The Effect of Human Resource Management Practices on the Growth of Small and Medium Sized Enterprises in Mukono Central Division

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Date

2025-09-19

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Uganda Christian University

Abstract

The foundation of Uganda's economy is made up of small and medium-sized businesses (Small and Medium Sized Enterprises (SMEs), which reduce poverty, generate revenue, and create jobs. However, poor human resource management (Human Resource Management) practices frequently limit their ability to develop. With an emphasis on hiring and selection, training and development, and performance evaluation, this study examined how Human Resource Management practices affected the expansion of Small and Medium Sized Enterprises (SMEs) in Mukono Central Division. SME management and staff were surveyed, interviewed, and had their documents reviewed as part of a mixed-methods approach. Descriptive statistics were used to assess quantitative data, and theme analysis of qualitative data yielded both quantifiable insights and more profound viewpoints. The results showed that hiring and selection practices in Small and Medium Sized Enterprises (SMEs) are often open, merit-based, and backed by precise job descriptions that increase productivity and lower employee attrition. Performance was shown to be improved by training and development, while funding for ongoing initiatives is still minimal. Employee motivation and productivity were increased by the widespread use of performance reviews, which were closely associated with incentives and promotions. Overall, the study found that by enhancing performance, profitability, and expansion, Human Resource Management practices greatly aid in the growth of Small and Medium Sized Enterprises (SMEs). To maintain competitiveness and long-term growth, it advises Small and Medium Sized Enterprises (SMEs) to boost training expenditures, maintain equity and openness in hiring, and improve employee welfare monitoring.

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