EVALUATING EFFICIENCY OF HUMAN RESOURCE MANAGEMENT STRATEGIES FOR DEVELOPING MICRO, SMALL AND MEDIUM ENTERPRISES IN INDIA WITH A SPECIAL REFERENCE TO KARNATAKA

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Micro, Small and Medium Enterprises (MSMEs) play a vital role in India’s economic development by generating employment, promoting entrepreneurship, and contributing significantly to GDP and exports. Among the various factors influencing the growth and sustainability of MSMEs, effective Human Resource Management (HRM) strategies are increasingly recognized as a critical determinant of organizational efficiency and competitiveness. This study aims to evaluate the efficiency of Human Resource Management strategies adopted by MSMEs in India, with special reference to Karnataka. The research focuses on key HRM practices such as recruitment and selection, training and development, performance appraisal, compensation management, employee motivation, and retention strategies. Using primary data collected from MSME owners, managers, and employees, along with secondary data from government reports and academic sources, the study assesses the extent to which existing HRM strategies contribute to employee productivity, skill development, and overall enterprise performance. The findings highlight both strengths and gaps in HRM implementation within MSMEs, particularly in the areas of formal training, employee engagement, and strategic workforce planning. The study concludes that strengthening HRM practices through policy support, skill development initiatives, and adoption of structured HR frameworks can significantly enhance the growth, sustainability, and competitiveness of MSMEs in Karnataka. The outcomes of this research are expected to provide valuable insights for policymakers, MSME entrepreneurs, and researchers in improving HRM effectiveness in the MSME sector.

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