islamic work ethics of ‘hr management’ applied to
TRANSCRIPT
University of Haripur Journal of Management (UOHJM)
Published by University of Haripur. Spring 2017 UOHJM available at www.uoh.edu.pk/uohjm Volume 2 Issue 1
ISSN: 2415-5098 Khan (2017) 145
‘Islamic Work Ethics’ of ‘HR Management’ Applied to ‘Business
Organizations’ (A Literature Review)
Dr Muhammad Tariq Khan
Assistant Professor, Department of Management Sciences University of Haripur
Abstract
Knowledge is favored and emphasize in western philosophies, but ethics is the basis of Islamic
philosophy. Therefore ethical considerations that is collection of moral codes distinguishing
wrong from right are based on Qur’an and Hadith relying on faith covers in certain acts
religious morality as well as covers facets of moral, spiritual as well as physical life in worldly
form like intellectual, emotional, collective and individual, realistically considering the human
capabilities. This study which is dedicated to trace, highlight and discuss the influence of Islamic
principles on HRM from the perspective of employees, employers and from customers.
Keywords: Human resource Management, Work ethics, Job satisfaction, Islamic
1.1 Work from Islamic View Point
Jawad (2008) reported that from Islamic perspective work is not a discretional matter
could be dispensed by optional of individual but an imperative necessity. For all those
individuals having physical or mental capacity to perform; laborious works are a duty like
spiritual fulfillment. As mentioned in holy Quran “And say: ‘Work (righteousness): soon Allah
will observe your work, and his Messenger and believers.” (Al-Quran 9:105). However,
employees are commanded to perform duties to the best of their abilities in a professional
manner, in order to consider the work as a religious observance. Searching in lawful manner
means of living are deemed a religious observation; and according to saying of holy Prophet
(PBUH) “Allah loves those believers who labor to earn living through lawful means” (Quoted
from Al-Tabarani). Holy Prophet Hazrat Muhammad also declared as a mujahid the employee,
who takes and gives what is right, until comes back to his home (Quoted from Al-Tabarani).
Salahudin et al., (2016) asserted that Islamic Work Ethics (IWE hereafter) is a realistic
comprehensive, and moderate and quoted four issues from literature that the holy Prophet
(PBUH) had stressed work as: 1 – highest type worship, 2 – if not performed with highest ability
is a not sanction, 3 – must also be in others’ benefit like peace of social dimension, 4 –
community should also get reasonable living standards and wealth from carrying on business.
IWE is moderate which means moderate work thinking in work ethics, in comparison of ultra-
idealists deeming human beings, like angels and ultra-realist viewing human beings as animals.
1.2 Islamic Work Ethics
Western philosophies emphasize the knowledge, but ethics is the basis of Islamic
philosophy. Especially, Islam stresses to take intuitive perception of divine role in existence of
human beings. Therefore in principles, in Islamic Society ethical considerations have precedence
University of Haripur Journal of Management (UOHJM)
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ISSN: 2415-5098 Khan (2017) 146
over productivity considerations (Jawad, 2008). IWE is, a code of moral principles which
distinguishes right from wrong (Rokhman, 2010); Najjaria & Davoudi, n.d; Rokhman & Hassan,
n.d) a concept having foundations in principles and teaching of Islam relying on faith covers in
certain acts religious morality as well as covers facets of moral, spiritual as well as physical life
in worldly form like intellectual, emotional, collective and individual, realistically considering
the human capabilities (Salahudin et al., 2016). Originally based on Qur’an, as Quran is the holy
book guiding Muslims in all periods of their life, IWE emphasizes consultation as a way of
avoiding mistakes and coping with the obstacles; and regard cooperation in work (Najjaria &
Davoudi, n.d).
Rokhman & Hassan (n.d.) expressed that the ethics is based basically on holy Quran
which guides the Muslims in their every life spheres. IWE stresses on creative work which is a
source of happiness when accomplished and hard work is deemed as virtue. The IWE stresses
cooperation during work; and considers consultation as a source of overcoming hurdles and to
avoid errors and mistakes.
Rokhman (2010) stressed in business ethics the importance of role of Islamic ethics and
heritage. IWE, acts like a virtue in human’s life as an orientation towards work approaches. IWE
basically founded in holy Qur’an, sayings of Holy Prophet (PBUH- who expressed that laborious
work makes sins absolved) and also legacy of four pious Muslim caliphs.
