Fundamentals of Human Resource Management 5th Edition by Raymond Noe, John Hollenbeck, Barry Gerhart, Patrick Wright

Exercise 11

Size Matters for Human Resources
The Institute for Corporate Productivity (i4cp) measured the number of human resource staffers per hundred employees at companies of various sizes. At the smallest companies (fewer than 100 employees), high-performing companies had a larger HR staff ratio than low performers. But the pattern switched for large companies (50,000 employees or more): high performers had a smaller HR staff ratio than low performers.
What connections do you see between staff size and company performance? For example, why do you think large companies hire fewer HR employees per hundred workers than small companies? Why do you think high-performing small companies have larger HR staffs than low-performing companies of the same size?
HR Staff per 100 Employees