Measuring The Impact of Human Resource Development (HRD) Practices on Employee Performance in Small and Medium Scale EnterprisesLeena Sheikh

Abstract

The objective of this study is to examine the impact of Human Resource Development (HRD) practices on employee performance within small and medium-sized enterprises (SMEs). Key components from the existing body of literature were synthesized to develop a comprehensive research model. A questionnaire was administered to collect data from 100 employees working in the selected SMEs. To assess the validity of the model and its hypotheses, structural equation modeling (SEM) was employed. Additionally, confirmatory factor analysis (CFA) was conducted to evaluate the validity and reliability of the model's dimensions. The results indicate that specific HRD practices have an impact on employee performance. However, performance appraisals do not appear to influence the employee performance in the companies examined. The study focused on small and medium-sized enterprises (SMEs), and the analysis was based on cross-sectional data, which limits its applicability to a broader range of industries. The study's conclusions will support stakeholders, policymakers, and SME management in promoting suitable and clearly stated HRD methods to raise staff capabilities and boost organizational efficacy.