Human resources are the most significant resource of a company; this is especially true for small and medium enterprises (SMEs) in which they create the company’s competitive advantage because of their uniqueness. Human resources manage other resources and are responsible for the efficiency and success of the organization. The main goal of this research is to determine whether and to what extent the recruitment and selection of human resources are in correlation with the performance of SMEs. The research was conducted in SMEs in the Herzegovina Region in the Federation of Bosnia and Herzegovina in April 2019. An original questionnaire was created for the survey, within which top managers views on recruitment and selection of human resources were collected as well as the four-perspective performance of the business based on the Balanced Scorecard model. SPSS 20.0 was used for data analysis. Descriptive measurements used for data analysis include mean, standard deviation, and mode. The Kolmogorov-Smirnov test was used to test distribution normality. To test the correlation of variables and to determine the significance of differences, the Pearson correlation coefficient and t-test for independent samples were used. The level of significance was set to p = 0.05. The research results showed the correlation between the studied variables and the correlation of recruitment and selection of human resources and the performance of SMEs viewed from all four perspectives. A limitation of the research is the sample size and the sampling method. The results can be applied in the human resource management of SMEs.

Human resources (HR) represent a crucial resource of enterprises. This especially applies to small and medium-sized enterprises (SMEs), in which HR can create a competitive advantage and affect survival and development. Changes in the business environment, the need for new knowledge, skills and abilities due to changes in the market and business all lead to widening the gap between existing and required competencies of employees. In the process of training and education of HR, employees acquire the necessary knowledge, refine their skills and/or acquire new skills, and experience. More to the point, they obtain the competencies they need to stay and/or become successful in their job and future jobs that they will perform in the enterprise. The principal aim of this research is to determine the correlation between training and education of HR and business performance of SMEs. The survey was conducted in SMEs in the Federation of B&H from August to September 2020. An original questionnaire was created for the research, used for collecting the views on the HR training and education of top managers as well as four business performance perspectives of companies based on the Balanced Scorecard model. Data were analysed using SPSS 20.0. The following were used from the statistical procedures: Pearson’s coefficient of correlation, t-test for independent samples, Spearman’s correlation of coefficient and Mann-Whitney U test (depending on the results distribution). The results of the survey showed that there is a correlation between training and education of HR and business performance in SMEs. In addition, the survey results indicated differences among the enterprises in terms of their size; i.e., between small and medium-sized enterprises. However, those differences are not statistically significant.

In modern business conditions, human resources have become the most important resource of enterprises, and many authors point out that this is especially true for SMEs, in which, due to their specificity, human resources create a competitive advantage of the company and affect its survival and development. SMEs are faced with a strong, global competition of large enterprises and in order to survive and grow in the market, they must find specific strengths within themselves, develop and use them. Creativity is one of the most powerful tools that enable SMEs competitiveness, survival and development in the market. The basic objective of this research is to determine whether there is a correlation between recruitment and selection of human resources and organizational creativity in SMEs. The survey was conducted in SMEs in the Federation of B&H in 2019. An original questionnaire was created for the research, which collected the opinion of top managers on the recruitment and selection of human resources and organizational creativity in small and medium-sized enterprises. Data have been analysed using IBM SPSS Statistic 25.0. From the statistical procedures, the following were used: Shapiro-Wilk's test, Pearson's coefficient of correlation, Mann-Whitney U test and t-test for independent samples. The results of the survey showed that there is a correlation between the recruitment and selection of human resources and organizational creativity in SMEs and that there are differences in the correlation between the recruitment and selection of human resources and organizational creativity in the enterprises in terms of their size.

The success of the organization is based on the quality of human resources, their competencies, motivation, loyalty, and their business results. The basic aim of this research is to determine whether and to what extent human resources competency management influences the business success of small and medium enterprises (SMEs). The empirical research was conducted in 234 SMEs in the Federation of Bosnia and Herzegovina in January 2021. An original questionnaire was created for the survey, which gathered the opinions of top managers. In the paper, human resources competency management is viewed as a process consisting of: determining the required competencies, determining current competencies and the competency gap and undertaking activities to ensure and develop the necessary competencies. For the business success of SMEs, business performance was researched through four perspectives of the Balanced Scorecard (financial, customer, internal business processes and learning and growth perspective). The research results showed the correlation between the studied variables and the influence of human resources competency management on the business success of SMEs viewed from all four perspectives. The paper includes a comparison with similar research, limitations and recommendations for future research. The originality of this work lies in creating an original model of the connection between human resources competency management and business success (performance) of SMEs as viewed through four perspectives of the BSC, which has been empirically tested. Also, no such research has been conducted in B&H to investigate the influence between the human resources competency management and the business success of SMEs.

Purpose - Small and medium enterprises (SMEs) are very important from a social and economic point of view. They account for two-thirds of jobs in the private sector and are responsible for more than half of the total added value attained by companies in the EU. Competency management consists of three phases: determining the required competencies; determining current competencies and the competency gap; and undertaking activities to ensure and develop the necessary competencies. The required competencies determine the key activities and behaviors required in each key area of work. They represent the basis for the quality performance of other phases of competency management. The primary aim of this research is to determine whether and to what extent determining the required human resources competencies influence the business performance of small and medium enterprises. Methodology - The empirical research was conducted on 234 SMEs in the Federation of Bosnia and Herzegovina (FB&H) in January 2021. The percentage of processed SMEs reflects the real situation according to statistical data on the number of SMEs in the FB&H. An original questionnaire was created for the survey. Data collected by the conducted empirical research were analyzed using graphic representations; descriptive statistics; structural analysis; KolmogorovSmirnov test; Mann-Whitney U test; Kruskal-Wallis test; correlation analysis; factor analysis; and hierarchical multiple regression models. Findings - The research results showed the correlation between the studied variables and the influence of determining the required human resources competencies on the business performance of SMEs. The paper includes a comparison with similar research and recommendations for future research. Contribution - Given that very little research in this area is available in the literature, and that research has not been conducted in this way so far, the contributions of the paper are reflected in several achievements that have made a significant departure from other research on this issue. The same or similar research has not been conducted in Bosnia and Herzegovina so far. The subject of research has been set in a new and original way linking the determining the required human resources competencies and business performance of SMEs through the development of a theoretical model of the relationship between defined variables. An original theoretical and empirical model has been formed, the purpose of which is to determine the impact, direction, and intensity of the links between the first phase of human resources competency management and the business performance of SMEs. A model for measuring business performance has been developed using a balanced scorecard model that includes four perspectives (financial, customer, internal business processes, and learning and growth). Empirical verification of the defined model expanded and deepened the insight into the paradigm of modern business, the first phase of human resources competency management, and its development and affirmation in the field of management and business success.