An Application of Islamic Principles in Building a Robust Human Resource Management System (In Islamic Countries)

Abstract

The purpose of this conceptual paper is to enlighten academicians and organizations with effective ways of understanding and implementing HRM by using Islamic principles. A qualitative approach based on an extensive review of existing relevant literature identify the Islamic principles that relate to HRM activities. An HRM system based on Islamic principles is expected to benefit the organizations by facilitating them to create a healthy work environment that fosters mutual trust, respect, consultation and knowledge sharing, and creativity and innovation among employees. Further, it can also assist in solving existing corporate problems, like conflict of interest between managers and owners (agency problem). The key limitation of this study is the dearth of empirical research evidence to support the points abstracted from this review of literature. The study contributes to the scarce literature on Islamic Human resource management by exploring the scope of application of Islamic principles in designing of an effective human resource management system.