Knowledge of Aggregates Magazine/ Vol:07/ N°01 bis/ Month: Avril 2021

Study the effect of the organization's size and the manager's profile on the
relationship between strategy and human resource management in Algerian
SMEs - a case study of Batna SMEs –

‫دراﺳﺔ ﺛﲑ ﻛﻞ ﻣﻦ ﺣﺠﻢ اﳌﺆﺳﺴﺔ وﻣﻠﻤﺢ اﳌﺪﻳﺮ ﻋﻠﻰ اﻟﻌﻼﻗﺔ ﺑﲔ اﻻﺳﱰاﺗﻴﺠﻴﺔ وإدارة اﳌﻮارد اﻟﺒﺸﺮﻳﺔ ﰲ اﳌﺆﺳﺴﺎت اﻟﺼﻐﲑة‬
-‫واﳌﺘﻮﺳﻄﺔ اﳉﺰاﺋﺮﻳﺔ – دراﺳﺔ ﻋﻴﻨﺔ ﻣﻦ اﳌﺆﺳﺴﺎت اﻟﺼﻐﲑة واﳌﺘﻮﺳﻄﺔ ﻟﻮﻻﻳﺔ ﺗﻨﺔ‬

SADOUNE Fares 1, KERKOUB Ibrahim Azzedine 2

1
University of Algiers 3, [email protected],
2
l’Ecole des Haute Etudes Commerciales « EHEC », [email protected],
Received on:11/14/2020 Accepted on:04/13/2021 published on: 04/30/2021

Abstract:
The aim of this study was to study the relationship between HRM and strategy in SME, and to
try to reach the most important factors affecting this relationship, so that a sample was taken
of SMEs located in the wilaya of Batna. Where the results revealed a low level in the degree
of the existing relationship between HRM and strategy in the SMEs studied. thus the presence
of statistically significant differences in this relationship due to each of the size of the
company according to "number of employees and turnover" as well as the manager’s profile
of the according to "the educational level of the manager, type of previous experience "; while
we did not find any statistically significant differences due to the age.
Keys words: strategy, HRM, SMEs, size of the company, manager profile
JEL classification codes: L53; M12;
:‫ﻣﻠﺨﺺ‬
‫ وﳏﺎوﻟﺔ‬،‫ﻳﻬﺪف ﻫﺬا اﻟﻌﻤﻞ إﱃ دراﺳﺔ اﻟﻌﻼﻗﺔ ﺑﲔ إدارة اﳌﻮارد اﻟﺒﺸﺮﻳﺔ واﺳﱰاﺗﻴﺠﻴﺔ اﳌﺆﺳﺴﺔ ﰲ اﳌﺆﺳﺴﺎت اﻟﺼﻐﲑة واﳌﺘﻮﺳﻄﺔ‬
‫اﻟﺘﻮﺻﻞ إﱃ أﻫﻢ اﻟﻌﻮاﻣﻞ اﳌﺆﺛﺮة ﻋﻠﻰ ﻫﺬﻩ اﻟﻌﻼﻗﺔ؛ وﻟﺘﺤﻘﻴﻖ أﻫﺪاف ﻫﺬﻩ اﻟﺪراﺳﺔ ﻗﻤﻨﺎ ﺑﺪراﺳﺔ ﻋﻴﻨﺔ ﻣﻦ اﳌﺆﺳﺴﺎت اﻟﺼﻐﲑة‬
‫ ﺣﻴﺚ ﻛﺸﻔﺖ اﻟﻨﺘﺎﺋﺞ ﻋﻦ ﻣﺴﺘﻮى ﻣﻨﺨﻔﺾ ﰲ درﺟﺔ اﻟﻌﻼﻗﺔ اﳌﻮﺟﻮدة ﺑﲔ إدارة اﳌﻮارد اﻟﺒﺸﺮﻳﺔ واﻻﺳﱰاﺗﻴﺠﻴﺔ‬،‫واﳌﺘﻮﺳﻄﺔ ﺑﻮﻻﻳﺔ ﺗﻨﺔ‬
‫ وﻛﺬﻟﻚ وﺟﻮد ﻓﺮوق ذات دﻻﻟﺔ إﺣﺼﺎﺋﻴﺔ ﰲ ﻫﺬﻩ اﻟﻌﻼﻗﺔ ﺗﺮﺟﻊ ﻟﻜﻞ ﻣﻦ ﺣﺠﻢ اﳌﺆﺳﺴﺔ ﲟﺘﻐﲑﻳﻪ " ﻋﺪد‬،‫ﰲ اﳌﺆﺳﺴﺎت ﳏﻞ اﻟﺪراﺳﺔ‬
‫ ﻧﻮع اﳋﱪات اﻟﺴﺎﺑﻘﺔ وﻋﺪد اﻟﺴﻨﻮات ﻣﻨﺬ اﺳﺘﻼم‬،‫اﻟﻌﻤﺎل ورﻗﻢ اﻷﻋﻤﺎل" وﻛﺬا ﻣﻠﻤﺢ اﳌﺪﻳﺮ ﲟﺘﻐﲑاﺗﻪ اﻟﺜﻼﺛﺔ " اﻟﺘﻜﻮﻳﻦ اﻷوﱄ ﻟﻠﻤﺪﻳﺮ‬
.‫ ﰲ ﺣﲔ ﱂ ﳒﺪ ﻓﺮوق ذات دﻻﻟﺔ إﺣﺼﺎﺋﻴﺔ ﺗﻌﺰى ﳌﺘﻐﲑ اﻟﻌﻤﺮ‬،"‫اﻹدارة‬
‫ ﻣﻠﻤﺢ‬،‫ ﺣﺠﻢ اﳌﺆﺳﺴﺔ‬،‫ اﳌﺆﺳﺴﺎت اﻟﺼﻐﲑة واﳌﺘﻮﺳﻄﺔ‬،‫ إدارة اﳌﻮارد اﻟﺒﺸﺮﻳﺔ‬،‫ اﺳﱰاﺗﻴﺠﻴﺔ اﳌﺆﺳﺴﺔ‬:‫اﻟﻜﻠﻤﺎت اﳌﻔﺘﺎﺣﻴﺔ‬
.‫اﳌﺪﻳﺮ‬
.M12 ،L53 :JEL ‫ﺗﺼﻨﻴﻒ‬
Corresponding author: SADOUNE Fares, e-mail: [email protected]

