Effectiveness of Human Resource Management Practices on the Sales Growth of the Organization

Human resource management practices have been considered as an important and critical area in the management and organization performance. Many organizations described human resource as the combination of traditionally administrative personnel functions with performance management, employee relations and resource planning. HR planning is strategic and very important part in the process of organizational system in order to achieve success. The study on the effectiveness of HRM practices contributes significantly to the performance ofthe organization irrespective of whether they are large scale or small scale industries. Human resource management is the framework of the HRM practices consists of any intentional introduction or change of HRM program, policy, practice or system designed to influence employee the skills, behavior and interactions of employees and have the potential to provide both the foundation for strategy formulation and the means of strategy implementation that is perceived to be new and create current capabilities and competencies. Som (2006). Human resource managers and business owner need to play an important role in to overcome the problems of employee absenteeism/turnover intentions especially in small and medium enterprises. This paper focuses on identifying the effectiveness of HRM practices on the performance of small scale industries. This paper studies the effectiveness of HR practices like Recruitment, Training and Development, Compensation and Performance appraisal on the performance of small scale industries