Development HR governance

This study examines the Human Resources Governance (HRG) system in Tehran Municipality, focusing on its alignment with sustainable urban development. Tehran, Iran’s economic and political hub, faces unique HR challenges due to economic volatility, stringent regulations, cultural norms, and rapid urban growth. The research investigates how HRG can address these complexities to foster a sustainable workforce. Drawing on agency theory and the resource-based view, the study explores the interplay of legal compliance, cultural values, and technological adoption in shaping effective HR systems. Tehran’s labor market, shaped by the 1990 Labor Law and Islamic principles, navigates a dual economy of state-owned enterprises and emerging private sectors, yet struggles with outdated HR practices, high turnover, and brain drain exacerbated by sanctions and inflation. The study highlights the need for modernized HR strategies, including digital tools like Human Resource Information Systems, to enhance recruitment, retention, and employee engagement. Cultural factors, such as collectivism and gender roles, further complicate governance, necessitating inclusive policies to bridge disparities. Opportunities lie in leveraging Tehran’s youthful, educated workforce and regional economic role through public-private partnerships, digital transformation, and ESG-focused strategies. The research employs a qualitative approach, analyzing Tehran’s HR landscape through literature reviews and spatial auto-correlation methods. Findings suggest that adaptive, culturally sensitive HRG frameworks can mitigate economic and regulatory challenges while promoting sustainability. By integrating global best practices with local realities, Tehran can strengthen its human capital, positioning itself as a leader in HR governance for sustainable urban development.