Ghanaian Family Firms and HRM Practices

Abstract

Professional HRM practice is increasingly significant in the modern knowledge-based economies, and its presence in every firm is of great importance. Family firms in Ghana are predominantly small and simple in nature. Recent research urge that small family firms make less use of professional HRM practices than their larger counterparts. In addition, family firms have HR problems however; depending on their sizes have either principal-agent problems, altruism problems or both. The main intentions of this study include the exploration of the characteristics and types of family firms in Ghana, their different levels of professional HRM practices and the HR problems faced by these family firms. In conjunction with stratified, purposive and convenient sample techniques, questionnaire inquiries and interview and interview guide were employed for primary data acquisition from the owners, top managers and employees of family firms. Literature were reviewed on the definitions, characteristics and importance of family firms, the basis for their existence, professional HRM practices and the basis for less use of professional HRM practices in family firms. In the frameworks of the principal-agent theory and resourced-based theory, this thesis was related to other existing research works to specify the research questions, a methodological approach, data collection techniques and to consider other alternatives available. Tables, graphs and percentages were used to establish the meanings of the responses and their implications pertaining to the objectives and research problem of this study. In the light of the results, discussion and conclusion of this work, there is the need for massive education on importance of professional HRM practices for family firms in the country. This will call for the establishment of resource centres close and made accessible to family firms, especially the owners