Effective HRM Practices for MSME Sector Success: An Empirical Study

Abstract

Any organization's success strongly correlates with its workforce and employee engagement. Finding the correct human resource personnel can take much work for small and medium-sized businesses. Human resources significantly influence the success of the nation's small and medium-sized enterprises. Small and medium-sized companies are crucial to the nation's economic development and generate many job possibilities. Small and medium-sized businesses use human resources in various ways, including recruitment, performance evaluation, and compensation management. The success of human resource management in a company is greatly aided by the human resource-based system, which is very important for every firm. Although there are some parallels in H.R. methods, significant enterprises' H.R. groups are more focused on strategic business challenges and have succeeded in using information technology to a more considerable extent for the mundane file maintenance components of H.R.'s job. Contrarily, H.R. informants at mid-sized businesses are more operationally oriented, seem to be more content with the abilities and expertise of their noticeably smaller H.R. staffs, and give their H.R. organizations higher ratings on performance across a variety of parameters.