Having a Human Resource Manager in a Canadian Small Business: What Difference Does It Make‪?‬

Introduction Where human resource (HR) departments were once the dumping ground for those who where not capable performers (Sloan, 1983), they are now considered a means to developing a competitive advantage (Huselid, Jackson and Schuler, 1997; Way and Thacker, 2001). Research has indicated that HR practices such as valid selection methods, compensation based on performance, and formal training can have a significant impact on organizational performance (see Combs Hall and Liu, 2003). In recent years, small business has created the greatest number of net new jobs within-and has been a major component of the economic engine of-the North American economy (Way, 2002: 766). Therefore, any method that can engender competitive advantage within small business is important not only to these businesses but also to the entire North American economy (Way, 2002: 766). If, as noted above, valid selection methods, compensation based on performance, and formal training can have a significant effect on the bottom line, then it would be useful to determine the extent to which Canadian small businesses use these HR practices.