Managing the performance of non-family employees: a case study of a China-based family-SME. Issue 2 (4th May 2019)

• Record Type: Journal Article
• Authors: Haslan, Risky Harisa; Ramos, Hazel Melanie L.; Mustafa, Michael
• Is Part Of: Small enterprise research. Volume 26:Issue 2(2019)
• Page Start: 125
• Page End: 142
• Publication Date: 2019-05-04
• Subjects: Performance management -- family business -- non-family employees -- case study -- organisational justice; Small business -- Pacific Area -- Periodicals; Small business -- Management -- Periodicals; Small business -- Management; Pacific Area; Periodicals; 658.02209905
• DOI: 10.1080/13215906.2019.1603118
• Languages: English
• ISSNs: 1321-5906

Abstract

ABSTRACT: Family-SMEs utilize their non-family employees to achieve their developmental goals and aspirations. A particular challenge facing many Family-SMEs is how to effectively manage and motivate their non-family employees. Performance management systems represents an important means through which Family-SMEs can achieve this. The limited empirical evidence on performance management systems in Family-SMEs suggest that they are largely ad-hoc in nature and biased towards family-members. Drawing on organizational justice theory, this study seeks to explore how Family-SMEs performance manage their non-family employees, and non-family employees' reactions to such process. Based on an illustrative case study, we found that Family-SMEs utilized both informal and formal practices to manage their non-family employees' performance. Moreover, we also identified how family involvement in management can heighten a sense of injustice concerning the process among non-family employees'. Our findings make a valuable contribution to the existing but limited literature on the performance management of non-family employee.