EFFECT OF HUMAN RESOURCE MANAGEMENT (HRM) PRACTICES ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMES) IN KADUNA STATE, NIGERIA

Abstract

This study examines the effect of human resource management practices on the performance of SMEs in Kaduna State. The objectives of the study are to determine the effect of recruitment and selection, compensation and training on the performance of SMEs in Kaduna State. The study employs cross-sectional survey research design. The population of the research was 2862 Chief Executive officers of SMEs in Kaduna and 400 Chief Executive officers of SMEs were sampled for the study. Primary data was employed for the study. Multiple Regression Analysis was used to determine the effect of human resource management practices on the growth of SMEs in Kaduna State. The results revealed that Recruitment and selection, Compensation, Performance appraisal and Training have significant effect on the growth of SMEs in Kaduna state. Based on the findings the study concludes that human resource management practice has significant and positive effect on performance of SMEs in Kaduna state. The study recommends that SMEs should ensure meritocracy in hiring process, establish scheme of service that spells out job requirements, job specifications as well as academic and professional qualifications which should be considered during initial recruitment and for career progression