Advising the new enterprise: people issues in an Australian funds management business

Small enterprises are often portrayed as static businesses with little sophistication and consistency in their human resource management practices. However, small enterprises can be characterized on a number of dimensions including complexity, sophistication, market position, value, industry, managerial versus entrepreneurial management and so on. The case of Axedale describes the stages of development in a small enterprise that deals with 'the top end of town'. It provides a professional investment service to wholesale clients and, even though it is still a young firm, it has billions of dollars under investment. The case describes the changes in organizational structure and leadership, and importantly, the attention given to human resource practices. Sophisticated recruitment, selection and extended realistic job preview/employment trial practices together with continuous daily objective performance assessment - albeit in a firm that stresses longterm value - along with paired/team bonus payments, a mix of entrepreneurial and, on occasions, somewhat autocratic management style, enrich our understanding of the range of characteristics of small firms. What makes this case different is the in-depth knowledge the researchers have of the people in the firm, which provides unique insights into the functioning of this influential enterprise in the financial services industry in Australia. The highly paid employees perform intensive knowledge work, the results of which can affect the well-being of thousands (if not millions) of people in their older years. Although the firm has been successful to date, the risks it faces, particularly in human resource management issues, but also in its narrow client base, are noted.