Islamic human resource management (iHRM) enhancing organizational justice and employees’ commitment

Abstract

Purpose This paper aims to introduce and promote the novel concept of Islamic human resource management (iHRM) and assess its effects upon two organizational attitudes, namely, perceived justice and employees’ commitment. Design/methodology/approach The present study is an applicable and empirical research that has used the descriptive–correlative method. The target population consists of 192 employees from Resalat Qard al-Hasan Bank in the city of Tehran. Calculated based on Cochran’s formula, 128 people are selected by means of a simple random sampling technique. To collect primary filed data, questionnaires are distributed. The gathered responses are analyzed with the structural equation modeling approach using SmartPLS software package. Findings Four dimensions of iHRM, i.e. recruitment and selection, training and development, remuneration and compensation and performance appraisal, are positively associated with organizational justice. Also the first three dimensions have a positive impact on employees’ commitment, but the link between performance appraisal and employees’ commitment is not statistically significant because of the slightly negative attitude of the employees toward a possible perfunctory routine. Originality/value iHRM is one of the emerging trends in Islamic management literature, with limited studies conducted in this specific field. The current effort is one of the first attempts to empirically investigate this relatively new construct in the context of Iran.