abstract

Small and Medium Enterprises (SMEs) form the backbone of India's burgeoning Information Technology (IT) sector, contributing significantly to employment, innovation, and economic growth (Ministry of Micro, Small & Medium Enterprises, 2020). Despite their critical role, Indian IT SMEs face numerous challenges, including rapid technological changes, talent acquisition and retention, and intense global competition (Kumar & Singh, 2019). Strategic Human Resource Management (SHRM) emerges as a pivotal mechanism to align HR practices with business objectives, thereby enhancing organizational performance (Wright & McMahan, 2011). This study employs a case study methodology to investigate the SHRM practices implemented by three prominent IT SMEs in Bangalore, India, and examines their impact on organizational performance. Through in-depth interviews, document analysis, and observational techniques, the research explores key SHRM practices such as strategic recruitment, competitive compensation, continuous training and development, robust performance management, and effective employee relations. The findings indicate that IT SMEs with well-aligned SHRM practices demonstrate higher levels of employee satisfaction, productivity, and overall organizational performance. Additionally, the study highlights the influence of contextual factors such as company size, organizational culture, and leadership style on the effectiveness of SHRM practices. This research contributes to the existing literature by providing empirical evidence on the critical role of SHRM in enhancing the performance of IT SMEs in India and offers practical insights for managers aiming to optimize their HR strategies in a competitive global landscape.