DUAL FACE OF HRM FORMALIZATION IN SME: A GIFT EXCHANGE APPROACH

Abstract

The main objective of this study is to demonstrate the impact of the formalization of HRM on the exchange relationships between actors in an SME in the Social and Solidarity Economy Sector. We apply gift/counter-gift theory in a longitudinal qualitative study in a French SME. The findings demonstrate the dual face of the formalization of HRM: when it stems from the humanist values of the owner-manager, it facilitates gift/counter-gift relationships; when it is a response to environmental constraints, it causes a deterioration in gift/counter-gift relationships. More specifically, the effects of formalizing HRM need to be examined in light of the owner-manager’s justification of the formalization.