International Science Community Association Research Journal of Recent Sciences 2277 - 2502 1 6 2012 June 2 Effect of Different HRM Policies on Potential of employee Productivity 45 54 EN Mostafa M.Rady 1 Agricultural Botany Department, Faculty of Agriculture, Fayoum University, 63514-Fayoum, EGYPT Water Relations and Field Irrigation Dept. National Research Centre, Cairo, 12622 EGYPT MaybelleS. Gaballah 2 Murthy B.R.N. 1 Department of Mechanical and Manufacturing Engineering, Manipal Institute of Technology, Manipal 576 104, Karnataka, INDIA Lewlyn L.R.Rodrigues 2 Anjaiah Devineni 3 Ipatova V.M. 1 Moscow Institute of Physics and Technology, Dolgoprudny 141700, RUSSIA Singh Shachi 1 Center for Biotechnology, Department of Biological Sciences, Birla Institute of Technology and Science, Pilani, INDIA Agbo G.A. 1 Faculty of Physical Sciences, Industrial Physics Department, Ebonyi State University, Abakaliki, Ebonyi State, NIGERIA Ibeh G.F. 2 Ekpe J.E. 3 Magarajan U. 1 School of Mechanical and Building Sciences, VIT University, Vellore– 632 014, Tamil Nadu, INDIA Thundilkaruppa RajR. 2 Elango T. 3 Khani Hamid 1 Sama Technical and Vocational Training College, Islamic Azad University, Qaemshahr Branch, Qaemshahr, IRAN YazdaniQanbar Ali 2 Department of Accounting, Qaemshahr Branch, Islamic Azad University, Qaemshahr, IRAN Nasiripour A. 1 Department of Health Services Administration, Science and Research Branch, Islamic Azad University, Tehran, IRAN Afshar KazemiM. 2 Department of Industrial Management, Tehran markaz Branch, Islamic Azad University, Tehran, IRAN Izadi A. 3 Department of Health Services Administration, Science and Research Branch, Islamic Azad University, Tehran, IRAN > Research Paper 2012 4 9 2012 June 2 The purpose of this paper is to analyze the effect of HRM policies on Potential of employee Productivity (PEP) in a healthcare organization as essential requirement for success. The In the first phase, in this adaptive and descriptive research, the data collection started in the wake of reviewing related literature when a series of semi-structured interviews were conducted with hospital managers to determine their perceptions about the HRM policies in an Iranian hospital. Then, casual loop diagrams, and stock and flow diagrams were identified. Model equations were determined by integral equation related to system dynamics (SD). Model validity was checked by structural test, consistency test, extreme condition test, and parameters analysis. Parameters analysis was done with historical fitness between simulated data and actual data for total employee variable behavior by coefficient of determination, mean square error (MSE), bias component of MSE, variation component of MSE, and covariance component of MSE. Vensim software was used for simulation, sensitivity and policy analysis. The PEP decrease in the simulation with a non-linear pattern. Different policies in human resource management could affect the PEP by change in hiring rate, quit rate, and change in structure of decision making. According to the results, stop of current adopted policy based on hiring contract employees from 2010 and hiring them as long term hiring had a better effect on PEP. Productivity is affected by several factors. The case study verifies and visualizes that different policy of human resources, may result in important change in PEP. It is important that researchers critically consider the nature of the concept of PEP, how it could be maximize, and how it relates to other concepts, such as organizational performance. Copyright@ International Science Community Association