Razimi et al., (2014) expressed that in shaping and making culture and society religion
does play an important role, and Islam as a religion also provides a unique perspective in
balancing office work and home life and other organizational activities. Islam and HR share a
deep relationship because in HR practices, people are centre of attention as HRM cares for all
dimensions of workers’ selection & management in the organizations. Likewise topic of Holy
Qur’an is Human, from the perspective of guidance of people and their routine life affairs. To
promote commitment is one aim of HRM which is a strength of an employee’s identification and
involvement with an organization whereas Islam also stresses Muslims to perform extremely best
while working and giving the best required with strong commitment.
Ashtankar (2015) expressed that for work ethics, the principles of management given in
Qur’an and words of Hadith of Prophet Hazrat Muhammad (PBUH) are guidance sources. Holy
Qur’an clearly highlights the importance of justice, fairness & honesty in the relations of
employers and employees and also encourages with emphasis the skills learning and efforts for
good work for benefits of society. Islam stresses on organizations for doing business for selling
goods or rendering services to clients and, prohibits unethical things like fraud, deceiving, and
gambling.
1.3 Islamic Management Principles
Ab. Rahman et al., (2013) extracted from several studies and expressed that values of
Islam are a collection of beliefs, a social theme of all dimensions of our existence, spiritual and
intellectual, moral and physical, individual & collective life of human beings. Islamic values are
also significant with human requirement of prosperity & happiness in total life matters as well as
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current ethical problems of commercial world, organizations should be built aspiring Islamic
perspective of HRM.
Razimi et al., (2014) asserted that Islamic principles and teachings can play a leading role
for establishment of needed commitment level because Islam and HRM both focus on change in
behavior of people.
Ashtankar (2015) while discussing Islamic ethics narrated that Islam has unique
management principles that can lead and shape spiritual and moral behaviors. Besides this they
also have political and socioeconomic effects on individuals’ mutual relations. Management
approach of Islamic ethics is based on ethical dimensions, which is not stimulated by temporal
objectives. Employers and employees are trustees of Almighty Allah on the earth and their
relationship is entirely based on religion wherein for their deeds, both are responsible before
Mighty Allah.
Khan (2016) is of the view that Islam integrates material & spiritual progress and also
integrates individual & collective growth and well being and does not allow the development of
any aspect of human being unduly or at others’ cost. Islam sums up its laws of (Ad’l) justice and
morality of spirit (Ihsaan & Taqwa). In national context Islamic principles of HRM can prove to
be useful in dealing with problems of misuse of authority in national institutions and in-
efficiency. So application of Islamic principles may help considerably in overcoming problems
of leadership, training, knowledge, necessary professional skills, & attitude needed for
productive careers and useful role in society. In international context Islamic principles of HRM
can also help to tackle the challenges arising from increasing Muslim population across the globe
in the realm of cultural gaps, diversity and leadership issues and managing effectively the
increasing number of Muslim employees in the multinational and multicultural organizations.
Basis of practices of Islamic HRM is values of ethics, motivation & trust. Islamic training
encompasses all aspects of human resources including physical, spiritual, intellectual, social, and
psychological and can help in tackling the challenges of collective and individual nature and
enhancing mutual cooperation & trust, harmony, motivation, peace, commitment and
development of human resources and reducing conflicts.
1.4 Islamic Approach to HRM in the Organizations
Alkahtani, (2014) mentioned that HRM is concerned with utilization and management of
human resource for achieving objectives of organization. HRM deals with four fundamental
functions, which are acquiring employees, developing them, motivating them, & maintaining
human resource. Acquisition is starting point of HRM, dealing with planning, recruitment &
selection and socializing workers for organization to ensure availability of exact & capable
number of workers at proper time and place. Development of employees is second component of
HRM, deals to improve the performance of employees by disseminating knowledge, improving
their skills, altering their attitude, to enhance organizational performance. Motivation is the third
part of HRM which has indispensability to get improved performance of employees. Motivation
function encapsulates specification of jobs, evaluation of performance, giving rewards and
inflicting punishments, performance of work, management of compensation and maintaining
discipline. Maintenance is the fourth component of HRM concerning with process of retaining
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employees, who add value to organizations by performing well. HRM also requires organizations
to perform additional functions by providing extra facilities, better and sound working
conditions, friendly environment of work, & peaceful and harmonious labor relations. All these
functions facilitate the organizations, to retain, workers having competency and capability which
are satisfied with their jobs and more committed to organization.
