ANALYSIS OF STRATEGIC HUMAN RESOURCE MANAGEMENT PRACTICES IN SMALL AND MEDIUM ENTERPRISES

Abstract

Analyzing the Human Resource Management (hereinafter: HRM) practices of small and medium-sized business enterprises is the need of modern-day marketers. Understanding the function of HRM in small and medium-sized businesses and the internal and external factors that have the greatest impact on these organizations is crucial because 99.8% of businesses fall into this size range and thus contribute significantly to high employment rates. In this study, we look at the organizational and environmental challenges that small businesses face that may lead them to adopt a more systematic approach to HRM. HRM literature was used to construct a conceptual model, which was then verified for internal consistency using three different methods: exploratory interviews, variable readjustment using the Delphi technique, and multivariate statistical testing. We used structural equation modeling to evaluate the hypotheses of our conceptual model based on data from a survey of one hundred Pakistani small businesses. The research shows that formal and structured HRM practices and policies are associated with factors like organizational structure, management and communication style, career management, organizational flexibility, organizational strategy, and national culture. The number of dimensions and variables under analysis, as well as the complexity of the model under testing, are only two examples of the study's complexity, which offers certain restrictions on both the conceptual analysis and empirical levels. Data collection from workers is one example of a larger study direction. A new angle on the company's processes and a broader look at certain topics not fully explored here may result from such an investigation.