ABSTRACT
This chapter explores human resource management (HRM) in small and medium-sized enterprises (SME) in transition economies of Central and Eastern Europe. It argues that there are three antecedents of the formalisation of HRM practice in SMEs operating in a post-communist context, namely, the degree of internationalisation of SMEs, the sector of SMEs and the size of SMEs. Polish SMEs have a tendency to invest in generic HRM practices, which are often lower in cost than bespoke systems based on individual needs. The informality of HRM in SMEs in Hungary and their inability to access HR expertise externally leaves them without HRM knowledge. Slovenia’s political situation can be described as having an established democratic political regime, that of political pluralism. A. G. Psychogios and G. Wood suggest that there is little doubt about the fluctuating nature of HRM in central and eastern Europe markets.