Ab. Rahman et al., (2013) asserted that Islamic HRM targets the understanding of
workers’ needs and hopes more properly and mentioned that Islamic HRM views employees not
just as servant but a precious asset and should be viewed like a powerful workforce asset. Islamic
HRM stresses on developing employees’ abilities, job knowledge, individual skills, and attitudes,
to contribute for achievement of organizational goals. In the organizations, Islamic HRM
practices and trust are the vital factors attributed with high performance, job satisfaction, & less
turnover in workplace. Trust in the organizations’ work place is actually better as workers’
mutually exchange behavior and when its level is less, individuals become less creative, and
exert small efforts towards organizational objectives and less forthcoming with ideas whereas
without trust management thinks workers need more tighter control and strict supervision. It
looks that Islamic HRM exerts influence on employees’ trust development in the organizations
by exercising Islamic guidelines.
Alarimy (2015) narrated that Islamic HRM, which is derived from Islamic principles
guided by Quran and Sunnah and is Allah Almighty’s gift for human beings enabling them to
their society happily. The importance of HRM in the organizations is explained as coming
together is beginning, staying together is progress, and working together is success, and for any
organization to register success effective HRM is critical to ensure quality of employees.
Hashim (2008) expressed that many HRM issues are based on religions and all religions
prefer justice in treating workers. Islam emphasizes Muslims to practice and promote justice in
all facets of their lives. Razimi et al., (2014) expressed that as regards management issues from
Islamic perspective, much emphasis is given on behavioral aspects of organizations with focus
on operational areas of management such as quality management, performance appraisal of
employees and marketing and selling.
Khan (2016) revealed that Islam integrates material and spiritual progress, individual and
collective growth and well being. No aspect of human being to be developed unduly and at
others’ cost. Islam comprehends its laws of justice and spiritual morality. Bases of Islamic HRM
practices are trust, ethical values, motivation, & deem workers more than just resources.
Application of Islamic HRM principles can considerably help in tackling crisis in leadership,
training, knowledge and attitude, and essential professional skills required for productive careers
in the organization and useful role in the society. These principles and practices are also helpful
to tackle the challenges arising due to increasing Muslim population leading to the cultural gaps,
diversity and leadership issues, and managing effectively the increasing number of Muslim
employees in multi-cultural and multi-national organizations. By observing Islamic principles
workplace trust & mutual cooperation and harmony, can be increased, leading to commitment,
motivation, & human resource development & also reduce conflicts.
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Ab. Rahman et al., (2013) asserted that Islamic HRM admits workers as valuable assets
instead of mere servants and considers a source of dynamic powerful workforce asset. Practices
of Islamic HRM emphasize to develop employee’s individual job knowledge, skills, abilities,
and attitudes for a contribution for accomplishment of organizational objectives. Islamic HRM
practices and trust in the organizations are necessary factors attributed to job satisfaction, better
performance, with low workplace turnover.
Alkahtani (2014) expressed quoting some studies that from Islamic point of view
management is “the process of planning, organizing, leading and controlling the efforts of
organizational members, and by using all other organizational resources, depending upon the
guidelines of Allah (SWT) and his Prophet (PBUH) with accountable mentality, integrity and
skills to achieve the predetermined objective”. Islamic management provides the guidance to
manage the organization efficiently and effectively. Islamic Management helps all managers
such as Managing Directors, Chief Executive officers, Senior Managers, General managers and
Managers for setting organizational objective properly, company’s vision & mission, codes of
conduct, values and ethics, methods of making decision, employees’ recruitment, their training &
development & developing those strategies in business management that fulfill all the business
needs.
Kamaluddin and Kasim (2013) expressed that Law of Shariah in Islam becomes guidance
for all the activities occurring in daily Muslims’ life. As an approach Islamic HRM is performing
basic functions such as 1 - recruitment, 2 - selection, 3 - training, 4 - appraising performance, 5 -
compensating according to guidelines revealed in holy Quran & Hadith. Besides this other values
such as good conduct, trustworthiness, sincerity, responsibility, co-operation, discipline,
dedication, gratitude, cleanliness, diligence, & moderation are considered as guiding principles
for HRM. Kamaluddin and Kasim (2013) also asserted that Islamic HRM, being supported by
Islamic norms and values providing the community fairness and justice and if followed strictly
by organizations will contribute to firm competitiveness and performances. Kamaluddin &
Kasim (2013) mentioned four policy areas in HRM, which are: the employee selection and
development, reward system, employee influence mechanism, job design and work organization.
