Explain the configuration of islamic HRM

1. Islam and HRM
prepared for: Workshop Pekanan Ekonomika,
Bisnis dan Keuangan Syariah, UGM
20 Maret 2015
Muhammad Hamdi
source: www.sampaikini.com

2. Holy Quran: 21:107
“And We have not sent you, [O Muhammad],
except as a mercy to the worlds.”

3. Holy Quran 62:4
“Indeed, Allah loves those who fight in His
cause in a row as though they are a [single]
structure joined firmly..”

4. Holy Qur’an (4:135):
O you who have believed, be persistently standing firm in justice,
witnesses for Allah , even if it be against yourselves or parents and
relatives. Whether one is rich or poor, Allah is more worthy of both. So
follow not [personal] inclination, lest you not be just. And if you distort
[your testimony] or refuse [to give it], then indeed Allah is ever, with
what you do, Acquainted.

5. Introduction
• Until recently, the potential association between
religious beliefs, management practices and
organisational outcomes has been conspicuously
ignored in the mainstream management
research. (Pawan & Budhwar, 2010)
• Despite the fact that over 80 per cent of people
worldwide report that religion constitutes an
important part of their daily life. (Sedikides, C.,
2010)
• Much of the research in business and
management has considered organisations as a
universal and similar between organizations
(Tayeb, M., 1997)
• This is due in part to the scepticism that religion
has any significant impact on how individuals
behave at the workplace. (Pawan & Budhwar,
2010)

6. Introduction
• In addition to the scepticism about the
role of religion in the management of
organisations, scholars that have
examined management practices across
cultures, where there is greater religious
diversity, subsumed religion as part of
national cultures. (Pawan & Budhwar,
2010)
• However, in the wake of what has been
variously referred to as a religious
(re)awakening, the subject of religiosity
and religion has recently come to the
forefront of social science include
management and organisational
research. (Pawan & Budhwar, 2010)

7. Introduction
• Pawan & Budhwar, 2010 explain that recent
explosion of interest in the association
between religion and management is also
reflected in the increasing number of articles
published on the relationship between religion,
management and organisational performance
in both academic outlets and business media,
for example:
• Journal of Management, Spirituality, and
Religion
• Management, Spirituality and Religion (MSR)
• This presentation explains the configuration
understanding of the islamic HRM

8. Islam & HRM
• HRM in modern organizations is a largely Western
phenomenon that can be traced to the evolution of personnel
management function since industrial revolution begin (Fitz-
Enz, J.,1984)
• Three different modes of theorizing HRM (Delery & Doty,
1996):
universalistic perspective
contingency perspective
configurational perspective

9. Islam & HRM
• Islam is an Arabic word which literally means submission to the will of God in all
aspects of life. Islam is the religious faith of over 1.5 billion people, and is the fastest
growing religion in the world. (Lada, et al.,2009).
• Based on Pawan & Budhwar (2010) article, an explosion of interest in Islamic
management in the last two decades has focused on:
• Islamic finance and accounting (Chong and Liu, 2009; Napier, 2009),
• Islamic marketing (Haque et al., 2010; Hashim and Mizerski, 2010),
• Islamic leadership (Ahmad, 2009; Weir, 2008),
• Islamic work ethics (Ali and Al-Owaihan, 2008; Kumar and Rose, 2010),
• Gender and management in Islam (Metcalfe, 2006, 2007).
• Little research has been conducted on Islamic HRM so far (Tayeb, 1997).

10. Islam & HRM
• Pawan & Budhwar, 2010 explain, the existing body of
research on Islam and management deals with two
interconnected issues:
1. Description, among other things, of decision
making styles in Islam emphasising the principle
of consultation (Shaura), and Islamic core values
including the principles of honesty (Al-sidq), trust
(Al-Amanah), justice and fairness in dealing with
employees (Al-adl), team work and cooperation
(Al-Ta’waan), and perfection/excellence (Al-Ikhlas)
2. Discussion of the yawning gap between
normative Islamic core values and reality in the
workplace in Islamic countries (Abuznaid, 2009;
Ali, 2010).
source: khaled-etman.deviantart.com/

11. Issue in HRM (Pawan & Budhwar, 2010)
• The Islamic teaching and perspectives on HR, compatibility of treatment of HR
issues with Islamic principles and evolving organisational concepts, and dominance
of Islamic prescriptions on HR in organisations operating in Muslim majority nations.
• The Islamic management practices on HRM. Acknowledging the expected gap
between the theory of Islamic management and practice. This creates the classic
mismatch between global integration and local responsiveness.
• The empirical research.
• the association between ethical beliefs, aspects of national culture and national
institutions and preferences for specific HRM practices
• male’s attitudes towards working females in the Saudi context.
• religious discrimination against Muslim immigrant job seekers in Austria and
Germany.

12. Configuration of Islamic HRM
To indicate ideal
behavior of
individuals, groups,
and organizations
and the possible
impact they have
on the
performance
To actual behavior
of individual,
group, and
organization and
the possible
impact they have
on the
performance
To compare the
ideal and the
actual behavior of
individual, group,
and organization
and explain why
there can be a gap
between them
To prescribe
workable
strategies that
could have
bringing the actual
behavior of
individuals, groups,
and organizations
as close as posible
to the ideal
Ali, A. (2010)
Branine, M., Pollard, D. (2010)
Budhwar, P. (Ed.) (2004),
Tayeb, M. (1997),
adaptation from Susamto, 2015Delery & Doty, (1996)

13. Conclusion
• Configuration of key features of an Islamic HRM model that is substantially distinctive
from existing normative models of HRM
• Three different islamic HRM pattern:
1. Islamic teaching and perspective on HRM, compatibility of treatment of HR issues
with Islamic principles and evolving organisational concepts, and dominance of
Islamic prescriptions on HR
2. Islamic management practices on HRM. Acknowledging the expected gap
between the theory of Islamic management and practice
3. The emerging empirical research evidence, the association between ethical
beliefs, aspects of national culture and national institutions and preferences for
specific HRM
• These pattern can configure to guide researcher to achieve better undestanding in
islamic HRM to realize maslahah

14. References
• Ali, A. (2010). Islamic challenges to HR in modern organisations. Personnel Review, Vol. 39 No. 6.
• Abbas J. Ali, (2010). Islamic challenges to HR in modern organizations. Personnel Review, Vol. 39
Iss: 6 pp. 692 - 711
• Budhwar, P. (Ed.) (2004), Managing Human Resources in Asia-Pacific. Routledge, London.
• Branine, M., & Pollard, D. (2010). Human resource management with Islamic management principles:
A dialectic for a reverse diffusion in management. Personnel Review, 39(6), 712-727.
• Delery, J. E., & Doty, D. H. (1996). Modes of theorizing in strategic human resource management:
Tests of universalistic, contingency, and configurational performance predictions. Academy of
management Journal, 39(4), 802-835.
• Fitz-Enz, J. (1984). How to measure human resources management.
• Kamel Mellahi Pawan S. Budhwar, (2010). Introduction: Islam and human resource management.
Personnel Review, Vol. 39 Iss 6 pp. 685 - 691
• Lada, S., Harvey Tanakinjal, G., & Amin, H. (2009). Predicting intention to choose halal products
using theory of reasoned action. International Journal of Islamic and Middle Eastern Finance and
Management, 2(1), 66-76.
• Sedikides, C. (2010). Why does religiosity persist?. Personality and Social Psychology Review, 14(1),
3-6.
• Susamto, A., A. (2015). Islamic economic: new scope and methodological framework.