Science and Education Publishing Journal of Business and Management Sciences 2333-4533 2 3A 2014 10 25 Strategy for Human Capital Management of MSMEs: A Conceptual Study 46 48 EN Sarita Mishra Srusti Academy of Management, Bhubaneswar, India JBMS201423A7 10.12691/jbms-2-3A-7 2014 08 25 2014 08 28 2014 10 25 The ever increasing number of employees in an organization, growth in business competitions and changing economic scenario compels the corporate to re-think about human management strategy. High attrition rate, absenteeism and migration of workforce compel the employer to rethink about the employee management. Most organizations actively look to reward hard-working employees by having an effective pay for performance. However two-third organizations have a pay-for -performance policy. Can it be possible to ensure this policy in MSMEs and other mediocre industries. Pay -or-performance, value analysis of individual employees, performance appraisal can only be possible by strategic implementation with the productivity of MSMEs. This article focuses on the concept of Human capital management, Research gap and a strategic model is suggested to face the challenges.