Ab. Rahman et al., (2013) quoted HRM as planned process of development and
integrated strategy for proper utilization of workers’ ability & efforts to achieve organizational
objectives & outcomes. Many HRM affairs in organizations are rooted in religion particularly,
principles of Shariah.
1.5 Islamic HRM Practices
Ab. Rahman et al., (2013) expressed that Islamic law which is to be practiced fully and
not partially (Bukhari & Muslim Sharif) is impartial, fair and based on justice in all human
activities, beyond discrimination, without considering position or status or relationships among
parties’. The prime need of management is to acquire reasonable knowledge, awareness &
understanding of principles of Islam, and with knowledge of Islamic laws, management should
establish whole of HR system and HR practices in the organization. Islamic management stresses
on well beings of human, justice and fairness in management of resource and if management is
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concerned with justice in the organization & harmonic employee relationship then it cannot
forget potential contribution and importance of Islamic HRM practices. Islamic HRM practices
encompass knowledge, training, & exercising principles, during recruitment & selection, training
and development, appraising performance, & reward system.
Alarimy (2015) asserted that the Islamic HRM is derived from Islamic principles which
are guided by two sources i.e. Quran and Sunnah. In the opinion of Alarimy (2015) generally, the
Islamic approach to HRM is routed through three aspects; (1) Taqwa i.e. piety, uprightness,
devotion, fear of Allah Almighty. (2) Itqan i.e. the person makes things of desired quality and in
right order. (3) Akhlak which refers to attitude, feelings, disposition among others which
employees possess. Akhlak are morals which need to be portrayed in HRM, and HR managers
ought to have good morals from which employees could copy.
Alarimy (2015) also discussed equality by narrating that as a HRM principle all people
should have equal treatment if they are in the same level as last Prophet of Allah Almighty stated
(in last sermon on farewell Pilgrimage): "All mankind is from Adam and Eve, an Arab has no
superiority over a non-Arab nor a non-Arab has any superiority over an Arab; also a white has
no superiority over black nor does a black have any superiority over white except by piety and
good action". So there should not be any practice of discrimination among employees. And Allah
Almighty commands in holy Qur’an that: O mankind! We created you from a single (pair) of
male and female, and made you into nations and tribes, that you may know each other (not that
you despise each other). And regarding accountability he quoted that second caliph, Umar Ibn
Al-Khitab may Allah be pleased with him stated that: “evaluate yourselves before you are
evaluated and be estimated before others estimate you. It is slighter for you evaluating
yourselves today (life) than tomorrow (Hereafter).
2.0 Employees’ Side Perceptions of IWE
This section will discuss with ethics with reference to organizational commitment, job
satisfaction and turnover intention. From employees side dimensions of Islamic work ethics are as
follow:
Rokhman (2010) asserted squeezing many researches that the work ethics instead of
being calculative involvement is more related to moral commitment. Organizational justice
theory explains the relationship between organizational commitment, job satisfaction and turn
over intention with reference to work ethics. Organizational justice theory revealed that the
perception of workers about justice casts effects on their attitudes about job. Workers who feel
that their organizations is ethical are likely to consider the organization fair to them, are likely to
increase their organizational commitment & job satisfaction, and reduce their turnover intention.
Many studies found existence of an inseparable positive association between job satisfaction and
positive ethical climate.
2.1 Work Ethics and Job Satisfaction
Rokhman (2010) expressed with several references that job satisfaction is sum of feelings
of individuals for their job, which means employees having much job satisfaction would be
positive feelings for their job. Satisfaction of job is also workers’ measurement of total quality of
their job. These measurements guess may consist of an effective orientation towards their job
and an attitude they hold for their job. Rokhman (2010) also expressed with several references
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that work ethics have close relation with job satisfaction so understanding this relationship is
necessary for determining the methods in intervention strategies for mitigating those factors
which cause the reduction of satisfaction for the work conditions.
Siswanto (2014) is of the opinion that job satisfaction is caused by employees’ feelings of
how well their job gives them the necessary thing through their work. Job satisfaction shows
employees’ feeling towards their work, which is depicted from their positive attitude for work
and all other things encountered in their work atmosphere. Job satisfaction is also last destination
for work or organizations’ policies designed in a way that employees may have maximum
satisfaction for their wants. All the organizations should view job satisfaction because it affects
grievance level, absenteeism, morale and workers’ turnover.
