Student perception on human resources management practices on the performance of Malaysian’s SME : Based on students theoretical knowledge

SMEs in Malaysia play an important role in the development of the economy. Hence, managing human resources management practices is crucial for SMEs. SMEs need to exploit all available resources as a way of achieving competitive advantage to firm and also to improve the performance of their organization. This study aims to further understanding on the student perception on human resources management practices on the performance of Malaysian's SMEs. This study explores human resource practices variable such as recruitment and selection, training and development and compensation and rewards. The quantitative analysis generally supports existing literature on this subject. A total of 250 respondents were randomly distributed to students at UMK, USM, UTM, and UiTM. Data collected was analysing using Statistical Package for Social Science (SPSS) version 18.0. Finding shows that the performance of Malaysian SMEs influence by recruitment and selection, training and development and compensation and rewards. Discussion on finding, conclusion and limitation of the study are also included in the report.