Employee’s Perception of Human Resource Practices and their Performance

This study examines employee perceptions of human resource (HR) practices and their impact on employee performance within small and medium enterprises (SMEs), with a specific focus on one chemical company. Using a descriptive research design and convenience sampling method, data were collected from 100 employees through structured questionnaires. The research investigates the relationship between key HR functions—recruitment & selection, training & development, performance appraisal, compensation, and health & safety—and employee performance. The findings indicate that compensation and training & development have a significant and positive impact on performance, while recruitment & selection, performance appraisal, and health & safety show weaker or no significant relationships. Among the independent variables, compensation emerged as the most influential predictor of employee performance. The study concludes that while several HR practices are effectively contributing to employee outcomes, performance appraisal systems require significant improvement to enhance organizational performance. The results offer actionable insights for HR professionals and SMEs aiming to align HR strategies with performance outcomes.