2.2 Work Ethics and Organizational Commitment Rokhman (2010) extracting from some researches pointed out that the organizational
commitment is a psychological state attaching employees to their organizations, thereby
decreasing the incidence of turnover. Research has shown relationship of work ethics and
organizational commitment. Values of work show high correlation to moral commitment as
compared to calculative involvement to an organization. Intrinsic work values are more strongly
related to organizational commitment as compared to extrinsic work values. Salahudin et al.,
(2016) also asserted that organizational commitment is linked with workers’ behavior &
attachment for organization.
2.3 Work Ethics and Turnover Intention
Rokhman (2010) expressed that turnover intention is a decision of mind intervening an
individuals’ attitude about job which means and stay or leave the organization. Turnover
intention comprises three elements in withdrawal mental process: 1) – the thinking for quitting 2)
– intention of searching other job anywhere else. 3) – the intention to leave. Rokhman (2010)
also quoted many studies revealing negative relationship between turnover intention and work
ethics. Three factors affect turnover or intention to turnover: rate of pay, age and amount of
experience, so new young employees are least attached to a particular organization particularly in
their twenties or first few years, whereas older employees have tendency to anchor in the certain
job due to the place and affiliation with society.
2.4 Rights and Obligations of Employees
According to Ahmed et al., (n.d) (HRM) is important for setting Islamic ways for
managing workers and also a basic function for making and assisting workers for achieving
organizational objectives more efficiently and effectively. Islam stresses upon workers’ duties
and obligations. Islam urges everybody on working for livelihood on the one hand and stands for
the rights of laborers on the other hand; and also reminds the workers their obligations and
duties; and guarantees the norms abiding employees’ rights. Workers’ rights are employers’
duties and workers’ duties are workers’ rights. Holy Prophet (PBUH) stressed the equality; as
per Hadith Abu Zar Ghaffari quoted: “Allah’s Messenger (PBUH) said they are your brothers.
Allah has placed them under your control as a trial. So it is incumbent upon the one whose
brother works under his authority to feed from his own food, dress him from his own dress. He
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should not assign him hazardous works that overwhelm him (the worker). If such work has been
given to him, he (employer) should help him.” Holy Prophet also commanded: “Let a laborer get
his wages before his sweat dries.” Holy prophet (PBUH) warned regarding those not paying the
wages on proper time, Mighty Allah will argue on reckoning day on behalf of those who are
affected.
3.0 Employers’ Side Perceptions of IWE
3.1 Employment Contracts and Agreements
Jawad (2008) stated that Holy Qur’an emphasizes Muslims to abide by agreements &
contracts. This principle is applicable to individual & collective agreements between employees
& employers. “O you who have attained to faith! Be true to your covenants!”(Holy Qur’an 5:1).
Khan (2016) expressed that in modern commercial relationships one of the important
established practice for achievement of organizational goal is the; necessity of an employment
contract between employers & workers at the commencement of employment. Islamic principles
also provide for contract which is very clearly comprising every necessary modern
employment’s elements e.g. job specification and description in precise terms, timings (working
hours), workplace, with pay holidays and leaves, pay and allowances, employment tenure, and
contracting parties’ right of finishing the employment contract etc. if these employment aspects
are absent or not precisely & clearly stated in the contract, it may cause the intractable dispute
among employer and the workers causing unavoidable harm to both. In Islamic principles,
ambiguous agreements or agreements with deficiency of these terms are invalid, ab-initio void,
and deserve termination.
3.2 Writing of Contracts
Jawad (2008) quotes the verse of Holy Quran that ‘when ye deal with others, in affairs
about future obligations in a fixed time period, bring them in writing…may be big or small; it is
juster in the sight of Allah Almighty, being a suitable evidence & convenient to avoid doubts
between yourselves’ (Holy Quran 2:282). Holy Quran ordains Muslims for being kind to each
other, a command equally applicable on employers and their workers. “God loveth those who are
kind” (Al-Qur’an, 5:13). Supervisors are bound morally not to mistreat employees working
under them in the hierarchy. The Holy Prophet Hazrat Muhammad (PBUH) said: “One who
mistreats those under him will not enter paradise” (Tirmizi). Therefore in Islamic perspective
employers & employees’ ethical behavior is a cornerstone of industrial relations.
