Employment Relations Practices and Performance of Small and Medium Sized Enterprises

Employment relations as a discipline and practice is widely known in the western business society. However, in the Malaysian context, the literaturereveals limited research has examined employment relations practices, particularly among small and medium-sized enterprises (SMEs). This studyattempts to examine the relationships between employment relations practices and performance of SMEs. The data was collected from 186 SMEs operating in the manufacturing sectorin Malaysia by using structured questionnaire. The results of the study indicate significant relationships between employment relations practices and performance of the SMEs as measured in terms of financial, workplace performance and workplace harmony.