Organisational success is dependent upon the effective management of people. At the
heart of this process is an organisation’s HRM strategy, which should seek to align
HRM practices with the wider organisational objectives. This paper investigates
employee relations as one key area of Strategic Human resource management
(SHRM) within construction SMEs. The aim of this part of the research is to examine
the multi facetted nature of the SHRM function and particularly the perspectives of
employee relations. These issues were explored via semi-structured interviews with
the strategy makers and HR or middle mangers of construction SMEs. It provides an
insight into the way in which employee relations are implemented as part of the
SHRM function. A wide range of techniques were utilised within a small number of
organisations, the larger organisations within the group exhibited highly structured
objectives and procedures. It forms part of a wider study which aims to explore
further the components and types of SHRM strategies used by construction SMEs in
order to improve organisational performance. The ultimate outcome of the research is
to develop a model of SME SHRM practice that helps firms to reconcile their HRM
needs with the problematic operating context provided by the industry