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1. INTRODUCTION:
Since its creation, the human resources management function, like other
operational functions, has undergone major transformations; it has therefore had
to evolve from an organizational point of view, as well as in its tasks according
to the structural, environmental and technological changes.
The roles of HR managers have also evolved; yesterday he was the
personnel manager, Responsible for their needs and duties towards the
organization, but now it is also very close to the organization strategy. This
statement seems a little quick to us and does not reflect the actual practices
practiced in the majority of Algerian SME.
Whereas the relationship "human resources management - strategy" has
sparked the flame of theoretical discussions in recent years, where the emphasis
has been almost exclusively on large organizations in which the HRM process is
advanced and the choice of the strategy is formal.
The objective of this work is therefore to explore the nature of this
relationship within SME, and trying to know how the manager's vision and
organizational size can constitute a very important factor in the definition of
HRM policies as well as in strategy setting. This is what prompts us to pose the
following problem: "Is there a causal relationship with a mutual influence
between the organization strategy and the HRM? What are the most important
factors that affect the development of this relationship? "
As a preliminary and tentative answer to this problem, we formulated the
following hypotheses:
The first hypothesis: There is a high impact relationship between HRM
and company's strategy - in both directions - in Algerian SME.
The second hypothesis: There are statistically significant differences at
the significance level of 0.05 in the relationship between the company’s strategy
and HRM due to the organizational size variable.
The third hypothesis: There are statistically significant differences at the
significance level of 0.05 in the relationship between company’s strategy and
HRM due to the manager’s profile variable.
1. Strategy - HR: The classic opposition between top-down and bottom-up
The articulation between Human Resources Management (HRM) and
strategy constitutes a debate, which has animated the literature for several years
but which, today, at a time when this function poses existential questions about
its strategic positioning, becomes more and more essential. Globally this
relationship is considered either as a relation "top-down" descendant in which
the HR function works to implement the strategic options, either as an ascending
"bottom-up" relationship where the HR function actively participates in the
strategic choices setting.(LE BOULAIRE & RETOUR, 2008, p. 6)

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2.1. The Top-down approach: from strategy to HRM

The top-down approach corresponds to the traditional conception of
HRM, namely a support activity whose purpose is to facilitate the
implementation of a business strategy decided elsewhere (BEYSSERE DES
HORTS, 1988, p. 222). Recent studies show that for a majority of CEOs, the
effectiveness of HRM is "primarily judged by its ability to support corporate
strategy; when we say supporting the strategy means enhancing human capital
by putting it at the service of company's needs". In this framework, the main
challenge for the HR function is to identify, develop and mobilize at the right
time the skills required to support the strategic options selected (REALE &
DUFOUR, 2006, p. 214).
In this first articulation model, some case studies show that it is indeed the
strategic actions influence HRM policy, in particular skills management in a
"top-down" view. In this model, the HR function is not considered as a strategic
function - participating in the definition of the strategy-, but an accompanist in
its implementation via a rather quantitative contribution,” and remain in this
context prisoners of a short-term vision.
2.2. The bottom-up or Resource Based View approach: from HRM to
strategy
The bottom-up approach refers to the theory of resources or "resource
based view” (RBV). This field has been gradually built up from the founding
work of Penrose (1959), who notably put forward that the development of the
firm,contrary to Porter's vision, is contingent not only on its external position
but also to its internal resources.
The RBV approach thus apprehends the organization as “a constellation
of resources whose character idiosyncratic explains the heterogeneity of firms
and their performance”. Prahalad and Hamel (1990) thus focused their work on
the role of key competences in establishing sustainable strategic advantages,
i.e.resources "valuable, rare, imperfect Imitable and non- substitute"(BARNEY,
1991, pp. 105, 106). Compared to physical assets, skills constitute rare
resources, insofar as they are dynamic (EINSENHARDT & MARTIN, 2000, p.
1112), specific to the firm, socially complex and historically
determined(BARNEY, 1991, p. 110).
For Prahalad and Hamel, in the long term, competitiveness will thus
depend on "The critical task for management is to create an organization capable
of infusing products with irresistible functionality or, better yet, creating
products that customers need but have not yet even imagined.”(Prahalad &
Hamel, 1990, p. 3). In this model, the implementation of a strategy cannot be
conceived without a major investment in human capital. HR policies thus pass
according to the grid proposed by Cohen and Soulier from skills management to
management by skills; in this context, skills no longer simply correspond to an
adjustment variable included in a classic top-down approach, but a source of

