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Topic: Spirituality As An Economic Variable
At Work Life: An Application of Divine
Economics Framework.
By : Ashar Awan
Aaajku…..[@]....gmail.com
Introduction
This is study is an effort to understand
the role of spirituality in work life. Work
life covers a major portion of employed
people. It subjective evaluation is directly
related to life satisfaction or wellbeing.
Job satisfaction & Work-life
Job satisfaction can be understood as a positive
emotional state resulting from the appraisal of
one’s own work-life.
A variety of research has identified various
positive effects of job satisfaction on labor
performance. E.g better labor performance
(Sousa-Poza and Sousa-Poza, 2000), employee
turnover (Ryan, Schmitt and Johnson, 1996),
chievement orientation (Lusch and Serpkenci,
1990) and lower absenteeism (Vroom,1964).
Defining spirituality
A subjective experience of the sacred
(Vaughn, 1991)
The extent to which individuals reflect on
their faith and beliefs. (Leak et al.1999)
That which involves ultimate and
personal truths. (Wong, 1998)
The personal expression of ultimate
concern. (Emmons, 2000)
Islamic Spirituality
 This discussion on spiritualiy in Muslim
perspective can be concluded as it some thing
that can be viewed as medicine, journey and
battle.
 Journey in the sense that it emphasizes on the
faith that every human being has to reach
back to God as Quran says
 “Truly we belong to God and to Him we will
return".(2:156)
Cont.
 Battle in the sense that one has to strive against Nafs
(self)
 The Prophet Muhammad (S.A.W.W) saw a group of
his companions who had won a battle approaching.
The Holy Prophet said:
 “Well done! Welcome to those people who have
completed the minor struggle and on whom the
greater struggle is still incumbent.” The Apostle of God
was asked: “What is the greater struggle?” He replied:
“To fight one’s own self.”, Al-Kafi, Vol. 5, p. 12, no 3
Cont.
Spirituality as medicine in the sense;
In Nah al-Balaghah, sermon 388, Imam
Ali says:
“One of the catastrophes that may
happen to a person is poverty, but more
difficult than poverty is illness. And more
difficult than illness of the body is illness
of the heart (soul).”
Spirituality as an Economic Variable
 Spiritual Poverty, Spiritual Health [Envy, Prejudice, Anger, Self
Admiration] (Al-Iqtisaad, 2003)
 Spiritual Wellbeing (Stroudenmire et. Al 1986), Spiritual oneness
Kim et. Al 1987, spiritual wholeness Ellison 1983, Moberg 1984)
 Spiritual Intelligence (Emmons 2000)
 Spiritual Goods [Demand and Supply] (Miller and Ewest, 2013)
 Spiritual Markets (profits, marketing, monopoly)
 Human Development through Spiritual Development (Chandler &
Holder 1992)
 Spirituality as an economic commodity (Hevia, 2004).
 Spirituality as substitute to other commodities e.g Religiosity
(Hamdan 2000)
 Spirituality as public good (Bouchaert, 2007).
Spirituality at worklife
 Workplace Spirituality 1. Meaning in work, product,
services, responsibility to community, faith/spiritual
orientation and workplace. 2. Trust, honesty, fairness,
loyality.
 Economic implications, workers wellbeing,
performance, job satisfaction, turnover intentions, gift
exchange, effort level.
Job Satisfaction (JS) and Labor
Economics
 JS and Quits (turnover) . Shields & Price (2000), Clark
(2001), (Helliwell & Huang, 2008).
 The comparison income: Clark (1996) and Clark &
Oswald (1996
 Unions have a negative effect on job satisfaction
 Relative income has an effect on job satisfaction
 Job satisfaction has an effect on quits
 Job satisfaction has positive effect on workers
productivity (Freeman 2000)
Objectives
To empirically test the impact of
spirituality on job satisfaction.
To test Divine Economic Framework for
quantifying spirituality.
Theoratical Model

Data & Methodology
Logit Model
Helliwell & Haung 2008
Data (Secondary from DES 2013)
Model
 Sat=f(income, occupation, level, status, education,
working hour,Age,experience in current job, Sector,
Spirituality)
 Expected signs of theory
 Income(More Salary than previous year) +
 Agriculture, -
 Level +
 Status (self employed+)
 Age (non linear U shaped)
 Education (significant +)
 Sector (private +)
Results
Variables Model 1 Model 2
Spirituality 0.535
(0.00)**
Tenure 0.001
(0.02)**
.050
(0.00)***
Income .382
(0.00)***
0.43
(.09)*
Gender -0.702
(0.072)*
-0.626
(0.10)*
Age 0.170
(0.01)**
0.099
(0.04)**
Age Sq -0.002
(0.02)**
-0.03**
(0.04)
Sector (public=1) 0.1971
(0.06)*
0.179
(0.09)**
Education -0.147
(0.09)*
-0.205
(0.21)
Health 0.434
(0.00)***
0.441
(0.00)***
Marital Status 0.20
(0.63)
0.218
(0.65)
Pseduo R2 0.1907 20.0
Recommendations
Firms should allow and encourage labor
to practice spirituality.
Limitations of study
Firms should encourage spiritual
practices at workplace.

