ISLAMIC HUMAN RESOURCE PRACTICES AND ORGANIZATIONAL PERFORMANCE: A PRELIMINARY FINDING OF ISLAMIC ORGANIZATIONS IN MALAYSIA

Abstract

At the moment, there are lots of studies on conventional human resource practices. However, there are quite a few studies done on Islamic human resource practices. Using simple random sampling technique, final copies of questionnaires were sent to 300 Islamic organizations. However, only 114 questionnaires were returned and 111 were usable. These Islamic organizations implement Islamic human resource practices due to Islam; the religion is the way of life, type of their organizations and organizational mission. Two Islamic human resource practices were being implemented to a considerable extent are selection and recruitment and training and development. On the other hand, three Islamic human resource practices were being implemented to a moderate extent which are career development, performance management and reward practices. Thus, the overall implementation of Islamic human resource practices in Malaysian Islamic organizations is moderate. However, the impact of these Islamic human resource practices on organizational performance is considerable. This shows that Islamic human resource practices are better than the conventional perspective in producing higher organizational performance

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