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Thursday, June 19, 2014

Human Resource Management: An Islamic Perspective


Human Resource Management: An Islamic Perspective

Concept of Human resource Management (HRM): The term “Human Resource Management” (HRM) may be defined as the functions of management process concerning with people at work of an organization. This term (HRM) has various terminologies such as ‘Personnel Management’, ‘Manpower Management’, Labor ‘Management’, ‘Personnel Administration’ etc. HRM is usually used today in the place of the old term Personnel Management or Labor Management or Personnel administration.

Different authors have defined it from different angles. One of them is follows:

Human Resource Management refers to the practices and policies one needs to carry out the “ people” or human resource aspects of a management position, including job analyzing, recruiting, screening, training and developing, rewarding, and appraising. 4


From the Islamic point of view HRM refers to that part of management process which is concerned with human aspects such as procuring, training and developing, placing, compensating or rewarding, appraising, utilizing and maintaining the employees within an enterprise in the light of the principles of Islamic shariah. In this regard, some basic ethical manners of Islam like Al-Ukhuwwat & al-Ihsan (Brotherhood and Benevolent), Al-‘Adl (justice & Fairness), Huquq al-‘ Ibad (people’s right), Al-Ujrah (Fair compensation), Al- Amanah and al-Ikhlas (Trusteeship & Honesty) etc. must be ensured to the organization so that employees get maximum satisfaction as well as the owners can earn their fair profit or due benefit.

It is remarkable that if human resource is not dealt with in a right and ethical manner, the work efforts will be affected adversely, which will, in tern, affect the overall performance of the enterprise. 6

Importance of Human Resource Management: HRM is the most important among all the branches
of management for any organization or an institute. Because, people or human resource are vital for the effective operation of an organization or a company. Even Human Resource is assumed as the most important asset among all other resources of a company. Because they lead all other resources. Yet the “ human assets” are virtually never shown on the balance sheet as a distinct category, although a great deal of money is invested in the recruitment, selection; and training of people. 7

In the view point of Islam, human resource or human being is recognized as the most valuable assets because it is the great creature of Allah. The relevance of human resource development to economic growth only emerged as an important economic school of thought after the World War II.  But Islam however, emphasized the importance of this factor fourteen hundred years ago. At the present time, Muslim countries have abundant their large number of human resource (about 130 crore) and material wealth. Unfortunately this resource remains undeveloped. “The present-day Muslim socio-economic environment is such that it is unable to motivate people to render their best either in their own interest or in the interest of the society.” (Chapra 1988) 9

Actually, every thing that exists in the heavens and on earth is directed or managed under the control of Allah who is the sovereign and supreme owner of all. In this regard the holy Quran commends: “ To him belongs every being that is in the heavens and on earth: all are devoutly obedient to Him.” 10

Some Principles of HRM in Islam: 

In Islamic sense, a human being is termed as the vicegerent of Allah (SWT). Thus, in the operational level, management behavior from the Islamic perspective with emphasis on HRM may be expressed in terms of at least the following seven principles:15