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value creation (bottom-up). All HR levers are thus mobilized to develop skills
useful for strategy, whether individual or collective.
Management by skills thus consists of "a strategy [...] that a company sets
up to clarify the individual and collective skills that are necessary today, will be
useful tomorrow, define them, measure them, develop them and exploit them,
either from an adaptation perspective, or from a perspective accommodation ".In
theory, the management of these key skills thus places human resources at the
heart of the strategic process by being entrusted with the mission of these
essential skills a sustainable competitive advantage(Bartlett & Ghoshal, 2002, p.
37). Recall, however, that while the RBV approach focuses on the analysis of
skills held internally, it must then be highlighted with the key elements of the
environment.
2.3. HR-strategy: co-determination?
Some authors seek to go beyond this univocal vision of the strategy-HR
link (top down vs bottom-up) considering that there is in reality a double process
between strategy and HRM. In the first process, HR align in a classic way on
strategy; where the strategy is thus broken down into the skills required with a
view to reactive HR strategy.
The real strategy is thus; simultaneously composed of short-term
decisions aimed at aligning HR with the major strategic orientations and long-
term decisions induced by resources HR present and investment in the HR
capabilities of the organization.
3 The relationship between the strategy and HRM in SMEs
We trying to explain the specificity of this relationship in the SMEs
3.1. The SME, a subject of research in its own right
For more than thirty years, the scientific status of SMEs has been the
subject of debate: can we apply to SMEs the management models generally
dedicated to large companies (LE) or should we consider the SME as a specific
entity involving grids of own analysis?(Torrès, 1998, p. 33). The answer to this
question is structured around two approaches.
A first consists of the transposition / adaptation of approaches intended
for LEs in the context of SMEs. In this case, the reasoning inevitably highlights
the shortcomings of SMEs compared to LEs, particularly in terms of formalized
practices. From this perspective, the specificities of the actual functioning of
SMEs are either denied or evaluated in negative terms.
The second approach, on the contrary, consists in considering the SME as
a field or an object of research in its own right, disregarding the classic problems
of the LE; so it is the result of researchers’ work based on actual companies’
practices.
The scientific community in SMEs is largely in favor of the second
approach insofar as it claims its epistemological autonomy within the
management sciences, through the specific character of the SME. It turns out, in
fact, that the management tools created by and for the LE do not allow

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measuring the degree of sophistication, nor the intensity and the quality of the
management practices of SMEs.
In terms of HRM, this specificity is also underlined and thus justifies the
particular attention paid to SMEs given in particular that HRM was born in LEs
to respond to the problem of complexity of HR, a problem rather remote from
the concerns of SMEs.
3.2. Specificities of SMEs in terms of HRM
SMEs in Algeria constitute an essential sector in terms of employment; As
such, many studies highlight the key role that plays HRM on the
competitiveness of SMEs. However,
3.2.1. Issues and paradoxes:
While SME managers seem to understand the importance of the HRM
variable, this awareness does not always carry over into everyday actions. A gap
between perceptions and behaviors in this area does indeed seem to exist.
Mahé de Boislandelle thus underlines the existence of an often-reductive
ideology of the personnel role in SMEs (Mahé De Boislandelle, 1998, p. 16); of
often incomplete or ineffective HRM; the lack of a clear request for advice in
this area, the confusion between the legal obligations towards staff and a real
human resources management function. Added to this is the lack of resources to
offer SME employees the benefits that aspire. The difficulty of setting up a
career management given the limited number of hierarchical levels and
functions is also emphasized.
SME managers believe that the main obstacles they face in the field of
HRM are primarily related to: skills management, forecasting and recruitment;
and the inability to formalize many practices can be added as an important
weakness in HRM for SME. Mahé also revealed a paradox in this regard, as the
absence of both administrative tools and formal practices does not negatively
affect organizational performance and flexibility, which is what LEs envy them
(Mahé De Boislandelle, 1998, p. 15).
3.2.2. The manager key role
Most of the authors who study SMEs find that it is impossible to discuss
their management without evading the question of the weight of managers.
Strategic decisions are considered to be correlated with the leader's profile
(Machesney, 1991, p. 16).
Like other corporate functions, HRM is thus strongly linked to the
manager and his omnipresence. Personal characteristics of the leader will result
in a general conception of HRM (nature of practices, openness to innovative
methodologies) depending in particular on their greater or lesser confidence in
staff and their willingness or not to share powers and income(Mahé De
Boislandelle, 1998, p. 15).
Unlike LE where the roles between manager and staff are clearly
differentiated, in SMEs the "manager is both subject and object of the
decision"(Mahé De Boislandelle, 1998, p. 15). He must therefore be able to

