Islamic Work Ethics of ‘HR Management’ Applied to

University of Haripur Journal of Management (UOHJM)

Published by University of Haripur. Spring 2017 UOHJM available at www.uoh.edu.pk/uohjm Volume 2 Issue 1

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‘Islamic Work Ethics’ of ‘HR Management’ Applied to ‘Business

Organizations’ (A Literature Review)

Dr Muhammad Tariq Khan

Assistant Professor, Department of Management Sciences University of Haripur

Abstract

Knowledge is favored and emphasize in western philosophies, but ethics is the basis of Islamic

philosophy. Therefore ethical considerations that is collection of moral codes distinguishing

wrong from right are based on Qur’an and Hadith relying on faith covers in certain acts

religious morality as well as covers facets of moral, spiritual as well as physical life in worldly

form like intellectual, emotional, collective and individual, realistically considering the human

capabilities. This study which is dedicated to trace, highlight and discuss the influence of Islamic

principles on HRM from the perspective of employees, employers and from customers.

Keywords: Human resource Management, Work ethics, Job satisfaction, Islamic

1.1 Work from Islamic View Point

Jawad (2008) reported that from Islamic perspective work is not a discretional matter

could be dispensed by optional of individual but an imperative necessity. For all those

individuals having physical or mental capacity to perform; laborious works are a duty like

spiritual fulfillment. As mentioned in holy Quran “And say: ‘Work (righteousness): soon Allah

will observe your work, and his Messenger and believers.” (Al-Quran 9:105). However,

employees are commanded to perform duties to the best of their abilities in a professional

manner, in order to consider the work as a religious observance. Searching in lawful manner

means of living are deemed a religious observation; and according to saying of holy Prophet

(PBUH) “Allah loves those believers who labor to earn living through lawful means” (Quoted

from Al-Tabarani). Holy Prophet Hazrat Muhammad also declared as a mujahid the employee,

who takes and gives what is right, until comes back to his home (Quoted from Al-Tabarani).

Salahudin et al., (2016) asserted that Islamic Work Ethics (IWE hereafter) is a realistic

comprehensive, and moderate and quoted four issues from literature that the holy Prophet

(PBUH) had stressed work as: 1 – highest type worship, 2 – if not performed with highest ability

is a not sanction, 3 – must also be in others’ benefit like peace of social dimension, 4 –

community should also get reasonable living standards and wealth from carrying on business.

IWE is moderate which means moderate work thinking in work ethics, in comparison of ultra-

idealists deeming human beings, like angels and ultra-realist viewing human beings as animals.

1.2 Islamic Work Ethics

Western philosophies emphasize the knowledge, but ethics is the basis of Islamic

philosophy. Especially, Islam stresses to take intuitive perception of divine role in existence of

human beings. Therefore in principles, in Islamic Society ethical considerations have precedence



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over productivity considerations (Jawad, 2008). IWE is, a code of moral principles which

distinguishes right from wrong (Rokhman, 2010); Najjaria & Davoudi, n.d; Rokhman & Hassan,

n.d) a concept having foundations in principles and teaching of Islam relying on faith covers in

certain acts religious morality as well as covers facets of moral, spiritual as well as physical life

in worldly form like intellectual, emotional, collective and individual, realistically considering

the human capabilities (Salahudin et al., 2016). Originally based on Qur’an, as Quran is the holy

book guiding Muslims in all periods of their life, IWE emphasizes consultation as a way of

avoiding mistakes and coping with the obstacles; and regard cooperation in work (Najjaria &

Davoudi, n.d).

Rokhman & Hassan (n.d.) expressed that the ethics is based basically on holy Quran

which guides the Muslims in their every life spheres. IWE stresses on creative work which is a

source of happiness when accomplished and hard work is deemed as virtue. The IWE stresses

cooperation during work; and considers consultation as a source of overcoming hurdles and to

avoid errors and mistakes.

Rokhman (2010) stressed in business ethics the importance of role of Islamic ethics and

heritage. IWE, acts like a virtue in human’s life as an orientation towards work approaches. IWE

basically founded in holy Qur’an, sayings of Holy Prophet (PBUH- who expressed that laborious

work makes sins absolved) and also legacy of four pious Muslim caliphs.

