Human resource management practices and their impact on job satisfaction and employee performance: Evidence from SMEs in Srinagar

Small and Medium Enterprises (SMEs) form the backbone of local economies by generating employment, supporting innovation, and contributing to regional development. In Srinagar, SMEs operate under unique economic and social conditions and face persistent challenges related to managing human resources effectively. This study examines how Human Resource Management (HRM) practices influence job satisfaction and employee performance in SMEs located in Srinagar. Using primary data collected from employees and managers across different sectors, the study finds that well-structured HRM practices particularly training and development, fair compensation, and transparent performance appraisal have a strong positive effect on job satisfaction, which in turn enhances employee performance. The findings highlight the need for SMEs to move from informal personnel management to more systematic HR practices in order to achieve sustainable growth.