HRM in small and medium sized enterprises

Human Resource Management (HRM) in Small & Medium Enterprises (SMEs) is of particular interest and importance for two reasons. Firstly, the study of HRM has neglected SMEs mainly focused on large corporations. Secondly, there is a growing interest in understanding and improving employee performance and engagement in these companies that in an era of knowledge need to invest more in recruiting, selecting, training, evaluating and rewarding human capital. In this respect, this chapter explores the contextual factors affecting SMEs and how these influence the application of HR. In particular, this chapter examines the nature of SMEs and the various HRM practices that SMEs apply based on the current empirical research available.