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manage a complex double movement involving both the conception and the
implementation of HR policies.
3.3. HRM and strategy in SMEs: between confusion and dialogical
relationship
The omnipresence of the manager, reinforced by the frequent absence of a
union or staff representatives, the limited number of employees and available
resources leave little room for maneuver for the implementation of elaborate
HRM (Bayad & Herrmann, 1991, p. 37) or a global benchmark HRM model.
In reality, this omnipresence of the manager often implies confusion
between the three levels of HRM (Mahé De Boislandelle, 1998, p. 15). The first
level concerns the administration of staff; it is essentially a question of applying
the laws, regulations or management directives in the form of standard
procedures. The second level (personnel policies) refers, for its part, to
guidelines relating to employment, remuneration, development and
participation. Finally, the last level (HRM strategy) concerns the organizational
and management choices resulting from decisions relating to changes in product
and market technologies.
In the mind of the entrepreneur, these three levels are often intertwined,
especially since in daily practice the administrative, political and strategic
aspects regularly overlap. Many managers thus consider that HRM concerns
only the first level and make the other two levels their prerogatives. It results
from this lack of differentiation a form of obvious confusion between HRM and
strategy. However, this confusion of roles and the absence of an autonomous HR
function is not only synonymous with constraints and difficulties.
In the SME, the manager generally carries HRM and strategic processes;
this relationship between HRM and strategy within SMEs is reinforced by the
existence of a multiplier effect of HR actions. The small size of SMEs in fact
gives HR actions much greater impacts than within Les “These actions therefore
have a strategic dimension”.
As we have already mentioned, strategic and organizational decisions (we
mention in particular those related to HRM) are much intertwined decisions, and
this is due to the pivotal role that the manager occupies. Therefore, by this
subjectivity, the decisions taken are greatly influenced primarily by the personal
profile and values of the manager.
Therefore, we find that these last elements build and draw the director's
vision, which in turn have a decisive influence on the decisions taken and the
behaviors adopted. Insofar as SME often derive their effectiveness from their
flexibility and speed response to changes that occur in the external environment,
the formal nature that prevails over company strategies (unified strategic
planning) can lead to a lack of this flexibility.
4 Applied study procedures:
As we have already seen, the literary review left us without an answer
about the true way in which the relationship between strategy and HRM is

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addressed in SME, as this relationship is less clear since the HRM processes are
not widely formalized. These practices are formed in line with the situations and
conditions faced by the company (Mahé De Boislandelle, 1998, p. 17).
Therefore, through what the managers will say, we can reach an understanding
of these practices and understand the relationship between the strategy and
HRM, and the most important factors affecting its development.
4.1. Study methodology:
This study is considered one of the descriptive and analytical studies,
with an applied field study aimed at determining the relationship between the
company’s strategy and HRM and its development in SME. We also try to find
and identify the most important factors that can affect this relationship
development (we will take the factors of "the organizational size" and” the
manager's profile or what is known as personal characteristics" as influencing
factors). Our study will be on a sample of SME in the wilaya of Batna.
4.2. Study sample:
The number of small and medium enterprises in the wilaya of Batna
reached 17,247 institutions at the beginning of the year 2019(Mines, 2019).
These enterprises can be divided according to the turnover and the employees’
number into three categories:
 Micro-enterprises “1 to 9 employees” which account for 90%;
 Small “10-49 employees” representing 8%;
 Medium "50-250 employees" representing; 2%;
As for the study sample, it amounted to 50 SME from different types, as
this study targeted the managers of these institutions where 110 questionnaires
were distributed, and 55 were retrieved, and it was decided to keep 50
questionnaires to represent the study sample after we excluded 5not valid
questionnaires.
4.3. Study tool
We adopted in this study the investigation method in collecting data- in
form of questionnaire-, which we divided into two parts; as the first section was
devoted to the independent variable and it containing a group of closed-ended
questions with multiple choice about the company's and the manager's profile
characteristics. Regarding the second section related to the Dependent variable,
it contains questions about HRM practices that are related to the setting and the
implementation of the strategy.
We adopted also the Likert five-point scale in answering them (Strongly
agree 5 degree, Agree 4 degree, Neither agree nor disagree 3 degree, Disagree 2
degree, Strongly disagree 1 degree), On the basis of this, we deal the arithmetic
averages with: “1- 2.59” low, “2.60-3.39” medium, and “3.40-5” high.
To ascertain the validity of the tool, we distributed the questionnaire to a
selected sample to ensure its clarity. As for the reliability measure, we used the
Cronbach's alpha reliability coefficient, which had a value of 0.895 for all the

