THE ROLE OF HUMAN RESOURCE MANAGEMENT IN THE EFFICIENT OPERATION OF SMES: PROBLEMS AND SOLUTION OFFERS

Abstract

Large-sized enterprises that have taken an important place during industrial era gave their places to SMEs having flexible and dynamic properties with transition process to knowledge society. The main features of SMEs are that they have entrepreneurial spirit with innovative and creative thought system. In the world and our country, SMEs constitute a major part of total business in the new economic order. SMEs having great importance in terms of countries' economies have to learn competing in all areas to be able to sustain their lives. The most important factors that SMEs have so as to adapt to competitive conditions are human capital and management of this capital effectively. This case has increased the importance of human resource management in SMEs and has been the main motivating factor in being made this research. There are two primary objectives of this study. The first one of these objectives is to demonstrate the importance of human resource management in SMEs' effective operations. The second objective is to explain the SMEs' problems associated with human resource management and to provide solution offers to these problems.