Razimi et al., (2014) expressed that in shaping and making culture and society religion

does play an important role, and Islam as a religion also provides a unique perspective in

balancing office work and home life and other organizational activities. Islam and HR share a

deep relationship because in HR practices, people are centre of attention as HRM cares for all

dimensions of workers’ selection & management in the organizations. Likewise topic of Holy

Qur’an is Human, from the perspective of guidance of people and their routine life affairs. To

promote commitment is one aim of HRM which is a strength of an employee’s identification and

involvement with an organization whereas Islam also stresses Muslims to perform extremely best

while working and giving the best required with strong commitment.

Ashtankar (2015) expressed that for work ethics, the principles of management given in

Qur’an and words of Hadith of Prophet Hazrat Muhammad (PBUH) are guidance sources. Holy

Qur’an clearly highlights the importance of justice, fairness & honesty in the relations of

employers and employees and also encourages with emphasis the skills learning and efforts for

good work for benefits of society. Islam stresses on organizations for doing business for selling

goods or rendering services to clients and, prohibits unethical things like fraud, deceiving, and

gambling.

1.3 Islamic Management Principles

Ab. Rahman et al., (2013) extracted from several studies and expressed that values of

Islam are a collection of beliefs, a social theme of all dimensions of our existence, spiritual and

intellectual, moral and physical, individual & collective life of human beings. Islamic values are

also significant with human requirement of prosperity & happiness in total life matters as well as



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current ethical problems of commercial world, organizations should be built aspiring Islamic

perspective of HRM.

Razimi et al., (2014) asserted that Islamic principles and teachings can play a leading role

for establishment of needed commitment level because Islam and HRM both focus on change in

behavior of people.

Ashtankar (2015) while discussing Islamic ethics narrated that Islam has unique

management principles that can lead and shape spiritual and moral behaviors. Besides this they

also have political and socioeconomic effects on individuals’ mutual relations. Management

approach of Islamic ethics is based on ethical dimensions, which is not stimulated by temporal

objectives. Employers and employees are trustees of Almighty Allah on the earth and their

relationship is entirely based on religion wherein for their deeds, both are responsible before

Mighty Allah.

Khan (2016) is of the view that Islam integrates material & spiritual progress and also

integrates individual & collective growth and well being and does not allow the development of

any aspect of human being unduly or at others’ cost. Islam sums up its laws of (Ad’l) justice and

morality of spirit (Ihsaan & Taqwa). In national context Islamic principles of HRM can prove to

be useful in dealing with problems of misuse of authority in national institutions and in-

efficiency. So application of Islamic principles may help considerably in overcoming problems

of leadership, training, knowledge, necessary professional skills, & attitude needed for

productive careers and useful role in society. In international context Islamic principles of HRM

can also help to tackle the challenges arising from increasing Muslim population across the globe

in the realm of cultural gaps, diversity and leadership issues and managing effectively the

increasing number of Muslim employees in the multinational and multicultural organizations.

Basis of practices of Islamic HRM is values of ethics, motivation & trust. Islamic training

encompasses all aspects of human resources including physical, spiritual, intellectual, social, and

psychological and can help in tackling the challenges of collective and individual nature and

enhancing mutual cooperation & trust, harmony, motivation, peace, commitment and

development of human resources and reducing conflicts.

1.4 Islamic Approach to HRM in the Organizations

Alkahtani, (2014) mentioned that HRM is concerned with utilization and management of

human resource for achieving objectives of organization. HRM deals with four fundamental

functions, which are acquiring employees, developing them, motivating them, & maintaining

human resource. Acquisition is starting point of HRM, dealing with planning, recruitment &

selection and socializing workers for organization to ensure availability of exact & capable

number of workers at proper time and place. Development of employees is second component of

HRM, deals to improve the performance of employees by disseminating knowledge, improving

their skills, altering their attitude, to enhance organizational performance. Motivation is the third

part of HRM which has indispensability to get improved performance of employees. Motivation

function encapsulates specification of jobs, evaluation of performance, giving rewards and

inflicting punishments, performance of work, management of compensation and maintaining

discipline. Maintenance is the fourth component of HRM concerning with process of retaining



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employees, who add value to organizations by performing well. HRM also requires organizations

to perform additional functions by providing extra facilities, better and sound working

conditions, friendly environment of work, & peaceful and harmonious labor relations. All these

functions facilitate the organizations, to retain, workers having competency and capability which

are satisfied with their jobs and more committed to organization.