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questionnaire items, and was greater than the acceptance factor "0.60", meaning
the stability of the questionnaire questions.
4.4. Statistical methods:
We unpacked and analyzed the questionnaire through the Spss program
v20, and we used the following statistical tests: the percentages, the arithmetic
means and standard deviation, One Way ANOVA test, Scheffe's test for
multiple comparisons.
4.5. Presentation and analysis of results:
4.5.1. Data regarding the SME's characteristics and the manager's
profile:
The characteristics of the sample are shown in the following table .
Table 1. The Characteristics of companies and managers’ profile
the variables the categories the number %
Number of employees 1 to 9 25 50
10 to 49 17 34
50 to 250 8 16
Turnover Less than 40 27 34
“million dinars” 40 to 400 15 30
More than 400 8 16
age Less than 30 years 12 24
30 to 50 years 22 44
over 50 years 16 32
initial manager primary 16 32
training intermediate education 18 36
secondary 7 14
university 9 18
Type of previous Experience in managing a SME 8 16
experience Experience in managing a LE 6 12
Ex-employee in HR department 4 8
Ex-employee in other 15 30
department
Without previous experiences 13 26
years since taking Less than 3 years 12 24
over the management 3 to 7 years 18 36
Over 7 years 20 40
Source: produced by us depending on the Spss outputs
From the results of the questionnaire, which is presented in the table
above, it can be seen that the number of SMEs with less than 9 employees
represents the largest percentage of the sample with 50%, followed by SMEs
that contain (9 to 49) employees with 34%, while SMEs which employ between
50 and 250 employees represent 16%.
These figures are confirmed by the results linked to turnover, because
establishments whose turnover does not exceed 40 million dinars represent the
largest share with 54%, while the percentage of companies whose turnover does
not exceed 40 million dinars. Businesses oscillate between 40 and 400 million
dinars is estimated at 30%, and SMEs whose turnover exceeds 400 million
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dinars represent only 16%. These statistics show that micro-enterprises represent
about half of the sample and explain the economic trend that the state has
encouraged to encourage the creation of this type of enterprise. Small businesses
represent 34%, while medium-sized businesses represent only 16%.
As for the aspect linked to the director's profile, which will be made up of
four aspects: "Age, experience of the position in years, type of previous
experience - previous position, in addition to the initial training:"
We see that the age of managers between 30 and 50 years old represents
44%, which is the highest percentage, and the group of less than 30 years old
represents 24%.Which means that two thirds of managers have less 50 years old,
because we can see that the percentage of the group over 50 years old is 32%.In
addition, this shows the intense presence of young people in business
management
As for initial training, "level of training", we see that the highest
percentage is due to the level of intermediate education at 36%, followed by
primary education with 32%, while university and secondary education only
represent 18% and 14% respectively. These figures show that more than 80% of
managers have not university level. This explains that people who could not
enter university and get a degree tend to set up private companies due to the lack
of opportunities for them to get permanent employment, and the other reason
can be due to the preference of graduates for the work and the guaranteed salary
over entrepreneurship, due to its risks.
regarding to the experience factor, we see that the largest share are 40%
managers whose years of experience exceeded 10 years, followed by 36% for
managers whose years of experience between 3 to 10 years, while managers
whose experience did not exceed 3 years represent 24%. This shows a great
diversity, where there are Experienced and inexperienced managers "their first
steps in the field of business administration". As for the qualitative aspect of the
experience, we see that 26% of managers have no previous experience before
starting their management of this company. 16% represent the percentage of
managers who have previously managed a SME, and ex-managers of LE
represent 12%; 8% represent a percentage of those who previously worked in
the HR department. The remainder «24%» represents those who previously held
another position. These figures indicate that the trend towards managing SME is
not limited to a specific category, but all categories are present, from those with
no management experience to managers of large companies.
4.5.2. Analysis of the relationship between strategy and HRM in the
SMEs studied:
The first hypothesis: there is a high impact relationship between HRM
and corporate strategy - in both directions - in SMEs.
Table 2.The arithmetic mean and the standard deviation of the responses
concerning the relationship between strategy and HRM in the companies studied

