1. INTRODUCTION

Large percent of world’s economy isnowadays under transitional processes:People's Republic of China (PRC), republicsof former Soviet Union, Czech Republic,Slovakia, Hungaru, Romania, Bulgaria,former Yugoslav republics (Slovenia,Croatia, Bosnia and Herzegovina, FYRMacedonia, Montenegro and Serbia) and

others. Transitional processes, among all,include transformation of public to privateproperty; introduction to world’s tradingprocedures and foreign investments indomestic firms. All of those, demands radicalchanges concerning human resourcestreatment and deployment. To enable thosechanges, besides positive attitude towardtransition, adequate knowledge is necessaryto sustain the process of further growth and

DEVELOPING MOTIVATION MODEL AS A STRATEGY FOR HRMIN SMALL ENTERPRISES UNDER TRANSITIONAL ECONOMY

Ž. Živković, I. Mihajlović*and Slavica PrvulovićUniversity of Belgrade, Technical Faculty in Bor, Management Department,

Vojske Jugoslavije 12, 19210 Bor, Serbia

(Received 12 january 2009; accepted 17 March 2009)

Abstract

Business conditions under transitional economy are specific since business operations should beperformed under significant uncertainty and with limited resources (human, financial, technologicalresources, etc.). Key factor, needed for overcoming those obstacles, improving companies’performances, and introducing company to the global market are human resources (HR). Motivationof employees is usually one of the major problems occurring while developing human resources.Investigation presented in this paper, which was conducted in small enterprises (less then 100employees) situated in Southeast Europe, revealed that there are two strongest motivation factors foroverall employees’ satisfaction with their company. Those motivation factors, which have potentialfor securing and improving employees’ position in the firm, are education and performanceevaluation system within the company.

Keywords: motivation, human resources, transition, economy, strategy

* Corresponding author: imihajlovic@tf.bor.ac.rs

S e r b i a n

J o u r n a l

o f

M a n a g e m e n t

Serbian Journal of Management 4 (1) (2009) 1 - 27

www.sjm06.com

development (Hutner et al., 2006).Experiences of successful companiesworldwide usually couldn’t be copied. Thoseexperiences should be used as starting pointfor creating HR models and as base for fastand effective further development. Firmsshould “think globally and act locally”(Parnell, 2006).

Entrepreneurship and development ofsmall and medium sized enterprises (SME)are, without doubt, future of transitionaleconomy countries. This is evident, havingin mind that two thirds of employees in EUare from SMEs and that 99.8 of allenterprises are SMEs. At the same time, inthe USA, 97 percent of all employees areworking in companies with 20 to 500employees (Jacks et al., 2006).

It is not often that entrepreneur canoperate his business alone. Sooner or later,small entrepreneurial investment willdemand engagement of additional workforce (Barrett and Mayson, 2006). Workforce should be managed in such a mannerleading to achievement of companies’ goals.

For the companies which plans furthergrowth and development, HRM (HumanResource Management) is becoming moreand more important and, accordingly, criticalfor success (Birch et al., 1995). Rapiddevelopment is leading to greater demandsof resources, and system itself, which isfurther translated to managers andemployees which are obligated to reactquickly under turbulent environment.

Though HRM practice is mainly related tolarge and well equipped companies, muchcan be told about HRM in SMEs especiallyin those faced with challenges of rapiddevelopment in concurrent marketconditions. HRM starts with understandingthe way in which human resources canimprove companies’ performances and

system sustainability through achievingcomparative advantages. Newer the less,small business has its particularities, mostlybecause of limited resources (material,human, organizational, etc.), leading todifficulties while establishing HRMfunction. HRM function, on the other hand,should enable human resource managementand its activities toward achieving ofpredefined goals (Wright and McMahan,1992).

There is large number of cases worldwidewhich confirms that HRM in SMEs isestablished as ad hoc activity and havinginformal shape (Cardon and Stevens, 2006).Organized forms of HRM are usually presentin companies having above 100 employees.Still, even in those companies, it is often thatHRM function is of formal type. It is obviousthat SMEs are “suffering” from “poorness ofresources” which is one of the majorproblems which follows their HRM practice.Practically, establishing formal HRMfunction produce large costs in smallenterprises, concerning time and money(Cardon and Stevens, 2006), which are nottreated as a vital investments for the firmswellbeing.

In the modern operational conditions,with open market and globalization, morethen 50% of gross social product is based onknowledge, e.g. intellectual property andexpertise of the people (The Economist,1996). In the knowledge based economy(Hunter et al., 2006), comfort is furtherincreasing with engagement of effectivemanagement and employees knowledge ofusing and effective controlling physical andfinancial goods. Increasing importance of theknowledge is connected with labourfluctuation on the market and it can be statedthat investment in the company is usuallypurchasing the talents, abilities, arts and

2 @.@ivkovi} / SJM 4 (1) (2009) 1 - 27

ideas which presents intellectual capital ofthe company, rather then physical orfinancial resources (Stewart, 1997).

Concerning that human capital is base ofintellectual capital; it should be createdthrough institutionalizing of HRM functionin the company. This is beginning withattraction, recruitment and employing thebest candidates, which is first and mostcritical phase in the process of intellectualcapital creation.

Bill Gates once said: ’’Matter whichrestricts Microsoft… depend simply on howdifficult it is for us to recruit people whichwe want in our research team’’ (Dutton,1997). However, employing is only the firstof three vital processes on which everyprosperous organization must base itsactivities while creating and strengthening itshuman capital. Company has to develop itsemployees at all levels and in all specialtiesto enable them to enunciate their potentialsduring the process of creating optimalcollective contribution. Elemental rule ofStrategic HRM (SHRM) state that properlyassorted HRM practice have strong influenceon improving financial performance of thecompany. SHRM process is very muchpresent in modern literature (Chadwik et al.,2004; Delery and Shaw, 2001; Wright andMcMahan, 1992; Wright and Snell, 1998).Wright, Dunford and Snell (2001) havesummarized SHRM topic in literature, whichdeals with it, from the resource orientedperspective and proposed a model. Basics ofhis model were organizational learning andinnovations toward human resourcesdevelopment. After all, first two processeshave no meaning, if the company isn’t ableto develop adequate department environmentand performance evaluation system to retainits best and brightest people (Dess et al.,2007). HRM starts from the fact that

employees are the greatest value of theorganization and that their development canlargely contribute to sustainabledevelopment of the organization. Theapproach with established practice andstrategy of HRM can influence employees’job performance, as well as interrelationsamong them. This is the reason why it can bestated, doubtless, that HRM has strategicimportance for companies operations(Mayson and Barret, 2006).

To enclose process of human resourcecapital development and, accordingly, toincrease firms intellectual capital, motivationof the employees is needful link in the chainhaving direct impact on their jobperformances (Ivancevich et al., 2006).

Through process of human capitaldevelopment, companies can create valuable,special, irreplaceable and well organizedresources. One of the strategies forincreasing intellectual capital of the firm isorganizational learning. Since individuallearning is the base of organizationallearning (Crossen et al., 1999; Kim, 1993),importance of the employees’ motivationraises. Total success in motivation of theemployees, especially in the transitionaleconomy, largely depends on employees’acceptance of changes. Accordingly,companies have to develop sustainable HRMpractice to motivate employees to learn andto improve their competitive advantages.

Abilities of the employees to fulfill jobrequirements could be improved aftereducation and training in their company.Organizational structure of the companygives the frame for the employees to achieverequired job performance. However,competence of the employees, together withorganizational enabling, doesn’t mean muchif they aren’t motivated to achieve requiredperformances. Motivation can be viewed as

3@.@ivkovi} / SJM 4 (1) (2009) 1 - 27

the process of agitation, orientating andmaintaining of the human behavior towardspecific goals, based on three elements:need, action and compensation. For themanagement of the company it is of greatimportance to be able to recognizemotivational profile of their employees.Work productivity is directly related onemployees’ degree of motivation. Managersmust realize the needs and the motives oftheir employees and learn how to fulfill themand consequently achieve maximal level ofemployees’ motivation. Employees’satisfaction is the only way for facilitatinghigh level of productivity and employeescreativity at long range (Ivancevich et al.,2006).