Ab. Rahman et al., (2013) asserted that Islamic HRM targets the understanding of

workers’ needs and hopes more properly and mentioned that Islamic HRM views employees not

just as servant but a precious asset and should be viewed like a powerful workforce asset. Islamic

HRM stresses on developing employees’ abilities, job knowledge, individual skills, and attitudes,

to contribute for achievement of organizational goals. In the organizations, Islamic HRM

practices and trust are the vital factors attributed with high performance, job satisfaction, & less

turnover in workplace. Trust in the organizations’ work place is actually better as workers’

mutually exchange behavior and when its level is less, individuals become less creative, and

exert small efforts towards organizational objectives and less forthcoming with ideas whereas

without trust management thinks workers need more tighter control and strict supervision. It

looks that Islamic HRM exerts influence on employees’ trust development in the organizations

by exercising Islamic guidelines.

Alarimy (2015) narrated that Islamic HRM, which is derived from Islamic principles

guided by Quran and Sunnah and is Allah Almighty’s gift for human beings enabling them to

their society happily. The importance of HRM in the organizations is explained as coming

together is beginning, staying together is progress, and working together is success, and for any

organization to register success effective HRM is critical to ensure quality of employees.

Hashim (2008) expressed that many HRM issues are based on religions and all religions

prefer justice in treating workers. Islam emphasizes Muslims to practice and promote justice in

all facets of their lives. Razimi et al., (2014) expressed that as regards management issues from

Islamic perspective, much emphasis is given on behavioral aspects of organizations with focus

on operational areas of management such as quality management, performance appraisal of

employees and marketing and selling.

Khan (2016) revealed that Islam integrates material and spiritual progress, individual and

collective growth and well being. No aspect of human being to be developed unduly and at

others’ cost. Islam comprehends its laws of justice and spiritual morality. Bases of Islamic HRM

practices are trust, ethical values, motivation, & deem workers more than just resources.

Application of Islamic HRM principles can considerably help in tackling crisis in leadership,

training, knowledge and attitude, and essential professional skills required for productive careers

in the organization and useful role in the society. These principles and practices are also helpful

to tackle the challenges arising due to increasing Muslim population leading to the cultural gaps,

diversity and leadership issues, and managing effectively the increasing number of Muslim

employees in multi-cultural and multi-national organizations. By observing Islamic principles

workplace trust & mutual cooperation and harmony, can be increased, leading to commitment,

motivation, & human resource development & also reduce conflicts.



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Ab. Rahman et al., (2013) asserted that Islamic HRM admits workers as valuable assets

instead of mere servants and considers a source of dynamic powerful workforce asset. Practices

of Islamic HRM emphasize to develop employee’s individual job knowledge, skills, abilities,

and attitudes for a contribution for accomplishment of organizational objectives. Islamic HRM

practices and trust in the organizations are necessary factors attributed to job satisfaction, better

performance, with low workplace turnover.

Alkahtani (2014) expressed quoting some studies that from Islamic point of view

management is “the process of planning, organizing, leading and controlling the efforts of

organizational members, and by using all other organizational resources, depending upon the

guidelines of Allah (SWT) and his Prophet (PBUH) with accountable mentality, integrity and

skills to achieve the predetermined objective”. Islamic management provides the guidance to

manage the organization efficiently and effectively. Islamic Management helps all managers

such as Managing Directors, Chief Executive officers, Senior Managers, General managers and

Managers for setting organizational objective properly, company’s vision & mission, codes of

conduct, values and ethics, methods of making decision, employees’ recruitment, their training &

development & developing those strategies in business management that fulfill all the business

needs.

Kamaluddin and Kasim (2013) expressed that Law of Shariah in Islam becomes guidance

for all the activities occurring in daily Muslims’ life. As an approach Islamic HRM is performing

basic functions such as 1 - recruitment, 2 - selection, 3 - training, 4 - appraising performance, 5 -

compensating according to guidelines revealed in holy Quran & Hadith. Besides this other values

such as good conduct, trustworthiness, sincerity, responsibility, co-operation, discipline,

dedication, gratitude, cleanliness, diligence, & moderation are considered as guiding principles

for HRM. Kamaluddin and Kasim (2013) also asserted that Islamic HRM, being supported by

Islamic norms and values providing the community fairness and justice and if followed strictly

by organizations will contribute to firm competitiveness and performances. Kamaluddin &

Kasim (2013) mentioned four policy areas in HRM, which are: the employee selection and

development, reward system, employee influence mechanism, job design and work organization.

