The relationship of human resource management practices and employee performance: A case of an SME at Klang Valley

The performance of employees holds significant importance for businesses due to its direct impact on organizational success, increased customer satisfaction, and competitive advantage. However, the occurrence of a recent economic crisis has posed significant challenges for small and medium enterprises (SMEs) to maintain optimal employee performance consistently. The objective of this research is to examine the relationship between compensation management, performance management, training and development, and employee motivation, on the performance of employees at an SME Sainuka Habib. This study employed a quantitative research approach, specifically utilizing the multiple regression coefficients, to assess the hypothesis of the association between variables. An online questionnaire was utilized to disseminate a survey to the 80-sample workforce inside the firm. The research was conducted using Statistical Package for Social Science (SPSS) version 26, using a dataset consisting of 80 data points. The results of this study suggest that there is a substantial relationship between 2 out of 4 factors examined and employee performance. Among these variables, the compensation management system has the least degree of influence. The study's findings indicate that continuous training and development, and fostered employee motivation, may have an impact on employee performance.