(1) The principle of Amanah (Trusteeship): At a conceptual level, the management can not be indifferent to his ultimate role as Khaliph or vicegerent of Allah. According to Islamic principles the
Power, wealth, and knowledge are Amanah entrusted to man. Allah (SWT) says in the holy Quran.
Allah has purchased the believers’soul (persons) and their goods for the exchange of paradise”. 16 It indicates that all believers are entrusted to use their soul and goods as Amanah. Being the trustee, he should not abuse his knowledge or misuse his power, position and privileges. Thus a true behavior should be completely fair in the execution of his management function. Obviously, there should be complete absence of nepotism and favoritism.
(2) The principle of dual responsibility: Man is accountable for his action to his superior not only during his life but also to the creator both in the world and the hereafter. The pre-supposition of a reality beyond the temporal sphere is fundamental to the Muslim worldview system, which is to be given operational meanings in actual management system.17
(3) The principle of institutional loyalty: It is quite proper to state that Islamic management is based on the principle of institutional loyalty rather than personal loyalty. We must emphasis here that the authority of the management is recognized in Islam to ensure discipline and smooth functioning of the organization. However this requirement to obey the authority is not absolute but to the extent permitted by the Shariah. The employee is expected to do his job efficiently and honestly guided by the system of reward and punishment.
(4) The principle of public interest: Islamic management is thus objective oriented rather than personality oriented, although management principle stresses on the development of both the institution as well as individual. Simultaneously, the pursuance of individual objective is permissible as long as they do not come into conflict with the collective objectives of the community as a whole.18
(5) The principle of Shura (consultation): The scheme of the Shariah encourages that management should try to create a working environment, which generates co-operative forces and encourages consultation in the process of decision making process. ‘Ijma’ as a source of Islamic law is well recognized in Islamic Jurisprudence. It has an important bearing in moulding the management and administrative behaviour. The Quran has indeed encouraged people to think and consult in matters of mutual interest. “Consult with them in affairs19
(6)The principle of due benefit: Islamic management is based on the non-exploitative relationship between labour and capital representing employees and employers respectively. It is the duty of the management to ensure that employees are not only paid in full but be paid in due time. A famous Hadith of prophet (SAW) states that a worker’s wage must be paid before his sweat dries.20 This clearly demonstrates that the employee is an object of care and concern and the speed in the payment of wages conveys this message. On the other hand, employee is also required to discharge their duties honestly and efficiently.
(7) The principle of efficient use of resources: As in the western capitalist management Islamic management is equally concerned with efficient use of resources in order to increase productivity and better utilization of both human and non-human resources. This is indeed a Qur’anic imperative.
 (8) The principle of Al-Adl (Justice and Fairness): This implies paying what is due to others and fair treatment with all parties concerned. A HR manager should practice justice and fairness in his dealings with the employees as well as the enterprise in both interpersonal and inter-group interests. “Allah commends you to do justice……”
(9) The principle of Fulfilling the Contract: A HR manager should guarantee what is due to an employee and should get from the employee, what is due to the enterprise as per the contract. At the contract with the employers to look after the interest of organization and the right of others in dealings.




