Toward an understanding of people management issues in SMEs: a South‐Eastern European perspective

The focus of this paper is on developing an understanding, and benchmarking, human resource management (HRM) issues in small and medium enterprises (SMEs) in South‐Eastern Europe. The importance of SME's in helping transition‐based economies develop is critical, but at the same time the research indicates that the movement toward westernized business systems has a dramatic impact on the human resources within such businesses. Toward addressing this linkage, critical HRM issues related to work outcomes, measures of satisfaction, and managerial support were studied with a sample of nearly 300 employees from 21 SMEs in a country in South‐Eastern Europe (the Former Yugoslav Republic of Macedonia). The data suggest that SMEs are not currently giving their employees what they want from their job (e.g. career development, participation in decision making) and that women are treated differently than men creating an imbalance within the workforce. From these data recommendations are drawn for SMEs on how to move forward as transition unfolds.