Human Resource Management in SMEs

Many small and medium-sized organisations (SMEs) are facing serious problems in the area of human resource management (HRM), and at the same time human resources have the significant role in creating and sustaining their competitive advantage. Entrepreneurs, owners and managers of SMEs often ignore HRM activities, considering them inappropriate, to costly and to bureaucratic for their organisations’ needs. The problem also lays in the fact that most of the existing knowledge is derived from exploration within ‘atypical’ i.e. large enterprises, whereas there is small number of studies that focus their interest on HRM in SMEs. The main objective of this paper is to contribute to the understanding of HRM in SMEs, which make a significant share of total number of enterprises and significant share of total employment of almost each national economy. Analysing the relevant literature in this field, we have tried to give a deeper insight in the phenomenon of human resource management in small and medium-sized organisations.