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Citation : Bousquet C., Delattre M., Lichy J., (2023). Developing Human Resources Management Performance in Industrial type SMEs
-The role of proximity managers. Revue Française de Gestion Industrielle, 37(1), 07-23. https://doi.org/10.53102/2023.37.01.1154
Historique : reçu le 07/08/2022, accepté le 18/04/2023, en ligne le 20/04/2023
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2023, Vol. 37, No. 1, 07-23
Revue Française de Gestion Industrielle
article en open accès sur www.rfgi.fr
https://doi.org/10.53102/2023.37.01.1154
Developing Human Resources Management Performance in Industrial type SMEs –
The role of proximity managers
Carole Bousquet 1, Miguel Delattre 2, Jessica Lichy 3
1 IDRAC Business School, carole.bousquet@idraclyon.com ,
2 University Jean Moulin Lyon 3, iaelyon School of Management, UR Magellan, miguel.delattre@univ-lyon3.fr
3 IDRAC Business School & University of Sunderland Faculty of Business, Law & Tourism, jessica.lichy1@idraclyon.com,
Abstract : The effective management of human resources is a central issue for many companies, particularly
small-to-medium sized enterprises (SMEs) in Industry, which often lack a designated HR function. Usually, the
HR function and management of HR falls upon the manager, who faces diverse issues that can hinder
innovating or implementing a more efficient system of managing HR. This paper addresses the issue of
developing sustainable and innovative HR practices in industrial SMEs. The loose structure of the SME
facilitates organizational agility but can also bring about disorganization, dysfunction and sub-optimum
performance. Using research-intervention, this paper contributes to the literature on the impact of developing
HR practices on employee performance in SMEs. It explains the key roles of management and local managers
in facilitating and developing a more adapted and efficient HRM interaction.
Keywords : HRM, Performance, Intervention-research, Proximity Manager, Industrial SME
Développer une gestion performante des ressources humaines dans les PME de
type industriel - Le rôle des managers de proximité
Résumé : La gestion performante des ressources humaines est une question centrale pour de nombreuses
entreprises, en particulier les petites et moyennes entreprises (PME), qui n'ont souvent pas de fonction RH
désignée. Habituellement, la fonction RH et la gestion des RH incombent au manager, qui est confronté à
divers problèmes pouvant entraver l'innovation ou la mise en œuvre d'un système plus efficient. Cet article
aborde la question du développement de pratiques RH durables et innovantes dans les PME industrielles. La
structure souple des entreprises de petite taille facilite l'agilité organisationnelle mais peut également
entraîner une désorganisation, un dysfonctionnement et une performance sous-optimale. En utilisant la
recherche-intervention, cet article contribue à la littérature sur l'impact du développement des pratiques RH
sur la performance des employés dans les TPE/PME dans le milieu de l’industrie. Il explique les rôles clés de la
direction et des managers de proximité dans la facilitation et le développement d'une interaction de GRH plus
adaptée et efficace.
Mots clés : GRH, Performance, Recherche-intervention, Manager de proximité, PME industrielle
ISSN: 0242-9780
eISSN: 2804-9284
Developing Human Resources Management Performance in Industrial type SMEs - The role of proximity managers
8 ©2023, Revue Française de Gestion Industrielle, Vol. 37, N°1
1. INTRODUCTION
Despite the proliferation of HRM research, only a
small fraction explores the context of small-to-
medium-sized enterprises (SMEs) – i.e., fewer than
250 employees. The Bpifrance’s SME observatory
lists 3.82 million companies working in non-
agricultural sectors in 2015, with 136,500 SMEs
employing over 4 million employees, accounting for
23% of the value added produced. Yet, little
attention is paid to implementation of tools,
systems and new practices (Ruel & Grezolle, 2022).
This leads us to question the extent to which it is
possible to develop efficient HR practices outside
the specialized activity of a functional HR structure.
It raises the issue of sourcing in-house solutions to
make HRM more effective regarding administration,
recruitment, skills development, workload balance,
employee development, adequacy between
resources and company strategy. The literature on
HRM in micro-firms (fewer than 5 employees) and
SME tends to emphasize that there is no pre-
established model in this area (Payre, 2017, p.35).
According to the adage ‘Small is Beautiful’
(Schumacher, 1973), the size of these organizations
makes them both more agile with respect to their
environment and more ‘personalized’ in their
internal organization (Delattre & Roche, 2018). It is
possible, however, to highlight generic
contingencies in these structures, such as the
predominant role of the manager and the absence
of an HR actor (apart from the manager
him/herself). Accordingly, we hypothesize that
supervisory staff and local managers occupy a
privileged place in initiating and developing adapted
and innovative HRM practices in SMEs.
To this end, we review relevant research to identify
issues related to the shortcomings or deficiencies of
HR skills in SMEs linked to the absence of HR actors,
dedicated and clearly identified devices and tools.
We present the exploitation of field materials
resulting from research-intervention (Buono, Savall
& Cappelletti, 2018) conducted in a trading and
ripening SME.
This research adopts a transformational approach,
co-constructed between the company's actors and
the researchers mandated by the manager. In the
first phase of the research-intervention, a socio-
economic diagnosis was undertaken with each actor
through semi-directive interviews, individual
interviews for the management and the supervisory
staff, plus group interviews for the personnel. The
aim of the semi-structured interviews was to unpack
the actors' appreciation of their quality of life and
working conditions, as well as their contribution to
the development of their company's overall
performance. Some 300 verbatim reports were
collected from 22 individuals (n=15) and group (n=7)
interviews with 35 permanent employees (excluding
temporary workers). During the change process, an
issue emerged: the decentralization of HRM acts on
the management as a lever for the development of
the social and economic performance of the
company. We then re-examined the interviews from
the perspective of HRM practices. This analysis –
independent from the initial research-intervention –
enabled us to identify shortcomings in the
integration and management of the HR function
within the company. We present the results of this
analysis then explain the improvement measures
and actions implemented by the company's players
to develop a more integrated and efficient approach
to HRM. Finally, the strategic role of management is
highlighted in the implementation of this approach.
2. DEFICIT OF ARTICULATION BETWEEN HRM
AND STRATEGY
Shortcomings in HRM systems and tools in SME-type
structures can be explained by the relationship
between the function of (i) strategy and (ii) HRM.
There is often tension between the definition of the
strategic project and the way to conduct it and
mobilize resources. It should be noted that an effect
of mimicry between structures of different sizes can
contribute to marginalizing the practices of smaller
structures.
2.1 The contribution of HRM to overall
performance: a relationship to be (re)built?
Discourse on corporate performance is often
associated with strategy and interpreted in terms of
economic criteria, overlooking social performance.
There remains a gap between theories of HRM
perceived as a real strategic stakeholder and the
C. Bousquet, M. Delattre, J. Lichy
©2023, Revue Française de Gestion Industrielle, Vol. 37, N°1 9
practices observed in companies. The HR function,
which bears HRM practices in organizations, often
intervenes a posteriori to develop strategies during
implementation (Bousquet, 2018). Under these
conditions, it is a major challenge for the HR
function to identify, prepare and make available in a
timely manner the skills needed to carry out its
strategy (Réale & Dufour, 2006). Authors (Cooke &
Saini, 2010) point to problems of non-alignment of
HRM practices and organizational goals (Defélix,
Mazzilli & Gosselin, 2012) – for example, HRM
evaluations favour short-term results (hiring goals in
year N+1; downsizing within one or two years; a
percentage of payroll sent to training, etc.). This
observation is supported by Bootz, Schenk &
Sonntag (2014; 2017) who describe HRM practices
that are insufficiently explicit and connected to the
company's strategy and the manager’s vision – a
strong characteristic of SMEs (Mahé de Boislandelle,
1994).
Underscoring the contribution of HRM to the overall
performance of the firm, we mobilized the reading
grid of the systemic ago-antagonist (Bernard-Weil,
1994, p.315-335) to study the complementarity of
the strategic and HR functions. The distinct feature
of agonistic (synergistic effects) and antagonistic
(opposite effects) couples is that the clash generates
positive and non-destructive effects. This clash leads
to an equilibrium (Perroux, 1975, p.71) under
tension (of opposing and joint support) over time.
Balancing corresponds to the search for a return to
equilibrium, rather than focusing on a hypothetical
(optimum) equilibrium. Far from static, equilibrium
is created in a dynamic process of continuous
reconstruction, resulting from a tension between
permanent actions and counter-actions – either a
strategic type (new products or markets) or HR type
(available skills, required workers).
The notion of ago-antagonist has been used in
management sciences, both to inspire a model of
representation of the organization (Morin, 1980) or
the firm (Trousselle, 2014) and to characterize
certain relationships – for example between control
and strategy (Denis, 2002). Ago-antagonist
characterizes the relationship between the
functions of HRM and strategy; they have
established inseparable, complex and inextricable
relationships to ensure the survival and
development of a productive organization, and thus
to enable its viability and overall performance in the
medium-to-long term. It is widely agreed that the
HR function can have different types of contribution
as a ‘strategic partner’: HR System Administrator,
Employee Champion, Strategic Partner and Change
Agent (Conner & Ulrich, 1996). However, even if this
strategic dimension can be illustrated by a stronger
presence of HR directors on the executive
committees, the strategic role of HR directors is not
evolving (Lawler, Boudreau & Mohrman, 2006). This
feeling of immobility can be explained by the fact
that HR directors are more comfortable defining and
implementing systems than taking a position and
acting in line with strategy itself (Le Boulaire &
Retour, 2008). The instrumental dimension of HRM
has been favoured since the 1980s (Pigeyre, 2006).
In smaller structures, the design of the function is
less important than the practices to better support
the activity.
Defining a roadmap for negotiating the conditions
for a company's survival/development and viability
requires a twofold perspective: firstly, externally-
oriented (business strategies: the market),
secondly, internally-oriented and the mobilization
of human potential (Savall, 1975; Savall & Zardet,
2015, p.93-94). The strategic models are often
vertical and top-down (Mintzberg, 2009), coupled
with pseudo-Taylorism organization. Consequently,
the constraints imposed by an increasingly
turbulent environment have favoured the
emergence of contingency strategies (Amblard,
Bernoux & Herreros, 2015). Consequently,
organizations develop proactivity and become more
agile (Worley et al., 2015), which can lead to
proactive and projective strategic approaches or
more emergent approaches (Avenier, 2005). These
changes in strategic models call into question the
traditional design of the HR function, favouring
implementation – particularly management. The HR
function handles paradoxes; there is often a lack of
articulation that can produce sufficient links and
meaning between the different levels of decision-
making. The evolution of the two notions (HR and
Strategy) is part of a dynamic ago-antagonistic
attraction-repulsion relationship. It would therefore
Developing Human Resources Management Performance in Industrial type SMEs - The role of proximity managers
10 ©2023, Revue Française de Gestion Industrielle, Vol. 37, N°1
be a matter of gradually moving from an
administrative concept of HRM (Mahé de
Boislandelle, 1990) towards a more strategic
function that supports effective implementation
compatible with the desired strategy. Recognizing
the strategic role of HRM remains weak, since an
approach based on internal resources rarely gives
sufficient visibility to the actor and his/her work
skills (Cazal & Dietrich, 2003). The place and role of
management seems to reflect the relationship
between HR and strategy within organizations.
