An Investigation into the Prevalence of HRM Practices in SMEs: Sierra Leone an Example

Abstract

Purpose- The purpose of the study is to investigate the human resource management practices of Small and Medium Enterprises (SMEs hereafter) in Sierra Leone. In particular, the author looks at the relationship between the human resource management practices and SMEs performance including wages, employment and sales.Methodology- The study adopted triangulation method in collecting and analysing the data. The qualitative data was collected using 31 in-depth interviews and the quantitative data was collected using 323 questionnaires. The data was analysed using Statistical Package for Social Science (SPSS).Findings- It is found that there is a significant positive relationship between HRM practices and SMEs performance including sales and employment. This implies that the more SMEs engage in formal HRM practices, the more they observe higher sales and generate more employment. Furthermore, HRM practices showed no significant statistical relationship with wages. In addition, the descriptive survey analysis pointed out that almost all of the respondents did not have an HRM department. Finally, the statistical description of the survey data revealed that most of the SMEs owner/managers in Sierra Leone make sure that employees are aware of formalized rules.Originality- This study contributes to knowledge by providing insights on the impact of HRM practices on SMEs performance in Sierra Leone. To the best of the author’s knowledge, the study is the first of its kind ever done in the country. The findings also confirm the findings of previous researches in other countries that the overwhelming majority of SMEs do not engage in formal HRM practices.

Keywords– Human Resource Management (HRM), Small and Medium Enterprises (SMEs), Resource-Based Theory, Sierra Leone.