Effect of crises on human resources management in small and medium enterprises: Evidence from manufacturing industry in the Czech Republic
-
DOIhttp://dx.doi.org/10.21511/ppm.20(2).2022.02
-
Article InfoVolume 20 2022, Issue #2, pp. 10-21
- Cited by
- 901 Views
-
516 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The current turbulent times have never been so demanding to adapt to ever-changing conditions. Small and medium enterprises (SMEs) form the cornerstone of the economy. Moreover, they are the driving force of economic processes in all countries. Therefore, this paper aims to empirically map and identify the causes of the crisis and statistically verify how these crises affect the personnel measures taken and human resource management (HRM) in SMEs. The chi-square test and Cramer’s coefficient were used to verify the statistical dependences of research questions and hypotheses. A statistically significant impact of external economic influences on enterprises’ activities was empirically confirmed (59%). It was proved that nowadays, the most important external factor influencing the activities of enterprises in the market is the COVID-19 pandemic. The study also focused on the personnel measures taken during the crisis. It was confirmed that small businesses apply alternative personnel measures, namely reducing variable wage components before radical redundancies.
Acknowledgment
This study was supported by the project DKRVO Tomas Bata University in Zlín – Risk management in logistics – RVO/FLKŘ/2021/03, Faculty of Logistics and Crisis Management, and project GAAA – Project risk management in the conditions of SMEs in the Czech Republic – GA/16/2019.
- Keywords
-
JEL Classification (Paper profile tab)L26, M12, M54
-
References53
-
Tables2
-
Figures2
-
- Figure 1. Boxplots of the responses to research questions (Q1-4)
- Figure 2. Structure of respondents’ answers to the research question 9
-
- Table 1. Measures of location and variability of research questions (Q1-4)
- Table 2. Computations of chi-square testing of research questions (Q5-10)
-
- Achim, M. V., Safta, I. V., Văidean, V. L., Muresan, G. M., & Borlea, N. S. (2021). The impact of covid-19 on financial management: evidence from Romania. Economic Research-Ekonomska Istraživanja.
- Alagaraja, M., Kotamraju, P., & Kim, S. (2014). A conceptual framework for examining HRD and NHRD linkages and outcomes: Review of TVET literature. European Journal of Training and Development, 38(4), 265-285.
- Amankwah-Amoah, J., Khan, Z., & Wood, G. (2021). COVID-19 and business failures: The paradoxes of experience, scale, and scope for theory and practice. European Management Journal, 39(2), 179-184.
- AminJafari, A., & Ghasemi, S. (2020). The possible of immunotherapy for COVID-19: A systematic review. International Immunopharmacol, 83, 106455.
- Belas, J., Khan, K. A., Marousek, J., & Rozsa, Z. (2020). Perceptions of the importance of business ethics in SMEs: A comparative study of Czech and Slovak entrepreneurs. Ethics & Bioethics, 10(1-2), 96-106.
- Belas, J., Machacek, J., Bartos, P., Hlawiczka, R., & Hudakova, M. (2014). Business Risks and the Level of Entrepreneurial Optimism among SME in the Czech and Slovak Republic. Journal of Competitiveness, 6(2), 30-41.
- Bouckaert, G., Galli, D., Kuhlmann, S., Reiter, R., & Van Hecke, S. (2020). European Coronationalism? A Hot Spot Governing a Pandemic Crisis. Public Administration Review, 80(5), 765-773.
- Branicki, L. J. (2020). COVID-19, Ethics of Care, and Feminist Crisis Management. Gender, Work & Organization, 27(5), 872-883.
- Broduer, A., Gray, D., Islam, A., & Bhuiyan, S. (2021). A literature review of the economics of COVID-19. Journal of Economic Surveys, 35, 1007-1044.
- Bundy, J., & Pfarrer, M. D. (2015). A Burden of Responsibility: The Role of Social Approval at the Onset of a Crisis. Academy of Management Review, 40(3), 345-369.
- Bundy, J., Pfarrer, M. D., Short, C. E., & Coombs, W. T. (2017). Crises and Crisis Management: Integration, Interpretation, and Research Development. Journal of Management, 43(6), 1661-1692.
- Catullo, E. (2017). Chapter 5 – Early Warning Indicator for Crises in an Agent-Based Macromodel. In Introduction to Agent-Based Economics (pp. 105-124). Academic Press.