2.2 HRM and SMEs: lack of integration and
facilitation
The literature on small firms is often inscribed in a
dynamic of sequenced stages (or phases) that are
part of a life cycle (Arlotto et al., 2011). Thus, a small
firm would correspond to a period between two
positions: the foundation and a satisfactory level of
development represented by a threshold of
workforce or volume of turnover. An integrated and
structured HRM would be senseless in this in-
between period, owing to organizational threshold
effects (Godener, 2002). The mobilization of implicit
‘One Best Way’ models is based on implicitly
normative representations (Perroux, 1975) and
would lead to the application of models specific to
large groups in small and micro firms (Marchesnay,
2003). Consequently, functional specialization
seems to impose itself as a blue-print for the
development of a structured HRM activity.
Moreover, the tools would not be sufficiently
acclimatized to a restricted perimeter (Le Boterf,
2000 ; Millet and al., 2003) and the actors involved
would be more demanding than in large companies.
The magnifying effect (Torrès, 2003; 2004) often
invoked in small structures would therefore also
apply to the tools and devices available: meaning
and utility preceding essence and technique.
It seems pertinent to focus on the outcome/content
expected from this specialized function, namely the
levers (means and devices) available to implement
the strategy. In this way, the approach to HRM in
SME would be based more on a break with the past:
considering other possibilities, rather than imitating
larger structures. As HRM appears to be an
insufficiently mobilized performance lever, the
analytical framework for SMEs is particularly
fruitful. There is a large body of HRM literature on
middle (or local) managers – but less on strategic
management. The role of the proximity manager is
characterized both by the alignment of his/her
activity with the strategies and objectives of the
organization, but also by his/her ability to conduct
operational activities. In reality, the role of the
manager remains unclear in the field, due to the
multiplicity of qualities and skills expected (Gosset
& Laurence, 2005). S/he is responsible for
monitoring deliberate strategy, but also, owing to
his/her position, for supporting more emergent
strategies, particularly by innovating in professional
practices (Moss Kanter, 2004). The operational role
of the proximity manager is to embody this link, to
mediate (Dietrich, 2009) and connect HRM and
strategy. It would therefore be a matter of
complementing process and administrative
approaches with approaches focusing on
facilitation, such as managerial style, and a more
adapted and innovative HRM policy (Krohmer &
Retour, 2006).
Questioning the representation of the HR function
and the notion of ago-antagonist allows us to
identify a margin manoeuvre to adapt HRM to the
strategies of SMEs and to develop needed
managerial innovation (Ageron & Lavastre, 2015),
notably through the role of the proximity manager.
3. INTERVENTION-RESEARCH AND
METHODOLOGY PRESENTATION
This study was initiated in 2015, within a SME
located in the Rhône-Alpes region (France) and
created in 1960; the ‘S’ company is an independent,
family-owned business with a turnover of 45 million
euros in 2015. Specialized in B-to-B fruit and
vegetables, the company is organized around two
main activities: trading (wholesale market) and
ripening fruit and vegetables (ripening). This
ripening part of the company is organised according
to the industrial type, from reception to packaging
on production lines. The company has an average of
44 permanent employees (full-time equivalent)
including temporary workers, of whom 14 people
line-manage the activities and staff.
C. Bousquet, M. Delattre, J. Lichy
©2023, Revue Française de Gestion Industrielle, Vol. 37, N°1 11
3.1 Longitudinal intervention-research
Intervention-research is a transformative research
method (Plane, 2000; Argyris & Schön, 1996; Savall
& Zardet, 1996; Louart, 1995) that promotes
interaction between the researcher and his/her
field. It engenders a particular position of the
researcher in the context of interventions
(Cappelletti, 2007) using a methodology known as
qualimetric (Savall & Zardet, 2004), collecting and
processing data that is qualitative, quantitative and
financial. The alternating position between
fieldwork and retreat (between immersion and
distancing) allows the researcher to deploy both
logic-inductive and hypothetico-deductive
reasoning (McKelvey, 2006). The field phases favour
the production of data interpreted according to an
abduction process (David, 2000) during the
withdrawal phases, and to formulate hypotheses,
validated or not by new immersion phases. The
contrast between these two positions favours the
knowledge creation (Wacheux, 1996). The main
objectives of this research-intervention were to
identify internal organizational and structuring
deficiencies, in order to increase the involvement of
all employees, while improving the overall
(economic and social) performance of the company.
The research-intervention (conducted November
2015-November 2018), collected qualitative and
quantitative interviews, internal documents and
tools developed jointly with the players in the
support phase. It is based on a diagnosis of semi-
directive interviews, with exhaustive notetaking by
the researchers. Control sentences (verbatim) were
selected from 15 individual interviews conducted
with management and supervisors, and 7 group
interviews (2 to 4 people) conducted with staff. The
interviews focused on the dysfunctions perceived by
the various players regarding working conditions,
work organization, communication, time
management, training and strategic
implementation. The diagnosis was presented,
followed by a support phase involving setting up
participatory working groups in order to develop
proposals for improvement. We then undertook a
subsequent exploitation phase of these interviews,
based on a lexical analysis grid (Table 1), the aim of
which was to structure the spontaneous expression
of the actors on the perceived shortcomings in
terms of HRM, in both its integration and
facilitation, the role of management and the
strategic perspectives of the company.
