Impact of effective human resource management on the performance of small and medium scale enterprises in Lagos State

Abstract

The inability of management of SMEs in Nigeria to identify and harness variables of human resource management has often been the cause of poor performance. This study was carried out to explore the relationship between effective HRM on SMEs in Lagos State, Nigeria. The study was analysed quantitatively based on primary data from 93 SMEs. Variables of HRM (selective hiring, attitude and behavior, training and development, cohesive teamwork, performance appraisal, structured human resource planning and reward and incentive system) were correlated with the variables of SMEs performance (profit level, market value
performance, employees’ satisfaction, customers’ satisfaction, environmental performance and corporate social responsibility) through Spearman Rank Correlation Coefficient. The correlation coefficient was 0.939 which showed a very strong and positive correlation between the variables of HRM and SMEs performances. In view of this, it is recommended that future studies that would capture other performance variables and correlate them with the variables of HRM for more elaborate research outcome should be conducted.