Strategic Human Resource Management and Employee Performance: Evidence from Small and Medium Enterprises
DOI:
https://doi.org/10.66635/k30aqc77Keywords:
Strategic human resource management, employee performance, small and medium enterprises, SPSS, multiple regression, human resource practicesAbstract
Background: Strategic human resource management (SHRM) can convert the valuable but limited resources in an organisation into employee capabilities, motivation, and opportunities for performing. However, there is uneven evidence at employee level in the small and medium enterprises (SMEs). The study investigated the relationship between eight SHRM practices and employee performance through an empirical framework. A quantitative, cross-sectional explanatory design was operationalized using a clearly labelled synthetic dataset, containing 200 employee-level cases. In total, there were 32 SHRM items and eight performance items rated on a five-point Likert scale. Both SPSS-compatible procedures included frequencies, descriptive statistics, Cronbach’s alpha, Kaiser–Meyer–Olkin and Bartlett tests, principal component analysis with Varimax rotation, Pearson correlation, multiple regression, independent-samples t tests and one-way ANOVA. Results show that overall SHRM adoption is moderate to favourable (M = 3.42), while employee performance is an average of 3.70. The internal reliability of all scales (α) was 85 to 94, and the factorability was satisfactory (KMO = 0.891; Bartlett χ2 (780) = 4,971.76, p < 0.001). There was a significant positive correlation between SHRM and performance. The regression equation with eight predictors accounted for 57.7% of the variance in performance; performance appraisal, training and development, compensation and rewards, employee participation, job security, and internal communication were significant predictors, but recruitment and career development were not significant after mutual adjustment. Performance varied by size and experience, not gender or employment status; it didn’t differ. In conclusion, the demonstration indicates how an integrated assumption-tested SHRM model can identify SMEs practice priorities. The data is synthetic, so meaningful conclusions would require replication with ethically sourced field data.
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