Abstract:

Small and Medium Scale Enterprises are pivotal instrument of economic growth and development, thus occupies a place of pride in any economy. Despite the recognition of HRM as a critical factor in the success of both small and large businesses, most of the researches in existing literature have concentrated mainly on large businesses. This study examined the impact of HRM practices on the performance of in SMEs in Kwara State. Primary data was collected using a structured questionnaire which was administered to 195 SMEs registered with National Association of Small and Medium Enterprises (NASMEs) in Kwara Central Senatorial District. Hypotheses were tested using Multiple Regression analysis and Pearson Product Moment Correlation Coefficients. Findings revealed that overall; HRM practices have significant impact on the performance of SMEs in Kwara State. This was indicated by the result of the multiple regression analysis which showed an overall p-value of 0.000 and R² of 0.615. Reward was found to have positive significant relationship (β=0.46; t = 11.01; p). Similarly, owner/manager communication style has a positive relationship (β=0.30; t = 7.05; p). Recruitment and selection (β= 0.32; t = 7.44; p) as well as training and development (β= 0.47; t = 4.66; p) was significant but very low. The study concluded that SMEs in Kwara State, Nigeria adopt HRM practices to a large extent. It was recommended that SMEs should pay more attention to the HRM practices identified in this study with a view to improving their implementation.

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