4.0 Wages, Compensation and Rewards Practices
4.1 Wages
Jawad (2008 is of the view that as per Islamic principles wages should be determined,
before work and must be paid immediately at work accomplishment. Holy Prophet (PBUH) said:
“Give the laborer his wages before his sweet dries” (quoted in Ibn Majah). Holy Prophet (PBUH)
also said: that Allah Almighty commands, that ‘There are three persons to whom I (Allah) shall
be opponent on the judgment day: [one is] who hires a worker, uses his services and does not pay
him wages (Bukhari).
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Jawad (2008) quoted (from Bukhari) that according to Anas who served Hazrat
Muhammad (PBUH) for long time “the Prophet never paid a low wage to any person”.
Al-Khasawneh et al., (2015) expressed that Almighty Allah has exhorted in many verses
of Holy Qur’an the need of giving equal wages and not to be unfair, worker and the employees
be paid fair wages according to performance & quantity of work they carried out (Al- Qur’an
‘Al-Imran’ 3:57). Holy Prophet Hazrat Muhammad (PBUH) said that Allah Almighty said “three
I opponent their on the day of judgment: a man gave me then betrayed, a man sold a free man
and ate its price, and man who hired employee, interpolated him and did not give him a wage
(Bukhari, 114:488).”
4.2 Compensation
Jawad (2008 asserted that Islam commands to Muslims to pay the workers reasonable
financial compensation, sufficient to provide the minimum level of basic life necessities.
Siswanto (2014) argued that compensation purpose, of direct or indirect, is
acknowledging workers’ performance value and to know the ways to motivate workers to work
efficiently in changing business environment. During early period in Muslims’ countries,
compensation was according to five principles. 1 - Job is a contract and its performance is an
obligation for both employer and employee as Holy Quran commanded the Muslims to fulfill the
agreement, as well as refrain to avoid all attempt to evade any agreement (Al-Quran 7:85), “Do
not withhold from people the things that have matured.” 2 - Islam stresses that employees be
paid fair & adequate wages for work, considering the quantity & quality of work, workers’
requirements & needs and overall economic conditions. Compensation and wages be enough to
afford a decent life. Holy Quran acknowledges the various gradations among workers on work
quantity & quality basis (Al-Quran 45:19). Holy Qur’an also directs to determine wages by
mutual agreement & consultation (Holy Qur’an 28: 26-28). Some employees are with special
skills, whereas some perform the work manually, which gives evidence that all employees’
wages cannot be the equal in all cases. Holy Qur’an says “And for all stratified according to their
deeds” (46:19). 3 - Compensation is to be fixed in advance and wages must be given
immediately after completion of work. Holy Prophet (PBUH) said: “Whoever believes in Allah
should not employ an employee, without knowing what he would get as wage sufficient to afford
his basic necessities. 4 - Compensation can be both monetary and non-monetary. 5 -
Compensation and wage are based on previous deal and should be enhanced as per
circumstances. Allocation of everything beyond the terms of wages is prohibited being an act of
dishonesty or stealing. In case of too low wages employee would not be motivated enough to
exert efforts. Islam strictly forbids coercion & forced labor, like Holy Prophet (PBUH) said that
“The Lord told me that I would act as a plaintiff, in the judgment against those who engage
workers on the job and takes full work from him, but did not give him full wages.”
4.3 Reward Practice
Ilhaamie (2015) revealed that practice of reward is an important part of HRM. Islam
emphasizes on giving rewards to workers according to their knowledge, qualification,
capabilities, experiences, and their work amount. Rewards must be paid just after the work is
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completed (Saheh Ibn Majah) as delaying the payment of employees is considered act of cruelty
and not allowed in Islam (Al-Mutaffifin). No discrimination in payment of workers’ rewards on
basis of gender of the workers (Al-Quran, ‘Surah al-Nisa’: 32). All workers should be paid
bonuses, allowances, payment for overtime, leave & medical treatment, salary increments
beyond any discrimination or prejudice and all such terms of monetary & non-monetary benefits
must be mentioned in offer letter so that workers may consider them or negotiate if they are not
satisfied before accepting offer of appointment, because in Islamic reward practice musyawarah
is also the principle (Holy Qur’an, ‘Surah al-Imran’: 159).
