Human resource management (HRM) is a new concept for Sri Lankan Small and Medium-scale enterprises; there are few studies on HRM practices and its impact on enterprise performance in Sri Lankan Small and Medium sized enterprises (SMEs). The investigation of the influence of human resources management and the enterprise performance has mostly been carried out in big companies only. The objectives of the study were to address the linkage between HR practices and enterprise performance, and identify the impact of HR practice on enterprise performance in contemporary SMEs in Sri Lanka. The objectives of the study were to address the linkage between HR practices and enterprise performance, and identify the impact of HR practice on enterprise performance in contemporary SMEs in Sri Lanka. Human resource is required for an enterprise to conduct different business activities. Without the support of human resource the enterprise cannot exist or operate effectively. Success of any enterprise depends on the effective use of human resources. Small and medium scale sector has emerged as a dynamic and vibrant sector of the Sri Lankan economy.
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