At the beginning of the 20th century,strong social and technological discrepancieswere arising. At the same time first scientificpapers from the field of work organizationand learning, related to the Taylor’s name,were published. Downsizing andsegmentation of the universe of socialproblems, aiming to determine pattern ofrelations among work performance andrewards, with personality transformed to“homo economicus” creates capitalisticsocial awareness of those days (Taylor,1911).

Later investigations conducted by Mayo,Douglas Mc Gregor , Maslow, Herzberg,Aldeerfer, McClleland, Wroom, Porter, andothers (Ž.Živković et al., 2005) indicatedcomplexity of the motivation problemshaving in mind that people representscomplex systems with different individualmeasures of value. This means that satisfyingof needs in hierarchical sequence is not thesame individually. What is the same for allthe people is that first motive is adequatefulfilling of material needs and safety, andthat other needs are lined depending on

numerous factors arising from structure ofpersons character which is the object ofmotivation ( Hogan and Holland, 2003).

Concerning that people in theorganization are behaving differently, whichis partially resulting from differences in theirpersonalities, tasks of human resourcesrepresents complex activities of adjustingtheir differences and attaining commoncorporate goals. Complicated humanpersonality, which is complex system on itsown and specially when interacting withenvironment, further increase complexity ofcompanies operations. This makes HRMactivities more difficult. Investigationsconducted with aim to classifycharacteristically types of personalitiesresulted with two, now well known, models:MBTI (Myers Briggs Type Indicator)(Ivanchevich, 2006) and BFM (Big FiveModel) (Luthans, 2005). According todescriptions and dimensions of thepersonality it is obvious that people are quitedifferent, even so it wouldn’t be appropriateto state that person is “better” or “worst”compared to others. People are just different.However, what is important is the type ofpersonal characteristics associated to peopleof the company. Nevertheless, even if all thecharacteristics of the people are legitimate;there is necessity to harmonize them with thetype of the job delegated to them as theemployees. Correlation of personalcharacteristics with job requirements is notonly increasing productivity but also theirsatisfaction with the job they perform. If youforce someone to do the job, which demandspersonality completely different then he/sheposses, he/she would feel dissatisfaction andfrustration even if some job looks attractiveto another person (Robbins, 2003).

Maslow (1943) discovered that people ofthe organization could be agitated with five

4 @.@ivkovi} / SJM 4 (1) (2009) 1 - 27

types of motives (needs), organizedhierarchically. Those five groups of needsare: physiological, safety, love/belonging,esteem and self-actualization. Numerousresearches revealed that first two groups ofneeds (physiological and safety) are in mostcases at the beginning of the hierarchicalscale, and that sequencing of the other threecould be altered depending on the structureof the personality and influence of theenvironment (Lathman and Ernst, 2006).

In the countries with transitional economy(Abrudan, 2006; Roceska and Kostoska,2006), where most of the business is on themargin of the profit, owners of the SMEsonly wishes to obtain larger incomes asquickly as possible with little thought giventoward human resources wellbeing, benefitsand development. While HRM functiondevelopment in most cases is omitted (Rakić,2007). In such environment, according to theMaslow’s theory of hierarchical needs,employees place more emphasis on lowersociological needs, which are closely relatedto them. The reason for such behavior is thatthey feel depression and frustration causedwith the fact that in their professional historyand even in their near future there aren’t anysigns that their higher hierarchical needs willbe fulfilled. Then, employees abandon theirhigher level needs because they don’t expectthem to be fulfilled. This means they quittheir own self-actualization.

The main reason for such behavior couldbe found in the fact that employees have losttheir trust in the firm long time ago.Alderfer’s ERG theory (Existance,Relatedness and Growth, 1972) also supportsthose findings. After changing in theenvironment, individual must abandonhigher level needs and turn toward lowerones.

2. LITERATURE REVIEW ANDDEVELOPING OF THE MOTIVATIONMODEL

Numerous investigations revealed thatmotivation factors, resulting form the needsof the employees, are changing with time andhave some particularities at the beginning ofnew millennium (Lathman and Ernst, 2006).Socio-analytical investigations, (Hogan,2003; Hogan and Holland, 2003) showedthat people have genuine needs for: (1)acceptance and approval, (2) status, powerand control and (3) predictability and order.Speculations resulting from Maslow’s andHogan’s theories suggest that people’s needsare universal. Individual differences amongpeople are issued form the characteristics oftheir personality. Workers in the transitionaleconomies, of post-communistic countries,have larger sensitivity of their needsresulting with better acceptance of the fivepoint scale, developed by Maslow (1943),when developing a motivation model (Tsai,2007; Haiyang and Zhang, 2007). This scalewas further modified by Locke and Henne(1968) and Lathman and Pinder (2005) toaccommodate revealing of motivationprinciples that are acceptable at thebeginning of new millennium (Latham andErnst, 2006).

HRM represents the modus of managingworkforce and their activities with the aim toenable achieving of the companies goals(Wright and McMahan, 1992). This impliesthe activities of the human resources whichwill upgrade firms’ performances, achievingof companies goals and sustainability of thesystem, through obtaining comparativeadvantages (Barney and Wright, 1998;Wright et al, 2001; Wright et al., 2005).Employees have interest in achievingcompetitive advantages of their companies,

5@.@ivkovi} / SJM 4 (1) (2009) 1 - 27

especially in transitional economy, (Haiyangand Zhang, 2007) mostly because theirmemories and previous experiences from, socalled “deliberative economy” areunpleasant. Literature suggests that, in theconditions of transitional economy, topmanagers must play important role inachieving risky goals (Keeley and Roure,1990; McGree et al., 1995). Generally,managers can use two types of resources:human capital in the form of peoplesexperience (Mc Gree et al.,1995) and thesocial capital as their external connections(Shane and Cable, 2002). Those resourcescould be used as the link to other resources,aiming to develop competitive advantagesand obtaining better performances (Barney,1991). During the process of HRM systemcreation, key role lies on employees’motivation without which it wouldn’t bepossible to obtain their effort and loyalty(Lathman and Ernst, 2006).

2.1. Developing hypothesis andsuggestion of the model

Five-point motivation scale (Maslow,1943) is based of fulfillment of the needs intheir hierarchical sequence: (1) physiological(material); (2) safety; (3) belonging; (4)esteem and (5) self-actualization.Investigations conducted during beginningof the 21st century (Lathman and Ernst,2006; Hogan, 2003; Hogan and Holland,2003; Lathman and Pinder, 2005) revealedthat motivation factors are changing withtime and that they have certainparticularities, at the beginning of the newmillennium Postulates resulting fromMaslow’s (1943) and Hogan’s (2003)theories could be applied for investigatingand developing of the motivation models inpost-communist countries with the

transitional economy (Tsai et al., 2007).

2.1.1. Physiological (material)conditions

Material compensation of the employeesfor their efforts, in the environment oftransitional economy, is often inadequate tofulfill their basic human needs. This resultswith workers dissatisfaction with their jobs.Increasing job organization, workerssatisfaction increase resulting with positiveimpact on productivity and accordingly,better performances of the company (Wrightet al., 2001). As the result of betterproduction, employees are rewarded whichis especially noticeable in post-recessioncompanies after 1980 (Brouckner, 1988;Brouckner et al. 1993; Mone, 1997; Shah,2000) and in transitional economy firmsduring post-communistic era. In thetransitional economy, the process ofprivatization is usually followed withintroduction of new technologies.Management, under those conditions, ismostly relaying on previous experiences(Haiyang and Zhang, 2007) which can bedangerous without motivating people toadapt to new technological procedures(obtaining new knowledge for the newtechnologies). Difficulties to compete withlarger firms, concerning salaries, force smallenterprises to pay much attention onemployees compensation system (Burrettand Khan, 2004). This assume creation ofnew organizational forms in the company.Resistance to new organizational forms islower if they contribute to increasedfinancial performances of the company, andconsequently, material compensation of theemployees for their effort. Those facts revealthat following hypothesis can be suggested:

H. 1 a. Increasing employees’ rewards

6 @.@ivkovi} / SJM 4 (1) (2009) 1 - 27

(salary) is positively correlated with jobsorganizational changes.