Ab. Rahman et al., (2013) quoted HRM as planned process of development and

integrated strategy for proper utilization of workers’ ability & efforts to achieve organizational

objectives & outcomes. Many HRM affairs in organizations are rooted in religion particularly,

principles of Shariah.

1.5 Islamic HRM Practices

Ab. Rahman et al., (2013) expressed that Islamic law which is to be practiced fully and

not partially (Bukhari & Muslim Sharif) is impartial, fair and based on justice in all human

activities, beyond discrimination, without considering position or status or relationships among

parties’. The prime need of management is to acquire reasonable knowledge, awareness &

understanding of principles of Islam, and with knowledge of Islamic laws, management should

establish whole of HR system and HR practices in the organization. Islamic management stresses

on well beings of human, justice and fairness in management of resource and if management is



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concerned with justice in the organization & harmonic employee relationship then it cannot

forget potential contribution and importance of Islamic HRM practices. Islamic HRM practices

encompass knowledge, training, & exercising principles, during recruitment & selection, training

and development, appraising performance, & reward system.

Alarimy (2015) asserted that the Islamic HRM is derived from Islamic principles which

are guided by two sources i.e. Quran and Sunnah. In the opinion of Alarimy (2015) generally, the

Islamic approach to HRM is routed through three aspects; (1) Taqwa i.e. piety, uprightness,

devotion, fear of Allah Almighty. (2) Itqan i.e. the person makes things of desired quality and in

right order. (3) Akhlak which refers to attitude, feelings, disposition among others which

employees possess. Akhlak are morals which need to be portrayed in HRM, and HR managers

ought to have good morals from which employees could copy.

Alarimy (2015) also discussed equality by narrating that as a HRM principle all people

should have equal treatment if they are in the same level as last Prophet of Allah Almighty stated

(in last sermon on farewell Pilgrimage): "All mankind is from Adam and Eve, an Arab has no

superiority over a non-Arab nor a non-Arab has any superiority over an Arab; also a white has

no superiority over black nor does a black have any superiority over white except by piety and

good action". So there should not be any practice of discrimination among employees. And Allah

Almighty commands in holy Qur’an that: O mankind! We created you from a single (pair) of

male and female, and made you into nations and tribes, that you may know each other (not that

you despise each other). And regarding accountability he quoted that second caliph, Umar Ibn

Al-Khitab may Allah be pleased with him stated that: “evaluate yourselves before you are

evaluated and be estimated before others estimate you. It is slighter for you evaluating

yourselves today (life) than tomorrow (Hereafter).

2.0 Employees’ Side Perceptions of IWE

This section will discuss with ethics with reference to organizational commitment, job

satisfaction and turnover intention. From employees side dimensions of Islamic work ethics are as

follow:

Rokhman (2010) asserted squeezing many researches that the work ethics instead of

being calculative involvement is more related to moral commitment. Organizational justice

theory explains the relationship between organizational commitment, job satisfaction and turn

over intention with reference to work ethics. Organizational justice theory revealed that the

perception of workers about justice casts effects on their attitudes about job. Workers who feel

that their organizations is ethical are likely to consider the organization fair to them, are likely to

increase their organizational commitment & job satisfaction, and reduce their turnover intention.

Many studies found existence of an inseparable positive association between job satisfaction and

positive ethical climate.

2.1 Work Ethics and Job Satisfaction

Rokhman (2010) expressed with several references that job satisfaction is sum of feelings

of individuals for their job, which means employees having much job satisfaction would be

positive feelings for their job. Satisfaction of job is also workers’ measurement of total quality of

their job. These measurements guess may consist of an effective orientation towards their job

and an attitude they hold for their job. Rokhman (2010) also expressed with several references



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that work ethics have close relation with job satisfaction so understanding this relationship is

necessary for determining the methods in intervention strategies for mitigating those factors

which cause the reduction of satisfaction for the work conditions.

Siswanto (2014) is of the opinion that job satisfaction is caused by employees’ feelings of

how well their job gives them the necessary thing through their work. Job satisfaction shows

employees’ feeling towards their work, which is depicted from their positive attitude for work

and all other things encountered in their work atmosphere. Job satisfaction is also last destination

for work or organizations’ policies designed in a way that employees may have maximum

satisfaction for their wants. All the organizations should view job satisfaction because it affects

grievance level, absenteeism, morale and workers’ turnover.

