Human Resource Management Competencies among Managers of Small And Medium Enterprises In Tangub City, Philippines

This study explores the impact of principals’ human resource management (HRM) competencies on elementary school teachers’ performance in Majalengka Regency, Indonesia. Given the strategic role of school principals in managing educational resources, especially teachers, this study aims to examine how specific dimensions of HRM competencies contribute to teacher performance. A quantitative, correlational research design with a cross-sectional survey approach was used. The study involved 400 teachers from 80 public elementary schools selected through proportionate stratified random sampling. Data were collected using validated questionnaires measuring HRM competencies (six dimensions) and teacher performance (four dimensions). Statistical analyses included descriptive statistics, Pearson correlations, simple and multiple linear regressions, and Structural Equation Modeling (SEM). The findings revealed that principals’ HRM competencies significantly influenced teacher performance (R² = 0.615, p < 0.001). Among the HRM dimensions, human resource development had the strongest effect (β = 0.402), followed by performance appraisal (β = 0.234) and HR planning (β = 0.203). Teacher performance was generally high, particularly in personality and pedagogical competencies. All regression assumptions were met, confirming the robustness of the analysis.The results suggest that effective HRM by school principals, especially in continuous professional development and fair performance evaluations, plays a pivotal role in enhancing teacher performance. However, compensation and work relationship dimensions showed room for improvement, indicating potential policy gaps. Principals’ HRM competencies are vital for improving teacher performance. Educational policymakers should prioritize leadership development programs focusing on HRM strategies to strengthen teacher quality and educational outcomes at the elementary level.

Research aims: This study aims to investigate the influence of Human Resource Management (HRM) practices on employee performance, with job satisfaction serving as a mediating variable, within the context of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia.Design/Methodology/Approach: Data were collected using structured questionnaires distributed to owners and employees of MSMEs in Indonesia. The sampling technique used was purposive sampling, resulting in a total of 130 valid responses. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) with the assistance of SmartPLS 4 software.Research findings: The results of the study indicate that HRM practices have a positive and significant effect on employee performance. Furthermore, job satisfaction significantly mediates the relationship between HRM practices and employee performance. These findings suggest that enhancing HRM practices can increase employee job satisfaction, which in turn leads to improved performance.Theoretical Contribution/Originality: The findings of this study can serve as a valuable reference for policymakers in designing programs and policies that support the enhancement of HRM practices within the MSME sector. Strengthening HRM practices can contribute to increased employee satisfaction and performance, which in turn promotes the overall growth and competitiveness of MSMEs in Indonesia.Practitioners/Policy Implications: The practical implication of this study highlights the importance for MSME managers to implement effective HR strategies aimed at enhancing employee job satisfaction. By prioritizing well-structured HR practices, MSME managers can foster a more motivated and productive workforce, thereby improving overall organizational outcomes.Research Limitations/Implications: This study focuses primarily on HRM practices and job satisfaction as the main variables influencing employee performance. However, it acknowledges that employee performance is also affected by other important factors, which were not examined in this research. Future studies are encouraged to explore these additional variables to provide a more comprehensive understanding of the determinants of employee performance within the MSME sector.

