In Muslim countries religion impacts on HRM practices and organisational outcomes but it is not given sufficient attention and not formally and clearly listed in organisational rules and
regulations, yet it influences informally and spontaneously (Ali, 2009; Ali & Al-Owaihan, 2008; Hashim, 2010; Randeree & El-Faramawy, 2010). Most studies on Islamic management, have concentrated on gender and management (Metcalfe, 2006; 2007), Islamic leadership (Ahmad, 2009), accounting and finance (Chong & Liu, 2009; Napier, 2009) and Islamic marketing (Hashim & Mizerski, 2010). Branine and Pollard (2010) and Metwally (1981) argued that few examples of compeletely implementing the Islamic principles can be found in Muslim countries and Eygpt is given as an example by (Rice, 1999). On the contrary, some Islamic countries have attempted to carry out a reinvigoration of the Islamic approaches in government and businesses, but many empoyees are not fully aware of Islamic HRM practices (Hashim, 2010). According to Ali (2010, p.696) “The diversity and plethora of HR models makes it difficult to thoroughly and adequately investigate them in light of Islamic prescriptions and condoned actions”.
Furthermore, prior studies have revealed that different HRM models have evolved in Muslim majority societies (see Ahmed, 2006; Aycan, 2006; Chew, 2005). Beekun and Badawi (2005) argued that few organisation have research and development departements or are ready to fund research. Likewise, governments and companies are afraid of doing studies particularly when they are related to evaluating their performance. Furthermore, the implications of these studies might take management researchers to unfamiliar territories, concepts which may require taking undesirable decisions (Weaver & Agle, 2002). Much of the literature related to HRM, commitment, and satisfaction is based on Western culture or context (Abdulla, Djebarni & Mellahi, 2011; Tsui, Pearce, Porter & Tripoli, 1997).
Moreover, others refer to the dominance of the Western HRM practices in banking, political and educational systems in developing some Muslim countries (Chew, 2005; Goldstone, 2012; Idrus et al., 2011; Rice, 1999). Consequently, establishing a balance between adaptation of Western management practices whilst preserving Islamic norms has been one of the main challenges that Muslim countries are facing especially in HRM practices (Ali, 2010) although Beekun and Badawi (2005) viewed the cultural diversity of the Muslim societies as another possible reason. Furthermore, the daily life of some Muslims contradicts the normative Islamic Business Ethics (Asad, 1993; Beekun & Badawi, 2005; Muatasim & Katharina, 2012). Conducting an experiential study on ethical behaviour in organisations is not only a challenging issue in terms of conceptuality but also conducting it in a neutral way because studying religion is sensitive thus choosing an appropriate methodology is another challenge (Mellahi & Budhwar, 2010; Weaver & Agle, 2002). Furthermore, the absence of effective and
sophisticated establishments capable of translating these normative ethics into practice is viewed as another potential reason (Muatasim & Katharina, 2012).
These reasons have mainly caused the backwardness that the Muslim world is suffering from specifically in the academic area (Abbas & Manton, 1998). However, Tayeb (1997) stated that Muslims are witnessing a revival all over the Muslim world and coming back to Islam. Some Muslim countries like Saudi Arabia, Iran, Pakistan, and Malaysia are readopting the Islamic law and regulations (Metwally, 1981). Examples of companies or organisations that have fully adopted IWE principles are scant, however, Savola a multi-billion dollar conglomerate headquartered in Saudi Arabia, has adopted IWE principles such as personal control (Mujahadah), honesty (Amanah), caring justice (Birr) and conscientiousness (Taqwa).
Savola has become ‘‘one of the most successful and fastest growing multinational food groups in the Gulf and the Middle East Region, North African and Central Asian countries (MENACA) has a wide portfolio of businesses including three core sectors (Retail and Plastics, Sugar and Noodles/Pasta, and Foods’’ (Savola website, 2013).
The example of this company is an indication and evidence that embracing IWE principles can be sucessful. Nasr (1984) and Weaver and Agle (2002) argued that more studies should investigate IWE and its relationship and influences at the workplace because it is the ideal that Muslims pursue to realise. This study attempts to provide an IWE scale based on normative Islam which links Muslims in different countries and societies. Understanding normative Islam and its work ethics may help to better understand the mindset of Muslim employees, managers and business persons (Beekun, 1997; Saeed et al., 2001; Uddin, 2003). The cultural aspect incorporated with religion should be addressed in future works to give a better understanding of religous implications in the workplace.
