Managing change: mental models of SME managers

This study fills some of the gaps in existing studies on organisational change in SMEs by considering the management of change in SMEs in Queensland, Australia, built around the concept of employee participation. First, the paper examines what mental models SME managers espouse in relation to the management of organisational change; and whether small and medium organisations differ in relation to how they manage change. Data was obtained from a state-wide survey of 340 Queensland SME managers, conducted in 2008. The findings confirm the paucity of consultation in Australian workplaces. Within the context of change management, SMEs could benefit from combining their positive views on widespread involvement (including inspiring a shared vision and personally communicating the future vision; communicating the change message repeatedly up and down and across the organisation; and enabling others to act: by energising, empowering, building teams, tangible support with appropriate resources and structures) with a greater degree of ‘actual’ participation from employees in decision making

Organisational change in SMEs: change innovators or laggards?

In the international arena, the development and strengthening of SMEs is a priority area for the Asia-Pacific Economic Cooperation due to the significant potential that SMEs hold for future economic growth. A substantial amount of change management research exists internationally and in Australia in relation to the causes, processes and outcomes of organisational change in large organisations. However this does not reflect the change scenarios in SMEs. Furthermore, the academic and professional discipline of organisational change in Australia, while well-researched in some areas, remains embryonic when translated to SMEs in a dynamic environment. Very few large scale national surveys have been conducted in Australia. This study is filling the theoretical gap in relation to the theory and practice relating to the nature, extent and characteristics of organisational change in Australian Small and Medium Size Enterprises (SMEs). The objective of this paper is to analyse the nature and extent of organisational change in Australian SMEs. Our research, through a representative large sample survey (n=1230), provides an insight into the contemporary nature and usage of organisational change and provides a picture of contemporary change management in Australian SMEs. The study employed the use of quantitative data which were collected through a national mail survey of 1230 Australian SMEs. The focus of this study is on three interventions for achieving organisational change, including a range of structural; strategic and human process change practices. The results indicate that SMEs are neither change innovators nor laggards, since change practices are only moderately represented in Australian SMEs. Taken together with low participation of employees in the decision to employ these changes; low levels of union membership; a low presence of specialist HR managers in SMEs; and the fact that the majority of SMEs that do have written strategic plans do not use it to develop operational plans and drive day to day operations; a 'change innovation' scenario in Australian SMEs is unlikely. We argue that the pursuit of organisational change should not simply serve as drive for competitive advantage (often resulting in a deterioration of employment conditions), but, rather, it should accommodate the needs of employees, who should also directly benefit from these change initiatives. The advantages of involving employees in change initiatives are numerous. The agenda in Australian SMEs therefore needs to be shifted away from managers/company-driven change (with rhetoric of employee involvement) to genuine and greater employee participation in change initiatives. Questions concerning the substance of change raise a number of practical concerns over how to successfully manage organisational change. Two elements of particular importance centre on understanding what the change programme is about and also, ensuring that employees who have to adopt to new working practices (the changing context) are adequately trained in the use of techniques and/or procedures