– This study examines how small and medium-sized enterprises (SMEs) can align their human resource management (HRM) practices with the motivational factors of Generation Y, a demographic known for its distinct work expectations, including flexibility, career development, and digital engagement. The research employs a systematic review methodology guided by the PRISMA protocol, focusing on studies conducted within Europe over the past five years. An initial search yielded 580 articles, of which 52 were assessed, and ultimately 7 met the inclusion criteria for analysis. The findings indicate that Generation Y employees are driven by a desire for work-life balance, career development, and roles that align with their personal values. SMEs that offer flexible working conditions, structured career paths, and digital tools for engagement and feedback are more likely to retain this cohort. However, resource constraints in SMEs pose challenges, necessitating scalable and adaptable HRM strategies. The study provides practical recommendations, including the adoption of flexible work policies, digital engagement tools, and recognition programs, to enhance employee satisfaction and retention. The research highlights a gap in the literature regarding long term strategies for integrating these practices in SMEs. Future research should focus on developing cost-effective HRM solutions tailored to the specific needs of SMEs while addressing the unique motivations of Generation Y employees. Purpose – This paper explores how small and medium-sized enterprises (SMEs) can align their human resource management (HRM) practices with the motivational needs of Generation Y employees. It addresses the growing challenge SMEs face in adapting to generational shifts in workplace expectations, particularly around flexibility, purpose, and psychological safety. The goal is to synthesize existing research and highlight HRM approaches that support employee engagement, satisfaction, and retention within the constraints typical of SME environments. Design/methodology/approach – This study employs a systematic literature review following the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) methodology. The review process included comprehensive searches in databases such as Google Scholar, Scopus, and Web of Science, focusing on articles published between 2019 and 2024. After applying predefined inclusion and exclusion criteria, 580 studies were initially identified, of which 52 were reviewed in detail. Ultimately, 7 peer-reviewed articles met all criteria and were analyzed to identify recurring HRM practices aligned with Generation Y’s motivational factors in SME settings. Findings – The review identified flexibility, career development, purpose-driven work, and digital engagement as core motivational drivers for Generation Y employees in SMEs. HRM practices that promote autonomy, clear growth pathways, and meaningful feedback were consistently associated with higher engagement and retention. Despite resource limitations, SMEs can adopt scalable solutions such as flexible work policies, low-cost digital tools, and supportive leadership structures. The findings also highlight the need for balance in feedback practices and the importance of aligning organizational values with personal values to foster long-term loyalty among Generation Y employees. Originality – This paper offers one of the few systematic reviews focused specifically on aligning HRM practices with Generation Y motivational factors in the SME context. By applying the PRISMA methodology, it consolidates fragmented academic findings into a structured overview of effective HR strategies for smaller enterprises. The study highlights a notable gap in existing literature and provides a foundation for future empirical research. Its value lies in offering practical, adaptable recommendations that SMEs can apply despite resource limitations, bridging the divide between generational expectations and operational realities.

Small and Medium Enterprise (SME) sector is considered to be the backbone of Japanese economy. Its importance is often highlighted by the large share of the economy it occupies, whether in terms of number of companies, total number of employees, value of shipments or GDP. However, since last two decades many SMEs have gone out of businesses while firm entry rate is showing downward trend. According to some business advocates, one of the reasons for high rate of business failures in SMEs is due to its less attention to the human side of their businesses. Therefore, the broad objective of this study is to examine the role of Human Resource Management (HRM) practices in SMEs in Japan. Specifically, this study attempts to examine the relationship between HRM practices and labor productivity in manufacturing SMEs in Japan. Further, it aims to examine the mediating link of HR outcomes in between HRM practices and labour productivity. A structured questionnaire was developed and sent to 436 SMEs in Aichi Prefecture and 144 firms responded to the questionnaire resulting in 32 percent response rate. Based on the data analysis it was found that there is a strong positive relationship between HRM practices and labour productivity mediated by HR outcomes in manufacturing SMEs in Japan.

This paper aims to identify the list of human resource management (HRM) competencies that are crucial for a company during the internationalization process. We focus on the Russian context and investigate the level of human resource (HR) managers’ involvement in the implementation of firm’s internationalization strategy, HRM competencies that facilitate internationalization process of Russian companies, and HR manager’s proficiency level, suitable for these competencies. Based on interviews of 125 HR managers from 110 companies, the study proves that communication competence, HR acumen, and relationship management are the most essential competencies that HR managers should possess. This research demonstrates that, in the field of internationalization there is a shift from more universal models to context-related models in terms of competence importance.

