Challenges of HRM approach and contributions to improving organizational performance of the Serbian trade sector

The aim of this paper is to investigate the role and importance of the quality of human resource management practices of Serbian supermarkets, in terms of improving their organizational performances. A group of correlations has been defined in this paper to be measured in order to reflect the impact of HRM practice on the effectiveness of supermarkets in Serbia, which can lead to better functioning of not only supermarkets, but also of all other organizations in our environment and under current circumstances. The results of this study showed that supermarkets that have better HRM practices possess a more competitive workforce and better organizational performances, which further highlights the need for a more systematized and institutionalized use of human resources within trade sector in Serbia. The research findings indicate the need for different strategic employee evaluation and management systems, as well as for significant investments in their development and quality, not only because of the competitiveness in the domestic, but also in the increasingly integrated European and global trade markets.