High performance management practices in owner-managed SMEs

Objectives: While there is extensive management and academic literature on the topic area of high performance management practices (HPPs) internationally, research on HPPs in the Australian context is limited. Furthermore, research on HPPs has focused predominantly on large organisations and is largely a new direction for research in SMEs. This study attempts to fill some of the gaps in existing studies by considering a wide range of HPPs in Australian SMEs, with particular focus on owner managed SMEs. The objective of this paper is to examine the extent and nature of HPPs in owner managed Australian SMEs and the impact of certain organisational characteristics on these practices. The research questions under examination include: What is the prevalence of HPPs in owner managed Australian SMEs?; and what is the impact of firm size, the presence of a HR manager, and the existence of a strategic plan on HPPs in SMEs? Prior work: Undertaking this research is justified on the basis of: there is a gap in the theory relating to HPPs in SMEs and in particular owner managed SMEs, owing to the fact that most studies on HPPs are based in large organisations; globalisation and the pace of economic change are forces that are driving the need for greater understanding of HPPs (Burke 2002); and there are high expectations for growth and performance of SMEs in the economic growth and development plans for the Asia Pacific and Australian region (Asia Pacific Economic Cooperation 2002). Approach: A survey questionnaire was sent out to 4000 Australian small and medium-sized enterprises (35% response rate). A Dun and Bradstreet database was used and a stratified sample employed. A chi-square analysis was employed to determine whether there were significant differences in relation to high performance practices in small vs. medium organisations, SMEs with and without a HR manager; and organisations with and without a strategic plan. Results: The results of this study indicate that the overall picture regarding the incidence of high performance practices in Australian owner managed SMEs looks quite bleak. Significant positive relationships were found between demographic variables and HPPs in SMEs. Implications: Large firm solutions may not be appropriate. A more balanced approach to prescribing and researching management solutions in SMEs is needed; an approach with a greater emphasis on the SME sector. Value: This paper will provide an improved understanding of HPPs in Australian SMEs which will help the sector to better meet performance expectations

Practices and attitudes of female SME managers: training, networking and mentoring [Virtual presentation in english]

The purpose of this study is to examine the practices and attitudes of female SME managers in family firms on human resource development practices with particular focus on training, networking and mentoring. Research on this particular topic has focused predominantly on large organisations and is largely a new direction for research in SMEs. This study attempts to fill some of the gaps in existing studies by focusing specifically on a few selected Small and Medium Size Enterprises (SMEs). The objectives of the study are to: determine the challenges females perceive as managers within family owned and managed firms in the SME sector; ascertain the advantages female managers perceive to be derived from working in a family owned/managed SME; understand the importance of qualifications in females achieving their positions within the organisation; understand the occurrence of mentoring in SME’s – formally or informally and specific activities and benefits of mentoring; examine whether female managers in family firms have discovered that mentoring and networking has assisted them in achieving their managerial roles; examine the training practices utilised within SMEs; and to understand the dynamics of female managers, family firms and the SME sector, generally, in relation to strategic plans, goals, objectives, future directions (their position in five years), who attends to HR functions in SMEs, where they obtain support and guidance and internal and external influences on SMEs. The study utilised a case study approach with the focus on interview data obtained in six family SME organisations located in the region of Southeast Queensland, Australia

Organisational change in Queensland small and medium size enterprises (SMEs)

[Abstract]A substantial amount of change management research exists internationally and in Australia in relation to the causes, processes and outcomes of organisational change in large organisations. However this does not reflect the change scenarios in SMEs. Furthermore, the academic and professional discipline of organisational change in Australia, while well-researched in some areas, remains embryonic when translated to SMEs in a dynamic environment. Very few large scale state-wide and national surveys have been conducted in Australia. This study is filling the theoretical gap in relation to the theory and practice relating to the nature, extent and characteristics of organisational change in Queensland Small and Medium Size Enterprises (SMEs). The objective of this study was to examine the nature and extent of organisational change in Queensland SMEs. Five research questions were developed to inform this research objective, including: What are the forces of change in Queensland SMEs?; To what extent does the main change driver (change agent) in SMEs possess effective change management skills?; What mental models do Queensland SME managers espouse in relation to the management of organisational change?; What is the nature and prevalence of change interventions for achieving organisational change in Queensland SMEs? ; and What is the impact of organisational size on the nature and prevalence of organisational change in Queensland SMEs? Eleven hypotheses in relation to the last research question were developed and tested. To answer the research questions, the study employed the use of quantitative data which was collected through a state-wide mail survey of 1000 Queensland SMEs. A 34 percent response rate was achieved. The survey was adapted from a previous validated questionnaire measuring employee management and organisational change practices in Australian SMEs. The results indicate that by far the most important factor in the decision to introduce change in Queensland SMEs was customer expectations for quality. The survey results also show that, overall, the SMEs were able to achieve the objectives they pursued when implementing significant changes. The findings indicate that the main change drivers in Queensland SMEs possess a moderate profile in relation to change management skills. Furthermore, the findings reflect the view that managers tend to support forms of limited employee participation and consultation. Change practices are only moderately represented in Australian SMEs. Taken together with low participation of employees in the decision to employ these changes; low levels of union membership; a low presence of specialist HR managers in SMEs; and the fact that the majority of SMEs that do have written strategic plans do not use it to develop operational plans and drive day to day operations; a ‘transforming’ scenario in Queensland SMEs is unlikely. However, one very positive trend is the achievement by the majority of SMEs of change objectives pursued. Nevertheless, the fact that the mental models of Queensland SMEs favoured managerial prerogative is of more significance for the effectiveness of both the management of employees and the performance of SMEs. The findings show that organisational size is significant for the factors important in the introduction of organisational change, however size is not particularly significant in relation to the objectives pursued and achieved in the introduction of organisational change. Furthermore, size is also not significant in relation to the extent to which the main change driver (change agent) in SMEs possesses effective change management skills, and the mental models that Queensland SME managers espouse in relation to the management of organisational change. In contrast with these findings, the analysis suggests that organisational size is significant for the prevalence of change interventions/practices, with medium organisations employing change interventions to a significant greater extent. The thesis concludes with commentary on the practical implications for SME managers and policy and several directions for future research

