HUMAN RESOURCE MANAGEMENT CHALLENGES AND OPPORTUNITIES IN DEVELOPING COUNTRIES (IRAN)

ENTEKHABI Marjan, Lucian Blaga University of Sibiu

Abstract:
This paper examines the challenges and opportunities in Iran s human resource management (HRM) practices. The study aims to identify the persistent issues that impact HRM practices, such as nepotism, brain drain, inconsistent education, and cultural factors. The methodology includes an analysis of existing literature on HRM in Iran from reliable databases. The study s findings suggest that HRM practices in Iran are influenced by complex national culture and Islamic factors, which impact national, contingent, and organizational HRM practices. Despite challenges such as nepotism and inconsistency in education, Iran s large population provides firms with a pool of talented and skilled workers that can be leveraged through effective recruitment and selection strategies. Furthermore, training and development are critical subsystems of any organization s HRM system. Therefore, HRM professionals can play a vital role in developing and implementing practical programs that align with Iran s current and future industry and workforce needs. The study also identifies the issues of performance appraisal and compensation that can be addressed to improve HRM practices and attract and retain top talent, thereby contributing to the country s economic growth and development. Moreover, Iran s diversified economy offers HRM professionals the opportunities to develop and implement effective performance management programs, particularly in extractive industries and other sectors such as manufacturing, tourism, technology, agriculture, and healthcare. Overall, the paper concludes that HRM in Iran is evolving, and HRM professionals must adapt to the changing environment to develop and implement effective HRM practices. Thus, the study provides valuable insights for practitioners and researchers interested in HRM practices in developing countries.

Keywords: Human resource management, Human resource management challenges in Iran

JEL Classification: J24, M12, 053, 015

Volume: 75, Issue: 3

Pages: 25 - 41

Publication date: October, 2023

DOI: 0.56043/reveco-2023-0024

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/75303entekhabi.pdf

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