HRM Practices and Their Impacts on the Perceived Performance of SME’s Operating in Karachi

Abstract:Pakistan’s economy is based on SMEs and there is a strong realization of the importance of such enterprises in the country. However, such enterprises are facing challenges in its operations and development with reference to human resource effectiveness. Therefore this study explores the impact of HR practices on SMEs Perceived Performance operating in Karachi, as SMEs too require such HR practices to stay alive and uphold a competitive edge in order to get better firm performance.Sample size of this quantitative study is 443 SMEs’ owners and managers from manufacturing and service registered firms at four industrial associations. Multiple Linear Regression has been used for data analysis by the help of SPSS.Findings of this study show the influence of HRM practices on the SMEs perceived performance. The study identifies key implications for owners or managers of SME`s, in the enhancement of their firms’ performance.