Introduction of a Model for Improving the Financial Performance of the Organization, with an Emphasis on the Role of “Human Resources Composition” and “Management Stability”

Abstract

Abstract: The significance of financial performance of companies makes factors affecting it significant. As a mixed-method research, this paper aimed at investigating the effect of human resources composition in of an organization and the management stability on the financial performance of the organization. First, based on the Grounded Theory, the indices of human resources composition were identified. Then, with a quantitative approach, using Smart PLS software, the relationship between human resources composition and management stability, and financial performance (ROA &ROE) was investigated. The indirect impact of human resources composition on financial performance through its influence on management stability was tested as well. Findings proved that there was a positive correlation between human resources composition and the management stability, and financial performance in 274 companies registered to the Tehran stock exchange market between 2010 and 2013, but there is no significant relationship between X and Y. Finally, based on the findings, a model for improving the financial performance of companies with an emphasis on human resources composition and management stability is introduced.

Keywords

• "financial performance"
• "human resources composition"
• "management stability"
• "tehran stock exchange market"