Organizational change in small and medium enterprises (SMEs)

This study fills some of the gaps in existing studies on organisational change in SMEs by reporting the introduction of a wide range of organisational change practices and strategic changes in Australian SMEs (N=1435). It further examines the triggers for organisational change in Australian SMEs and the impact of certain demographic factors upon organisational change practices and strategic changes. Owing to the dearth of national data on organisational change in SMEs, the results of this study are used to determine whether Australian SMEs could be characterised as “stagnating” or “transforming”. The results reveal a moderate adoption of organisational change practices and strategic changes. The findings by themselves do not support a “stagnating” scenario; however the lack of negotiated agreement in the introduction of strategic changes is not supportive of a “transforming” scenario either

Human resource acquisition in small and medium size enterprises (SMEs) [Virtual presentation in English]

It is easier to replicate technology than to replicate the unique combination of individuals employed within the organisation. In SMEs this is even more crucial because each employee constitutes a larger percentage of the total workforce. Given the considerable importance of ensuring that the right blend of people is employed in an organisation, the recruitment and selection of employees is of strategic importance to SMEs. Only a handful of research studies have ever been conducted on recruiting and selection practices in SMEs. By comparison, numerous studies have been conducted on recruiting practices in large well-established organisations. This study attempts to fill this gap, by examining and reporting the results of a national survey on the prevalence of recruitment and selection practices in SMEs (N = 1435). It further examines the impact of demographic factors such as organisational size, the presence of a HR manager and the existence of a strategic plan on recruitment and selection practices in Australian SMEs. The results revealed that SMEs used a combination of internal and external sources and methods for recruitment. Recruitment practices were significantly more prevalent in medium-sized enterprises; where a HR manager was employed; and where a strategic plan existed. A similar picture emerged regarding the relationship between the prevalence of selection practices and these demographic variables. A greater understanding of recruitment and selection practices may lessen the frustration that SME owners experience as the result of wrong selection decisions. The significance of this study lies in the reality that SMEs need strong resource acquisition practices to ensure their growth. Recruitment and selection is a major part of this and forms the foundation for all the other HRM activities

Managing environmental sustainability in SMEs: learning from the stars: a research report on developing a best practice framework for managing environmental sustain-ability in Australian small and medium size enterprises (SMEs)

The main objectives of this study were to examine firstly, how the management of practices and capabilities of environmental sustainability are developed, maintained and managed in SME‘environmental sustainability leaders’, with the view to develop a conceptual framework for environmental sustainability (ES) change management in Australian SMEs. These ‘star’ SMEs or‘sustainability leaders’ have distinguished themselves as recognised leaders in implementing environmental sustainability initiatives. Secondly, this study examined what learning in particular is involved in developing environmental change practices and capabilities; thirdly,how this learning might be fostered by other leaders and professional accountants in SMEs