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Spirituality economics

  • 1. Topic: Spirituality As An Economic Variable At Work Life: An Application of Divine Economics Framework. By : Ashar Awan Aaajku…..[@]....gmail.com
  • 2. Introduction This is study is an effort to understand the role of spirituality in work life. Work life covers a major portion of employed people. It subjective evaluation is directly related to life satisfaction or wellbeing.
  • 3. Job satisfaction & Work-life Job satisfaction can be understood as a positive emotional state resulting from the appraisal of one’s own work-life. A variety of research has identified various positive effects of job satisfaction on labor performance. E.g better labor performance (Sousa-Poza and Sousa-Poza, 2000), employee turnover (Ryan, Schmitt and Johnson, 1996), chievement orientation (Lusch and Serpkenci, 1990) and lower absenteeism (Vroom,1964).
  • 4. Defining spirituality A subjective experience of the sacred (Vaughn, 1991) The extent to which individuals reflect on their faith and beliefs. (Leak et al.1999) That which involves ultimate and personal truths. (Wong, 1998) The personal expression of ultimate concern. (Emmons, 2000)
  • 5. Islamic Spirituality  This discussion on spiritualiy in Muslim perspective can be concluded as it some thing that can be viewed as medicine, journey and battle.  Journey in the sense that it emphasizes on the faith that every human being has to reach back to God as Quran says  “Truly we belong to God and to Him we will return".(2:156)
  • 6. Cont.  Battle in the sense that one has to strive against Nafs (self)  The Prophet Muhammad (S.A.W.W) saw a group of his companions who had won a battle approaching. The Holy Prophet said:  “Well done! Welcome to those people who have completed the minor struggle and on whom the greater struggle is still incumbent.” The Apostle of God was asked: “What is the greater struggle?” He replied: “To fight one’s own self.”, Al-Kafi, Vol. 5, p. 12, no 3
  • 7. Cont. Spirituality as medicine in the sense; In Nah al-Balaghah, sermon 388, Imam Ali says: “One of the catastrophes that may happen to a person is poverty, but more difficult than poverty is illness. And more difficult than illness of the body is illness of the heart (soul).”
  • 8. Spirituality as an Economic Variable  Spiritual Poverty, Spiritual Health [Envy, Prejudice, Anger, Self Admiration] (Al-Iqtisaad, 2003)  Spiritual Wellbeing (Stroudenmire et. Al 1986), Spiritual oneness Kim et. Al 1987, spiritual wholeness Ellison 1983, Moberg 1984)  Spiritual Intelligence (Emmons 2000)  Spiritual Goods [Demand and Supply] (Miller and Ewest, 2013)  Spiritual Markets (profits, marketing, monopoly)  Human Development through Spiritual Development (Chandler & Holder 1992)  Spirituality as an economic commodity (Hevia, 2004).  Spirituality as substitute to other commodities e.g Religiosity (Hamdan 2000)  Spirituality as public good (Bouchaert, 2007).
  • 9. Spirituality at worklife  Workplace Spirituality 1. Meaning in work, product, services, responsibility to community, faith/spiritual orientation and workplace. 2. Trust, honesty, fairness, loyality.  Economic implications, workers wellbeing, performance, job satisfaction, turnover intentions, gift exchange, effort level.
  • 10. Job Satisfaction (JS) and Labor Economics  JS and Quits (turnover) . Shields & Price (2000), Clark (2001), (Helliwell & Huang, 2008).  The comparison income: Clark (1996) and Clark & Oswald (1996  Unions have a negative effect on job satisfaction  Relative income has an effect on job satisfaction  Job satisfaction has an effect on quits  Job satisfaction has positive effect on workers productivity (Freeman 2000)
  • 11. Objectives To empirically test the impact of spirituality on job satisfaction. To test Divine Economic Framework for quantifying spirituality.
  • 13. Data & Methodology Logit Model Helliwell & Haung 2008 Data (Secondary from DES 2013)
  • 14. Model  Sat=f(income, occupation, level, status, education, working hour,Age,experience in current job, Sector, Spirituality)  Expected signs of theory  Income(More Salary than previous year) +  Agriculture, -  Level +  Status (self employed+)  Age (non linear U shaped)  Education (significant +)  Sector (private +)
  • 15. Results Variables Model 1 Model 2 Spirituality 0.535 (0.00)** Tenure 0.001 (0.02)** .050 (0.00)*** Income .382 (0.00)*** 0.43 (.09)* Gender -0.702 (0.072)* -0.626 (0.10)* Age 0.170 (0.01)** 0.099 (0.04)** Age Sq -0.002 (0.02)** -0.03** (0.04) Sector (public=1) 0.1971 (0.06)* 0.179 (0.09)** Education -0.147 (0.09)* -0.205 (0.21) Health 0.434 (0.00)*** 0.441 (0.00)*** Marital Status 0.20 (0.63) 0.218 (0.65) Pseduo R2 0.1907 20.0
  • 16. Recommendations Firms should allow and encourage labor to practice spirituality.
  • 17. Limitations of study Firms should encourage spiritual practices at workplace.