Human Resource Management Issues in MSMEs: An Insight

In Maharashtra, the industrial sector stands as a towering pillar amidst the state’s economic landscape, eclipsing other sectors in its magnitude and impact. This concentration highlights the pivotal role of Micro, Small, and Medium Enterprises (MSMEs), often described as the lifeblood of a vibrant economy, silently propelling India’s industrial growth and employment. However, the efficacy of these enterprises hinges significantly on human resource management practices. Considering that individuals devote a substantial portion of their lives to their workplaces, effective human resource management becomes indispensable. Thus, the present study has aimed to explore human resources challenges faced by employees in MSMEs. Employing a convenience sampling method, the present study has assessed 375 lower-level employees from five different districts of Maharashtra covering micro, small and medium enterprises. Accordingly, the study has found glaring deficiencies in various formal human resource practices including recruitment, selection, training, industrial relations and performance appraisal, within the MSME sector. Such problems are found to be more prevalent in case of micro enterprises than small and medium enterprises. Based on the findings of the study, various suggestions have been made for improving human resource practices.