The Impact of Human Resources Management in SMEs on the Republic of Kosovo

Abstract

In this paper we will talk about the impact of human resources management in the SMEs growth in Kosovo. Human resources management is the innovation and creativity that employees have for their organization. Human Resources play an important role nowadays in a modern and dynamic economy. The failure of an implementation of good HR strategy strongly affects society, if we consider the lost opportunities and the resources consumed. It is therefore necessary to better understand the importance of HR development for the global economy, something that we will try to highlight in this paper.For the company to succeed in the business environment and in their industry they have to be very creative and innovative. Companies have to come up with the new products, marketing strategy and new ventures etc. Unemployment rate in Kosovo is very high around 40% comparing to the young generation that enter the working market every year. So, SMEs are considered very essential in smoothing this unemployment rate and give this generation new possibilities on showing their working potential. Furthermore, finding work for this generation we also have impact on the so called brain drain, which is a concerning issue for Kosovo. So, SMEs are not having impact only in the economic growth but also in the aspect of keeping youth and their potential inside the country.

Keywords: Human resources management (HRM), SMEs, innovation, creativity, society, global economy, new ventures.

DOI: 10.7176/RJFA/10-2-10