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No Practices Arithmeti Standard Class

c mean deviation
1 Human resources planning is considered one of 1.93 0.969 Low
the overall plans of the company
2 Your organization has a 5-year HRM plan 2.16 1.149 Low
3 The different administrative levels of the 2.02 0892 Low
organization are involved in the HR planning
process
4 When preparing and developing goals, the 2.26 1.103 Low
institution depends on the quantity and quality
of HR available.
5 The HR department works to help other 2.26 1.139 Low
departments to obtain their quantitative and
qualitative needs from HR.
6 The recruitment process is aligned with the 2.12 1.043 Low
company's values
7 The HR training process is linked to the future 2.40 1.161 Low
goals of the company.
8 The company prepares a comprehensive plan to 2.40 1.262 Low
determine training needs at all levels based on
its job analysis
9 The company relies on the outputs of its HR 2.40 1.178 Low
performance appraisal process as an input to the
goal setting process.
Total practices 2.229 0.889 Low
Source: produced by us depending on the Spss outputs
From the statistical results obtained in the table above, we notice a
decrease in the evaluation scores obtained by all the statements of the study;
where the total arithmetic mean was “2.229” with a standard deviation of
“0.889”. We can explain this by the responses of the sample members. When the
highest marks were given to the phrases "7, 8, 9", with an average of ‘2.40’.We
noted that these three statements relate to human resource training and
performance appraisal practices and their relationship to organizational strategy.
While the means of statements “5 and 6” varied between 2.26 and 2.12, it
should be noted that these two expressions are linked to the recruitment process.
The means of the expressions: "1, 2, 3 and 4" varied between (2.02 and
1.93), which are the lowest averages. We note that these expressions are related
to the HR planning process and its relation to the company's strategy.
Despite the slight differences between the means of the statements studied, we
find that the values of these means, which are estimated in total at "2.229", and
an evaluation of "disagree" according to the "Likert" scale. It indicates the
weakness of the relationship between the elaboration of the company's strategy
and HRM practices. Whether top-down, where does the HR department carry
the strategic options taken and tries to adapt with them in order to provide all the
HR necessary to achieve the set objectives; Or from bottom to top where does

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the HRM function really participate in the development of strategic options,

where its outputs are considered as inputs for the strategy setting.
Therefore, and through the above results, we reject the first research
hypothesis, which states: There is a high impact relationship between HRM
and the company's strategy - both ways - in SME.
Second hypothesis: there are statistically significant differences at the
significance level of 0.05 in the relationship between company’s strategy and
HRM due to the organizational size variable.
We will deal with this hypothesis through two aspects of the enterprise
size: "in terms of the employees’ number and in terms of turnover". Therefore,
the second hypothesis is divided into two sub-hypotheses:
The first sub-hypothesis: There are statistically significant differences at
the significance level of 0.05 in the relationship between the company’s strategy
and HRM due to the employees’ number.
To test this hypothesis, we performed an ANOVA test to see if there were
any statistically significant differences. Table (3) shows the test results and the
statistical significance.
Table 3. Results of the ANOVA analysis according to the employees’ number.
The relationship between strategy and HRM in mean standard F sig Statsig
SMEs, depending on the employees’ number deviation

1 to 9 1.622 0.369 58.54 0.00 sig

10 to 49 2.418 0.365

50 to 250 3.722 0.900

Source: produced by us depending on the Spss outputs α: 0.05

Table (3) shows the results of the ANOVA analysis, where the “F” value
was “58.544”, with a P value: “0.000” ≤ 0.05, so it is a statistically significant
value; From which we can conclude that there are statistically significant
differences in the relationship between strategy and HRM in SME's depending
on the employees’ number; accordingly, we accept the first sub-hypothesis.
The previous table also shows the high value of the SME's means that
have a high employees number than the SME’s with a low number. To find out
the cause of the differences, we performed the multiple comparisons test
"Scheffe's”, which explain the cause of statistically significant differences.
Table 4. Results of the Scheffe's test according to the variable number of employees.
The relationship between strategy and HRM in SMEs, Difference sig Stat
depending on the employees’ number in Means sig
10 to 49 ……………… 1 to 9 0.796 * 0.000 sig
50 to 250 …………….. 10 to 49 1.303 * 0.000 sig
50 to 250 ……………… 1 to 9 2.100 * 0.000 sig
*Significant differences at α: 0.05
Source: produced by us depending on the Spss outputs

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It is clear from table (4) that the reason for the statistically significant
differences is due to the differences between the SMEs which contain (between
50 and 250) employees, and the other categories of SMEs which contain fewer
employees. These significant differences are 2.100 with the SMEs of (1 to 9)
employees; and 1,303 with SMEs that have (10 - 49) employees, where the P.
value was “0.000 ≤ 0.05” for each of them. While the difference between SMEs
with (10-49) employees and SMEs with (1-9) employees was also statistically
significant with a significant difference of 0.796, with a P. value“0.000 ≤ 0.05”.
From this, we conclude that there is a positive relationship between the
number of employees and the development of the relationship existing between
strategy and HRM in SMEs.
The second sub-hypothesis: There are statistically significant differences
at the significance level of 0.05 in the relationship between the company’s
strategy and HRM due to the turnover.
To test this hypothesis, we performed an ANOVA test to see if there were
any statistically significant differences. Table (5) shows the test results and the
statistical significance.
Table 5. Results of the ANOVA analysis according to the turnover.
The relationship between strategy and HRM mean standard F sig Stat
in SMEs, depending on the turnover. “ deviation sig
million dinar”
Less than 40 1.744 0.427 49.211 0.00 sig
40 to 400 2.259 0.581
More than 400 3.805 0.658
Source: produced by us depending on the Spss outputs α: 0.05
Table (5) shows the results of the ANOVA analysis, where the “F” value
was “49.211”, with a P value: “0.000” ≤ 0.05, so it is a statistically significant
value; from which we can conclude that there are statistically significant
differences in the relationship between strategy and HRM in SME's depending
on the turnover; accordingly, we accept the second sub-hypothesis.
The previous table also shows the high value of the SME's means that
have a high turnover than the SME’s with a low turnover. To find out the cause
of the differences, we performed the multiple comparisons test "Scheffe's”,
which explain the cause of statistically significant differences.
Table 6. Results of the Scheffe's test according to the turnover
The relationship between strategy and HRM Difference sig Stat
in SMEs, depending on the turnover “ million in Means sig
dinar”
40 to 400 ........................ less than 40 0.514 * 0.000 sig
400 to 4000 ………….... 40 to 400 1.546 * 0.000 sig
400-4000.................... less than 40 2.060 * 0.000 sig
*Significant differences at α: 0.05
Source: produced by us depending on the Spss outputs