5. Islamic Work Ethic and Organizational Justice
Siswanto (2014) quoted from researches that concept of organizational justice is very old
in administration literature. Justice is the employees’ perception of fairness, encompassing the
perception about decision making, outcomes distribution and perceived justice on the results. In
the organizations there are three approaches of justice; first is distributive justice, highlighting
how resources are distributed in the organizations, second is procedural justice, highlighting the
process used to make resources allocation decisions, and third is interactional justice, which is
highlighting interpersonal communication with relation to procedures in the organization. In
hiring priority should be on individual’s qualification and management must develop proper
procedure to deal with employees’ complaints and for evaluation the main criteria should be
performance and management should be refrain from favoritism & nepotism.
Rokhman & Hassan (n.d.) revealed quoting from literature that theory of organizational
justice gives a useful framework towards understanding individuals’ attitude towards work, work
behavior & job. In the context of organization, justice is the perception of fairness towards
organizational practices consisting of selections, rewards, pay, promotion & allocation of other
resources. Employees’ organizational justice perception is a sufficient factor which influences
different work outcomes like; job satisfaction, organizational citizenship behavior, organizational
commitment, intention to leave & turnover intention. Equity theory points out that those
employees will mould their behavior for producing what they perceive about burden at work &
equitable balance of benefits.
Rokhman & Hassan (n.d.) also mentioned three sub-domains of organizational justice:
i.e. distributive justiceand procedural justice, and interactional justice. In Islam justice is
attributed to placing anything at its right place. In an Islamic context, there are three important
dimensions of justice, consisting: (1) to place an employee at a post or job according to his
capabilities, (2) to make decision according to person or situation receiving it, (3) keeping the
property or wealth to persons rightly deserving. Justice is a dynamic virtue and all Muslim must
struggle for developing it, may they be leaders or followers. Muslim leaders having Islamic
ethics would deal the matters with the attributes in the organization.
Alarimy (2015) stated that by looking the importance of organizational justice, scholars
& professional managers concerning the presence of organizational justice recognize HRM’s
potential contribution in exercising organizational justice. Qur’an in Islamic perspective usually
reminds, honesty & justice in business, and stresses on fair & equitable wealth distribution in the
society. Islamic management very much emphasizes upon principles of justice. As mentioned in
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the Holy Qur’an “God both commands you to render back your trust to those to whom they are
due; and when ye judge between man and man, that ye judge with justice; verily how excellent is
the teaching is the teaching which He giveth you! For God is He who hearth and seeth all
things.” Issue of justice is stretched in all HRM activities, e.g. in recruitment & selection of the
employees. The Quranic standard of job eligibility is the competence & required merit. Islam
emphasizes the significance of competence & honesty because in the absence of these
prerequisites no one is efficient.
Alarimy (2015) narrated that Justice (Adl) being just is a quality a human resource
manager should develop in order to manage his subordinate effectively and efficiently. Managers
should treat their subordinates with courtesy and respect and never ignore their views and
suggestions or look down to them. Allah Almighty said in holy Qur’an that: “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 ever, with what you do Acquainted” (Surah 4: Aayat 135).
As a part of justice in Islam Allah commands that there should be respect of agreements between
parties (employer and employees) which, clarifies true justice.
Siswanto (2014) squeezing the literature found a close relationship of Islamic work ethics
to job satisfaction, organizational commitment, and loyalty. Siswanto (2014) quoted that
organizational justice is an important issue and a common problem related to human resource
and expressed an important relationship to organizational commitment, job satisfaction, &
turnover of employees. Siswanto (2014) further asserted that generally distributive justice &
procedural justice are related to employee compensation.
Khan (2016) asserted that for a peaceful society justice is a prerequisite, and a necessary,
content for social & organizational development. organizational justice and perception of
workers for fair & transparent treatment in the organizations are highly important for solidarity,
motivation, unity, and workers’ loyalty in the organizations and related positively to workers’
efficiency, performance, & effectiveness in the organization & casts positive effects upon HRM.
Justice boasts team spirit, solidarity & unity. So, much attention is to be paid to strict observance
on human resource functions i.e. selection, appraising performance & compensation & rewards.
Islam stresses organizational justice and also demands to follow procedural justice principles in
organizational decision making. Islam demands the selection of best people for job.
6. Trust in Organization
According to Ab. Rahman et al., (2013) HRM practices refer a process encompassing the
functions like acquiring, developing, motivating, & maintaining the human resource. The
principal function of HRM practices is managing the workers smoothly with the aim of boasting
their psychological, affiliation with the organization.
Alarimy (2015) expressed that human resource and issues concerning HRM are pertinent
in any organization to be successful in the modern time. HRM is the one of major aspects to be
considered if an organization would like to improve and also promote its administration.