Employees standard of living, intransitional economies, is on much lowerlevel compared to workers in developedeconomies (Japan, USA, EU, etc.) resultingwith possibility of fulfillment only the lowerhierarchical needs (Ajila, 1997). This is thereason why benefits are often concerned astool for promoting care and attention ofsuperiors toward employees and to improvetheir loyalty toward their firm. Socio-analytical theory (Hogan, 2003) indicatesthat there are individual differences amongpeople. Even so, all forms of rewards aregenerally well accepted especially in smallfirms. This is the reason why this form ofstimulation shouldn’t be neglected in theHRM strategies. Business philosophy isconceptually changed at the beginning of the21st century. Many work tasks could beperformed at home during 24 hours, whichoffers numerous possibilities for motivatingof the employees, through different forms ofbenefits based on savings made this way(Lathman and McCauley, 2005). Employeesaccept all forms of benefits as the sign ofsignificant care from their superiors, whichcan be additional motivation factor for futurebetter performing. Stimulating employeesthrough different forms of benefits leads tofollowing hypothesis:

H.1 b. Introducing different forms ofbenefits for employees is well acceptedemployers care.

Numerous motivation theories, whichdefines motivation elements of the jobs inthe future, (Lathman and Ernst, 2006) pointsout that worker is an complex human beinghaving its home, family and friends, besideshis engagement in the firm. Worker hasneeds to be fulfilled outside the firm becausemeaning of his life is not only in his work

engagement. Management of the firm mustunderstand those needs and consider them inthe HRM strategy (holistic employee care).Only this kind of approach can ascertaincomplete loyalty and dedication of theemployees. During last 20 years, in manycompanies, this problem was not consideredas much as it should, especially in smallenterprises. This resulted with demotivationof the employees (Dalton et al., 2002).Reestablishing motivation values such is fearmaterial compensation is of specialimportance in transitional economy.Adequate compensation system in the firmenables achieving satisfactory standard ofliving (Baker et al., 2005), which upgradebalance among employees family life and hiswork. Compensation system upholdsmaterial satisfying of the employees. This isone of the employees’ lower hierarchicalneeds, which leads to following hypothesis:

H. 1 c. adequate compensation system ispositively influencing balance amongemployees’ personal life and work (work/lifebalance).

Superiors care toward employees is,among all, manifested in creating adequateworkplace conditions. Herzberg et al., (1959)during developing of his theory ofmotivation, points out that workplaceconditions are one of the importantpsychological motivation factors, which wasproven in later investigations (Parker andWall, 1998). In large companies, operatingin developed economical systems, muchattention is paid on work safety andergonomics of the workplace, mostlyaccording to the legal regulations. Recently,with introducing of quality systems ISO14000 and OHSAS 18002, those demandsare particularly in the focus (Occupationhealth and safety management system,2007).

7@.@ivkovi} / SJM 4 (1) (2009) 1 - 27

In small firms, HRM practice togetherwith taking care of workplace conditions isoften established only formally (ad hoc).Cardon and Stivens (2004) pointed out ondifferences related to HRM practice in smallcompanies from different geographicregions. In the USA firms with less then 500employees are considered as small ones, inEurope this number is below 250 (Bacon andHoque, 2005) and in Australia, according tothe “official” national classification, thisnumber should be less then 20 employees(ABS, 2002). A company declared as “small”usually doesn’t grow (Mayson and Barrett,2006). In counties with transitional economy,this kind of small companies’ classificationisn’t established yet. Usually it is consideredthat company is small if it employees lessthen 100 people. In those companies, workconditions are often neglected mostlybecause statutory demands do not exist, atthe national level, or, if present, rarelyapplied.

When concerning increase of theemployees job satisfaction, managementmust pay due attention to workplaceconditions during creation of adequate HRMsystem (Maierhofer et al., 2002; Tsai et al.,2007). This is of special importance in smallfirms (Mayson and Barrett, 2007). In theframe of creating better workplaceconditions, following hypotheses could beproposed:

H. 1 d. Workplace conditions arepositively influencing job satisfaction.

2.1.2. Safety and social security

Care and attention are strong motivationfactors, creating sense of safety amongemployees which enables them to focus theirfull attention on their job tasks. This can beconsidered as the form of psychological

contract among workers and executives ofthe company (Millward and Brewerton,2002). Care for employees, as the part ofHRM practice, reflects job organization. Itresults from common effort for achievingcompanies’ goals, respecting social,psychological and other problems employeesare facing after changing the joborganization (Naumann, 1998; Mckee –Ryanand Kinicki, 2002). Employees’ satisfactionwith attitude and care of their superiorscreates psychological safety among them andloyalty toward firm. This has crucialimportance for future strategy of HRMdevelopment. Workers safety and socialcomponent are important elements of theirsocial security (Cascio, 2002) andadaptability to ongoing changes of the joborganization, which is the result oftechnological progress. Some investigationsreveals creation of positive organizationalclimate, after certain restrictive measures,with employees continuing their careers insame firm owing to positive relations,attention and care of their superiors (McMaster, 2002; Beam, 1997). Bad experienceswhich transitional economy employees carryfrom the period in their life, when theyworked under communist regime (especiallyfrom the period of its collapse), can be strongmotivation factor under altered conditions.This is possible with the condition that newemployees take adequate care of thirfeelings, related to the new organizationalenvironment. This gives opportunities toHRM strategy, of those companies, to creategain employees loyalty and trust (Naumann,1998). Following hypothesis can bepropounded according to the aboveconsiderations:

H. 2 a. Job organization changes havepositive influence on employees, if superiorstake care of their feelings.

8 @.@ivkovi} / SJM 4 (1) (2009) 1 - 27

People having great personal values alsohave high goals which they try to accomplishin their business and private life (Stajkovicand Luthans, 1998). Employees haveaspiration to accomplish their personalambitions through their career developmentand often set themselves higher goals(Bandura 2001). People’s behavior duringcreation of balance among their work andlife, depends primarily on their personalcharacteristics (Gall, et al., 2005). Having inmind that the desire for career improvementis common attribute of most people(Lathman and Ernst, 2006), followinghypothesis could be suggested:

H. 2 b. Balance of work and life ispositively influencing aspiration foremployees’ career development.

Under the modern conditions manycompanies, especially production ones, haveproblems with accomplishing safe workingenvironment and decrease in number ofinjuries during work, as well as upgradedenvironment protection. In developedeconomies, those topics are strictly regulatedby law, resulting with lower number ofproblems and improved work satisfactionrelated to this part of HRM practice. In thecountries having transitional economy,juristical procedure is also transitional, andmuch of regulations are not applied. Conceptof job satisfaction was initially proposed byHoppock in 1935. He considered that jobsatisfaction was based on employees’satisfaction with the work environment andfactors that influence employees’ satisfactionphysically and psychologically. Thesefactors mostly were related to employees’subjective reactions on their workenvironment conditions. With jobhumanization and development ofbehaviorist theories, workplace conditionsgain importance in modern organizations

(Vroom 1964, Bandura 2001). Under thesystem of organizational learning, within thecompany, many aspects of human and socialjob organization are created (Hislop, 2001)which, at the final, enables creating betterworkplace environment. Continualimprovement of training system leads toupgraded work conditions. Above discussionallow us to suggest following hypothesis:

H. 2 c. Work conditions are positivelyinfluenced with adequate educational andtraining system in the firm.

2.1.3. Acceptance

Natural desire of satisfied worker is to bepromoted in his company. Also, satisfiedemployee identifies himself with company’sgoals (Maslow, 1943). This paradigm isevident in almost all behaviorist theoriesdefined in the second half of 20th century(Robbins and Coulter, 2005). Personalcharacteristics of the people, initiate theiraspiration for promotion, (Gal et al. 2005)which can be recognized in most of thepeople (Lathman and Ernst, 2006). If thosepossibilities are enabled through companiesHRM then following hypothesis is proven:

H. 3 a. Creating possibilities for careerdevelopment (promotion) in the firm ispositively correlated with superior care ofemployees.

