Perceptions of Human Resource Management Practices: Study of Culinary Industry of SMES in Indonesia

Abstract

Purpose: The purpose of this article is to examine the perception of human resource management practices in Culinary industry of SMEs in Indonesia.   Theoretical framework: The conceptual model for this study was developed based on previous research in the field of human resource management globally. The conceptual model has four factors that affect human resource management practices in Culinary industry of SMEs in Indonesia.   Design/methodology/approach: A quantitative method in the form of a structured questionnaire was designed based on a review of pertinent literature. This study collected empirical data from 126 employees of culinary industry of SMEs in Balikpapan City of Indonesia. Analysis method by path analysis is using PLS-SEM to test the significance of the research model.   Findings: The result of research showed that that HRM practices (employee training & development, performance evaluation and compensations) are positively influence on perception of HRM practices itself, but recruitment & selection is not influence.   Research, Practical & Social implications: The implications drawn from this research help owners or managers of human resources in existing SMEs to focus their resources by considering Recruitment and Selection, training and development, performance evaluation, and compensations variables that can affect human resource management practices in their organizations to succeed.   Originality/value: This study is important for owner of SMEs because it confirms business owners' need or desire to increase human capital in order to boost SMEs performance and offer the SMEs a competitive advantage in the marketplace.