2.2 Work Ethics and Organizational Commitment Rokhman (2010) extracting from some researches pointed out that the organizational

commitment is a psychological state attaching employees to their organizations, thereby

decreasing the incidence of turnover. Research has shown relationship of work ethics and

organizational commitment. Values of work show high correlation to moral commitment as

compared to calculative involvement to an organization. Intrinsic work values are more strongly

related to organizational commitment as compared to extrinsic work values. Salahudin et al.,

(2016) also asserted that organizational commitment is linked with workers’ behavior &

attachment for organization.

2.3 Work Ethics and Turnover Intention

Rokhman (2010) expressed that turnover intention is a decision of mind intervening an

individuals’ attitude about job which means and stay or leave the organization. Turnover

intention comprises three elements in withdrawal mental process: 1) – the thinking for quitting 2)

– intention of searching other job anywhere else. 3) – the intention to leave. Rokhman (2010)

also quoted many studies revealing negative relationship between turnover intention and work

ethics. Three factors affect turnover or intention to turnover: rate of pay, age and amount of

experience, so new young employees are least attached to a particular organization particularly in

their twenties or first few years, whereas older employees have tendency to anchor in the certain

job due to the place and affiliation with society.

2.4 Rights and Obligations of Employees

According to Ahmed et al., (n.d) (HRM) is important for setting Islamic ways for

managing workers and also a basic function for making and assisting workers for achieving

organizational objectives more efficiently and effectively. Islam stresses upon workers’ duties

and obligations. Islam urges everybody on working for livelihood on the one hand and stands for

the rights of laborers on the other hand; and also reminds the workers their obligations and

duties; and guarantees the norms abiding employees’ rights. Workers’ rights are employers’

duties and workers’ duties are workers’ rights. Holy Prophet (PBUH) stressed the equality; as

per Hadith Abu Zar Ghaffari quoted: “Allah’s Messenger (PBUH) said they are your brothers.

Allah has placed them under your control as a trial. So it is incumbent upon the one whose

brother works under his authority to feed from his own food, dress him from his own dress. He



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should not assign him hazardous works that overwhelm him (the worker). If such work has been

given to him, he (employer) should help him.” Holy Prophet also commanded: “Let a laborer get

his wages before his sweat dries.” Holy prophet (PBUH) warned regarding those not paying the

wages on proper time, Mighty Allah will argue on reckoning day on behalf of those who are

affected.

3.0 Employers’ Side Perceptions of IWE

3.1 Employment Contracts and Agreements

Jawad (2008) stated that Holy Qur’an emphasizes Muslims to abide by agreements &

contracts. This principle is applicable to individual & collective agreements between employees

& employers. “O you who have attained to faith! Be true to your covenants!”(Holy Qur’an 5:1).

Khan (2016) expressed that in modern commercial relationships one of the important

established practice for achievement of organizational goal is the; necessity of an employment

contract between employers & workers at the commencement of employment. Islamic principles

also provide for contract which is very clearly comprising every necessary modern

employment’s elements e.g. job specification and description in precise terms, timings (working

hours), workplace, with pay holidays and leaves, pay and allowances, employment tenure, and

contracting parties’ right of finishing the employment contract etc. if these employment aspects

are absent or not precisely & clearly stated in the contract, it may cause the intractable dispute

among employer and the workers causing unavoidable harm to both. In Islamic principles,

ambiguous agreements or agreements with deficiency of these terms are invalid, ab-initio void,

and deserve termination.

3.2 Writing of Contracts

Jawad (2008) quotes the verse of Holy Quran that ‘when ye deal with others, in affairs

about future obligations in a fixed time period, bring them in writing…may be big or small; it is

juster in the sight of Allah Almighty, being a suitable evidence & convenient to avoid doubts

between yourselves’ (Holy Quran 2:282). Holy Quran ordains Muslims for being kind to each

other, a command equally applicable on employers and their workers. “God loveth those who are

kind” (Al-Qur’an, 5:13). Supervisors are bound morally not to mistreat employees working

under them in the hierarchy. The Holy Prophet Hazrat Muhammad (PBUH) said: “One who

mistreats those under him will not enter paradise” (Tirmizi). Therefore in Islamic perspective

employers & employees’ ethical behavior is a cornerstone of industrial relations.

4.0 Wages, Compensation and Rewards Practices

4.1 Wages

Jawad (2008 is of the view that as per Islamic principles wages should be determined,

before work and must be paid immediately at work accomplishment. Holy Prophet (PBUH) said:

“Give the laborer his wages before his sweet dries” (quoted in Ibn Majah). Holy Prophet (PBUH)

also said: that Allah Almighty commands, that ‘There are three persons to whom I (Allah) shall

be opponent on the judgment day: [one is] who hires a worker, uses his services and does not pay

him wages (Bukhari).