Some major Functions of HRM in Islamic Perspective:
Human resource management is based on so many functions and every function can be explained in Islamic ethical perspective. Some times these discussion may be guided by indirect hints of Islamic principles. Now, some important functions of HRM according to the Qur’an and Sunnah have been discussed below:
(A) Recruitment: Recruitment is the process of searching prospective workers and stimulating them to apply for jobs in the organization.21 In recruitment, organization use various means to attract applicants. The most commonly used instrument for this purpose is advertising. But what might go wrong with job advertisements? In many instances, companies deliver a message that only certain groups; race or gender will be preferred for a certain position although non-preferred ones can do the job with equal efficiency or even better. Sometimes, the qualifications of candidates are listed in the advertisement so as to suit a particular person that the HR manager is interested in. Such favoritism affects the interest of the enterprise and destroys the rights of the better candidates. The Islamic way of life does not allow favoritism in recruitment since this kind of unethical behavior violates the ethical principles of justice (Al- Adl), fulfillment of contract with the employer to look after the interest of organization (Ifa-al-Aqd), and the right of others in dealings (Huquq al-Ibad).
Islam always disallow the favoritism, nepotism etc. in recruiting the employees. Regardless of race and color, honest and qualified candidates must be recruited.
(B) Selection: Selection means the process of short-listing candidate. It involves a subset of workers from the total set of workers who have applied for the job.22 Different parameters are exercised in employee selection in various organization in the world. In connection to this the utterance of Hazrat Shuaeb’s (AS) daughter regarding Hazrat Musa (AS) mentioned in the Holy Quran, is also worth mentioning here. Observing the voluntary service of proving drinking water to the animals of the daughters of Hazrat Shuayeb (A.S.) by the Prophet Musa (A.S.) at the way of Madaen the damsels reported to their father:
“Said one of the damsels, “Oh father, engage Him on wages: truly the best of men for thee to employ is the (man) who is strong and trust.” 23
Other citations of the same kind are:
(Joseph) said: “set me over the store houses of the land; I am a good keeper, knowledgeable.” 24 
 “Indeed I have full strength for the purpose, And may be trusted.” 25
In light of the above discussion following are the main qualities which are recognized by Islam in the appointment of personnel: 26
a.                   honest, pious and acceptable as aristocrat to Allah (SWT);
b.                  proper wisdom and educational qualification; 
c.                   experience and efficiency ; &
d.                  Physical ability to work.
 (C) Retrenchment: Retrenchment may be the result of disciplinary action or lay-off. Bias for or against some employees may lead to unfair disciplinary measures involving undue dismissal of some employees. Besides, management of a company may decide to downsize the workforce during recession. But how ethical is the decision of retrenchment? The question arises that during recession, if a company reduces the workforce size to maintain its profitability, then can individuals survive in that hard period? While Islam allows resorting to disciplinary measures, if needed, it emphasizes justices, fairness and protection of rights of both the employees and employers in this regard, as revealed in the principles Al Adl and Huquq al-Ibad.
(D) Training and Development: Every organization should give its employees a chance to excel in their careers. An organization should provide training and other facilities for its employees so that they can gain additional skills and knowledge and thus they can be promoted to higher positions through the hierarchy of their services. It is a right as well as obligation of the employees to equip them with adequate training. This process not only helps the employees to have a batter carrier opportunity, but it also increases employee productivity. Besides, the organization should provide a mechanism so those future leaders are available in time from within the organizational workforce. This can be done by providing appropriate training facilities. In Islamic ethical system makes knowledge obligatory for all (every male and female). 28 This knowledge is not limited to basic Islamic knowledge, but rather it is also obligatory to acquire knowledge and skill of profession that is necessary to fulfill one’s contract with his/her employer. Thus the emphasis is on dual qualities in the work force, the moral quality and the professional quality (professional knowledge)
(E) Performance appraisal: Performance appraisal may be defined as any procedure that involves (1) Setting work standards, (2) Assessing the employee’s actual performance relative to these standards; and (3) Providing feedback to the employee with the aim of motivating that person to eliminate performance deficiencies or to continue to perform above par.29 If any organization fails to use this instrument effectively and with fairness, there might arise serious frustration among employees. Many performance appraisals use subjective types of evaluative questions. Such a poor design may lead to unfair evaluation. A biased appraisal on the part of a HR manager may lead to unfair treatment of some employees and to the dismissal in some cases and undue promotion in others. Clearly, this violates the ethical principles of justice and fairness (Al-Adl), and peoples right (Haququl Ibad) and hence unacceptable in Islam.
(F) Compensation: It is the responsibility of any business organization to compensate its employees with appropriate remuneration. An ethical problem may arise when undue labor exploitation takes place to make unpaid gains. It may also arise through favoritism in pay and promotion. Islamic system requires a humanity (brotherhood) element in the fixation of compensation. An organization should arrange a compensation for its employees that lets them meet their basic needs in a standard of living that is comparable with the employer, subject to the maximum of the employees’ contribution in output. This required by the Islamic principles of ethics, namely, brotherhood and benevolence(Al-Ukkuah and Al –Ihsan) and fair compensation (Ai-Ujarah). Besides, there may arise an issue of favoritism in pay and promotion. This will involve undue favor to some by violating the right of others. This goes against the Islamic principles related to people’s right (Huquq-al-Ibad) and justice and fairness (Al-Adl) and hence unacceptable.30
(G) Work Load and Stress: The level of stress and workload is another major area that human resource managers must take care of. They need to appreciate that an employee has a family and other social responsibilities. Besides, an employee is a human being and not likes a machine. So an organization should not burden their employees with so heavy a workload that is beyond their usual norms of responsibilities unless they agree to do so willingly. They should be provided with an extra hand if they are required to do so and they should be compensated for this duty. Prophet (SAW) said-“Do not impose an extra burden on your brothers, and if you need to do so, help them out.” 31 Islamic history demonstrated how a superior should behave with his/her subordinates. For example, Prophet Musa (AS) worked for a long time under Shu’ayeb (AS) for livelihood. During the time of appointment, Shu’ayeb (AS) declared a term of contract to Musa (AS) as follows: “And I do not intend to put heavy burden on you. Allah willing, you will find me among the righteous people. He (Musa) replied; so be it (the contract) between me and you, whichever of the two terms I fulfill, (I trust) I will not be wronged. Allah is witness of what we say. 32            




