Human resource management practices and organisational performance: Evidence from small and medium-sized enterprises in Australia

Abstract

Small and medium-sized enterprises (SMEs) are the drivers of economic activities in Australia. The present study provides empirical evidence on the connexion between the four key dimensions of human resource management (HRM) practices and organisational performance, in response to the call by earlier researchers that the influence of specific HRM practices on organisational performance needs to be further investigated across different countries and organisational contexts. A survey among SMEs in the South-Western region of Sydney in Australia was conducted and self-reported measures were applied to attain data on HRM practice aspects and businesses’ performance. Regression analyses were employed to assess the proposed relationships, and it was found that all dimensions except training and development exhibited positive relationships to organisational performance, as hypothesised. Discussion on the findings is underlined, so as are the implications of this study, limitations, and avenues for future researchers.