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Jawad (2008) quoted (from Bukhari) that according to Anas who served Hazrat

Muhammad (PBUH) for long time “the Prophet never paid a low wage to any person”.

Al-Khasawneh et al., (2015) expressed that Almighty Allah has exhorted in many verses

of Holy Qur’an the need of giving equal wages and not to be unfair, worker and the employees

be paid fair wages according to performance & quantity of work they carried out (Al- Qur’an

‘Al-Imran’ 3:57). Holy Prophet Hazrat Muhammad (PBUH) said that Allah Almighty said “three

I opponent their on the day of judgment: a man gave me then betrayed, a man sold a free man

and ate its price, and man who hired employee, interpolated him and did not give him a wage

(Bukhari, 114:488).”

4.2 Compensation

Jawad (2008 asserted that Islam commands to Muslims to pay the workers reasonable

financial compensation, sufficient to provide the minimum level of basic life necessities.

Siswanto (2014) argued that compensation purpose, of direct or indirect, is

acknowledging workers’ performance value and to know the ways to motivate workers to work

efficiently in changing business environment. During early period in Muslims’ countries,

compensation was according to five principles. 1 - Job is a contract and its performance is an

obligation for both employer and employee as Holy Quran commanded the Muslims to fulfill the

agreement, as well as refrain to avoid all attempt to evade any agreement (Al-Quran 7:85), “Do

not withhold from people the things that have matured.” 2 - Islam stresses that employees be

paid fair & adequate wages for work, considering the quantity & quality of work, workers’

requirements & needs and overall economic conditions. Compensation and wages be enough to

afford a decent life. Holy Quran acknowledges the various gradations among workers on work

quantity & quality basis (Al-Quran 45:19). Holy Qur’an also directs to determine wages by

mutual agreement & consultation (Holy Qur’an 28: 26-28). Some employees are with special

skills, whereas some perform the work manually, which gives evidence that all employees’

wages cannot be the equal in all cases. Holy Qur’an says “And for all stratified according to their

deeds” (46:19). 3 - Compensation is to be fixed in advance and wages must be given

immediately after completion of work. Holy Prophet (PBUH) said: “Whoever believes in Allah

should not employ an employee, without knowing what he would get as wage sufficient to afford

his basic necessities. 4 - Compensation can be both monetary and non-monetary. 5 -

Compensation and wage are based on previous deal and should be enhanced as per

circumstances. Allocation of everything beyond the terms of wages is prohibited being an act of

dishonesty or stealing. In case of too low wages employee would not be motivated enough to

exert efforts. Islam strictly forbids coercion & forced labor, like Holy Prophet (PBUH) said that

“The Lord told me that I would act as a plaintiff, in the judgment against those who engage

workers on the job and takes full work from him, but did not give him full wages.”

4.3 Reward Practice

Ilhaamie (2015) revealed that practice of reward is an important part of HRM. Islam

emphasizes on giving rewards to workers according to their knowledge, qualification,

capabilities, experiences, and their work amount. Rewards must be paid just after the work is



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completed (Saheh Ibn Majah) as delaying the payment of employees is considered act of cruelty

and not allowed in Islam (Al-Mutaffifin). No discrimination in payment of workers’ rewards on

basis of gender of the workers (Al-Quran, ‘Surah al-Nisa’: 32). All workers should be paid

bonuses, allowances, payment for overtime, leave & medical treatment, salary increments

beyond any discrimination or prejudice and all such terms of monetary & non-monetary benefits

must be mentioned in offer letter so that workers may consider them or negotiate if they are not

satisfied before accepting offer of appointment, because in Islamic reward practice musyawarah

is also the principle (Holy Qur’an, ‘Surah al-Imran’: 159).

5. Islamic Work Ethic and Organizational Justice

Siswanto (2014) quoted from researches that concept of organizational justice is very old

in administration literature. Justice is the employees’ perception of fairness, encompassing the

perception about decision making, outcomes distribution and perceived justice on the results. In

the organizations there are three approaches of justice; first is distributive justice, highlighting

how resources are distributed in the organizations, second is procedural justice, highlighting the

process used to make resources allocation decisions, and third is interactional justice, which is

highlighting interpersonal communication with relation to procedures in the organization. In

hiring priority should be on individual’s qualification and management must develop proper

procedure to deal with employees’ complaints and for evaluation the main criteria should be

performance and management should be refrain from favoritism & nepotism.

