Effective relation of Hr. policies and service agreement in HRM - study on Agro-based micro-enterprises in Tamil Nadu

Abstract

HRM is to ensure production, employee assignation, and commitment to the enterprise's success by attracting, developing, and motivating better talent. Micro-enterprises (agro-based) that comprise a major share of MSMEs are considered in this study to explore the importance of HRM for better performance of the enterprise, by proving the relative impact of HR Policies and Collective Labor Agreements that influence the HRM Practices adopted in the micro-enterprise eventually. The employer-employee relationship is secured with these two components. HR policies and service agreements help set clear expectations and ensure a harmonious and fair working environment for everyone involved.HR policies complement the service agreement by providing broader organizational guidelines and rules that apply to all employees within the company by establishing a framework for a productive and respectful working relationship between employees and employers which is essential for successful HRM to achieve better performance. Thus their relationship will play a vital role in effective HRMP that can be instigated under the best HRM in Micro-enterprises for better performance.