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This literature review examines how human resource management (HRM) practices influence employee motivation, retention, and well-being within manufacturing small and medium-sized enterprises (SMEs) in Zhengzhou, China. As key players in the regional economy, these SMEs face significant workforce challenges, including high turnover and limited engagement. The review focuses on three core HRM strategies—performance-based incentives, training and development programs, and well-being initiatives—and analyzes their effectiveness through the lens of established theories such as the Resource-Based View, Human Capital Theory, and Maslow’s Hierarchy of Needs. Findings suggest that tailored, integrated HRM practices can substantially improve employee outcomes and organizational performance, although further research is needed to address gaps related to local contextualization and long-term impacts.
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