Purpose The purpose of this paper is to establish the impact of human resource (HR) practices on organizational performance and moderating effect of Islamic principles on the impact in Pakistani business organizations. It aims at finding efficacy of HR practices as well as the role of Islamic teachings in business. Design/methodology/approach Five broad categories of HR practices: selection, training, compensation, performance appraisal and employee participation, have been taken as independent variables and their impact has been assessed on organizational performance: dependent variable, keeping the application of the Islamic principles as moderating variable. Data were collected from employees of mobile telecommunication service providers operating in Pakistan through a questionnaire based on a 5-point Likert scale and then analyzed in SPSS. Findings HR practices, including selection, training, compensation, performance appraisal and employee participation, have been found to be significantly and positively related to organizational performance. Moderation by the application of Islamic principles was observed to be positive. Its magnitude generally displayed decreasing trend with an increase in level of application. Research limitations/implications Measurement of Islamic work ethics and organizational performance has been unidirectional, gauged only on the basis of employees’ judgment. Inclusion of organizational and market data in future studies will add to the value of the outcome. Understudy business organizations grudgingly provided required information, in spite of personal connections and liaison, because of their organizational policies, commitments and limited concern with the research. Lists of employees were not shared with the researchers, which left only the option of convenient sampling. More reliable sampling techniques are recommended for future research on the subject. Moreover, the sampling frame was limited to the province of Punjab because of shortage of resources. Future research on the subject is suggested to have a broader base, including organizations interested to participate in the exercise of research. Practical implications Outcome of the study will provide useful guidelines to the business organizations by clarifying whether business is a religion-neutral affair or not. It is also expected to provide a line of thought for self-assessment and improvement. The concept of maximization of profit for a business organization can be evolved to a win–win arrangement by the maximization of benefit for all stakeholders. This is a logical and certain outcome once a business organization takes care of its employees, society, environment and, definitely, its shareholders. Originality/value A few studies exist on human resource management in Islamic as well as Pakistani context; however, the role of the religion and its contribution toward organizational performance has not been amply crystallized. This is just an endeavor in hitherto less frequented direction.
Purpose The purpose of this paper is to present a concise overview of available research work on Islamic principles related to human resource management (HRM). Design/methodology/approach With the purpose in view, an effort was made to collect books, journal articles and research papers. The selected works cover the period from 2003 to 2014. The reason behind selection of this period is the fact that during this time, an increased emphasis on religion, particularly Islam, has been felt the world over. The ideas and inferences out of those works have been compiled in a concise and ordered form. Compilation of ideas has been thematically arranged on the basis of different areas of HRM which led to the findings of the study. Findings Business organizations in Islamic countries or those being managed by the Muslims generally claim to follow Islamic management principles. However, practical adherence to these principles varies in various shades depending on national and organizational culture. The reviewed literature covers the theory of HRM and identifies the Islamic principles related to it. Mostly, the researchers have elaborated the Islamic guidelines related to HRM; however, a few have also ventured to find out practical application of Islamic principles and their efficacy. Research limitations/implications Books and articles included in this review do not present wholesome picture. Although random selection from various authors and journals neutralizes the limitation to some extent, a more comprehensive review may improve the findings. Originality/value Religion has proven to be a driving force in the display of human commitment and devotion in various forms of competitions including war. Identification of the role of religion in business can open new vistas in HRM. The glimpses of the role of Islam in business, especially HRM, included in this review can have far reaching impact.
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