3.2 Exploitation of field materials and
analysis of results
Assuming that the development of HRM
performance and its contribution to the overall
performance of the organization is part of a better-
managed strategic implementation within the SME,
it is therefore necessary to develop HRM based on
greater proximity to the actors, within a framework
of synchronized decentralization of the function
(Savall & Zardet, 1995;2005). The objective is to
better mobilize human potential by disseminating
skills on how to integrate and facilitate HR.
Synchronized decentralization seems to be under-
explored, given the strong centralization of activities
around the manager (Torrès, 2003; Torrès & Enrico,
2014). This observation suggests that there is a lack
of time, not only for management, but also for the
management of support functions. Activating the
HR function by deploying a social mix (Mahé de
Boislandelle, 1990) is not feasible for SMEs whose
support functions are reduced to a minimum. This
approach adopts an integrated HRM model based
on policies defined around employment,
remuneration, development and participation. The
approach developed by Mahé de Boislandelle
makes it possible to structure a global analysis of
HRM based on quantitative and qualitative
indicators to evaluate the direct and indirect effects
of the social mix. At this stage, the deficiencies in
functional structure are too important to determine
a sufficient scope of analysis. An analysis using
human relations seems more relevant (Fourcade et
al., 2010), supporting the notion of human relations
mix analogous to the social mix.
Decentralizing the HR function implies moving it as
close as possible to the level where the
responsibility for its implementation is engaged,
ensuring synchronization and adhering to ground
rules. Exchanges between players must be
strengthened to ensure that the actions initiated are
compatible with the overall operation. This
approach directly involves the mobilization of
Developing Human Resources Management Performance in Industrial type SMEs - The role of proximity managers
12 ©2023, Revue Française de Gestion Industrielle, Vol. 37, N°1
management and local managers, the redefinition
of their areas of responsibility, and further clarifying
the degree of strategic steering required to achieve
the overall performance levels expected by the
organization. The role of the manager can be
assigned eight functions (Peretti, 2018): choose,
manage, guide, train, compensate, involve,
negotiate, watch, to which a ninth can be added:
prevent. The hypothesis of our work is based on the
importance of the role of the local manager in
facilitating a more strategic HRM. In addition, the
functions described by Peretti seem relevant and
actionable for practitioners. Table 1 (below)
summarizes the nine functions of the proximity
manager.
Table 1 : 9 functions of the proximity manager in HRM – reading grid
From this reading grid, the 22 (15+7) interviews
conducted were used to identify convergence or
actors' expressions according to their position in the
organization. The exploitation of the collected
materials is undertaken by interview: the facilitator
selects 10-15 verbatim relating to the spontaneous
expression of the actors. The analysis was divided
into two parts: individual interviews with
management and supervisors (n=150 verbatim) and
group interviews with staff (n=105 verbatim). The
criterion is the variety of expression: the
percentages given indicate the importance, at a
given time ‘t’, of these themes for the interviewees.
They do not correspond to an absolute and
permanent value but capture the problems and
dysfunctions experienced by different actors in the
organization.
3.2.1 Dysfunctions in Human Resources
Management practices and systems:
expression of management and supervision
A first phase of analysis enabled us to compare the
verbatim to the 9 HRM functions that a proximity
manager could enact. The spontaneous expression
of those involved in management highlights
Theme
Functions
Objectives
1
Choose
Define skills, recruit new employees, welcome and integrate.
2
Manage
Specify the job and forecast the evolution of jobs, define working hours,
develop flexibility and versatility, manage permanent and seasonal staff.
3
Guide
Identify professional projects, guide employees' career choices, carry out
skills assessments, evaluate potential.
4
Train
Watch and identify training needs and develop training plans.
5
Compensate
Implement strategic compensation management, evaluate positions,
individual compensation and non-monetary benefits.
6
Involve
Involve employees, animate, communicate, inform, mobilize and rethink
work organization.
7
Negotiate
Knowing the logic and modes of action of the stakeholders (trade unions),
developing social dialogue and negotiating with the social partners.
8
Watch
Build the Human Resources information system, have a strategic vision of
HR, dialogue with the HR department.
9
Prevent
Prevent socio-professional illnesses: working conditions, ensuring
workstation ergonomics, reducing workplace accidents.
C. Bousquet, M. Delattre, J. Lichy
©2023, Revue Française de Gestion Industrielle, Vol. 37, N°1 13
shortcomings in four main functions: n°8 Watch
(27% of verbatim), n°6 Involve (19%), n°2 Manage
(17%), n°4 Train (17%). These four correspond to
shortcomings identified in day-to-day operational
operations (Table 2); they account for 80% of the
expression of the actors; the remaining 20% are
spread between the five other functions.
Table 2: Excerpts on dysfunctions in HRM practices – Management and supervision
The managers are aware of the causes of the
difficulties encountered on a daily basis, including:
lack of ground rules (n°2, Manage), lack of adequacy
with the job held (n°4, Train) and weaknesses linked
to their professional practices regarding transversal
knowledge and compartmentalization of
communication – particularly between the market
and the ripening industry. Thus, it is not so much a
lack of knowledge concerning the realities on the
ground that is missing as the way to report them,
share information and improve HR decision-making.
This is expressed through the theme (n°8, Watch) in
the lack of management structure. The theme (n°6,
Involve) is illustrated by the feeling of individualism
and lack of involvement, experienced by
management both at their level and at the
employee level.
