A Study on Factors Affecting HRM Practices Adopted by Jewellery Manufacturing SMES, With Special Reference to Thrissur District

Abstract

Human Resource Management (HRM) practices play a vital role in improving employee performance, productivity, and organizational sustainability, particularly in small and medium enterprises (SMEs). The jewellery manufacturing sector in Thrissur District is recognized for its skilled workforce and significant contribution to Kerala's economy. However, the sector faces several human resource challenges, including employee retention, skill shortages, changing workforce expectations, and performance management issues. This study aims to identify the major factors affecting HRM practices adopted by jewellery manufacturing SMEs in Thrissur District. The research focuses on key HRM dimensions such as recruitment and selection, training and skill development, employee participation, and performance management. Primary data were collected from 100 employees working in selected jewellery manufacturing SMEs using a structured questionnaire. The collected data were analysed using percentage analysis, ranking analysis, and exploratory factor analysis to identify the underlying dimensions influencing HRM practices. The findings reveal that effective training, transparent recruitment, employee involvement, and systematic performance management significantly influence HRM practices in the selected SMEs. The study concludes that strengthening these HRM practices can improve employee satisfaction, organizational performance, and workforce sustainability. The findings provide practical recommendations for SME owners and managers to enhance human resource policies and achieve long-term organisational success.