Developing Human Resources Management Performance in Industrial type SMEs

The effective management of human resources is a central issue for many companies, particularlysmall-to-medium sized enterprises (SMEs) in Industry, which often lack a designated HR function. Usually, theHR function and management of HR falls upon the manager, who faces diverse issues that can hinderinnovating or implementing a more efficient system of managing HR. This paper addresses the issue ofdeveloping sustainable and innovative HR practices in industrial SMEs. The loose structure of the SMEfacilitates organizational agility but can also bring about disorganization, dysfunction and sub-optimumperformance. Using research-intervention, this paper contributes to the literature on the impact of developingHR practices on employee performance in SMEs. It explains the key roles of management and local managersin facilitating and developing a more adapted and efficient HRM interaction.