Under the conditions of market andeconomy globalization, knowledge isbecoming key resource for companies’ betterperformances (Barnney, 1991). Under thetransitional economy, transformation of themarket is promoted by its own mechanisms,while planned government driven marketorientation doesn’t exist (Zhou, 2000). Thisis forcing managers to use different types ofresources obligated with market conditions(Haiyang L. and Zhang Y., 2007). In the

9@.@ivkovi} / SJM 4 (1) (2009) 1 - 27

modern world, human knowledge isdominant resource which “progressive”increase output performances of thecompany, governed by its HRM system(Jeffrey and Boyles, 2007). To be able foradequate respond to modern demands undernew economy conditions, and to contributefurther increase of companies performancesduring post communist era (transitionaleconomy), employees are forced topermanently increase their own knowledge.Investigations indicate that employees areoften motivated for individual education.Nevertheless, under the conditions resultingfrom organizational changes, educationorganized within the company(organizational learning), as the part of HRMstrategy, provide much better practicalresults (Tsai et al., 2007). Forming theorganizational learning systems is strategicprocess for future competitive advantages(Vera and Crossan, 2004). Individuallearning can not be avoided, nevertheless itshould result from organizational learning asthe main strategy of the companies HRMsystem (Senge, 2003). The HRM practice oforganizational learning gives excellentresults in the firm (Chadwick et al., 2004;Delery and Shaw, 2001). Through the systemof organizational learning, as the way ofcompany’s care of the employees, sense ofbelonging to the company is created. Thoseprocedures form such atmosphere amongemployees, with their general opinion, thatcareer development within the firm is onlypossible with new knowledge obtainedduring the trainings (Vera and Crossan,2004). Numerous investigations indicate thatthere is positive correlation amongorganizational learning, realized throughHRM system, and financial results of thecompany (Wright et al.2001). When firmachieve positive financial results due to the

knowledge of the employees, possibilitiesfor their promotion and obtaining betterpositions are higher, which leads tofollowing hypothesis:

H. 3 b. Ambition for the promotion ispositively influencing development of thesystem for employees training andeducation.

2.1.4. Self-actualization

Overall employee satisfaction is muchdepended on care and attention of theirsuperiors, since ongoing organizationalchanges always include emotions (Liu andPerrewe, 2005; Huy, 2002). To increaseemployees’ satisfaction with their company,management should continuouslydemonstrate care and attention towardemployees together with understanding oftheir needs (Mitchell and Daniels, 2003).Those needs are especially significantconcerning employees who set themselveshigh personal goals and have ambition forself-actualization within the firm (Van – Dijkand Kluger, 2004), which leads to followinghypothesis:

H. 4 a. Superiors care of employees ispositively influencing their overallsatisfaction with the firm and with theirfeeling of belonging to it.

Overall satisfaction of the employee withthe firm is one of the elements of the jobmotivation. People having high individualvalues usually are setting higher personalgoals. This makes personal satisfaction withthe company, which results from individualmotivation, a very complex psychologicalcategory (Bandura, 2001).

Under modern conditions of technical andtechnological development, followed byglobalization of economy and market,continuous learning of the employees is

10 @.@ivkovi} / SJM 4 (1) (2009) 1 - 27

imperative of modern time. Creatingconditions for employees continuouslearning is organizational problem which isone of the most important element of thestrategy of creating comparative advantages(Vera and Crossan, 2004). System fortraining and education of the employees is ofstrategic importance for the companiestending to increase their competitiveadvantages in the market (Cascio, 2002).Creating the organization structure whichenables continuous learning within thecompany resulting with achieving so-called:“learning company”, is of crucial importancefor obtaining concurrent advantages (Veraand Crossan, 2004) in the modern businessenvironment. SMEs operating in thetransitional economy tend to obtainadvantageous market position. This can berealized only with employees’ effort, if theyare motivated to receive new knowledge and,this way, ascertain their position in thecompany. HRM practice indicates (Tsai etal., 2007) that employees will be motivatedto receive new arts and knowledge, and toincrease their performance, only if issatisfied with organization in which they

work (Delery and Shaw, 2001). It is obviousthat there is correlation among education andtraining system and employees satisfactionwith their firm. This leads to followinghypothesis:

H. 4 b. System for employees’ educationand training is positively influencing theiroverall satisfaction with the firm and createstheir feeling of belonging.

According to the cumulativeconsideration of all proposed hypothesis, inthe hierarchical range of needs as mainmotivation forces for the employees in smalltransitional economy enterprises, basicstructural motivational model can beconstructed, Figure 1. This figure presentscommon influence of technical and socialaspects on employees’ motivation, aiming tofurther increase performances of thecompany. During establishing HRM system,in small firms in transitional economy, suchmodel will promote development of HRMfunction, mostly from the aspect ofemployees’ motivation.

11@.@ivkovi} / SJM 4 (1) (2009) 1 - 27

Figure 1. Basic structural motivation model for small enterprises in the transitional economy

3. METHODOLOGY

Investigation process described in thispaper was conducted applying quantitativemethods. We used questionnaire surveys toperform the quantitative study. The wholeprocess of data collection, analyzing andprocessing lasted almost one year.

3.1. Sample

Further testing of offered hypotheses wasperformed with empirical investigations,conducted in small enterprises in Serbia,Montenegro, Bosnia and Herzegovina andBulgaria all in the same region of SoutheastEurope. Choosing the firms to be included ininvestigations was based on databases fromthe National Registers of the EconomicSubjects in those countries. Criterions forthe firms’ selection were: number of theemployees, which was set to 20 – 100, andpositive financial results in previous periodof their operation. At the beginning of theinvestigations sample of 147 firms wasselected (75 from Serbia, 25 fromMontenegro, 32 from Bosnia andHerzegovina and 15 from Bulgaria).Questionnaire (appendix A) was mailed torepresentatives of all those companies’, withrequest to be filled by all structures of theemployees’ and to involve not less then 30%of total numbers of the employees. Onemonth after initial contact, another contactwas made. Non-respondents were called onemonth after initial contact to ask if they hadreceived the questionnaire and to remindthem of the importance of their cooperation.One month letter the process ofquestionnaires return was completed. Duringthis period, completed questionnaires werereturned from 23 companies for an effectiveresponse rate of 15.64%. As an incentive,

respondents could indicate whether theywanted to receive summary of the researchfindings. Over 81% answered yes, indicatingthe relevance of this study to therespondents. In total, 573 completedquestionnaires were returned from 12Serbian companies, 5 Bosnian andHerzegovinian, 3 Montenegrin and 3Bulgarian firms. There were 523 validquestionnaires. The invalid returns includedthose with too many questions missed out orthose without thoughtful answers, forexample, those with the same answersthroughout the questionnaire. Structure ofthose companies was: 17 production(73.91%), 4 trading (17.39) and twoinstitutes (8.69).

Demographic structure of investigatedsample indicate female/mail ratio to be equalto 1.24; 78% of the employees are youngerthan 40 years; 84% of the employees areemployed in the same firm during past 5 to15 years; 84% of the employees havegraduated high school; 80% of theemployees are the part of firmsmanufacturing and maintenance staff and85% of the employees doesn’t haveadditional incomes besides salary their earnin the firm.

Results obtained, clearly revealed thatinvestigated firms from this part of the world(West Balkan – Southeast Europe), arerelatively young concerning both the timesince their foundation (10 to 15 years) andtheir employees age. If we suppose that thisrandom sample could be regarded asrepresentative, than we could assume that thesituation is similar in all other small firmsfrom this part of the world. Firms where 78%of the employees are younger then 40 yearshave good potential for their further trainingand education, and for creation of partneringrelationship with both their customers and

12 @.@ivkovi} / SJM 4 (1) (2009) 1 - 27

the suppliers (Ž.Živković et al., 2003). At thesame time, educational level of theemployees is appropriate (high school andacademy) for their further development,through regular education system, anddifferent forms of internal and externaltraining within the company.

Development of HRM function inconsidered companies obviously should bedirected toward creating adequate models foremployees’ motivation and establishingconditions for their promotion and self-actualization tending to keep them incompany and identifying their goals with thefirms’ strategic goals.