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It is clear from table (6) that the reason for the statistically significant
differences is due to the differences between the SMEs that have (400 to 4000)
million dinars, and the other categories of SMEs that have less turnover. These
significant differences are 2.060 with the SMEs that have (less than 40) millions
dinar; and 1.546 with SMEs that have (40 to 400) millions dinar, where the P-
value was “0.000 ≤ 0.05” for each of them. While the difference between SMEs
that have (40 to 400) and SMEs that have(less than 40) millions dinar was also
statistically significant with a significant difference of 0.514, with a P-
value“0.000 ≤ 0.05”.
From this, we conclude that there is a positive relationship between the
turnover and the development of the relationship existing between strategy and
HRM in SMEs.
Third hypothesis: there are statistically significant differences in the
relationship between the company’s strategy and HRM due to the manager's
profile variable.
We will deal with this hypothesis through three aspects of the manager's
profile, in terms of “age”, “initial training of the manager”, “type of previous
experience”. The third hypothesis is therefore divided into three sub-hypotheses:
The first sub-hypothesis: there are statistically significant differences at
the 0.05 significance level in the relationship between company’s strategy and
HRM due to the age variable.
To test this hypothesis, we performed an ANOVA test to see if there were
any statistically significant differences. Table (7) shows the test results and the
statistical significance.
Table 7. Results of the ANOVA analysis according to age
The relationship between mean standard F sig Stat
strategy and HRM in SMEs, deviation sig
depending on the age variable
Less than 30 years 2.388 0.970 0.310 0.735
30 to 50 years 2.222 0.969
over 50 years 2.118 0.737
Source: produced by us depending on the Spss outputs α: 0.05
Table (7) shows the results of the ANOVA analysis, where the “F” value
was “0.310”, with a P value: “0.735” ≥ 0.05, so it is not a statistically significant
value; from which we can conclude that there are not statistically significant
differences in the relationship between strategy and HRM in SME's depending
on the age variable. Accordingly, we reject the second sub-hypothesis.
The previous table also shows a great convergence between the values of
the averages, reaching 2,388, 2,222 and 2,188 for the 3 categories of SME. From
this, we conclude that the manager's age does not affect the relationship between
strategy and HRM in SME's.

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Authors: SADOUNE Fares, KERKOUB Ibrahim Azzedine,

