Islam and HRM prepared for: Workshop Pekanan Ekonomika,

Bisnis dan Keuangan Syariah, UGM 20 Maret 2015

Muhammad Hamdi

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Holy Quran: 21:107

“And We have not sent you, [O Muhammad], except as a mercy to the worlds.”

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..”

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.

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)

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)

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

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

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).

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).

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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.

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)

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

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.