3.2.2 Dysfunctions in Human Resources
Management practices and systems: employee
perspectives
Interviews with employees were conducted
according to the same procedure. The employees
articulated various deficiencies regarding HR
management in 4 main themes: n°9 Prevent (21%),
n°6 Involve (19%), n°5 Compensate (16%), n°2
Manage (14%). The first four functions invoked
represent 70% and the other five functions account
for 30%. This less concentrated distribution
underlines the methodological effect: the search for
variety in the expression of the actors leads to a
dispersion of the expression of actors who do not
share the same working environment in their daily
operational functioning (Table 3).
Functions
Verbatim
Watch (n°8)
"I'd like management to do their job as a buffer between the people and me." (CEO)
"A manager doesn’t show any indication of fulfilling his function. As soon as it comes to
supervising staff, being the boss, you feel that the job isn’t being done." (Market manager)
Manage (n°2)
"Handlers' breaks are not managed, and this creates problems. Two or three preparers on a
break at the same time and when they want, it's not good." (Supervisor)
"I have data each day and I have to revise the schedules, readjust the teams the day before
for the next day. It's not always easy to contact people in the afternoon to tell them "you
have to postpone" or "tomorrow you're not working.” (Manager of the ripening plant)
Involve (n°6)
"We are too individualistic, there is no team. I don't feel like a team. We should see each
other once a month outside in another context to regain cohesion." (Market executive)
"There's nothing worse than not being supported by management. When we intervene
with our teams and then there's a second bell ringing from management, it's undermining
the credibility of the company. "(Ripening plant manager)
Train (n°4)
"There is a lack of versatility and time to train preparers for certain positions. On the team,
that represents between three and four people." (Warehouse manager)
"There is a lack of training for some preparers, which makes it difficult to manage the
workforce." (CEO)
Developing Human Resources Management Performance in Industrial type SMEs - The role of proximity managers
14 ©2023, Revue Française de Gestion Industrielle, Vol. 37, N°1
Table 3 : Excerpts on dysfunctions in HRM practices – Employees
Although the themes are mainly operational
(working conditions, time management, planning,
compensation), the second most expressed theme,
n°6 Engaging 19%, shows the interest among
employees to feel more involved in the company's
strategy and its overall performance, to have
mechanisms and more information to improve the
quality of exchanges.
3.2.3 Dysfunctions in Human Resources
Management practices and systems: analysis
of convergences and specificities
Almost all the functions were addressed by the sub-
populations interviewed, both management and
staff (Figure 1). Only function n°7 [negotiate] was
not the subject of any particular expression. This can
be explained by the absence of employee
representatives in the company and the lack of
consideration of the collective dimension: the
relationship with stakeholders is individualized.
Figure 1 : Convergences and specificities between
employees and management
The convergences (agonistic relationships)
identified correspond to the functions [manage],
[involve], [guide] and to a lesser degree [choose]
and [watch]. The specificities concern the functions
Choose
Manage
Guide
Train
CompensateInvolve
Negociate
Watch
Prevent
0%
5%
10%
15%
20%
25%
30%
Choose
Manage
Guide
Train
CompensateInvolve
Negociate
Watch
Prevent
CEO & Management interviews Employees interviews
Functions
Verbatim
Prevent (n°9)
"We drive forklift trucks even if we don't have a license… if there’s a problem, I’m not
insured but I’ll be held responsible." (Market employee)
"The machines are too low; the incoming pallets are too high, and the palettes are very
heavy. As a result, we all have our backs to the grindstone." (Ripening employee)
Involve (n°6)
"We don't have meetings; we don't have information... or only when things go wrong."
(Market employee)
"The distribution of tasks in the ripening room is not fair, between some lighter and some
very physical tasks. It doesn't change enough." (Ripening employee)
Compensate (n°5)
"There is too great a disparity in wages between the preparers and yet we do the same job.
It plays on motivation." (Market employee)
"It shocks me that they don't even have supervisor status. Responsibilities come with the
position that goes with them." (Ripening employee)
Manage (n°2)
"We have the information the day before for the next day, or even the same day, whether
it's for promotions, schedules or even replacing a colleague at a moment's notice."
(Ripening employee)
"When it's quiet, we don't let people go home, but when there's a need, we ask them to
stay until 3pm or even 4 pm." (Market employee)
C. Bousquet, M. Delattre, J. Lichy
©2023, Revue Française de Gestion Industrielle, Vol. 37, N°1 15
[train], [compensate] and [prevent]. The perception
of the different HRM functions according to sub-
populations yields ‘contrasting’ expectations that
reinforce the polarity of feelings in the respective
population. The shortcomings in the management
of the HR function, although generally shared, are
not part of a convergent vision of the blocking
points, which is a source of tension (antagonistic
relationship).
The actors voiced ‘disappointment’ concerning their
expectations of the HR function, with the over-
riding expression reflecting a ‘utilitarian’
perspective regarding the tasks and functions
entrusted to them. Management emphasizes
function n°8 [watch], which would enable better
team-leading by facilitating its role as an interface
between management and employees. The
interviewees regretted the lack of delegation from
managers, epitomized by the CEO conducting the
annual interviews with employees. The second
theme, function n°4 [train], is part of the same
dynamic but with a more operational vision. The
staff commented on function n°9 [prevent], which
seems legitimate, given the activities carried out
(handling), and function n°5 [compensate], which is
a source of conflict: the wage policy lacks clarity and
equity.