3.2. Results of measurements

The research used questionnaire survey asthe main tool to collect mass data. Likert’sfive-point scale was employed to measurethe variables. The possible answers were inthe range: very satisfied (5), satisfied (4), nodifference (3), dissatisfied (2) and verydissatisfied (1). Employees were asked to fillthe questionnaires by checking anappropriate alternative. This type of scalewas used considering that this survey

included employees having lower educationlevel, who should easily understand themeaning of the five point scale. Seven pointLikert’s scale is used much often (Molina etal., 2007; Tari et al., 2007), however, authorsof this text considered that five point scale isappropriate in this case. Questions in thequestionnaire resulted from the hypothesesdefined above (chapters 2.1.1 through 2.1.4).

4. RESULTS

Results of descriptive statistics for all 11questions considered in the Appendix 1(VAR0001 to VAR00011) are presented inTable 1.

Before further consideration of thecorrelations among variables and multipleregressions analysis, goodness-of-fitmeasurements, of questionnaire results, wereperformed. Further factor analysis wasperformed on population comprising set ofall the answers to all 11 questions. As mainparameters for goodness-of-fit rating, Chi-square test and Cronbach’s alpha parameterwere used.

Chi-square test consists of determining

13@.@ivkovi} / SJM 4 (1) (2009) 1 - 27

Table 1. Descriptive statistics for considered motivation parameters

Chi- square coefficients (X2) and their ratioon degrees of freedom (d.f.). For populationinvestigated in this work, this ratio was:X2/d.f. = 1.62 (with X2= 34.1018932 andd.f. = 21). As suggested by severalresearchers (Brooke et al., 1988; Cerminesand McIver, 1981; Hoetler, 1983), a ratiolesser then 2.0 indicates an excellent modelfit, meaning that data from entire populationcan be described with unique model. In theresults of Hear and Molina (Hair et al., 1998;L.M. Molina et al., 2007), this ratio was setto optimal value in the range 1 to 3, or even5. Values of specified ratios, for resultspresented in this paper, are satisfactory,according to both groups of authors.

Value of Cronbach’s alpha coefficient, forwhole population, is 0.987. Value ofCronbach’s alpha, above 0.7, confirms goodmodeling possibility of investigated

population. Besides Chi-square andCronbach’s alpha, as goodness-of-fit (GFI)measure we considered coefficients definedby Cox and Snell (k1), Negelkerke (k2) andMcFadden (k3). Values of those coefficientswere: k1 = 0.938, k2 = 0.990 and k3 = 0.942,which further confirmed good modelingpossibilities of investigated population.

4.1. Correlations among variables

Aiming to test established hypothesis,correlation coefficients among pairedvariables, representing each hypothesis, werecalculated. Results of calculating Pearson’scorrelation coefficients for paired variablesare presented in table 2.

According to the results presented inTable 2, several interesting findings shouldbe noted. Almost all hypotheses have high

14 @.@ivkovi} / SJM 4 (1) (2009) 1 - 27

Table 2. Pearson correlation coefficients of investigated population

** Correlation is significant at the 0.01 level (2-tailed).

positive correlations. The most positivecorrelation among the variables was obtainedfor the hypotheses H.4b: Overall employeesatisfaction is strongly correlated witheducation and training (r=0.969, p<0.01). Itis worthwhile that one of the most positivecorrelations among the variables wasobtained with overall employee satisfaction,which exposes the contribution of this study,and is presented in basic model shown inFigure 1. Further testing of proposedhypothesis included Paired sample t – test.Results of this test are presented in table 3.

If analyzing results presented in Table 3, itis obvious that there are strong positivecorrelations among all paired questionsrepresenting above proposed hypothesis.Value of t-test parameters indicates strongreasonable linkage among paired questions(variables), which means that there isfunctional dependence among them. Onlythe pair which represents hypothesis H.1d(workplace conditions are positivelyinfluencing job satisfaction), althoughhaving relatively high positive correlation,shows mutual independence of the questions

15@.@ivkovi} / SJM 4 (1) (2009) 1 - 27

Table 3. Results of the Paired sample T-test for pairs related to certain hypothesis

Correlation is significant at the 0.05 level (2-tailed).

in the hypothesis (t = -0.575, p>0.05). Figure2 is schematically representing obtainedresults of structural motivation model withvalues of correlation coefficients amongconsidered variables. Correlationcoefficients are all with high values whichindicates that hypothesis were nominatedcorrectly and motivation model (Fig. 1) wasstructured properly.

Basic model presented in Figure 1, wascreated according to the Maslow’s five pointmotivation scale (Maslow, 1943), anddiscussed in previous text. Analysis ofcorrelation coefficients for paired variables,constituting the hypothesis, proves that allhypothesis were constructed logically, whichis obvious if observing Figure 2. To define

final model and perform detailedconsideration of the questionnaire results,multiple regression analyses was performed.

4.2. Multiple regression analysis

As the basis for multiple regressionanalysis starting model, presented in Figure1, was used. Analysis of this type wasperformed to determine relative influence ofevery variable on overall employeesatisfaction. To control the effect ofsuggested variables on the regressionanalysis, four stage hierarchical regressionswere performed. In the first stage,employees’ overall satisfaction wasconsidered as dependent variable while:

16 @.@ivkovi} / SJM 4 (1) (2009) 1 - 27

Figure 2. Structural motivation model with values of interrelation correlations

salary, benefits, compensation system andjob satisfaction presented a fixed block ofindependent variables for the model. Thisway, influence of lowest hierarchical stage,of Maslow’s motivation factors (Materialconditions-physiological needs), on overallemployees’ satisfaction was analyzed. Insubsequent models, variables representinghigher hierarchical levels were added to the

model, in sequences, and resulting changeswere observed. This way, in the secondstage, job organization, work/life balanceand workplace conditions were added asindependent variables representing safety. Inthe third stage, opportunity for careerdevelopment was added as characteristic ofbelonging. In the final - fourth stage,superiors care of the employees and training

17@.@ivkovi} / SJM 4 (1) (2009) 1 - 27

Table 4. Hierarchical multiple regression analysis

*significant at the 0.01 level** significant at the 0.005 level

18 @.@ivkovi} / SJM 4 (1) (2009) 1 - 27

a)

b)

c)

d)

Figure 3. Final model representing influence of singular motivation factors on overall employees’satisfaction ( X2/d.f. = 1.62; Cronbech’s alpha 0.98)a) Influence of material conditions on overall satisfaction b) Adding safety motivatorsc) Adding belonging motivation factorsd) Adding esteem motivation factors

system were added, representing esteem.Results of multiple regression analysis arepresented in Table 4.

According to the results obtained, usingmultiple regression analysis, final motivationmodel was constructed and presented inFigure 3. If observing model presented infigure 3, it is obvious that importance ofsingular motivational factor changes whenincreasing complexity of the model. This,once again, proves the complexity of humanbeings and systems which they consist,making nature of their motivation hard toexplain as discussed by Dessler (Dessler,2006) and Lethman and Ernst (Lathman andErnst, 2006).

5. DISCUSSION OF THE RESULTS

If analyzing results presented in Table 4,following could be concluded. If the overallemployees satisfaction is influenced only bylowest hierarchical level of motivationalfactors (material conditions), mostinfluencing variable is benefits (β = 0.433,p<0.005), followed by compensation system(β = 0.425, p<0.005) and then salary (β =0.302, p<0.005), while job satisfaction hasno statistical significance.

