A Comparative Study of the Fundamental Challenges of Human Resource Management in Public and Private Banks of West Azerbaijan Province and Presentation of an Appropriate Model

Abstract

This study aims to identify and analyze the fundamental challenges of human resource management (HRM) in public and private banks of West Azerbaijan Province and to propose an appropriate model for improving HR productivity in the banking sector. This qualitative and applied research was conducted in three phases. In the first phase, an initial conceptual model of HRM challenges was developed through a systematic research synthesis. In the second phase, semi-structured interviews were conducted with 19 managers and employees of public and private banks in West Azerbaijan Province, selected purposefully until theoretical saturation was achieved. In the third phase, the proposed model was validated using expert evaluation through a structured questionnaire. Data were analyzed using open, axial, and selective coding procedures. The findings revealed that HRM challenges in public and private banks can be categorized into three main dimensions: behavioral, structural, and contextual. Behavioral challenges included lack of motivation, job discrimination, and resistance to organizational change. Structural challenges encompassed the absence of meritocracy, ineffective performance evaluation systems, and skill gaps. Contextual challenges were related to economic sanctions, political pressures, and shortages of skilled labor. All three categories of challenges had significant negative effects on employee productivity in both public and private banks. Enhancing HRM in the banking sector requires a comprehensive diagnosis of behavioral, structural, and contextual dimensions. The proposed model provides a strategic framework for improving HR policies, increasing employee productivity, and sustaining organizational efficiency within the banking industry.