The Competitive Role of Human Resource Management Strategies on SMES in a Transitional Economy

Abstract

The aim of this paper is to elaborate the relationship between human resource management strategies (HRMs) and their impact on firm’s competitive advantage. It examines the strategic goals of human resources and their influence on creating firm’s competitive advantage through two HRM practices: (a) training and development, and (b) salary and employee remuneration. Data used in this study were gathered from a self-administered questionnaire. The participants were randomly chosen. These data were processed with the help of SPSS v.23 program. Findings indicate that the strategic goals of human resources have a positive impact on achieving competitive advantage of firms, and that the job-specific training has the largest impact on accomplishing high firm performance. Outcomes of this study provide and support the assertion that investments in HRM increase the motivation of the employers and consequently increase the ability of firms to achieve a competitive advantage.