Development of HRM Development of HRM Practices in SMEs A Case Study from the Founders and CEOs’ Point of View

Abstract

During formatives years, small firms have relies on various types of network in recruitment. Although the firms in this study had instability in profits, they have provided formal training since in the formative years. With the problem of financial resource shortage, they have put emphasis on psychological rewards rather than financial rewards. All of these practices were managed by founders in the early years of foundation. Growing led firms to move from the simple structure to other forms. During the stage of growing, complexity and difficulty in management including HRM had also arisen. Firms thus restored another choice that could facilitate coordination in this complex situation. That choice was to employ an HR person whose specific duties and responsibilities were assigned.