Responsibilities:
Responsibilities from the view point of both in employers and employees to establish the rights of the workers and employers respectively are as follows:
(1)    From employers viewpoint:
(a) Employers and Employees are brothers for each other: Whenever our prophet (SAW) used to discuss
the relation between employers and employees, he used to say in an impassioned mode: “Those who are working under you are your brothers. Allah has placed them under your custody.#
(b) The employer should behave well with the workers :The employers must behave well with their employees as like as their friend or representative. In this occasion the prophet(SAW) said: “ You shall treat your subordinates kindly. Never cause them pain or heart their feelings.”##
© Tolerance and liberal attitude: Islam teaches the employers to be tolerant and liberal. It encourages him to excuse the lapses ans faults of the employees with gentle forgiveness. In this context Allah said: “It is a part of  mercy of Allah that you deal gently with them. Where you severs of harsh-hearted, the would have broken away from about  you. So  pass over( their faults) and ask for Allah’s forgiveness from them.”##
(d)Avoid the attitude of anger toward the workers: The employer should never show any aggressive attitude to the workers. The employer must have a relation of great love and affection with workers. Hazrat Anas served the holy prophet(SAW) for many years. . He states “One day the prophet asked me to do a work. I went out on that errand, but on the way, I joined in a game being played by some youths. All on sudden, the prophet(SAW) appeared there, but he did not show any anger to me, nor did he take me to task.
 (e) Profit sharing: In Islamic point of view, the workers have absolute right to share in the profits. In this regard prophet(SAW) said, “Give  due share to the workers from their assets, earned by physical ability     
 ( profits).
(f) Avoid suspicion on other’s work: The employer should not always try to find out the faults their workers. In this context Allah commends the Muslim  in the holy Quran-“ O you who believe avoid suspicion as much (as possible): For suspicion some cases is a sin. And spy not each other; nor speak ill of each other behind their back.
(2)  From Employees View Point:
(a) Sincerity and devotion in work: Islam instructs a worker to regard the task that he has been upon himself as his own. It becomes obligatory to his part to perform it with all sincerity and devotion. The  Prophet(SAW) says, “ When a worker does his work, he should do it with concentration and efficiency”##
(b) Maintenance of honesty: An honest worker who serves both Allah and his emplyer doubly virtuous. In  this connection the prophet(SAW)  has said, “ Three types of people will be doubly rewarded, among them is included those who devotedely serve both Allah and their masters”.##
 c) Avoidance of fraud: Workers always will have to give up fraud with their employer. Because it is regarded as a serious crime. Allah says in this connection: “Contend no on behalf of such as betray their own souls; for Allah loveth not one given to perfidy and sin.”##
(d) Avoiding false-hood: The workers are to maintain the similitary of his word with work. They will have to avoid false statwement always. The  Quran commends Muslim in this regard, “O shun the abomination of idols. And shun the word that is false.”##
(e) Avoiding from stealing: The workers are always to be kept their honesty and they must abstain from stealing the property of his employer. Allah says in this regard: “As  to the thief, male or female, cut off his or her hands: A rertribution for their deed and exemplary punishment from Allah.”##