- Cepel, M., Gavurova, B., Dvorsky, J., & Belas, J. (2020). The impact of the COVID-19 crisis on the perception of business risk in the SME segment. Journal of International Studies, 13(3), 248-263.
- Chen, Z. (2021). Influence of Working From Home During the COVID-19 Crisis and HR Practitioner Response. Frontiers in Psychology, 12.
- Cowan, E., Khan, M. R., Shastry, S., & Edelman, E. J. (2021). Conceptualizing the effects of the COVID-19 pandemic on people with opioid use disorder: and application of the social ecological model. Addition Science and Clinical Practice, 16(4), 1-6.
- Dvorský, J., Čepel, M., Simionescu, M., & Ďurana, P. (2021). The influence of competitiveness on start-up in SMEs segment. E&M: Ekonomie a Management, 24(1), 102-117.
- Dvorsky, J., Belas, J., Gavurova, B., & Brabenec, T. (2021). Business risk management in the context of small and medium-sized enterprises. Economic Research-Ekonomska Istrazivanja, 34(1), 1690-1708.
- Eggers, F. (2020). Masters of disasters? Challenges and opportunities for SMEs in times of crisis. Journal of Business Research, 116, 199-208.
- European Commission. (2003). Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (Text with EEA relevance) (notified under document number C(2003) 1422). Brussels.
- Garavan, T. N., & Carbery, R. (2012). A review of international HRD: incorporating a global HRD construct. European Journal of Training and Development, 36(2/3), 129-157.
- Gollier, Ch. (2021). Insurance economics and COVID-19. Journal of Risk and Insurance, 88(4), 825-829.
- Hudakova, M., Gabrysova, M., Petrakova, Z., Buganova, K., & Krajcik, V. (2021). The Perception of Market and Economic Risks by Owners and Managers of Enterprises in the V4 Countries. Journal of Competitiveness, 13(4), 60-77.
- Hudakova, M., Masar, M., Luskova, M., & Patak, M. R. (2018). The Dependence of Perceived Business Risks on the Size of SMEs. Journal of Competitiveness, 10(4), 54-69.
- Hurt, C. A., Lynham, A. S., & McLean, N. G. (2014). Investigating the HRD cube and explicating extant paradigms of HRD. European Journal of Training and Development, 38(4), 323-346.
- Ivanova, E. (2017). Barriers to the development of SMEs in the Slovak Republic. Oeconomia Copernicana, 8(2), 255-272.
- Jebran, K., & Chen, S. (2021). Can we learn lessons from the past? COVID-19 crisis and corporate governance responses. International Journal of Finance and Economics.
- Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2012). How Does Human Resource Management Influence Organizational Outcomes? A Meta-Analytic Investigation of Mediating Mechanisms. Academy of Management Journal, 55(6), 1264-1294.
- Kljucnikov, A., Civelek, M., Fialova, V., & Folvarcna, A. (2021). Organizational, local, and global innovativeness of family-owned SMEs depending on firm-individual level characteristics: evidence from the Czech Republic. Equilibrium. Quarterly Journal of Economics and Economic Policy, 16(1), 169-184.
- Kochanczyk, M., & Lipniacki, T. (2021). Pareto-based evaluation of national responses to COVID-19 pandemic shows that saving lives and protecting economy are non-trade-off objectives. Scientific Reports, 11, 1-9.
- Kotaskova, A., Belas, J., Bilan, Y., & Khan, K. A. (2020). Significant Aspects of Managing Personnel Risk in the SME Sector. Management & Marketing. Challenges for the Knowledge Society, 15(2), 203-218.
- Kozubikova, L., Belas, J., Bilan, Y., & Bartoz, P. (2015). Personal characteristics of entrepreneurs in the context of perception and management of business risk in the SME segment. Economics and Society, 8(1), 41-54.
- Kristanti, F. T., Rahayu, S., & Isynuwardhana, D. (2019). The Survival of Small and Medium Business. Polish Journal of Management Studies, 20(2), 311-321.
- Kuckertz, A., Brandle, L., Gaudig, A., Hinderer, S., Reyes, C. A. M., Prochotta, A., Steinbrink, K. M., & Berger, E. S. C. (2020). Startups in Times of Crisis – a Rapid Response to the COVID-19 Pandemic. Journal of Business Venturing Insights, 13, 1-13.
