As one of Iran's key industrial sectors, the rubber manufacturing industry holds considerable potential for contributing to national economic development. Within this context, optimizing human resource productivity is essential for supporting both the sustainable growth and strategic goals of manufacturing enterprises. This study explores the dynamic factors affecting human resource productivity at the Atavil Tire Factory located in Ardabil Province, employing a system dynamics methodology to capture the complex interrelationships among key variables. To achieve this, simulation modeling was conducted using Vensim software, enabling the researchers to evaluate how various organizational factors interact over time. The simulation outcomes reveal a multifaceted relationship between job performance and productivity. While improvements in job performance are found to positively impact overall productivity levels, they concurrently result in heightened job-related stress among employees. This increase in stress, if not properly managed, can become a limiting factor, offsetting the gains achieved through performance enhancements. Consequently, the study underscores the importance of balancing performance improvement initiatives with effective stress management strategies. Addressing this trade-off is critical for fostering a healthy and productive workforce, particularly in high-pressure industrial settings. The findings offer valuable insights for factory managers and policymakers seeking to promote sustainable productivity growth within Iran’s rubber manufacturing sector.