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

The human side of small and medium enterprises

The limited research conducted on Human Resource Management (HRM) in small and medium enterprises (SMEs) suggests that acquiring, developing, compensating and retaining employees is a major problem. A Queensland-wide study of Human Resource Management Practices in SMEs (with a sample of 431) found a surprisingly high take-up of human resource management practices. The present paper discusses this study, presents the results obtained and reflects on its implications for human resource management in SMEs

How do Australian SMEs plan?

The objective of this paper is to report on survey research focused on strategic planning in small-to-medium enterprises (SMEs) aimed at exploring how Australian SMEs plan. More specifically, answers to the following questions are sought across 1230 Australian SMEs utilising survey methodology: What is the nature and prevalence of strategic practices in Australian SMEs?; and to what extent does firm size differentiate the patterning and prevalence of strategic practices? The findings add to the little empirical research showing the principal activities and tools that comprise the planning practices undertaken in Australian SMEs. Most of the research undertaken to date within the Australian context has been directed towards identifying the value of planning and investigating the presence or absence of formal planning in small businesses. Overall, and in both small and medium enterprises respectively, strategic thinking and action seem to be undertaken with the use of a framework of a written business plan which is in line with the ‘deliberate’ approach. This contradicts the notion that SMEs tend to employ an ‘emergent’ strategic approach. Furthermore, even though both small and medium Australian enterprises tend to employ a deliberate approach, it is clear that medium enterprises employ written strategic/business plans significantly more than small organisations. This confirms previous research that larger firms tend to undertake strategic action within a framework of a written business plan to a greater extent than small firms. The mere fact that SMEs plan and adopt planning suggests positive benefits, however even though Australian SMEs seem to employ a deliberate approach to strategy making, few sophisticated planning techniques were employed. As a result strategic management courses targeted to SMEs will be well advised to focus on less time-consuming and expensive tools to use that are more suited to the needs of SMEs

Queensland Watt Savers final report

For a small business or community organisation which is poor in time as well as financial resources and continuous focus on their core business is paramount, being aware or sufficiently informed on optimal ways to identify, manage and reduce their energy use requires a great deal of motivation. However, with the right information and the right support, the benefits and payback of energy efficiency is a proven, effective means of responding to ever-increasing energy costs. Over 2013-14 CitySmart’s Queensland Watt Savers program demonstrated that, by overcoming the target group’s barriers, engaging, educating and encouraging small and medium enterprises and community organisations to better understand energy efficiency, they can make informed decisions about their energy consumption – and thereby reduce their operating costs. Watt Savers is a unique solution in a flexible energy information and customer service model that empowers SMEs and community organisations to take action through convenient, self-paced engagement channels designed to meet their needs. Through the use of Watt Savers’ suite of customised energy tools, more than 300 SMEs that had previously considered energy efficiency a low priority have now taken action. Following rigorous post-program evaluation, the effectiveness of the Watt Savers program has been proven with key results including: • 338 participants located throughout the greater Brisbane area reporting 558 energy efficiency actions undertaken during the program. • Two thirds of participants indicating that they felt more informed about energy efficiency issues after engaging in the Watt Savers program. • Total average energy consumption being reduced by an average of 10,177 kWh per annum, representing an estimated 4% cost saving. Following the success of the initial program, CitySmart is confident there is significant opportunity to extend Watt Savers into larger segments of the market and the program can be leveraged to service and support a wider SME audience

When Entrepreneurial Leadership Identity and Passion Meet Venture Growth Intention

Within the emerging domain of entrepreneurial leadership research, gender issues have been largely ignored. This study aims to examine the nexus between entrepreneurial leader identity, entrepreneurial passion, and growth intention. This is done within the stacked context of being a woman entrepreneur, and in rural, regional and remote (RRR) Australia. This unique study draws upon a cross-sectional survey of 99 women entrepreneurs, employing a partial least square structural equation model. The study has found a positive relationship between entrepreneurial leader identity on the one hand and growth intention and passion on the other but could not find any conclusive evidence of a relationship between entrepreneurial passion and venture growth intention. The study opens new research avenues into the novel construct of entrepreneurial leader identity and helps to better understand the dynamics of RRR women entrepreneurship in the Australian context

The role of strategic planning and HR managerial involvement and types and sources of analytic information on SME performance

The concepts and role of strategic planning and HR managerial involvement is less examined in the context of small and medium enterprise than it is in the rubric of larger firms. Further, the types and sources of analytic tools which SMEs utilise are even less the focus of HR and organisational research, despite the plethora of theory (i.e. network, institutional, resource-based) available to scholars. Our paper focuses on the problem of examining the mediation of strategic planning and HR managerial involvement in driving each of three different analytic sources or tool clusters/factors, and their subsequent impact on two SME performance measures (financial and an alternative performance measure). Our three measures of analytic types include: Normative; Tools; and Network oriented analytic tools used by the SME. Normative analytics includes: Use of SWOT analysis, spreadsheets, brainstorming, and professional referents such as company accountants and external consultants. Tool-based analytics comprises: TOWS, Internal and External Factor Evaluation, Company Performance Matrix, and Porter’s five forces model. Finally, Network analytics focuses on using informal networks including knowledgeable friends, knowledgeable family and company auditors. The data draws from a large SME survey of over 1200 Australian firms, broadly representative of population industry and size characteristics. Our results indicate a tension between formal or normative/tool analytic elements and positive and negative outcomes: Somewhat predictably, strategic planning and HR managerial involvement best drive Normative analytic approaches, and these, in turn have a positive, but weak, impact on SME Financial performance. However, Normative analytics also drives uptake of Tool-oriented analytics (association between the analytic types), which in turn had a weak negative impact on Alternative performance. Finally, and perhaps most interestingly for SME scholars, we found a positive, but weak, relationship between Network-oriented analytics and Alternative performance. These results are quite pertinent given the significant relationship between Alternative performance and Financial performance, which reveals the indirect negative impact of Normative/Tool-oriented analytics on Financial performance, through Alternative performance, and the positive impact of what is largely informal Network analytic sources on Financial performance through Alternative performance

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