An Empirical Study on Best HR Practices in Micro, Small and Medium Enterprises in Bangalore

Priya Vaz, Dr.N. Dinesh and Dr.M. Rajkumar

Micro, Small and Medium Enterprises (MSMEs) can be considered as a driver, life and blood of economy (Monika, S. 2010). The business function in MSMEs is hindered by constraints and lack of expertise. A better Human Resource practices can enable improved services to employees and employer, as well play important role in growth issues of MSMEs. Hence, the study is aimed at identifying the best HR practices followed in MSME sector, Bangalore and further validate these practices. To identify the best practices, data was collected from 75 Micro and Small enterprises situated in Peenya industrial area and Machohalli Industrial area, Bangalore. It was followed by a focussed group discussion with industry experts. From the data it was noted that, though many MSMEs do not have active and functional HR department, they still follow better HR practices in Recruitment, training, personnel audit, compensation and the list goes on. To further validate the above data, a survey was conducted with 5 point likert scale method. 120 responses were collected from MSMEs on usage of these practices in their organization. The study revealed that practices related to training, performance appraisal, health, safety, environmental awareness, motivation, grievance handling are positively correlated with age of company. The use of best practices can help organization to set its objectives and achieve its goal.

Volume 11 | Issue 5

Pages: 111-117