Last modified: 2021-06-09
Abstract. Background The main objective of this research is to explore the human resource management (HRM) practices and their impact towards the performance of micro, small, medium enterprises (MSMEs) in the food service industry in Jakarta, Indonesia. This topic is crucial to be explored since one of the most competitive MSMEs industry in Indonesia is the food and beverage sector, and during the pandemic Covid-19, it is to be one of the most important sectors aiding the economy. Meanwhile, the application of HRM practices is often being ignored by MSMEs in Indonesia. Â Methodology: This research applied an exploratory, qualitative-based study, using an inductive confirmatory approach. The data were gathered through face to face and internet-mediated in-depth semi-structured interviews towards 12 business owners and managers. The transcripts then were thematically analysed. The outcome of this research revealed that nine out of ten HRM practices components, except career development have impacts towards the performance of the MSMEs in the food service sector. The ten HRM practices components include human resource planning, recruiting and selection process, orientation, training and development, human resource administration, performance appraisals, wage and compensation, occupational health and safety, disciplinary action, work termination, and career development. Each HRM practices component differs in significance yet serve specific purposes for the MSME and would help the businesses to function better.