Increasing competition, locally and globally call for organizations to be more adaptable, resilient, agile, and customer-focused to succeed. In this scenario. Human Resource aspects in Small and Medium Enterprises requires a different focus altogether, f^any previous studies on small businesses rank HRM practices as the second most important management activity next to general management. But do SMEs give due importance in aligning HR with SME strategy?
Small Scale Industries (SSI) is one of the significant segments of the Indian economy, contributing about 9 per cent to the Indian GDP and providing employment to over 65 million people and its success. Human Resource Management (HRM) coupled with innovation are key parameters in development of an individual as well as of an organization. Now the challenges of organization is basically about integration and adaptations and that is the core of strategic Human resource Management (SHRM).
There can be several reasons of dissatisfaction with pay HR policies and practices, lack of hygiene factors, employee loyalty issues, and the like. Therefore these strategic HR issues in SMEs are analysed in this paper. This paper highlights the internal challenge to business owners and entrepreneurs and encourages to focus their vision to be propelled by clearly defined goals which are communicated to their teams.