Presenting a Human Capital Governance Model with an Efficient Management Approach

Abstract

Objective: The objective of this study is to design and validate a human capital governance model with an efficient management approach in Iran’s public organizations, particularly in the Ministry of Industry, Mine, and Trade (IMIDRO). Methodology: This study employed a mixed-method approach. Initially, semi-structured interviews were conducted with 10 purposefully selected human resource managers using grounded theory until theoretical saturation was achieved. The proposed model was then validated through the distribution of questionnaires among 380 managers and employees in public organizations. The collected data were analyzed using structural equation modeling (SEM). Findings: The results indicate that efficient human capital governance can significantly improve the performance of public organizations. Interview findings and coding analysis revealed that increasing team interactions, improving individual competencies, and optimizing human capital utilization are key success factors in human capital governance. Additionally, the proposed model was confirmed through structural equation modeling. Conclusion: The human capital governance model with an efficient management approach can lead to improved organizational performance and the achievement of developmental goals. By creating strong management mechanisms, the model activates human capital capabilities, enhancing productivity and efficiency in public organizations. The findings of this study can serve as a basis for improving human capital governance in other public and private organizations as well.