When introducing the next, higher,hierarchical block of motivational factors(safety) significant changes happens (ΔR =0.017, ΔF=6.395, while p <0.005). Mostinfluencing motivation factor now becomeswork/life balance (β = 0.323, p<0.005) asone of the element in the safety block, whilethe influence of benefits (β= 0.268, p=0.005)and compensation system (β= 0.276,p<0.005) decrease. The highest changehappens with influence of salary (β = 0.015,p<0.005). From the group of safety blockalso, high significance is observed for joborganization (β = 0.213, p<0.005). This way,

if comparing significance of materialconditions and employees’ safety, in thetransitional economy, safety has higherimportance for the employees. This is logicaloutcome, if concerning employees’ lose oftrust in the firm during previous period oftime, and the fact that large number ofemployees lost their jobs during downsizingof the company (Tsai, 2007; Haiyang andZsang, 2007). Remaining employees’(“survives”), after downsizing, have lostlarge number of their colleagues and, are inconstant fear of loosing their jobs. Thisresults with their opinion that they would beready to accept safety of employment, evenif it brings lower salary and incomes. Thereason for such behavior lie in need to havesafety for them and their families,considering that in the region, where thisinvestigation was performed, the rate ofunemployment is very high (Abrudan et al.,2006; Ilieska, 2006).

Introducing next hierarchical level(belonging), which in the model discussedhas only one element: opportunities forcareer development, doesn’t create muchchanges compared to previous stage (ΔR =0.002, ΔF=2.193, while p >0.005, meaningthat ΔF doesn’t have statistical significance).

Significant changes happen afterintroducing next hierarchical level (esteem).Namely, primal influence on overallemployees’ satisfaction is with trainingsystem (β = 0.516, p<0.005), which also haslargest total influence on final model.Organizational learning obviously hasdominant influence on employees’motivation, as the base for increasingperformances of the company and safety ofemployment (Mayson and Barret, 2006).This additionally decrease influence ofmaterial conditions, with exception ofcompensation system which still remains

19@.@ivkovi} / SJM 4 (1) (2009) 1 - 27

with large influence (β = 0.215, p<0.004), asen means for preventing subjective decisionsof irresponsible managers (Haiyang andZhang, 2007). The other esteem factor:superiors care of the employees’ is alsoimportant, jet having significantly lessrelevance (β = 0.125, p<0.003). This resultcan be explained with employees’ belief thatif employer gives them opportunity foradditional education and training, he plans tokeep them in the firm in the future (Vera andCorson, 2004). This expresses high level ofemployers care of his employees. Of course,this premise, has large influence on overallemployees satisfaction only if companydevelops fair compensation system (Burrettand Khan, 2004; Baker et al., 2005). One ofthe means for employees awarding isfavorizing those who had better performancein the past when promoting to higherpositions. This thesis has much sense ifconsidering that most of transition economycompanies are privatized and foreign-invested, or are in process of privatization,where social dimension has high importance(Cascio, 2002). Privatization process isalways followed with introducing new,modern technologies in the productionprocess. New processes demands newknowledge, which can be obtained duringemployees training and education (Tsai et al.,2007). If company invests in employees’development, this will retrieve their trust andmake them motivated for future work (Veraand Corssan, 2004). It can be concluded thatproper direction during development ofcompany’s HRM strategy, after and duringthe transition, is to create compensationsystem fairly (Ivanchevich et al., 2006). Thisway, employees don’t expect material goodsfor award. Instead, they welcome possibilityto develop their knowledge and to becomeenabled for operating in the part of new

technological process (Chadwick et al.,2004). This further ascertains their positionin the company. In such environment, fear oflosing their jobs has much influence onmotivating the employees’. Developing thesystem of organizational learning willreestablish employees trust in the companyas the result of increased safety. Such HRMstrategy enables employees to provide safetyfor their families as well, which increasetheir overall satisfaction (Millward andBrewerton, 2002).

6. CONCLUSION

According to the model developed(Figure 3), which demonstrate influence ofmotivation factors on overall employees’satisfaction in small enterprises, it is obviousthat employees’ have interest inperformances and success of their company.

Situation in the filed shows that, in smalltransitional economy companies, HRMfunction is completely neglected and that itcan be detected only as sporadic (ad hoc)item. This kind of behavior is often, even indeveloped economies (Gordon and Stivens,2006). It is often considered that thisfunction increases loses of time and money(McEvoy et al., 2002) and that it shouldn’t beregarded as proper investment for the firmand its vital interest.

An experience of post-communisttransitional economy indicates numerousturbulences resulting from leading businessat the margins of the profit. Since transition,in this part of the world, is ongoing processthis way of doing business has decreasingtrend and further survival of the firms isrelaying on their growth and development(Hutner et al., 2006). Under the globalizationconditions which also enrolled the countriesof this region, fluctuation of highly skilled

20 @.@ivkovi} / SJM 4 (1) (2009) 1 - 27

employees, mostly toward USA and EUcountries, is permanent (Barauch et al.,2007). Those facts demand to “think globallyand act locally” (Parnell, 2006) to sustainfurther growth and development of thetransitional economy.

According to the results presented inFigure 3.d., it is obvious that highestinfluence on employees’ overall satisfactionlie on: training system (β = 0.516, p<0.005)and compensation system (β= 0,295, p<0.005). This means that organizationallearning based on employees training systemhas dominant influence on motivation ofemployees in transitional economy.Numerous researches revealed importance oforganizational learning (Crossan et al.,1999.; Kim, 1993; Tsai et al. 2007). TheSHRM under transition conditions shouldenable training and compensation systems toavoid managers’ subjective decisions and toincrease companies’ performances(Chadwick et al., 2004; Delery and Shaw,2001).

Considering that human capital is the baseof intellectual capital, it should be createdthrough HRM institutionalization withinsmall transitional economy companies. Evenlarge companies in the future wouldn’t beable to work without such systems. HRMdevelopment in small transitional economycompanies, according to the resultspresented in this investigation, should bedirected toward creating conditions fororganizational learning and employees’development. Positive results form Chinese(Haiyang and Zhang, 2007) and Vietnamese(Thang et al, 2007) transition process furthersustain those claims. Establishingenvironment with potentials to sharecollective experience and increase overallknowledge, leads to development the modusof understanding common reality (Crossan et

al., 1999).Considering that managers in transitional

economy have important role in achievingcompany’s goals (Keeley and Roure, 1990;McGree et al, 1995), developing HRMfunction through HRD and based onorganizational learning, should rely less ontheir experience (McGree et al., 1995) andexternal connections (Shane and Cable,2002). Future development should be basedon creating knowledge system withincompany which has special interest for theemployees. It is obviously crucial motivationfactor for employees’ identification with thecompany (self-actualization), as highestlevel of employees’ satisfaction in Maslow’sscale (Maslow, 1943).

Employees’ need respect and care of theirsuperiors. This emits clear massage tomanagers of those companies concerningdirection in which they should harmonizerelations within it and toward environment.HRM sphere is closely related to knowledgetransfer. Results indicate that, when propercommunication among people is established,knowledge transfer is implied and happensindirectly (Sparkes and Miyake, 2000).Accordingly, latent communication isbecoming dominant (Dyerson and Mueller,1999). In such conditions, knowledgedevelopment and creating collective sense,sustains knowledge transfer in the company(Dougherty, 2001).

Indicated principles for developing HRMfunction and creating of HRM system(Arthur and Boyles, 2007) in small, same asin large, companies under transition, givesbetter chances for increased performances ofthe company at global market. This is onlypossible if those processes includeemployees’ motivation as important drivingforce for increasing their effort and loyaltytoward their firm (Lathman and Ernst, 2006).

21@.@ivkovi} / SJM 4 (1) (2009) 1 - 27

References

Abrudan – Pop, D., Novac, E. (2006)New dimension of management in Romanianorganizations: high performanceorganizations, Serbian Journal ofManagement 1: 115 – 121.

Alderfer, C.P. (1972). Existance,relatedness and growth human needs inorganizational settings. New York: FreePress.

Ajila , C.O. (1997) Maslow’s hierarchy ofneeds theory: Applicability to the Nigerianindustrial Setting. IFE Psychologia: AnInternational Journal 5: 162 – 174.

Arthur, J.B., Boyles, T. (2007) Validatingthe human resource system structure: Alevels – based strategic HRM approach,Human Resource Management Review17:77-92.

Australian Bureau of Statistics (2002).

Small Business in Australia in 2001.Cat.Vol.1321.0. Canbera ABS Ajila , C.O.

Bacon, N., Hoque, K. (2005) HRM inSME sector: Valuable employees andcorrective networks, International Journal ofHuman Resource Management 16:1976 –1999.