Finally, the management team points to a lack of
structure and managerial skills for managing staff
and activities. More specifically, they identify
shortcomings in training, identification of individual
and collective skills, and a lack of versatility/agility
to adjust human resources to the workload. These
observations are particularly pertinent as the
company is structured in two distinct-yet-
complementary activities: ‘wholesale market’ and
‘ripening’.
This diagnosis and exploitation emphasize the
deficiencies of integrating and facilitating HRM
within the SME, to explain problems known to the
actors but neither formalized nor resolved. The
HRM themes identified are examined by working
groups (management, supervisors and employees)
to combine the perspectives and operational
knowledge to find solutions that are consistent with
the organization's strategy and operational realities.
Involving all staff helps to reduce possible resistance
to internal organizational changes and to facilitate
the implementation of decisions taken.
4. DISCUSSION: NEW MANAGEMENT ROLE TO
IMPROVE HRM EFFICIENCY
The support phase has enabled improvements to be
actioned by structuring activities (4.1) and their
implementation by strengthening the role of local
managers (4.2) to better integrate and lead HR
functions within the company.
4.1 Structuring a real proximity management
organization
A number of outstanding achievements were
noticed, including: formalizing an organizational
chart and creating a structured and well-equipped
local management function; management training
(skills management, steering indicators, strategic
implementation, etc.), and defining individual and
collective contracts of objectives. The following
figure (Figure 2) shows the organization chart at the
beginning of the research-intervention. The leader
is isolated. The people identified by the leader as
having a real supervisory role are "FF" (leader),
"GT", "YD" and "FD". As such, "GT" does not have a
dedicated team; its position in the organization
chart does not reflect its actual support and
supervision practices. Three strata are observed:
the ‘lone’ manager, a sketchy management team,
and staff (represented here by permanent staff
only).
Developing Human Resources Management Performance in Industrial type SMEs - The role of proximity managers
16 ©2023, Revue Française de Gestion Industrielle, Vol. 37, N°1
Figure 1 : Organizational chart of company S in November 2015
During the work sessions, an analysis of activities
was conducted in order to structure the teams
based on operational load. Professional practices
and behaviours were analysed according to the
changes envisaged by the management. Identifying
managers is not enough to give them a role: they
must also be supported. Defining the scope of
responsibilities involves defining content,
management tools and a system architecture. In this
way, the training of local managers carried out in the
first phase of the research-intervention can now be
put into practice. This structuring, carried out by
iteration, has generated a new internal functioning
(in black, the actual managers), as shown below
(Figure 3).
Figure 3 : Organizational chart of company S in November 2017
C. Bousquet, M. Delattre, J. Lichy
©2023, Revue Française de Gestion Industrielle, Vol. 37, N°1 17
The small size of SMEs enables ‘organizational
flexibility’ (Hausman, 2005) and proximity that
facilitates mobilizing employees to achieve the
desired results (Savall & Zardet, 2004). It can
enhance performance, provided that proximity is
sufficiently structured, while maintaining
organizational agility and the ‘capacity to adapt to
change’ (Hausman, 2005). In theory, HRM and
strategy decisions can have greater impact and are
implemented more quickly, owing to the size of the
SME and the proximity of the players (Delattre &
Roche, 2018). If change is implemented too rapidly,
it can generate disorganized HRM, giving the illusion
of proximity that is insufficiently structured
(Bousquet, 2018). Thus, formalizing the
organization chart makes it possible to find a
balance between structured and sufficiently
synchronized devices between the actors and an
organizational agility necessary for optimal
functioning of the company.
Furthermore, reflecting on the structuring of
activities within the framework of a participative
approach has facilitated the pedagogy to legitimize
the implementation of local managers. Indeed, the
hierarchical line is more clearly defined, and the role
of interface is accompanied by defining a more
precise perimeter, both in terms of activities and
teams. Also, staff in charge of their actions (but not
their status) have seen their role recognized (Roche,
2017), both by teams and management. The
recognition of their managerial functions has made
it possible to revitalize the information and HRM
systems, decentralizing certain HRM actions
(schedule management, management of necessary
professional training, proposals for welcoming and
integrating new arrivals), enriching their work while
re-establishing a climate of trust and transparency
among their employees. The functionalities
expected of HRM (administration, recruitment, skills
development, workload balance, employee
development, matching resources with company
strategy), which represent the nine functions of the
local manager, are then shared and multiplied
among managers. Not only is the manager no longer
alone in this function – a common trait of micro-
firms and SMEs – but the multiplication of practices
previously non-existent in the organization
becomes effective at the management level.
Consider the role of HR as a ‘strategic partner’ (see
section 4.2); using the Periodically Negotiable
Activity Contract or PNAC (Savall & Zardet, 1987,
2015), every employee is mobilized to implement
the organization's strategy. In this way, they play an
active role in the survival and development of the
organization and in improving overall performance.
Nevertheless, any change process can lead to
resistance from the actors concerned. The
departure of a manager (CT) and staff member
(RCO) can be seen on the new organization chart, as
well as new entries that confirm the company's
strategic will of development. Finally, the support of
the researchers has enabled the local managers to
gradually integrate the new functions at a
sustainable pace for the organization.
4.2 Devices, actions and achievements for an
integrated and efficient HRM
Following the organization chart, decentralized and
synchronized activity can be orchestrated to
multiply the role of the local management team as
a pilot in facilitating people and activities. Several
management tools have been introduced and
implemented, such as action plans or skills grids that
identify the activities of a department or team, the
versatility of individuals and areas of vulnerability.
