Human resources management in small and medium enterprises

Development of small and medium enterprises (SME) represents primary goal of every modern economy. It is complex challengewhich includes great number of directly concerned parties in every sector of the state and economy. SME stimulate private ownership andentrepreneurship. Their characteristic is that they are flexible and can easily adjust to changes in supply and demand on the market. At thesame time they open possibilities for increase of employment, promote diversification of economical activities, support sustainable growthand give significant contribution to export, trade and increase the competitiveness of the entire economy. Importance of SME for economy isundisputable. All research show that globally, more than 90% of all business activities are realized by SME. SMEs employ two thirds of totallabor of European Union. Approaching to European Union presumes harmonization of the systematic environment and improvement of theclimate of entrepreneurship, private initiative, development of SME. This determination has strongpoint in current world processes that preferthe development of SME, utilizing their profit efficiency and established advantages relating to the adaptability of small business to dynamicchanges in economy. Problem of Human resources management is very sensitive issue in SMEs. Namely, in big companies there are entireteams of agencies or consultants are hired for selection and education of new employees, whereas in SMEs this work is done by owner ormanager. Therefore, in this paper several facts were pointed out which need to be considered in selection of new employees, since everymistake in this activity can cause far-reaching consequences on functioning of SME.