Bandura, A. (2001) The changing face ofpsychology at the dawning of a globalizationera, Canadian Psychology 42: 12-23.

Barnney, J.B. (1991) Firm resources andsustained competitive advantage, Journal ofManagement 17(3): 99-120.

Barnney, J.B.,Wright,P. (1998) Onbecoming a strategic partner: The role ofhuman resources in gaining competitiveadvantage, Human Resource Management37: 31 – 46.

Barick, R.M., Stewart, G.L., Piotowski,M. (2002) Personality and job performance.Test of the mediating effects of motivation

22 @.@ivkovi} / SJM 4 (1) (2009) 1 - 27

РАЗВОЈ МОТИВАЦИОНОГ МОДЕЛА КАО СТРАТЕГИЈА ХРМ-АЗА МАЛА ПРЕДУЗЕЋА У ТРАНЗИЦИЈИ

Ж. Живковић, И. Михајловић* и Славица ПрвуловићУниверзитет у Београду, Tехнички факултет у Бору, Одсек за менаџмент,

Војске Југославије 12, 19210 Бор, Србија

Извод

Пословање под транзиционим условима је специфично јер се радне операције морајуодвијати под значајном неизвесношћу узограничене ресурсе (људске, финансијске,технолошке, итд.). Кључни фактор, потребан за превазилажење ових препрека, унапређењемперформанси компаније, и увођење компаније на глобално тржиште су људски ресурси (ХР).Мотивација запослених је обично један од основних проблема који се јавља док се врши развојљудских ресурса у компанији. Истраживања представљена у овом раду, која су спроведена умалим предузећима (мање од 100 запослених) из југоситочне Европе, показала су постоје дванај јача мотивациона фактора за укупно задовољство запослених њиховом компанијом. Овифактори, који имају могућност осигурања и побољшања позиције запослених у фирми, суобука и систем процене перформанси (систем оцењивања учинка) запослених у фирми.

Кључне речи: мотивација, људски ресурси, транзиција, економија, стратегија

among sales representatives, Journal ofApplied Psihology 87:43 -51.

Barrett, R., Mayson, S. (2006) Exploringthe intersection of HRM andentrepreneurship - Guest editors introductionto the special edition on HRM andentrepreneurship, Human ResourceManagement Review 16: 443 – 446.

Baruch, Z., Budhawar, S.P., Khatri, N.(2007) Brain drain: Inclination to stay abroadafter studies, Journal of World Business 42:99 – 112.

Beam, H.H. (1997) Survivors: How tokeep your best people on board afterdownsizing, Academy of ManagementExecutive 11(2):92-94.

Birch, D., Haggetry, A., Parsons, W.(1995) Who’s creating jobs? Boston:Cognetics, Inc. P.443.

Brooke, Jr., Russell, D.W., Price J. (1988)Discriminant validation of measures of jobsatisfaction, job involvement andorganizational commitment, Journal ofApplied Psychology 7 (2): 139 – 145.

Brouckner, J., Wiesenfeld, B.M., Reed, T.,Grover, S., Martin, C. (1993). Interactiveeffect of job content and context on threereactions of layoff survivors, Journal ofPersonality and Social Psychology 64 (2):187 -197.

Brouckner, J. (1988) The effects of worklayoffs on survivors: Research theory andpractice. Research in OrganizationalBehavior 10:213-255.

Burrett, R., Khan, Z. (2004) Smallbusiness job quality from employer andemployer perspectives, Proc. Of the 50thAnnual ICSB Conference, Washington DCJune p.450.

Cardnon, M., Stivens, C.(2004) Managinghuman resources in small organizations :What do we know?, Human ResourceManagement Review 29:295-323.

Carmines, E.G., McIver J.P. (1981)Analyzing models with unobservedvariables: analysis of covariance structuresin. G.W.Bronstedt and E.F.Borgatta (Eds.),Social measurement: Current issues. BeverlyHills, CA: Sage.

Cascio, W.F. (2002) Strategic forresponsible restructuring. Academy ofManagement Executive 16 (3):95-106.

Chadwick, C., Hunter L.W., Walston,S.L.,(2004) Effects of downsizing practiceon the performance of hospitals, StrategicManagement Journal 25 (5): 405 – 427.

Crossan, M.M., Lane, H.W., White, R.(1999) An organizational learningframework: From intuition to institution.Academy of Management Review 24(3):522-537.

Dalton, M., Ernst, C., Deal, J., Leslie,J.(2002) Success for the new globalmanager: How to work across distance,countries , and cultures. San Francisco, CaJossey –Bass-Viley Pbblichers.

Delery, J.E., Shaw, J.D. (2001) Thestrategic management of people in work:Review, synthesis and extension. Research inPersonnel and Human ResourcesManagement 20:165-197.

Dess, D.G., Lampkin D.T., Ajsner, A.B.(2007) Strategic Management: Text andcases, The McGraw – Hill Companies, Inc.New York.

Dessler, G. (2006) Framework for humanresource management, Pearson Education,Inc., publishing as pretence Hall, New Jersey

Dougherty, D. (2001) Organizing practice– based knowledge in service organizations,Academy of Management Proceedingspaper TIM:C1.

Dutton, G. (1997) Are youtechnologically modern? ManagementReview November: 152-161.

Dyerson, R., Mueller, F.U. (1999)

23@.@ivkovi} / SJM 4 (1) (2009) 1 - 27

Learning, teamwork and appropriability:managing technological change in thedepartment social security, Journal ofManagement 36(5)629 -652.

Furham, A., Forde L., Ferrari K., (1999)Personality and work motivation. Personalityand Individual Difference, 26: 1035-1043.

Gall, T.L., Charbonneau, C., Clarce, N.H.,Grant, K, Joseph, A., Shouldice, L. (2005)Understanding the nature and role ofspirituality in relation to coping and health:A conceptual framework, CanadianPsihology 46 : 88 -104.

Hair, J.F., Anderson, R.E., Tatham, R.L.,Black, W.C. (1998) Multivariate dataAnalysis. Prentice-Hall, Englewood Cliffs,NJ.

Haiyang Li and Zhang Yan ( 2007) Therole of managers political networking andfunctional experience in new ventureperformance: evidence from China’stransition economy, Strategic ManagementJournal 28: 791 – 804.

Halis, M., Gorgoz, G. (2007) Creatingorganizational commitment by satisfyinginternal customers, Serbian Journal ofManagement 2: 5 -19

Harrison – Walker, L.J. (2001) Themeasurement of a market orientation and itsimpact on business performance, Journal ofQuality Management 6: 139 – 172.

Hogan, R. (2003) Personality psychologyfor organizational research. In B. Schneiderand D. Brent Smith (Eds.) Personality andorganizations (pp. 3 – 24). Mahwah, NjLawrence Erlbaum Associates.

Hogan, R., Holland,B. (2003) Usingtheory to evaluate personality and job-performance relations: A socioanalyticperspective, Journal of Applied Phonology88:100-112.

Hoetler, J.W. (1983) The analysis ofcovariance structures: goodness of fit

indices. Social Methods and Research ,11(1): 325- 344.

Hoppock, R. (1935) Job satisfaction, NewYork, Harper and Brother.

Huter, S., Freidrich, T., Badell, K.,Mumford, M. (2006) Creative thought in real–world innovation, Serbian Journal ofManagement 1: 29-39.

Ilieska, K.. (2006) Market analysis – afactor for competitive advantage ofenterprises, Serbian Journal of Management1 : 169 – 174.

Ivanchevich, J., Konopacke, R.,Matteson, M. (2006) OrganizationalBehavior and Management, Boston:McGraw Hill, pp.137

Jantain, Yu., Ard-Piter de Man, DuystersG., Tom van Rijsewijk (2006) Catch upstrategies of Asian firms: A micro- levelperspective, Serbian Journal of Management1: 49-65.

Jeffrey, B.A., Boyles, T. (2007) Validatingthe human resource system structure: A level– based strategic HRM approach, HumanResource Management Review 17:77-92.

Keeley, R.H., Roure, J.B. (1990)Management, strategy and industry structureas influence on the success of new firms: astructural model, Management Science36(10):1256 – 1267.