- Labas, D. (2017). The Impact of Organizational Crisis Preparedness on Firm Business Performance. Market-Tržište, 29(1), 75-92.
- Lastauskas, P. (2021). Lockdown, employment adjustment, and financial frictions. Small Business Economics, 58, 919-942.
- Lockwood, N. R. (2005). Crisis Management in Today’s Business Environment: HR’s Strategic Role. United States of America: SHRM.
- Mofijur, M., Fattah, I. M. R., Alam, M.A., Islam, A. B. M. S., Ong, H. CH., Rahman, S. M. A., Najafi, G., Ahmed, S. F., Uddin, M. A., & Mahlia, T. M. I. (2021). Impact of COVID-19 on the social, economic, environmental and energy domains: Lessons learnt from a global pandemic. Sustainable Production and Consumption, 26, 343-359.
- OECD. (2017). Enhancing the Contributions of SMEs in a Global and Digitalised Economy.
- Padhan, R., & Prabheesh, K. P. (2021). The economics of COVID-19 pandemic: A survey. Economic Analysis and Policy, 70, 220-237.
- Pedersen, C. L., Ritter, T., & Di Benedetto, C. A. (2020). Managing through a crisis: Managerial implications for business-to-business firms. Industrial Marketing Management, 88, 314-322.
- Qazi, A., Quigley, J., Disckson, A., & Kirytopoulos, K. (2016). Project complexity and risk management (ProCRiM): Towards modelling project complexity driven risk paths in construction projects. International Journal of Project Management, 34(7), 1183-1198.
- Ritter, T., & Pedersen, C. L. (2020). Analyzing the impact of the coronavirus crisis on business models. Industrial Marketing Management, 88, 214-224.
- Rostami, A., Sommerville, J., Wong, I. L., & Lee, C. (2015). Risk management implementation in small and medium enterprises in the UK construction industry. Engineering, Construction and Architectural Management, 22(1), 91-107.
- Sorribes, J., Celma, D., & Martínez-Garcia, E. (2021). Sustainable human resources management in crisis contexts: Interaction of socially responsible labour practices for the wellbeing of employees. Corporate Social Responsibility and Environmental Management, 28, 1-17.
- Spiteri, G., Fielding, J., Diercke, M., Campese, Ch., Enouf, V., Gaymard, A., Bella, A., Sognamiglio, P., Sierra, M. M. J., Riutort, A. N., Demina, Y. V., Mahieu, R., Broas, M., Bengner, M., Buda, S., Schilling, J., Filleul, L., Lepoutre, A., … & Ciancio, B. Ch. (2020). First cases of coronavirus disease 2019 (COVID-19) in the WHO European Region. Eurosurveillance, 25(9), 1-6.
- Susskind, D., & Vines, D. (2020). The economics of the COVID-19 pandemic: an assessment. Oxford Review of Economic Policy, 36(suppl_1), S1-S13.
- Taraba, P., Hart, M., & Pitrova, K. (2016). Risk Management of Projects in the Czech Republic. Polish Journal of Management Studies, 13(1), 181-191.
- The International Monetary Fund. (2020). A Crisis Like No Other, An Uncertain Recovery.
- Vassilara, F., Spyridaki, A., Pothitos, G., Deliveliotou, A., & Papadopoulos, A. (2018). A Rare Case of Human Coronavirus 229 E Aassociated with Acute Respiratory Distress Syndrome in a Healthy Adult. Case Reports in Infectious Diseases, 2018, 1-4.
- Virglerova, Z., Dobes, K., Kramolis, J., & Kotaskova, A. (2017). The influence of the SME owners’ education on their perception of business environment in Czech Republic. Economics and Sociology, 10(3), 321-332.
- Weaver, R. L. (2020). The Impact of COVID-19 on the Social Enterprise Sector. Journal of Social Entrepreneurship.
- Winarsih, Indriastuti, M., & Fuad, K. (2021). Impact of Covid-19 on Digital Transformation and Sustainability in Small and Medium Enterprises (SMEs): A Conceptual Framework. In L. Barolli, A. Poniszewska-Maranda, & T. Enokido (Eds.), Complex, Intelligent and Software Intensive Systems. CISIS 2020. Advances in Intelligent Systems and Computing (pp. 471-476). Cham: Springer.
- Yagi, M., & Managgi, S. (2021). Global Supply Constraints from the 2008 and COVID-19 Crises. Economic Analysis and Policy, 69, 514-528.