This document presents a study on human resource management practices in small and medium-sized enterprises (SMEs) in Bangalore and Mysore, highlighting the critical role of HR in organizational success. It discusses various HR practices such as recruitment, training, compensation, and performance appraisal, emphasizing the need for formalized HR strategies as firms grow. A pilot study is conducted to validate a questionnaire used to assess these practices, yielding reliable results that can aid in improving SME performance.