Kim, D.H. (1993) The link betweenindividual and organizational learning. SloanManagement Review 35(1): 37-50.

Latham, G.P., McCauley, C.D. (2005)Leadership in private sector: Yesterdayversus tomorrow. In C. Copper (Ed.) Thetwenty- first century manager, OxfordUniversity Press.

Latham, G.P., Ernst, C.T. (2006) Keys tomotivating tomorrow ’s workforce, HumanResource Management Journal 16:181 –198.

Lathman, G.P., Pinder , C. C. (2005) Work

24 @.@ivkovi} / SJM 4 (1) (2009) 1 - 27

motivation theory and research at the dawnto the twenty-first century, Annual Review ofPsychology 56:485-516.

Liu, Y., Perrewe P.L. (2005) Another lookat the role of emotion in the organizationalchange: A Process model, Human ResourceManagement Review, 15:263 – 280.

Locke, E.A., Henne, D. (1986) Workmotivation theories. In C:L. Cooper andI.Roberston (Eds.) International Review ofindustrial and organizational psychology(pp. 1-36). New York Wiley.

Luthans, F. (2005) OrganizationalBehavior, Boston, Mc Graw Hill

Maierhofer, N.I., Kabanoff, B., Griffin,M.A. (2002) The influence of values inorganizations: Linking values and outcomesand multiple levels of analysis. InternationalReview of Industrial and OrganizationalPsychology 17:217-263.

Maslow, A. (1943) A Theory of HumanMotivation, Psychological review 50:370-396.

Mayson, S., Barerett, R.(2007) TheScience and practice of HRM in small firms,Human Resource Management Review16:447-455.

Mayson, S., Barrett, R. (2006) Humanresource management in small firms:Evidence from growing small firms inAustralia. In R. Heneman and J.Tansky(Eds.). Human Resource Strategies for thehigh growth entrepreneurial firm Greenwich,CT: Information Age Publishing Inc.

Mayson, S., Barrett, R. (2006) The’’science’’ and ’’practice’’ of HRM in smallfirms, Human resource Management review,16:447-455.

McGree, J.E., Dowling, M.J., MegginsonW.L. (1995) Cooperative strategy and newventure performance: the role of businessstrategy and management experience,Strategic Management Journal 16(7): 565 -

580.McMaster, M. (2002) The post – layoff

blues, Sales and Marketing Management,154(4):1-26.

McKee – Ryan, F.M., Kinicki, A.J. (2002)Coping job loss: A life faced perspective.International Review of Industrial andOrganizational Psychology 17:217-263.

Millward, L.J., Brewerton P.M. (2002)Psychological contracts: Employee relationsfor the twenty- firs century, InternationalReview on Industrial and OrganizationalPsychology 15: 1-61.

McEvoy, R.R., Morow, T., Kelly, B.McCarton P. (2002) People management inSMEs. An Analysis of human resourcestrategies in non –family business. Journal ofSmall Business and Enterprise Development, 9,245 – 259.

Mitchell, T.R., Daniels, D. (2003)Motivation . In W.C.Borman, D.R.Ilgen,J.R.Climoski (Eds.) Comprehensivehandbook of psychology: Industrialorganizational psychology, vol.12 (pp.225-254). New Yorks Wiley and Sons Inc.

Molina, L.M., Lolorens-Montes, J., Ruiz-Moreno, A. (2007) Relationship betweenquality management practices andknowledge transfer, Journal of OperationsManagement, 25: 682-701.

Mone, M.A. (1997) How we got alongafter downsizing: Postdownsizing trust as adouble – edged sword. Public AdministrationQuarterly, 21(3) 309 – 336.

Naumann, S.E. (1998) Laid off, but stillloyal: The influence of perceived justice andorganizational support, International Journalof Conflict Management 9(4):356 – 368.

OHSAS 1802 (2007) Occupational healthand safety management systems, OHSASProject Group.

Parnell, J. (2006) Reassessing the “thinkglobal act local“ mandate: evaluation and

25@.@ivkovi} / SJM 4 (1) (2009) 1 - 27

synthesis, Serbian Journal of Management1:21-28.

Parker, S.K., Wall ,T.D. (1998) Job andwork design: Organizing work to promotewell-being and effectiveness. ThousandOaks, CA Sage.

Piplani, R. (2006) Coordination in thesupply chain: vendor managed inventory isthe way to go, Serbian Journal ofManagement, 1: 41-47.

Affirmation trend: World EconomicSurvey (1996 The Economist, 28.September25-28)

Rai, U.K. (2007) Managing customers asinvestments, Serbian Journal of Management2:67-75.

Rakić, T. (2007) Influence of HumanResources Management on employeesmotivation in small and medium sizedenterprises, Master thesis, Technical facultyin Bor (in Serbian).

Robbins, S. (2003) OrganizationalBehavior , Englewood Cliffs, NJ.PrenticeHal.

Robbins, S., Coulter, (2005),Management, Prentice Hall, PearsonEducation, New Jersey, USA .

Roceska, S., Kostoska O. (2006) Tradepolicy in the Republic of Macedonia –problems and perspective, Serbian Journal ofManagement 1: 139-151

Stajkovic, A.D., Luthans, F. (1998) Self-efficacy and work –related performance: Ameta analysis, Psychological Bulletin 124:240 -261.

Senge, P.M. (2003) Taking personalchange seriously: The impact oforganizational leering on managementPractice. Academy of ManagementExecutive 17(2): 47-50.

Sparkes, J.R., Maiyake, M. (2000)Knowledge transfer and human resourcedevelopment practices: Japanese firm in

Brazil and Mexico, International BusinessReview 9, 599 – 612.

Shane, S., Cable D. (2002) Network tiesreputation, and the financing of new venture,Management Science 48(3): 364-381.

Shah, P.P. (2000) Network destruction:The structural implications of downsizing.Academy of Management Journal 43(1):101-112.

Taylor, F.W. (1911) Principles ofscientific management, New York, Harper

Tsai P.C.F., Yen Y.F., Huang, L.C., HuangI.C. (2007) A study on motivating employeeslearning commitment in the post –downsizing era: Job satisfaction perspective,Journal of World Business 42 (2007): 157-169.

Thang L.C., Rowley, C., Quang, T.Warner, M. (2007) To what can managementpractices be transferred between countries?The case of human resource management inVietnam, Journal of World Business 42: 113– 127.

Van-Dijk, D., Kluger, A.N. (2004)Feedback sign effect on motivation: Is itmoderated by regulatory focus? AppliedPsychology: An International Review 53:113-135.

Vera, D., Crossan, M. (2004) Strategicleadership and organizational learning,Academy Management Review 29(2):222-240.

Vroom, V.H. (1964) Work motivation,New York, W.W. Norton and Company, Inc.

Wright, P., Dunford, B., Snell, S. (2001)Human resources based view of the firm,Journal of Management 27: 701 . 721.

Wright, P., Gardner, T., Moynihan, L.,Allen M. (2005) The relationship betweenpractices and firm performance: Examiningthe causal order, Personal Psychology58:409-446.

Wright, P.M., Snell, S.A. (1998) Toward a

26 @.@ivkovi} / SJM 4 (1) (2009) 1 - 27

unifying framework for exploring fit andflexibility in strategic human resourcemanagement. Academy of ManagementReview 23(4): 756-772.

Wright, P., McMahan, G. (1992)Theoretical perspectives for strategic humanresource management, Journal ofManagement : 37, 429 – 448.

Zhou, X.G. (2000) Economictransformation and income inequality inurban China: evidence from panel data,American Journal of Sociology 105(4):1135– 1174.

Živković, Ž., Popović, N., Jelić, M.(2003) R & D Management,, DŠIP CopperBor p. 48. (in Serbian).

Živković, Ž., Mihajlović, I., Prvulović, S.(2006) Balkanic type of leadership and itscharacteristics, Serbian Journal ofManagement 1(2): 87-93.

Živković, Ž. (2008) Achieving knowledgemanagement and competency managementin transition environment, Serbian Journal ofManagement ( in print).

27@.@ivkovi} / SJM 4 (1) (2009) 1 - 27