|Abstract:||In the modern business environment, we are increasingly witnessing the globalization, automation, huge competition, technological advancement and informatization with political, environmental and business changes. Due to all these factors, modern companies have to fight for their existence on the market, follow these changes and implement them appropriately.
In the last twenty years of this century the emphasis on human capital, with the above-mentioned factors has strengthen. Aforementioned has a particular meaning in the Millennium period. This has led to development of human resource management function in a company/enterprise, which we call the Human Resource management (HR).
Human resources as part of the intellectual capital gain a remarkable share in the capital of a company and represent many benefits. Development strategy of HR management is the main function of a company's development strategy and it has a tight relation with the strategic management.
Meanwhile in the majority of large companies (corporations), leaders are not sufficiently aware of the importance of human resource development, because they give priority to planning, organizing; managing knowledge/risks/objectives/finances and control, while in smaller (family) enterprises, the role of each individual is defined from the very beginning, together with its organizational structure. This represents advantage for family businesses.
A company structured by the above-mentioned criteria, together with its employees in connection with the listed (fundamental) functions of management is throughout its lifetime meant to succeed. This synergy is crucial for growth and success of the financial business aspect.
Quality earned, educated, effective and coherent personnel takes most of the credit for company’s growth and success. Therefore, the core of a family enterprise represents happy, educated, motivated employees who contribute to the welfare of a company with their competences and development, from both the financial and non-financial aspects.
In practice, measuring the financial effects of HR in a business is still incomplete and difficult; therefore, it has seldom usage in practice.|