Abstract
Human resources management functions, practices and procedures nowadays are very important and their role is continuously increasing if we consider an economy which relies ever more on knowledge. In this way, necessarily arises the need for careful management in the allocation and use of this labour force, not only in fulfilling the vacancy, but it is even more important to achieve and ensure increased efficiency of its use in the production process of goods and services that guarantee the growth of welfare or the level of living standard of society members. The survival of every family business is dependent on the effective management of human resources. The evaluation and performance management of employees has an impact on the increase of the effectiveness of the family business. The effective management of a family business needs to focus on reforms of the educational system and professional development of its workers. The literature review on this topic in this article is supported by the empirical analysis, in which 150 businesses in the Republic of Macedonia are surveyed.
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