Enhancing Organizational Effectiveness: A Study on Human Resource Strategies, Employee Productivity, and Turnover in SMEs

Abstract

This study investigated the impact of various human resource (HR) strategies—namely, policies, leadership, training and development, and organizational culture—on employee productivity, turnover, and retention within small and medium-sized enterprises (SMEs) in Guangdong Province, South China. Utilizing a quantitative research approach and a correlational research design. The data was collected from 351 employees through survey questionnaires to provide insights into their perceptions of HR practices. The statistical analysis used was descriptive statistics summarizing respondent profiles and Pearson correlation coefficients quantifying the relationships between HR strategies and employee outcomes. The results indicate that HR policies are generally perceived positively, contributing effectively to organizational goals. Leadership is valued for skill awareness and anti- discrimination efforts, though improvements in accessibility and trustworthiness are needed. Training and development initiatives are appreciated, yet require better alignment with organizational objectives. The organizational culture is supportive and collaborative but needs greater clarity in task focus to enhance productivity. The findings underscore the importance of comprehensive HR strategies that integrate effective leadership, clear communication, supportive organizational culture, and ongoing professional development to enhance employee productivity and retention.