We chose to use PNAC, driven by local
management, which enables HR and strategy to be
articulated by clearly formalizing the link between
objectives and the contribution expected from the
employee. The organization chart precedes the
implementation of performance contracts, a
necessary condition for good orchestration.
Performance contracts are valid for six months,
based on two one-hour interviews with each
employee at the beginning and end of each
semester with their manager. At the beginning of
the semester, the individual and team objectives are
defined together with the employee, and at the end
of the semester, the achievement of these
objectives is evaluated. In terms of time
management, it would be complicated for one
person (i.e., the general manager) to conduct about
forty individual interviews (i.e., two one-hour
Developing Human Resources Management Performance in Industrial type SMEs - The role of proximity managers
18 ©2023, Revue Française de Gestion Industrielle, Vol. 37, N°1
interviews) over a couple of months.
Decentralization resonates with proximity: the
proximity manager is better positioned to observe
and support the work of his/her employees, by
defining coherent objectives and evaluating them.
Managers manage their area of responsibility, and
their role is no longer limited to that of a ‘mailbox’.
In a second phase of distancing, we analysed all 111
performance contracts collected within the
company from 2015 to 2018. The aim was to analyse
the shift in managerial practices of local
management towards greater integration of the HR
dimension. As each contract contains an average of
five objectives, 236 of the initial 555 or so objectives
were selected to consider only the different
objectives from one contract to another. We then
allocated these objectives to the 9 functions of the
local manager (Table 1) and all the results are
summarized in Figure 4.
4.2.1 Management and supervision objectives
to improve HRM performances
The objectives of the management and supervisory
staff resulting from the performance contracts are
characterized by three main themes: n°2 Manage
(36%), n°6 Involve (23%), n°4 Train (15%), which
correspond to priorities in managing the HR
function within the organization. For example:
‘establishing an integrated training manual for
administrative staff’ is an objective given to a local
manager for one of his/her employees (attributed to
the [train] theme). The theme of ‘taking care’ does
not appear in the first results, but this can be
explained by two achievements: the entire
management team has received training to manage
and apply management tools on a daily basis,
considering the skills and desired development of
their employees. In addition, the new structure of
the management team has made it possible to
decentralize all (bi)annual interviews to local
managers rather than the manager alone. Through
the interviews, the performance contracts make it
possible to establish a dialogue between all the
stakeholders in the organization, including
management, supervisors and staff.
4.2.2 Employees objectives to improve HRM
performances
The main themes of the objectives of the staff
performance contracts are: n°2 Manage (37%), n°4
Train (33%), n°6 Involve (12%), found in similar
proportions for both management and staff. This
reflects the management team's desire to
synchronize in order to drive a collective dynamic,
by adopting themes deemed to be priority for the
company. For example: ‘controlling the customer
rejection rate’ (attributed to the theme [function
n°8, watch) or ‘acquiring knowledge about other
products on the market’ (attributed to the theme
[function n°4, train). This indicates the involvement
and actions expected from employees, particularly
in terms of knowledge transfer, proposals on the
management of working hours and work
organization, as well as their need for information.
Figure 4 : Convergences and specificities between
employees and management
Figure 4 provides a differential mapping of ago-
antagonist relationships since the start of research-
intervention on HRM themes (Figure 1). Note that
agonist relationships corresponded mainly to
[manage], [involve], [guide] and to a lesser extent to
[choose] and [watch]. Antagonistic tensions were
found in [train], [compensate], and [prevent]
functions. Notable changes in these ago-
Choose
Manage
Guide
Train
CompensateInvolve
Negotiate
Watch
Prevent
0%
5%
10%
15%
20%
25%
30%
35%
40%
Choose
Manage
Guide
Train
CompensateInvolve
Negotiate
Watch
Prevent
PNAC Objectives - CEO & Management PNAC Objectives - Employees
C. Bousquet, M. Delattre, J. Lichy
©2023, Revue Française de Gestion Industrielle, Vol. 37, N°1 19
antagonistic relationships can be observed. The
contrasts are less marked: the [watch] function is
shared equally by the two populations, as is the
[train] function, where significant tension was
taking place. The functions [manage] and [guide] are
shared by management and staff. The function
[involve] finds itself in tension contrary to the
diagnosis, which can be explained by management's
desire to set objectives for staff to encourage them
to become involved (and feel involved) in the
evolution of the organization. Finally, the HR themes
addressed in these performance contracts can help
respond directly to the issues raised during the
diagnosis phase. The theme of prevention does not
appear in the performance contracts, since
management has invested in new infrastructure
(equipment and packaging lines) to respond to the
issues raised during the diagnostic phase. The
diagnostic phase showed differentiated perceptions
given the place occupied in the organization. The
synoptic representation of the objectives reflects a
desire to set broad HR policy guidelines and achieve
prioritization. In addition, the content of a
manager's performance contract is often a
reflection of his/her team – i.e., the manager must
manage a skills development program, while the
employee must negotiate the resources and
objectives to be achieved to make this action
effective. The limitation of the analysis of
performance contracts lies in their nature; a
financial reward is associated with the partial or
total achievement of objectives. This explains the
absence of expression on the theme n°5
compensate, since it is implicitly addressed. Semi-
annual performance contracts allow all employees
to earn the equivalent of an extra month's salary.
This point is significant, all the more so in a company
where bonuses (outside the objectives of sales staff)
are rarely awarded, or inexistent for certain
categories of employees.
