Abstract
The purpose of this study is to investigate the impact of HRM Practices on perceived organizational performance in the small and medium enterprise (SME) sector of Pakistan. In this study Recruitment & Selection, Training & Development and Reward & Compensation are used to measure the perceived organizational performance. This research is quantitative in nature and questionnaire covers three items of HRM practices including Recruitment & Selection, Training & Development and Reward & Compensation which are used to check its impact on perceived organizational performance in SME sector of Pakistan. The results of this study are based on 342 respondents of different manufacturing, trading and services organizations from SMEs located in different areas of Lahore, the most important and busiest city of Pakistan. Descriptive, correlation and regression tests were used and results were obtained. These results show that there is significant and positive correlation between the said HRM practices and the perceived organizational performance of SME sector of Pakistan. The regression results show that there is significant and positive impact of the said HRM practices on perceived organizational performance. So, this study concludes that the said HRM practices can improve the effectiveness and efficiency of SME sector by implementing them in this sector of Pakistan.