An Integration of HRM Systems in Small and Medium-sized Enterprises

There is a widely accepted opinion that human resource management is not necessary for small and medium-sized enterprises (SMEs), and is not cost effective for small organizations. Consequently, the owners of SMEs often ignored human resource management issues, such as professional and objective selection, employee training and development, performance appraisal, and so on. Such an approach to employees is wrong, because increased competition imposes on small, as well as on large organizations, the need for better understanding and managing of all available resources. In the present study, relative contribution of each variable in total discriminant score is estimated with the help of the product of discriminant coefficient and the respective mean difference of the variables. The higher discriminant coefficient is noticed in the case of the management support. It shows the higher influence of management system in the discriminant function.