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This paper aims to provide an original picture of a selection of human resource management (HRM) activities in the micro, small and medium sized enterprises (SMEs) in Hungary and to explore the extent to which these activities can be related to variations in firm size and variations in firm performance.

The study measures the presence or absence of a selection of HRM activities through a questionnaire survey of a large sample of 678 Hungarian SMEs.

Hungarian SMEs, in their working relationships, are closer to the “happy family” model of the SME than the “bleak house” model. Employee morale was perceived as high and only one in ten SMEs felt their employees were opposed to change. Owners were reluctant to seek advice from those outside the firm. They also showed reluctance to discuss future plans with their employees although they did tend to …