HRM Evolution in SMEs: Recruitment and Selection Case

HRM Evolution in SMEs: Recruitment and Selection Case

Pedro Ribeiro Novo Melo (University of Minho, Portugal) and Carolina Feliciana Machado (University of Minho, Portugal)
DOI: 10.4018/978-1-4666-4731-2.ch018


The enormous business competitiveness at a global scale and the constant search for sources of competitive advantage have led several scholars and practitioners to implement their studies to pay attention to the potential of HRM in the success of companies. Portugal, like others European countries, is not set apart from the question of HRM. However, it is rare and recent to find empirical literature on practice of HRM in Portugal, and even more scarce to find literature that focuses on SMEs. This study clarifies the situation of SMEs in the Portuguese context, serving as a basis for discussion on HRM in SMEs in an international context. This chapter looks to understand the role of recruitment and selection on Human Resource Management (HRM) at Small and Medium Enterprises (SMEs) in Portugal, as well as contribute to a better knowledge of this area, still little studied. More particularly, it aims to understand the level of implementation of recruitment and selection. Data was collected by questionnaire from 512 small and medium enterprises in Portugal, and from these, 3 hypotheses were formulated and tested using the SPSS program. From this study, the authors conclude that HRM is not yet a reality in SMEs. Recruitment and selection are the HRM practices more commonly used in SMEs, but in an informal way.
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Hrm In Smes

HRM concept appears in the US, in the 80’s, assuming as a distinct concept in philosophy and approach to managing people in organizations (Cabral-Cardoso, 1999). Following the changes of paradigm in the business world, it appears associated with a shift to a strategy based on the commitment of workers, characterized by a new approach in terms of quality, flexibility, strength-of-work, enhanced teamwork, R&S, and thoughtful and strong investment in training and development (Cabral-Cardoso, 2004).

SMEs, an important source of entrepreneurial skills, innovation and employment, have long been the focus of government attention because of its potential to generate income and employment.

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