SME Performance: Examining the Relationship Between Training and Development, Employee Performance Evaluation and Rewards

Abstract

SME performance has been viewed in many aspects. This concept paper will highlight human resource management among SME. In managing its human resources, SME needs to at least practice the important parts such as training and development, employee performance evaluation, and rewards. This study's objective is to identify which human resource practice can contribute to firm performance of SMEs. Using the simple random sampling method, the data will be collected by distributing questionnaires to SME's human resource managers and top executives responsible for managing human resources. Data will be analyses for reliability, multiple regression, Pearson's Correlation test, and using PLS-SEM to estimate the model with multiple constructs, indicator variables and structural paths. This study will fill in the gap to identify which HR practices are the most important for SMEs to focus on. It will benefit the SMEs as they can identify which HR practices influence the most in firm performance. HR practitioners can use the findings to support the case for implementing HR practices in organizations. This is in line to help the SMEs to remain in the business and able to expand it.