Strategic Management of Human Resources in Improving Employee Performance: A Case Study on Local Micro-Enterprises

Akhmad Syarifuddin
Surianti Surianti
Muhajir Paga
Andi Nursan Adil

Bata Ilyas Educational Management Review
Vol. 6 No. 1.1 (2026)

This study aims to analyze the implementation of strategic human resource management (SHRM) in enhancing employee performance within local micro-enterprises. Using a qualitative descriptive method, data were gathered through semi-structured interviews, direct observations, and extensive documentation across selected micro-enterprises in South Sulawesi, Indonesia. The findings indicate that key SHRM practices—specifically targeted training programs, clear performance appraisal systems, non-financial incentives, and transformational leadership behavior—significantly improve employee motivation, organizational citizenship behavior, and overall productivity. However, limited operational budgets, informal organizational structures, and managerial skill gaps remain primary constraints. The study concludes that tailored, low-cost SHRM practices enable micro-enterprises to maximize workforce capacity and gain sustained competitive advantages despite severe financial limitations.