Rokhman & Hassan (n.d.) revealed quoting from literature that theory of organizational

justice gives a useful framework towards understanding individuals’ attitude towards work, work

behavior & job. In the context of organization, justice is the perception of fairness towards

organizational practices consisting of selections, rewards, pay, promotion & allocation of other

resources. Employees’ organizational justice perception is a sufficient factor which influences

different work outcomes like; job satisfaction, organizational citizenship behavior, organizational

commitment, intention to leave & turnover intention. Equity theory points out that those

employees will mould their behavior for producing what they perceive about burden at work &

equitable balance of benefits.

Rokhman & Hassan (n.d.) also mentioned three sub-domains of organizational justice:

i.e. distributive justiceand procedural justice, and interactional justice. In Islam justice is

attributed to placing anything at its right place. In an Islamic context, there are three important

dimensions of justice, consisting: (1) to place an employee at a post or job according to his

capabilities, (2) to make decision according to person or situation receiving it, (3) keeping the

property or wealth to persons rightly deserving. Justice is a dynamic virtue and all Muslim must

struggle for developing it, may they be leaders or followers. Muslim leaders having Islamic

ethics would deal the matters with the attributes in the organization.

Alarimy (2015) stated that by looking the importance of organizational justice, scholars

& professional managers concerning the presence of organizational justice recognize HRM’s

potential contribution in exercising organizational justice. Qur’an in Islamic perspective usually

reminds, honesty & justice in business, and stresses on fair & equitable wealth distribution in the

society. Islamic management very much emphasizes upon principles of justice. As mentioned in



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the Holy Qur’an “God both commands you to render back your trust to those to whom they are

due; and when ye judge between man and man, that ye judge with justice; verily how excellent is

the teaching is the teaching which He giveth you! For God is He who hearth and seeth all

things.” Issue of justice is stretched in all HRM activities, e.g. in recruitment & selection of the

employees. The Quranic standard of job eligibility is the competence & required merit. Islam

emphasizes the significance of competence & honesty because in the absence of these

prerequisites no one is efficient.

Alarimy (2015) narrated that Justice (Adl) being just is a quality a human resource

manager should develop in order to manage his subordinate effectively and efficiently. Managers

should treat their subordinates with courtesy and respect and never ignore their views and

suggestions or look down to them. Allah Almighty said in holy Qur’an that: “O you who have

believed, be persistently standing firm in justice, witnesses for Allah, even if it be against

yourselves or parents and relatives. Whether one is rich or poor, Allah is more worthy of both.

So follow not [personal] inclination, lest you not be just. And if you distort [your testimony] or

refuse [to give it] then indeed Allah ever, with what you do Acquainted” (Surah 4: Aayat 135).

As a part of justice in Islam Allah commands that there should be respect of agreements between

parties (employer and employees) which, clarifies true justice.

Siswanto (2014) squeezing the literature found a close relationship of Islamic work ethics

to job satisfaction, organizational commitment, and loyalty. Siswanto (2014) quoted that

organizational justice is an important issue and a common problem related to human resource

and expressed an important relationship to organizational commitment, job satisfaction, &

turnover of employees. Siswanto (2014) further asserted that generally distributive justice &

procedural justice are related to employee compensation.

Khan (2016) asserted that for a peaceful society justice is a prerequisite, and a necessary,

content for social & organizational development. organizational justice and perception of

workers for fair & transparent treatment in the organizations are highly important for solidarity,

motivation, unity, and workers’ loyalty in the organizations and related positively to workers’

efficiency, performance, & effectiveness in the organization & casts positive effects upon HRM.

Justice boasts team spirit, solidarity & unity. So, much attention is to be paid to strict observance

on human resource functions i.e. selection, appraising performance & compensation & rewards.

Islam stresses organizational justice and also demands to follow procedural justice principles in

organizational decision making. Islam demands the selection of best people for job.

6. Trust in Organization

According to Ab. Rahman et al., (2013) HRM practices refer a process encompassing the

functions like acquiring, developing, motivating, & maintaining the human resource. The

principal function of HRM practices is managing the workers smoothly with the aim of boasting

their psychological, affiliation with the organization.

Alarimy (2015) expressed that human resource and issues concerning HRM are pertinent

in any organization to be successful in the modern time. HRM is the one of major aspects to be

considered if an organization would like to improve and also promote its administration.