5. CONCLUSION
Our objective was to offer a reflection on the
development of HRM in SME-type structures by
developing the role of local management in terms of
people and activities management, to better couple
strategic and HR perspectives. The reading grid
mobilized in this context is that of the model of a
couple ago-antagonism. Human potential is an
organization's only ‘active’ resource (Delattre &
Ocler, 2013) in the sense that the achievement of
objectives in a strategic itinerary cannot be
envisaged without considering the quality of the
contribution of individuals in the organization. This
can lead to talk of a specific strategic asset (Dietrich
& Pigeyre, 2016) when the relationship between the
strategic project and the mobilization of resources is
part of a positive dynamic (agonistic): the conditions
for strategic compatibility are defined and put in
place between the activity carriers and the project
under consideration. Furthermore, the relationship
between the strategic and HR dimensions can be the
source of negative (antagonistic) relations in the
case of situations where there is disagreement on a
project, feelings of lack of coherence between the
means allocated and the targeted objectives or a
lack of acceptance of ground rules – which can
generate resistance to change or evasion. The
relationship between strategy and HR, described
previously as an antagonistic couple, underlines the
overlapping complexity and interdependence of
these two poles. A HR function helps to steer the
search for balance, less through the formal
dimension of its activities than through the
deployment of effective practices. This is also
measured by the evolution of the company's overall
performance, from 2015 to 2018: our analysis is
carried out on three factors: the evolution of
turnover, variable expenses and expected hours. In
three years, Company S's turnover has increased by
27.1%, with variable expenses proportionally lower
than in 2015. Expected hours have decreased (-
2.07%), despite the hires made by the company over
this period (8 arrivals for 2 departures). The added
value created by one hour of work, for one person,
on average, in the company, has increased by +
37.2%. At the same time, sick leave absenteeism (a
strong indicator of the company's social health)
decreased by 74% between 2015 and 2018.
The research-intervention carried out enabled an
initial validation of the working hypothesis,
considering the initial results obtained:
formalization of a structured organization chart of
the distribution of tasks and responsibilities,
Developing Human Resources Management Performance in Industrial type SMEs - The role of proximity managers
20 ©2023, Revue Française de Gestion Industrielle, Vol. 37, N°1
implementation of individual objective contracts
piloted by local management. The limits of this
research lie in the exploratory nature and the focus
on a single SME. Yet, the longitudinal nature (3
years) of the research generates rich insights into
the real autonomy of the actors to capitalise on the
systems put in place and ensure a sustainable
management of HR at the local level. The objectives
defined in the performance contracts have helped
to develop the integration of responses to HR-type
concerns and, in a second phase, to anchor them
through the multiplication carried out as close as
possible to team managers. These results highlight
the essential role of local managers in integrating
and coordinating the HR function within SMEs.
Extending the study to other areas would further
clarify the role of the local manager as a key link
between HRM and strategy in SMEs. Thus, care must
be taken when extrapolating to other SMEs.
Finally, the questioning may also relate to hitherto
unexplored or insufficiently explored alternatives of
HRM practices, in particular through
experimentation on micro-firms in other sectors or
other types of organizations: associations, charities
or cooperatives, or even in companies with over 250
employees. In the same way, the crisis generated by
the Covid-19 global pandemic leads us to question
the development of the role of the proximity
manager in accordance with the development of
new forms of work.
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7. BIOGRAPHY
Carole Bousquet is an
assistant professor at IDRAC
Business School, specializing
in Change Management,
HRM and Strategy. Trained
in intervention-research
since 2014, she defended
her doctoral thesis in 2018
on the articulation between individual and
collective competencies to corporate strategy. On
the international scientific level, she is currently an
elected representative of the Management
Consulting Division of the Academy of Management
(USA) and a member of the Scientific Committee of
the Observatoire du Rebond (Entrepreneurship).
Her academic work focuses on the articulation
between HRM and strategy, human potential, and
the strategic development of small and medium-
sized companies, and is linked to other fields such as
CSR, marketing, psychology and sociology.
Miguel Delattre is a
research professor at the IAE
of Lyon (Jean-Moulin
University), member of the
of ISEOR and Magellan
research centers. He
holds a PhD in management
science and has conducted
and he has conducted and participated for more
than 25 years in long-term research interventions to
support change in companies and organizations of
various sizes and sectors. His current work focuses
C. Bousquet, M. Delattre, J. Lichy
©2023, Revue Française de Gestion Industrielle, Vol. 37, N°1 23
on the contribution of social variables to
organizational systems and performance
development.
Jessica Lichy: Passionate for
‘digital’, Jessica Lichy has an
MBA, PhD and post-doc
‘HDR’ in online/digital
consumer behaviour,
adopting an inter-generation
and cross-cultural approach.
She is employed as a
research professor at IDRAC Business School
(France) and is a research-active visiting professor at
University of Sunderland. Research-in-progress
includes tracing evolution in the consumption of
social technologies and technology innovation from
an end-user perspective.
1Carole Bousquet, Professeur assistant, IDRAC
Business School, carole.bousquet@idraclyon.com,
: https://orcid.org/0000-0002-6861-3861
2 Miguel Delattre, Maître de conférences, Université
Jean Moulin Lyon 3, iaelyon School of Management, UR
Magellan , miguel.delattre@univ-lyon3.fr,
: https://orcid.org/0009-0000-6380-2420
3 Jessica Lichy , Professeur associé,
jessica.lichy1@idraclyon.com ,
: https://orcid.org/0000-0002-7091-9448
Developing Human Resources Management Performance in Industrial type SMEs - The role of proximity managers
24 ©2023, Revue Française de Gestion Industrielle, Vol. 37, N°1