The second sub-hypothesis: there are statistically significant differences

at the 0.05 significance level in the relationship between company’s strategy and
HRM due to the manager’s initial training variable.
To test this hypothesis, we performed an ANOVA test to see if there were
any statistically significant differences. Table (8) shows the test results and the
statistical significance.
Table 8. Results of the ANOVA analysis according to the manager’s initial
training variable
The relationship between strategy and mean standard F sig Stat
HRM in SMEs, depending on the deviation sig
manager's initial training variable
primary 1.833 0.460 39.2 0.00
intermediate 1.685 0.394 74
secondary 2.682 0.235
university 3.666 0.767
Source: produced by us depending on the Spss outputs α: 0.05
Table (8) shows the results of the ANOVA analysis, where the “F” value
was “39.274”, with a P value: “0.00” ≤ 0.05, so it is a statistically significant
value.
From which we can conclude that there are statistically significant
differences in the relationship between strategy and HRM in SME's depending
on the manager’s initial training variable; accordingly, we accept the second
sub-hypothesis.
The previous table also shows the high value of the averages of the SME's
that are managed by managers with a higher level of training than the SME's that
are managed by managers with a lower level of training. To find out the cause of
the differences, we performed the multiple comparisons test "Scheffe's”, which
explain the cause of statistically significant differences.
Table 9.Results of the Scheffe's test according to the turnover
The relationship between strategy and HRM Difference sig Stat
in SMEs, depending on the manager's initial in Means sig
training variable
Secondary ………………….. primary 0.849 * 0.050 sig
Secondary ………………….. intermediate 0.979 * 0.010 sig
University………………….. primary 1.833 * 0.000 sig
University ………………….. intermediate 1.981 * 0.000 sig
University ………………….. Secondary 0.984 * 0.03 sig
*Significant differences at α: 0.05
Source: produced by us depending on the Spss outputs
It is clear from table (9) that the reason for the statistically significant
differences is due to the differences between the SMEs managed by a university-
level managers, and the other categories of SMEs whose managers do not have a
university degree. These significant differences are 1.833 with the SMEs
managed by a primary-level; and 1.981with SMEs managed by intermediate-
level managers; and 0.984 with SMEs managed by a secondary level manager;
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Where the P-value was “0.000 ≤ 0.05” for the two first comparison. Regarding
to the third one the P-value was 0.003. While the difference between SMEs
managed by secondary level managers and the SMEs managed by
“intermediate-level and primary-level” managers were also statistically
significant.
From this, we conclude that there is a positive relationship between the
initial formation of the manager and the development of the relationship existing
between strategy and HRM in SMEs.
The third sub-hypothesis: there are statistically significant differences at
the 0.05 significance level in the relationship between company’s strategy and
HRM due to the variable of previous experience type.
To test this hypothesis, we performed an ANOVA test to see if there were
any statistically significant differences. Table (10) shows the test results and the
statistical significance.
Table 10. Results of the ANOVA analysis according to the variable of previous
experience type
The relationship between strategy and HRM Difference sig Stat
in SMEs, depending on the manager's initial in Means sig
training variable
Secondary ………………….. primary 0.849 * 0.050 sig
Secondary ………………….. intermediate 0.979 * 0.010 sig
University………………….. primary 1.833 * 0.000 sig
University ………………….. intermediate 1.981 * 0.000 sig
University ………………….. Secondary 0.984 * 0.03 sig
Source: produced by us depending on the Spss outputs α: 0.05
Table (10) shows the results of the ANOVA analysis, where the “F” value
was “5.33”, with a P value: “0.001” ≤ 0.05, so it is a statistically significant
value.
From which we can conclude that there are statistically significant
differences in the relationship between strategy and HRM in SME's depending
on the manager’s previous experience type; accordingly, we accept the third
sub-hypothesis.
The previous table also shows the high value of means for SME's
managed by managers without previous experience with “2,965” to the
detriment of SME's headed by managers with previous experience before
leading this company. To find out the cause of the differences, we performed the
multiple comparisons test "Scheffe's”, which explain the cause of statistically
significant differences.

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Table 11. Results of the Scheffe's test according to the turnover

The relationship between strategy and HRM Difference sig Stat
in SMEs, depending on the manager's in Means sig
previous experience type
Without previous experiences … Experience 1.299 * 0.013 sig
in managing a SME
Without previous experiences … Experience 0.858 0.702 Not
in managing a GE sig
Without previous experiences … Ex- 1.465 * 0.036 sig
employee in HR department
Without previous experiences … Ex- 0.907 * 0.041 sig
employee in other department
*Significant differences at α: 0.05
Source: produced by us depending on the Spss outputs
It is clear from table (11) that the reason for the statistically significant
differences is due to the differences between the SMEs managed by a manager
who has not any experience that was "he only had academic experience", and
the other categories of SMEs whose managers have precedent experiences
except ex-managers of GE. These significant differences are 1.299with the
SMEs managed by ex-managers of SMEs; and 1.465with SMEs managed by
Ex-employee in HR department; and 0.907with SMEs managed by Ex-employee
in other department; Where the P-value was “less than 0.05”.
From this, we conclude that there is a positive relationship between the
initial formation of the manager and the development of the relationship existing
between strategy and HRM in SMEs.

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5. CONCLUSION:
Statistical analysis of field research data allows us to draw the following
conclusions:
 Weakness in the degree of relationship between HRM and company's
strategy - in both directions - in the SMEs studied;
 There are statistically significant differences in the opinions of sample
members:
 In the relationship between strategy and HRM, it is attributed to the
variable of number of employees, so we found that there is a positive
relationship between them;
 in the relationship between strategy and HRM due to the turnover
variable, so that we found that there is a positive relationship between
them;
 The relationship between strategy and HRM is attributable to the
organizational size variable, and we conclude that there is a positive
relationship between them;
 In the relationship between strategy and HRM, it is attributed to the initial
training of the manager, so that we have found that there is a positive
relationship between them;
 The relationship between strategy and HRM is attributed to the type of
previous experience, so that the differences came in favor of the
inexperienced managers;
 There are no statistically significant individual differences in the opinions
of the sample members:
 In the relationship between strategy and HRM due to the age variable.
Therefore, we conclude that the relation between HRM and strategy in
SMEs is a very weak relation, and that this relation is positively affected by the
size of the company with its two variables "turnover and number of employees'
and the manager's profile with its variable 'the manager's initial training', while
the age factor has no influence on this relationship.

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