Aim/Purpose: The main aim of this study was to investigate the impact of knowledge-based Human Resources Management (HRM) practices on inbound and outbound open innovation in Jordanian small and medium enterprises (SMEs). Background: SMEs in Jordan lack tangible resources. This insufficiency can be remedied by using knowledge as a resource. According to the Knowledge-Based View (KBV) theory, which posits knowledge as the most valuable resource, SMEs can achieve open innovation by implementing knowledge-based HRM practices that enhance the utilization of knowledge and yield competitiveness. Methodology: This study adopted the quantitative method employing descriptive and exploratory approaches. A total of 500 Jordanian manufacturing SMEs were selected from 2,310 manufacturing SMEs registered lists, according to the Jordan Social Security, by using random sampling. The study’s instrument was a questionnaire that was applied to these SMEs. There were 335 responses that were deemed useful for analysis after filtering out the replies with missing values; this corresponded to a response rate of 67%. The paper utilized structural equation modeling and cross-sectional design to test hypotheses in the proposed research model. Contribution: This study advocates the assumption of the role of KBV in improving innovation practices. This study contributes to the existing strategic HRM research by extending the understanding of knowledge-based HRM practices in the context of SMEs. Thus, this study contributes to the understanding of innovation management by demonstrating the role of knowledge-based HRM practices in boosting inbound and outbound OI practices, thereby enhancing innovation as an essential component of firm competitiveness. Findings: The findings revealed the positive impact of four knowledge-based HRM practices on inbound and outbound open innovation in Jordanian manufacturing SMEs. These practices were knowledge-based recruitment and selection, knowledge-based training and development, knowledge-based compensation and reward, as well as knowledge-based performance assessment. Recommendations for Practitioners: This study is expected to help the stakeholders of SMEs to re-shape the traditional HRM practices into knowledge-based practices which improve managerial skills, innovation practices, and the level of the firm’s competitiveness. Recommendation for Researchers: This study serves as a significant contribution to the research field of innovation practices by building a new association between knowledge-based HRM practices and inbound and outbound open innovation. Impact on Society: The study emphasizes the vital role of knowledge-based HRM practices in enhancing the knowledge and social skills of the human capital in SMEs in Jordan, thus improving the country’s social and economic development. Future Research: Future research could build on this study to include service SMEs. It could also employ a longitudinal study over the long run which would allow for a deeper analysis of the relationships of causality, offering a more comprehensive view of the effect of knowledge-based HRM on open innovation. Furthermore, future research could examine the sample of investigation before and after implementing the knowledge-based HRM practices to provide stronger evidence of their influence on inbound and outbound innovation.

This chapter explores HRM (Human Resource Management) practices in SMEs (Small and Medium Enterprises) in the MIST (Mexico, Indonesia, South Korea, and Turkey) economies. Researchers and consultancy firms such as Goldman Sachs have suggested that these nations will be potentially very strong trading economies for the next decade based on economic analyses. SMEs play pivotal roles in these nations as they contribute to a majority of their domestic employment and GDP (Gross Domestic Product). The focus of the chapter is based on a thorough investigation of secondary sources on HRM practices (recruitment and selection, training and development, performance management, and compensation) of SMEs in the MIST nations. Institutional theory and Strategic Human Resource Management (SHRM) perspectives are showcased in understanding these practices better. The findings of the study suggest that HRM practices adopted in the MIST countries, both individually as well as a cluster, reflect the aspects of universalistic, contingency, resources bases, and institutional perspectives of the Strategic HRM (SHRM) model. The evidence also indicates the simultaneous adoption of both convergence and divergence theories of international HRM. The chapter also presents a model of HRM practices adopted by the SMEs in the MIST nations. Theoretical and practical implications of findings are discussed and directions for future research are provided.

PurposeThis study focuses on owner-managers’ paternalism and its effects on human resource management (HRM) in micro, small and medium enterprises (MSMEs) during COVID-19 pandemic. It aims to describe and discuss how owner-managers paternalism enhanced the sustainability of exemplary MSMEs.Design/methodology/approachA qualitative approach employing Heideggerian interpretive phenomenological methodology was used. Data were collected from 30 exemplary MSME restaurants using non-participant observation, document analysis and in-depth interviews with a purposive sample of 75 key informants: 30 owner-managers and 45 of their employees in 10 Thai tourist provinces over three time periods. Verbatim transcripts were coded using template analysis to generate distilled data summaries.FindingsFour HRM themes were identified: (1) staffing, (2) development, (3) performance management and (4) compensation. A proposed model was suggested to understand how owner-managers’ paternalism affects four HRM practices. Owner-managers use their authority, combined with high levels of benevolence and morality, through supportiveness and kindness for employees to meet both their work and personal needs. Specifically, their employees repay them through performance and loyalty. This reciprocal relationship positively impacts employers, employees and MSMEs.Research limitations/implicationsThe generalization of the study's outcomes is limited by the sample size and study methodology. The findings propose alternative HRM practices for Thai restaurants, therefore, generalization to all types of MSMEs and all areas of the world is not possible. In future research, it would be useful to consider a mixed-methods approach using large samples of MSMEs across the country or in other countries. Some small HR issues that were noted in this study, such as using the horoscope, astrology and zodiac as hiring tools, could be studied further. Future studies should explore the main thrust and relationship established between owner-managers and employees to drive MSMEs' performance.Practical implicationsThe findings may be used as guidelines for creating a deep bond between employers and employees to strengthen MSMEs and foster sustainability.Social implicationsImportant for instilling HRM practices in MSMEs. This paper provides policy implications for governments, relevant public agencies and other developing countries. They need to put forward for consideration of new strategies for migrant policy, in order to solve the shortage of labor in MSMEs. A well-considered policy could increase employee well-being during crises by bringing supportive strategies together.Originality/valueThis study expands knowledge of the effects of paternalism on HRM practices in shaping employer and employee relationships through social exchange theory (SET).