2.6.1 Human resource management practices from an Islamic perspective and reality
Careers, and by extension general HRM in the Middle East can be seen as intertwined with, religion, social and economic dynamics national politics, international law, gender, ethnicity and culture (Iles, Almhedie & Baruch, 2012). Human resource practices in the Muslim and Arab World are regularly and extremely subjective influenced by Wasta, nepotism, kinship, private connections, ethnicity regionalism and recruiting employees friends and relative as well as the influence of political affiliations (Al-Remahy, 1995; Iles, Almhedie & Baruch, 2012;
Yeganeh & Su, 2008). There are four factors that mainly create an atmosphere for nepotism in Muslim countries. Firstly, social-cultural structure and behaviour, clans, kinship, cultural and tribal traditions form the individual’s behaviour, norms and values. Secondly, due to the poor economy and high unemployment rates there will be a strong competition for fulfilling the positions therefore, nepotism plays a significant role in recruitment through wide and complex networks. Thirdly, the old-style way of education which produces under skilled people who are unable to adapt to new process and competitive markets. Finally, political systems and guaranteeing the loyalty of the clan’s leader specifically by giving them substantial positions in the public sector since in most Muslim countries the government is the main employer due to the weak role of private sectors. Selection from an Islamic perspective should be based on competency and merit and it should not be influenced by blood relationship, kinship friendship, nepotism, Wasta, political power, race or wealth (Alorfi, 2012). Most public organisations are accused of corruption and recruitment mostly does not fit with Islamic teachings (Ali, 2005). The Islamic principle of fairness goes against nepotism in selection (Mellahi & Budhwar, 2010). Quran advises (28:26) “Truly, the best of people for thee to employ is one who is competent and trust worthy”. Additionally, the Prophet (PBUH) emphasised that “[he] who is in a leadership position and knowingly appoints a person who is not qualified to manage others, or violates the command of God and His messenger” and “when a person assumes an authority over people and promotes one of them because of personal preferences, God will curse him forever”. However, in modern Muslim organisations much personnel selection contradicts Islamic faith, and a popular phenomena exists known as “unity of contradictions” (Ali, 2008). Thoeretically, in Islamic faith; kinship, regional favouritism, Wasta and nepotism are prohibited. In practice these rules are broken and relatives and people recommended by friends are given the preference regardless of their abilities and qualifications (Al-Remahy, 1995; Iles, Almhedie & Baruch, 2012; Namazie & Tayeb, 2006). Yeganeh and Su (2008) reported similar situation in Iran.
Payment sometimes is not based on education qualification or experience but by Wasta. Financial incentives are used in Capitalism, whilst Islam emphasises the concepts of Halal (just) and Haram (unjust) and the ultimate reward in the hereafter. Therefore, the concept of intrinsic motivation is provided by Islam which makes the concept of compensation twofold; material benefits which include wages and salary as a means of sustenance and the true reward is in the hereafter as working is considered as an act of worship (Ahmad, 2009). Based on Islamic teachings a clear contract should be made for employees which clarifies the rights,
responsibilities, nature of the work and recompense compatible with their abilities and capabilities and based on justice and fairness (Williams & Zinkin, 2010). Performance appraisal in Islam should be based on fairness, justice, responsibility and accountability and the attribution should be based on selection criteria (Rahman et al., 2013). As stated in the Quran (74:38) “Every soul will be held in pledge for its deed” (Ali, 2010) indicating that no one is held responsible for the mistakes others have committed (Hashim, 2010). Islamic teachings urge managers to be responsible and fair in evaluating others with the purpose of improvement and development rather than publicising weaknesses (Azmi, 2010). However, generally besides the influence of Islam, other social and environmental factors such as cultural norms and values, economical issues and political environment are more likely to influence HRM practices in the Middle Eastern and Arab countries (Yeganeh & Su, 2008; Gerhart & Fang, 2005; Jackson & Schuler, 1995). These political and cultural factors heavily affect unployment rates and the economic situation (Yeganeh & Su, 2008). In spite of applying the procedures of performance appriasal to a group as a whole, disciplinary actions are carried out in private so as not to cause loss of reputation/face to an individual and their group. Generally, in the Arab culture saying “no” face to face is not easy and successful managers who are able to give negative messages while keeping their interpersonal relationships and support are considered to be successful (Iles, Almhedie & Baruch, 2012). Literature on HRM practices in Arab countries reveals that; training and development are still not given great attention and are considered as a function of vacation and leisure time rather than a key function contributing to organisational successs (Altarawneh, 2009). However, recently Jordan has presented more transparency through online declaration of job vacancies. Moreover, the ministry of finance and industry in the UAE in cooperation with Harvard University have started a programme to train senior government officials in order to enrich their skills of leadership and management (Iles, Ahmadie & Baruch, 2012). The selection system was very similar to what is mentioned above but now is more competitive. Likewise, the Kurdistan Regional Government announced a reform plan and nepotism has a smalller less role in recruiting people compared to few years ago.