ABSTRACT
This chapter will examine the role, nature and functions of human resource management (HRM) among small and medium-sized enterprises (SMEs). The chapter starts by critically assessing HRM in context, by reviewing different meanings and interpretations and how these may differ in smaller social settings. The importance of SMEs to the economy is reviewed, both globally and locally, and the HR approaches found among SMEs are then reported. The chapter argues that much analysis about HRM in SMEs is often polarized between one of two perspectives: the ‘small is beautiful’ versus ‘bleak house’ scenarios. A review of research evidence charts current practices within many small firms, including the importance of informal relations, recruitment patterns, communications and employee involvement.