References:
1.         The British Institute of Personnel Management, U.K., Quoted from Tripathi P.C. (1994), Personnel Management and Industrial Relations, Sultan Chand & sons, New Delhi, India PP-3
2.         Indian Institute of personnel management, Calcutta, Quoted from Tripathi P.C. (1994), Ibid......................P-3
3.         Tripathi P.C. (1994),  Ibid............P-2
4.                  Dessler, Gray (1999), Human Resource Management, Prentice hall of India Pvt. Ltd., New Delhi-110001, India, P-2
5.         Yoder, Dale, Personnel Management and Industrial Relations, Quoted from Tripathi P.C. (1994) Personnel Management and Industrial Relations, Ibid..........P-2
6.         Sadeq, M. Abul Hasan (2001), Islamic Ethics in Human Resource Management, Quoted from Ethics in Business and Management, Asian Academic Press, London, P-300
7.                  Weihrich, H. and Koontz, Harold (1994), Management, A Global Perspective, International

            Editions, McGraw-Hill, Inc. U.S.A.  P-356

8.         Dessler, G. (1999), Ibid.....................P-3
9.         Chapra, M.U. (1988), “ Economic Development in Muslim Countries: A Strategy into the Light of Islamic Teaching.” Paper presented at the seminar on Islamic economics, Cairo, Egypt, 6-9 September 1988. Quoted from Abdul Aziz, “Firm Level Decisions and HRD in an Islamic Economy”, the American Journal of Islamic Social science,  P-202
10.       Al- Quran, Surat Ar-Rum- (30: 26)              
11.        Al-Quran, Surat As-Sajda- (32:5)                              
12.       Al-Quran, Surat Al-Ambiya- (21:23)            
13.       Al-Quran, Surat Al- jumu’a- (62:10              
(14)      Ahmad Khalid & Sadeq, (2001), Ethics in Business and Management, Asean Academic Press, London,  P-289.
(15)           Muhammad, Abdul Aziz (1987), Human Resources Management: An Islamic Point of View, Seminar on  Contemporary Business Towards the Development of Islamic Management,
            IIUM, P-7
(16)           Al Quran , Surat Tawba- (9: 111)
(17)           Mohiuddin, Md Golam,(2004) “Islamic Management and Its Present Applications in Bangladesh” Unpublished Ph.D Thesis, Deptt. of Management ,Islamic University,Kushtia.
(18)           Muhammad, Abdul Aziz (1987),Ibid…
(19)           Al Quran,Sura Ale Imran (3:159)
(20)           Al Hadith, Ibn Maza, As-sunan, Vol. II, Hadith No. 2443, P-817
(21)      Tripatti P.C. (1994), Personal Management & Industrial Relations, Sultan Chand and Sons, Educational Publishers,  P-154.
(22)      Ibid...........P.158
(23)      Al Quran , Surat Al Qusas- (28:26)
(24)      Al Quran, Surat Usuf- (12: 55)
(25)      Al Quran, Surat Naba- (78:39)
(26)      Mohiuddin, Md Golam, (1997), Islam And Scientific Management, Islami Foundation Patrica, Dhaka,  P-94.
(27)      Ahmad, Khaliq & Sadeq, Abul Hasan, op., cit.,
(28)      Al Hadith- Ibn Maza, As-sunan, Vol. I, Hadith No. 224,  P-81
(29)           Dessler, Garry,(1999), Human Resource Management, Prentice-Hall of India Private Limited,    New Delhi,  P-342.
(30)           Sadeq, AH and Ahmad Khaliq (2001), “Ethics in Business and Management”,Asean Academic Press,London, P-285
(31)      Al Bukhari, Al Sahih.
(32)      Al Quran, Surat Al Qusas- (28: 27-28)



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