Foreign direct investment and employment rights in South-Eastern Europe

Rexhepi³

2016

Structured AbstractPurpose: This study explores the application of total reward practices in small and mediumsized enterprises (SMEs) in the South-Eastern European (SEE) region and the reward elements positively affecting organisational performance.Design/Methodology/Approach: The sample consists of 199 SMEs operating in SEE countries which are either under economic crisis or transition: Greece, Bulgaria, Romania, Albania, Kosovo and the Former Yugoslav Republic of Macedonia (FYROM).Findings: SMEs in the SEE region are implementing a total rewards model which is characterised by a weaker application of individual aspects and by a stronger application of transactional, relational and communal aspects. Within the communal aspects of the model, our study found three elements of the work environment that positively affect organisational performance; work-life balance, employee involvement voice mechanisms, and organisational culture supporting personal and professional development. Practical implications:Our study contributes to HR practice; we found that a better work environment is positively related to improved organisational performance in these SMEs. This means that in times of economic crisis or transition when HR budgets are limited such non-financial strategies can be a viable alternative to costly financial rewards to such organisations. Originality/value:The study contributes to both theory and HR practice by shedding light on how employee rewards are affected in economies under crisis and transition, how SMEs can motivate their employees when faced with significant financial limitations, as well as explores which reward elements can lead to enhanced organisational performance in such organisations.

Section: Resultsmentioning

confidence: 99%

Rewarding employees in turbulent economies for improved organisational performance

Rexhepi³

2016

“…A significant number had liquidity problems, frequently being unable to pay their suppliers and employees (Kouretas and Vlamis, 2010). This problem intensified in June 2015 when capital controls were implemented in an effort to stop a bank run (Wood et al, 2016b). Increased lay-offs and decreased salaries led to high uncertainty and employee dissatisfaction, especially within SMEs (Arghyrou and Tsoukalas, 2010).…”

Section: Working Conditions In Greek and Serbian Smesmentioning

confidence: 99%

Varieties of crisis and working conditions: A comparative study of Greece and Serbia

Szamosi²,

European Journal of Industrial Relations

et al. 2019

Greece and Serbia are historically different, yet regionally connected. Their weak institutional foundations and long-term economic turbulence have prevented them from overcoming crises, leading to the institutionalization of adverse working conditions. We focus on the outcomes of the systemic crisis in Greece and the transition crisis in Serbia, using semi-structured interviews and focus groups with managers and employees in small- and medium-sized enterprises in two time periods. We argue that, although the crisis has different origins in the two countries, it has consolidated adverse working conditions. Our research explores the institutionalization of adverse working conditions and offers an understanding of the lived reality of institutions, examining variations in the origins, pressures and outcomes of different types of crises on business practices from an individual perspective.

“…Similarly, Hancké et al (2007) discuss varieties of capitalism in Europe's SEE economies. There are also other country specific studies, such as Upchurch and Marinkovic's (2011) research on wild capitalism in Serbia and Wood et al (2014) who explore the impact of variations in institutional regimes in the SEE region, focusing on foreign direct investment (FDI) and employment rights. Our aim is to add to this growing body of knowledge by exploring the application of HRM in SMEs operating in Europe's peripheral business systems in South-East Europe (SEE).…”

Section: Hrm In the South Eastern European Contextmentioning

confidence: 99%

A three-fold framework for understanding HRM practices in South-Eastern European SMEs

Szamosi²,

et al. 2016

Employee Relations

Purpose-We study particular structural and organisational factors affecting the formality of human resource management (HRM) practices in small and medium-sized enterprises (SMEs) in SouthEastern European (SEE) post-communist countries, in particular Serbia, Romania, Bulgaria and the Former Yugoslav Republic of Macedonia (FYROM) in order to understand the antecedents of formalization in such settings. Design/methodology/approach-Adopting a quantitative approach, this study analyses data gathered through a survey of 168 managers of SMEs from throughout the region. Findings-The results show that HRM in SMEs in the SEE region can be understood through a threefold framework which includes: degree of internationalisation of SMEs, sector of SMEs and organisational size of SMEs. These three factors positively affect the level of HRM formalisation in SEE SMEs. These findings are further attributed to the particular political and economic context of the post-communist SEE region. Research limitations/implications-Although specific criteria were set for SME selection, we do not suggest that the study reflects a representative picture of the SEE region because we used a purposive sampling methodology. Practical implications-This article provides useful insights into the factors which influence HRM in SMEs in a particular context. The findings can help business owners and managers understand how HRM can be applied in smaller organisations, particularly in postcommunist SEE business contexts. Originality/value-HRM in SMEs in this region has hardly been studied at all despite their importance. Therefore, this exploratory research seeks to expand knowledge relating to the application of HRM in SMEs in SEE countries which have their business environments dominated by different dynamics in comparison to western European ones.