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Alarimy (2015) elaborating trust (Amaanah) asserted that all human beings in Islam are

accountable for their actions. A good human resource manager and employee should be

accountable for what they do to one another. This would make HR manager better in managing

employees. Allah Almighty says in Holy Quran that: “Oh ye that believe betray not the trust of

Allah and the Messenger, nor misappropriate knowingly things entrusted to you” (Holy Qur’an

8:27). Trust is also a good characteristic to human resource manager; and managers should

portray honesty to employees as stressed in Islam. Trustworthiness might take two forms; when

rewarding and punishing employees. Trust in HRM causes consultation & authority delegation

by employers to their employees. The employees need to have trust in their employers as well as

the employers having trust in their employees. Trustworthiness in HRM might be reflected in

terms of contracts made between the employees and employers. According to Islam both the

employers and employees have to fulfill their obligations in the contracts.

7. Business and Customers Perspectives

Adelzadeh (2012) mentioned that according to Qur’an every good conduct can be called

“Hassan” since it involves and it is attractive. Mighty Allah commands for justice & good

conduct & giving to relatives & prohibits immorality, bad conduct & oppression.

Ashtankar (2015) while discussing Islamic ethic narrated that goods & services must be

halal. Goods & which are not halal are disallowed and Islamic teachings condemn them.

Ahmed et al., (n.d) stated that Islam emphasizes the corporate social responsibility

(CSR). The social serving of all the organization add to their goodwill & their market value.

Islam emphasizes to take from the rich & pay to the poor. Ahmed et al., (n.d) further wrote that

Islamic teachings to take care of promises are also applied on business dealings. If someone

makes a deal must also fulfill it, otherwise he will be punished and mutual consent is must in

trade. Controlling prices or raising price level unethically is forbidden. Stocking commodities

with intention of selling them when demand - price level is raised is also forbidden. Overall

Islam requires good moral values and ethics in all life perspective.

Ahmed et al., (n.d) asserted that businesses are to be observed in the manners having

ability to follow & build nation’s culture. In Islam business is not only to seek profit but business

is one of the branches of faith. According to teachings of Holy Prophet (PBUH) “No fraud or

deceit, when a sale is held, and there is no cheating”. Sellers must avoid making too many oaths

when selling merchandise.

Ahmed et al., (n.d) are of the opinion that Islamic ethics stresses on economic worth and

also emphasizes the welfare development, socio-economic equality & contentment of the human

beings. Islamic goals based on Islamic concept of human beings’ good life and welfare

emphasizes on socioeconomic justice & brotherhood and needs balanced satisfaction of spiritual

wants of mankind. Islam decided rules and regulations which also guide business community.

Ashtankar (2015) asserted that fairness in advertisement has much significance in ethical

system of Islam. Fairness means quality & features advertised and felt by viewers, should be

present in the products. Honesty a key of Islamic business ethics for all business practices.



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Giving advertisement with exaggerated, deceptive & selective message is viewed unethical by

Islam due to its deceptive nature. Holy Prophet said, “He who cheats is not one of us”. Selling

products by cheating is not according to Islamic business ethics. Holy Qur’an expressed clearly:

“Give just measure and cause no loss. And weigh with scales true and upright and withhold not

things justly due to men” (Al-Qur’an 26:181).

8. Conclusion

From above literature it can be concluded that IWEs are comprehensive, realistic &

moderates because work ethics is a set of the principles of management derived from Holy

Qur’an & Holy Prophet’s (PBUH) sayings a basic sources of guidance and more concerned with

moral commitment as compared to calculative involvement. Islam stresses on working so in

Islamic perspective work is not an optional affair to be dispensed by someone, but an imperative

necessity, so Holy Prophet said that “Allah loves the believers laboring to earn living by lawful

means. Work ethics have close positive relation with job satisfaction. Understanding this

relationship is necessary to find methods for intervening procedures to mitigate factors reducing

satisfaction of the work conditions. The organization wherein work is done according to IWE

principles, employees feel more job satisfaction, exhibit more organizational commitment, depict

less absenteeism, less labor turnover intention, and more responsible behavior. Similarly

employers give written employment contracts or appointment orders, exhibit organizational

justice while giving wages, compensation and rewards which are more proper and based on

justice. And all these practices lead to improve workplace peace and harmony and more

productivity resulting in the form of more profit which is the main objective of business.

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