Islamic human resource practices and organizational performance

Abstract

Purpose – This paper aims to assess the relationship between Islamic human resource practices and organizational performance. Design/methodology/approach – The simple random technique on 300 Islamic organizations in Malaysia was used. In all, 120 completed questionnaires were returned, but only 114 were usable. Findings – There are some positive and significant relationships between Islamic human resource practices and organizational performance. Basically, there is only one Islamic human resource practice, namely, training and development practice, that is positively and significantly related to organizational performance. Research limitations/implications – This study is only limited to the Islamic organizations that are implementing Islamic human resource practices in total. Thus, the findings could only be generalized to this type of institution. Practical implications – Thus, the Islamic organizations should emphasize on this practice to obtain higher organizational performance. Social implications – Islamic human resource practices emphasize on the instillation of Islamic values in the practices that are universal in this world. Thus, through its implementation, the betterment of the society will be obtained in terms of psychology, moral and spiritual aspects. Cooperation, teamwork and harmony could also be steadfast not only in the organizations but also in the society. Originality/value – There are few studies done on finding the relationship of Islamic human resource practices and organizational performance. Thus, this paper provides some empirical findings on this matter.