Small and Medium Enterprise (SME) sector is playing a significant role in Japanese economy. However, over the last two decades, SMEs have no longer been a thriving source of growth. The firm entry rate has downward trend while exit rate has trended upward in recent years and considerably exceeded the entry rate. One of the reasons for the high rate of business failures in SMEs, is due to its less attention to the human side of their businesses when compared with their counter parts of large enterprises. High voluntary turnover is considered to be the one of critical problem for SME owner/managers among many other human resource issues. Therefore, the objective of this paper is to examine the relationship between Human Resource Management (HRM) practices and voluntary turnover in SMEs in Japan. Specifically, this study attempts to examine the relationship between HRM practices and voluntary turnover shedding some lights on the mediating effect of the link in between HRM practices and turnover rate. A structured questionnaire was developed and sent to 436 SMEs in Aichi Prefecture and 144 firms responded to the questionnaire resulting in 32 percent response rate. Based on the data analysis it was found that there is negative but weak relationship, partially mediated by HR outcomes, between HRM practices and voluntary turnover rate in manufacturing SMEs in Japan.DOI: http://dx.doi.org/10.4038/suslj.v13i1.7668Sabaragamuwa University Journal 2014; V. 13 No. 1 pp 17-31

PurposeBuilding on the little guidance in the existing literature regarding the relationship between human resource management (HRM) practices, entrepreneurial orientation and firm performance, this study aims to generate theoretical propositions that underpin an integrative framework following a systematic literature review, then to test such a framework within the context of a small and medium enterprise (SME) to demonstrate how employees’ knowledge and competencies are translated into added value while fostering the company’s entrepreneurial capabilities and culture.Design/methodology/approachFor the purpose of this research, a systematic literature review was adopted to build the propositions underpinning an integrative theoretical framework linking HRM practices, entrepreneurial orientation and firm performance. A single case study approach was then followed to test the propositions of the integrative theoretical framework within the context of an SME, while adopting a triangulation methodology for data collection, including questionnaires, interviews and archival data. Data analysis was conducted following the procedures of a pattern-matching methodology.FindingsThis research confirms the strategic role of HRM practices in fostering the firm’s entrepreneurial orientation and capabilities, while nurturing, enriching and bundling employees’ knowledge, skills and distinctive competencies within the context of a company’s innovation-driven strategy. HRM practices through a strategic alignment with the company’s business strategy, contribute to shaping up organizational attitudes, behaviors and cultural determinants that are, in turn, conducive to better innovativeness, risk propensity and initiative-taking. Theoretical and empirical evidence shows how such corporate entrepreneurialism is then translated into adding value activities, individual and group productivity and overall organizational performance.Research limitations implicationsThis research generates meaningful insights on how HRM practices contribute to shaping up corporate entrepreneurship attitudes and transforming them into both individual and organizational results while building on conceptual assumptions and empirical evidence. The authors believe such insights have the potential to lay the foundations of a comprehensive theoretical model that disentangles the complexities and the dynamics of how strategically-oriented HRM interventions could help an organization redirect its employees’ competencies into innovation and entrepreneurial capabilities to generate a competitive advantage in an ever-changing business environment. Future research should emphasize mainly on multiple case study approaches and ethnographic methodologies for the sake of result generalizability and holistic understandings.Practical implicationsThis research draws significant conclusions for SMEs to cope with the change and the fierce competitive dynamics affecting current business environments. To consolidate and further develop their strategic positioning, this research suggests that SMEs could leverage distinctive individual and group competencies, through strategically aligned HRM actions and investments, to foster learning and generate entrepreneurially-oriented cultural values and management style conducive to innovation, performance and competitive advantage.Originality/valueThis research offers integrated and holistic views of how HRM practices affect organizational performance while leveraging on learning to create the necessary cultural and managerial conditions for corporate entrepreneurialism. This research builds on both theoretical propositions and empirical evidence to lay the foundations of a comprehensive model linking HRM practices, entrepreneurial orientation and firm performance. From a practical perspective, the research findings suggest new human resource developmental venues while placing much emphasis on the value of creating the innovation-driven managerial culture and fostering entrepreneurially-oriented attitudes to achieve better performance results.

