INVESTIGATING THE ROLE OF HUMAN RESOURCE MANAGEMENT PRACTICES ON THE PERFORMANCE OF SME: A CONCEPTUAL FRAMEWORK

Human resource management (HRM) practices play an important role in improving productivity, performance and survival of the organization. By adopting the practices of human resources, it will enable the organization to attract, retain and motivate employees to support the mission, objective and organizational strategy towards an enhancement of organizational performance. However, most studies on human resource practices are discussed in the large organization and are less completely covered in small organizations. Therefore, this article will discuss the importance of human resource management practices to Malaysian SMEs in view of SMEs also need such practices to survive and sustain a competitive, which in turn to improve organizational performance