A three-fold framework for understanding HRM practices in South-Eastern European SMEs

Purpose We study particular structural and organisational factors affecting the formality of human resource management (HRM) practices in small and medium-sized enterprises (SMEs) in South-Eastern European (SEE) post-communist countries, in particular Serbia, Romania, Bulgaria and the Former Yugoslav Republic of Macedonia (FYROM) in order to understand the antecedents of formalization in such settings. Design/methodology/approach Adopting a quantitative approach, this study analyses data gathered through a survey of 168 managers of SMEs from throughout the region. Findings The results show that HRM in SMEs in the SEE region can be understood through a three-fold framework which includes: degree of internationalisation of SMEs, sector of SMEs and organisational size of SMEs. These three factors positively affect the level of HRM formalisation in SEE SMEs. These findings are further attributed to the particular political and economic context of the post-communist SEE region. Research limitations/implications Although specific criteria were set for SME selection, we do not suggest that the study reflects a representative picture of the SEE region because we used a purposive sampling methodology. Practical implications This article provides useful insights into the factors which influence HRM in SMEs in a particular context. The findings can help business owners and managers understand how HRM can be applied in smaller organisations, particularly in post-communist SEE business contexts. Originality/value HRM in SMEs in this region has hardly been studied at all despite their importance. Therefore, this exploratory research seeks to expand knowledge relating to the application of HRM in SMEs in SEE countries which have their business environments dominated by different dynamics in comparison to western European ones

Rewarding employees in turbulent economies for improved organisational performance: Exploring SMEs in the South-Eastern European region

Purpose: This study explores the application of total reward practices in small and medium-sized enterprises (SMEs) in the South-Eastern European (SEE) region and the reward elements positively affecting organisational performance. Design/Methodology/Approach: The sample consists of 199 SMEs operating in SEE countries which are either under economic crisis or transition: Greece, Bulgaria, Romania, Albania, Kosovo and the Former Yugoslav Republic of Macedonia (FYROM). Findings: SMEs in the SEE region are implementing a total rewards model which is characterised by a weaker application of individual aspects and by a stronger application of transactional, relational and communal aspects. Within the communal aspects of the model, our study found three elements of the work environment that positively affect organisational performance; work-life balance, employee involvement voice mechanisms, and organisational culture supporting personal and professional development. Practical implications: Our study contributes to HR practice; we found that a better work environment is positively related to improved organisational performance in these SMEs. This means that in times of economic crisis or transition when HR budgets are limited such non-financial strategies can be a viable alternative to costly financial rewards to such organisations. Originality/value: The study contributes to both theory and HR practice by shedding light on how employee rewards are affected in economies under crisis and transition, how SMEs can motivate their employees when faced with significant financial limitations, as well as explores which reward elements can lead to enhanced organisational performance in such organisations

Do not say a word! Conceptualizing employee silence in a long-term crisis context

Although research has emphasized the organizational and individual factors that influence employee voice and silence at work, it is less known how employee voice/silence is affected by the economic context, particularly when this context is one of intensive and long-term economic crisis in a country with weak institutional bases. In this study we explore how employee silence is formulated in long-term turbulent economic environments and in more vulnerable organizational settings like those of small enterprises. The study draws on qualitative data gathered from 63 interviews with employees in a total of 48 small enterprises in Greece in two periods of time (2009 and 2015). This study suggests a new type of employee silence, social empathy silence, and offers a conceptual framework for understanding the development of silence over time in particular contexts of long-term turbulence and crisis

Should I say something? A framework for understanding silence from a line manager’s perspective during an economic crisis

The impact of the recent economic crisis on firms’ key employment priorities has been widely discussed in the literature. Although research has focused on how employee silence is manifested in times of economic crisis, less is known about how line managers experience voice and silence from their own perspective and organizational position. Line managers are an intriguing group to study because they act as both supervisors to their teams and as supervisees (employees) to senior managers/business owners. We draw on qualitative data gathered from line managers in 35 small non-unionized enterprises in Greece in two periods of time (2012 and 2014) during the economic crisis. We develop a framework for understanding line manager’s experience of silence in such contexts and, within this framework propose ‘cynical silence’ as a new type of silence relevant to an economic crisis context