Abstract:
Small and medium enterprises are considered as a great source of economic growth and
development of the country. However, in Pakistan the development of these SMEs is very slow
because they lack indelivering good performance. Therefore, the present study aims at
identifying components that help to increase the SMEs performance in the country. Managing
the human resource of any organization is one of the most difficult tasks. However, if they were
managed in a better way they yield positive results. Similar is the case with the SMEs operating
in the country. This study incorporates certain variables including compensation and benefits,
performance appraisal, employee involvement, training and development and job security. The
following variables are considered as an important factor for the firm performance.
A survey approach was used in order to collect the data from the respondents. The data was
collected from the employees of SMEs of Pakistan. The overall empirical assessment revealed
positive results between the hypothesized relationships. However certain implications of the
study ensured that while SMEs accepting the human resource practices will help to increase the
firm performance.
This study will help to bring in awareness to the SMEs of Pakistan in order to bring proper
human resource practices in their firm that will help to increase the firm performance and
contributes in the economic growth.
