This paper analyses how Small and medium size(SMEs) professional service firms(PSFs), face the human resource management(HRM) issues. These issues will, however, be of paramount importance for service firms as they rely solely on 'human capital' as their only source of production. The intention is to focus on the issues of a Human Resources(HR) nature and to consider how these act as growth barriers. In this study, thirteen human resource managers were interviewed. Results show that some Western HR practices are in evidence, and the HR issues become the growth barriers for PSFs. To resolve these issues, this paper puts forward measures.
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