HRM Practices and Problems in Family-Owned SMEs

Abstract

In exchange for the need for more highly trained employees, there is not enough qualified labor in the market. Small- and Medium-Sized Enterprises (SMEs) play an important role in the economies of countries because of their characteristics about generating employment. Effective Human Resource Management (HRM) is becoming increasingly important in the modern knowledge-based economy and vital for the success of small- and medium-sized enterprises. However, there are few studies concerning HRM practices of SMEs. The purpose of this study is to analyze the current HRM practices of SMEs, especially which are family businesses, and to identify HRM practices and the problems within these SMEs. With the help of the literature review, helpful suggestions about HRM practices are developed for SMEs.