2), pages 529-529, December.
    • Handle: RePEc:aaz:sbir01:v:6:y:2022:i:2:p:e529
    DOI: 10.26784/sbir.v6i2.529
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    References listed on IDEAS

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    1. Neil Tocher & Matthew W. Rutherford, 2009. "Perceived Acute Human Resource Management Problems in Small and Medium Firms: An Empirical Examination," Entrepreneurship Theory and Practice, , vol. 33(2), pages 455-479, March.
    2. Shaoheng Li & Christopher J. Rees, 2021. "Determinants of the formalization of human resource management practices: An empirical study in SMEs in eastern and western China," Journal of Small Business Management, Taylor & Francis Journals, vol. 59(4), pages 735-755, July.
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    More about this item

    Keywords

    HRM formalization; HRM formality; human resource management; HRM intensity;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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