HRM in SMES in India and Across the World

In this globalization era, more and more firms are entering into the international business environment and this has increased competition. This increased competition may result in a reduction in the ability of SMEs to control their own developmental path. So, high competition and the changes in the industry have forced SMEs to innovate rapidly and constantly in order to compete successfully in markets. So, SMEs’ success is highly dependent on the degree of their flexibility, reactivity and competitiveness. The aim of this paper is to identify the level of HRM implementation in SMEs in India and across the world. Findings observed that HRM practices vary from organization to organization and most of the SMEs do not have formal HR policies for the implication of these practices. This study reveals that HRM play an important role in increasing the competitive advantage of SMEs.