The Impact of HRM Practices on Supply Chain Management Success in SME

The aim of this paper is to determine whether Australian small and medium enterprises (SMEs) could be described as 'bleak houses' or whether they have developed over the last decade into 'bright prospects' typified by human resource innovations. This study builds on empirical work (n = 1425) from ten years ago (1998), and re-examines the prospects of SMEs through the lens of human resource management (HRM) practices. Uniquely, the 2008 cross-sectional data provides for the large-scale tracking of strategic HRM practices. Specifically, 110 HRM practices over five traditional areas across 1230 SMEs are analysed. The prevalence, change, and patterning of HRM practices used by Australian SMEs in 2008 are investigated. It was found that SMEs need less of a make-over in relation to the adoption of HR practices, compared to a decade ago. From a practitioner viewpoint, the study provides cross-sectional benchmarking against the previous time-point, 1998, as well as extending that work with an examination of a more extensive range of new and emerging HRM practices.

The enormous business competitiveness at a global scale and the constant search for sources of competitive advantage have led several scholars and practitioners to implement their studies to pay attention to the potential of HRM in the success of companies. Portugal, like others European countries, is not set apart from the question of HRM. However, it is rare and recent to find empirical literature on practice of HRM in Portugal, and even more scarce to find literature that focuses on SMEs. This study clarifies the situation of SMEs in the Portuguese context, serving as a basis for discussion on HRM in SMEs in an international context. This chapter looks to understand the role of recruitment and selection on Human Resource Management (HRM) at Small and Medium Enterprises (SMEs) in Portugal, as well as contribute to a better knowledge of this area, still little studied. More particularly, it aims to understand the level of implementation of recruitment and selection. Data was collected by questionnaire from 512 small and medium enterprises in Portugal, and from these, 3 hypotheses were formulated and tested using the SPSS program. From this study, the authors conclude that HRM is not yet a reality in SMEs. Recruitment and selection are the HRM practices more commonly used in SMEs, but in an informal way.

Does innovation by firms augment employees’ impact on small and medium enterprises (SMEs) performance? In this study, we examine the role that innovations play in connecting human resource management (HRM) practices (such as training and development, communication and information, compensation and reward, job design and performance appraisal) with SME performance. This is based on research that looks at human-innovation collaboration, HRM practices and SME performance. Indeed, to date, there has not been a comprehensive HRM-innovation-SME performance framework adequately documented in the literature. Therefore, we conducted a quantitative study using self-administered questionnaires with the SMEs. First, we find that the implementation of HRM practices results in a higher level of innovation and performance among SMEs and that this enhanced innovation ultimately leads to an increase in SME performance. Next, we find that innovation mediates (changes positively) the relationship between HRM practices and SME performance. We conclude that generating creative employees through appropriate HRM practices can improve SME performance, but this desirable outcome depends on realising the innovation rate. This study makes a significant contribution to the body of knowledge about the relationship between high-commitment HRM practices, innovation and SME performance.

Small and Medium Enterprises (SMEs) form the backbone of local economies by generating employment, supporting innovation, and contributing to regional development. In Srinagar, SMEs operate under unique economic and social conditions and face persistent challenges related to managing human resources effectively. This study examines how Human Resource Management (HRM) practices influence job satisfaction and employee performance in SMEs located in Srinagar. Using primary data collected from employees and managers across different sectors, the study finds that well-structured HRM practices particularly training and development, fair compensation, and transparent performance appraisal have a strong positive effect on job satisfaction, which in turn enhances employee performance. The findings highlight the need for SMEs to move from informal personnel management to more systematic HR practices in order to achieve sustainable growth.