Purpose: This paper aims to provide a theoretical approach to the importance of Human Resource Management. We know that human resources are a functional department within enterprises, and well-done employee performance management is a key element for enterprises' success. Design/Methodology/Approach: This study presents primary data collected through a structured questionnaire addressed to the managers of 50 small and medium enterprises in Kosovo, mainly in the country's largest cities. The questionnaire enabled us to obtain information on how much employee performance affects enterprise productivity and what employee performance appraisal system managers use to know the impact of performance on productivity. Findings: The findings, after analyzing the data, show that organizational productivity depends a lot on employee performance. Also, the most commonly used system to appraisal employee performance in Kosovo enterprises is the control system. Practical Implications: This study provides a clear understanding of human resource management and its importance in the enterprise, always emphasizing that human resources are among the main sources for enterprises' operation. Originality/Value: The research paper is based on the original direct data from the enterprises taken as a research sample, which undoubtedly represents a direct observation of the case in question.

Alberta Tahiri Et Al (2020). Human Resource Management, Performance Management and Employee Performance Appraisal by SME Managers in Kosovo, International Journal of Economics and Business Administration Volume VIII Issue 4, 288-298