Based on the preceding review of the literature, there are several reasons why it is appropriate to investigate the effects of managers on employees' learning in small firms. First, there is a growing body of literature that suggests learning is i�creasingly important for an organisation's survival, particularly because of the need to cope with rapid and unpredictable change (Dixon, 1 993; Pedler et aI., 1 997) and apparently because of a more general acceptance of the proposition that people, are the only sustainable source of competitive advantage for today's organisations (e.g., Billett, 2000; Ellinger et aI., 1 999; Poell et aI., 2000; Schein, 1993; Senge, 1 990a). In this regard, the manager can assume a critical role as a facilitator of learning through employee development interventions, and as a creator of conditions in the work environment that are favourable to learning (Argyris, 1 994; Ellinger et aI., 1 999; Eraut et aI., 1 999; Kaufman, 1 990; Knowles, 1990; Senge, 1 990b; Tannenbaum, 1 997). But unfortunately, little is known about how conditions in the work environment and developmental interventions by the manager interact to affect employee learning, especially in the small firm context.
Second, while managers are being urged to play a key role in fostering employee learning (e.g., Argyris, 1 994; Ghoshal et aI., 1 999; Gilley & Maycunich, 2000ab; Pedler et aI., 1 997; Senge, 1 990b), a number of scholars (e.g., Ashton, 1 998; Ellinger et aI., 1 999; Eraut, 2004; Eraut et aI., 1 999; Mumford & Gold, 2004) have suggested that in general, managers lack understanding of how 'to effectively support the learning of their staff. Furthermore, Hughes ( 1 999, 2002) has suggested that staff can have difficulties in trusting supervisors to facilitate their learning, because of supervisors' formal role in surveillance of staff. These concerns need to be investigated to further understand learning processes in small firms, and to suggest practice that might, if addressed, improve managerial performance and both the quantity and quality of employee learning.
Third, several commentators (e.g., Cameron & Massey, 1 999; Curran & Blackburn 200 1 ; Storey, 1 994) have highlighted the importance of small firm sectors to national economies.
Managerial skill is thought to b e a key factor in small business survival (e.g., Gaskill et aI., 1 993; Haswell & Holmes, 1 9 89; Hofer & S�nberg, 1 987; Ibrahim & Goodwin, 1 986; Montago et aI., 1986). Furthermore, studies of problems faced by small businesses and future issues important to small businesses have highlighted the employee development concerns of managers of small businesses (e.g., Hornsby & Kuratko, 1 990; Huang & Brown, 1 999). Similarly, in New Zealand; the results of a large-scale study of business practices and performance (Knuckey et aI., 2002) suggest that, on the whole, employee practices (including employee development) are underdeveloped. Research on informal learning processes in New Zealand small firms will increase the sparse body of empirical information available to improve practic� and support policy on learning whilst in employment.
Fourth, there is considerable evidence that formal training approaches do not appeal to small firms (Gibb, 1997; Fernald et aI., 1 999; Field, 1 998; Kerr & McDougall, 1 999; Marlow, 1 998). Small firms are much less likely than large firms to provide their employees with formal training (Storey, 2004). The focus, in much of the small business literature, on formal training has diverted attention away from other forms of learning that can be effective in meeting the needs of small firms. Small business researchers and other commentators with an interest in employee development have called for a shift of emphasis from formal training to learning, and highlighted an important need to investigate learning processes in small firms (e.g., Chaston, Badger & Sadler-Smith, 200 1 ; Dalley & Hamilton, 2000; Field, 1 998; Gibb, 1 997; Kerr & McDougall, 1999; Kilpatrick & Crowley, 1 999; Penn, Ang'wa, Forster, Heydon & Richardson, 1 998; Rowden; 1 995; Walton, 1 999). Moreover, in general, informal workplace learning is poorly understood and under researched (Eraut, 2004; Evans & Rainbird, 2002).
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
Chapter One laid the foundations for the thesis. It introduced the research problem and justified the importance of the problem. Then the boundaries of the problem area were clarified through a general research question, research objectives, and a research conceptual framework. Finally, the structure of the thesis was outlined.
Chapter Two reviewed empirical and conceptual literature relevant to studying the effects of managers on employees' informal workplace learning in small firms. This included the literature related to workplace learning, the evaluation of work-related learning, emplqyee development in the small firm context, and the manager' s employee development task. The chapter closed with a summary of the rationale for the investigation, based on the literature review.
This chapter describes the research design and methods of inquiry employed for the current study. It begins by identifying the major limitations in research designs of prior research into employee development in small firms. Then the research design for the current study is explained and j ustified, and each of the two phases in which the research was undertaken is described in detail. Phase one was a descriptive qualitative study involving semi structured interviews with owner-managers, managers, and non-managers. Sections are included which describe the rationale for the choice of methods, sampl ing method, interview procedures, and analysis of the interview data. In phase two, a mail survey instrument was developed and administered. This quantitative phase of the investigation is described in terms of rationale for the choice of methods, questionnaire design, theoretical and empirical justification for the questionnaire items, questionnaire pre-testing, samp
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ing, survey implementation, and data analysis. The chapter includes a discussion of strategies to address ethical concerns in conducting the research. Finally, a summary of the key achievements of Chapter Three is presented.3.1 RESEARCIDNG EMPLOYEE DEVELOPMENT IN SMALL FIRMS: