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THE IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON SMEs PERFORMANCE IN ROMANIA

Keywords: HRM , small and medium business , context , effectiveness , administration

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Abstract:

A critical reading of the academic literature shows that the relationship between human resource management and firm effectiveness is a phenomenon with major implications on organizational performance. A study realized by Bryson (1999) in the UK over 178 SMEs revealed that different practices of human resource management affect their performance differently. In the EU countries, SMEs have a share of over 99% of the total number of enterprise, producing 58% of the value added of the economy and provides more than two thirds of total employment, as reflected in official statistics of Europe.Using a methodological approach based on theoretical analysis, empirical studies, statistics, data and information provided by the European Commission, National Council of Private Small and Medium Enterprises in Romania, our research shows that positive effects can be generated by using human resource management practices on organizational performance of SMEs in Romania.

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