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Alarimy (2015) elaborating trust (Amaanah) asserted that all human beings in Islam are
accountable for their actions. A good human resource manager and employee should be
accountable for what they do to one another. This would make HR manager better in managing
employees. Allah Almighty says in Holy Quran that: “Oh ye that believe betray not the trust of
Allah and the Messenger, nor misappropriate knowingly things entrusted to you” (Holy Qur’an
8:27). Trust is also a good characteristic to human resource manager; and managers should
portray honesty to employees as stressed in Islam. Trustworthiness might take two forms; when
rewarding and punishing employees. Trust in HRM causes consultation & authority delegation
by employers to their employees. The employees need to have trust in their employers as well as
the employers having trust in their employees. Trustworthiness in HRM might be reflected in
terms of contracts made between the employees and employers. According to Islam both the
employers and employees have to fulfill their obligations in the contracts.
7. Business and Customers Perspectives
Adelzadeh (2012) mentioned that according to Qur’an every good conduct can be called
“Hassan” since it involves and it is attractive. Mighty Allah commands for justice & good
conduct & giving to relatives & prohibits immorality, bad conduct & oppression.
Ashtankar (2015) while discussing Islamic ethic narrated that goods & services must be
halal. Goods & which are not halal are disallowed and Islamic teachings condemn them.
Ahmed et al., (n.d) stated that Islam emphasizes the corporate social responsibility
(CSR). The social serving of all the organization add to their goodwill & their market value.
Islam emphasizes to take from the rich & pay to the poor. Ahmed et al., (n.d) further wrote that
Islamic teachings to take care of promises are also applied on business dealings. If someone
makes a deal must also fulfill it, otherwise he will be punished and mutual consent is must in
trade. Controlling prices or raising price level unethically is forbidden. Stocking commodities
with intention of selling them when demand - price level is raised is also forbidden. Overall
Islam requires good moral values and ethics in all life perspective.
Ahmed et al., (n.d) asserted that businesses are to be observed in the manners having
ability to follow & build nation’s culture. In Islam business is not only to seek profit but business
is one of the branches of faith. According to teachings of Holy Prophet (PBUH) “No fraud or
deceit, when a sale is held, and there is no cheating”. Sellers must avoid making too many oaths
when selling merchandise.
Ahmed et al., (n.d) are of the opinion that Islamic ethics stresses on economic worth and
also emphasizes the welfare development, socio-economic equality & contentment of the human
beings. Islamic goals based on Islamic concept of human beings’ good life and welfare
emphasizes on socioeconomic justice & brotherhood and needs balanced satisfaction of spiritual
wants of mankind. Islam decided rules and regulations which also guide business community.
Ashtankar (2015) asserted that fairness in advertisement has much significance in ethical
system of Islam. Fairness means quality & features advertised and felt by viewers, should be
present in the products. Honesty a key of Islamic business ethics for all business practices.
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Giving advertisement with exaggerated, deceptive & selective message is viewed unethical by
Islam due to its deceptive nature. Holy Prophet said, “He who cheats is not one of us”. Selling
products by cheating is not according to Islamic business ethics. Holy Qur’an expressed clearly:
“Give just measure and cause no loss. And weigh with scales true and upright and withhold not
things justly due to men” (Al-Qur’an 26:181).
8. Conclusion
From above literature it can be concluded that IWEs are comprehensive, realistic &
moderates because work ethics is a set of the principles of management derived from Holy
Qur’an & Holy Prophet’s (PBUH) sayings a basic sources of guidance and more concerned with
moral commitment as compared to calculative involvement. Islam stresses on working so in
Islamic perspective work is not an optional affair to be dispensed by someone, but an imperative
necessity, so Holy Prophet said that “Allah loves the believers laboring to earn living by lawful
means. Work ethics have close positive relation with job satisfaction. Understanding this
relationship is necessary to find methods for intervening procedures to mitigate factors reducing
satisfaction of the work conditions. The organization wherein work is done according to IWE
principles, employees feel more job satisfaction, exhibit more organizational commitment, depict
less absenteeism, less labor turnover intention, and more responsible behavior. Similarly
employers give written employment contracts or appointment orders, exhibit organizational
justice while giving wages, compensation and rewards which are more proper and based on
justice. And all these practices lead to improve workplace peace and harmony and more
productivity resulting in the form of more profit which is the main objective of business.
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