Abstract

Purpose The purpose of this study is to propose a contemporary human resource management (HRM) framework by zakat institutions, which collect and manage religious alms, both obligatory (zakat) and voluntary (ṣadaqah), in Malaysia. Design/methodology/approach In doing so, discussions pertaining to the key elements of zakat institutions’ HRM including recruitment, selection, performance appraisal, training and development and compensation are gathered from the existing literature and other sources of information such as zakat institutions’ websites and publications. In addition, zakat officers’ insight on how HRM is practiced at their institutions is gathered through a series of semi-structured interviews and incorporated in the findings of this study. Findings The paper finds that the state government, by virtue of the State Islamic Religious Council (SIRC), which is the sole trustee of all waqf properties in Malaysia, may have significant influence in formulating the human resource strategies and policies in zakat institutions. Research limitations/implications The proposed HRM model can be a useful reference for SIRC in enhancing the current human resource practice in its respective zakat institutions. Originality/value The novelty of this study lies in the proposed HRM model applicable to zakat institutions. The model emphasizes the alignment between the zakat institutions’ HRM practice and their zakat collection and distribution goals, as well as zakat management objectives in general.

Highlights

  • Human resource management (HRM) is a vital internal function of an organization that helps to ensure effective use of human capital in achieving the organizational objectives

  • Zakat institutions in Important elements in constructing the human resource management model for zakat institutions This section discusses the typical components of the HRM framework that can be found in the literature on conventional organizations, namely, recruitment, selection, performance appraisal, training and development and compensation

  • The purpose of this study is to thoroughly review the current human resource practices of zakat institutions in Malaysia in relation to the key elements of HRM that exist within Islamic organizations as proposed by Hashim (2009) including recruitment, selection, performance appraisal, training and development and compensation

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Summary

Introduction

Human resource management (HRM) is a vital internal function of an organization that helps to ensure effective use of human capital in achieving the organizational objectives. Analyzing the impact of HRM policies and practices on an institution’s performance is a crucial topic of discussion in modern organizational management (Boudreau, 1991; Jones and Wright, 1992). Zakat institutions manage religious obligatory alms within the ambit of the Sharīah (Islamic law) and social finance. Studies on distinct features of HRM of zakat institutions are almost non-existent in the literature. To fill this gap, discussions pertaining to the key elements of zakat institutions’ HRM – including recruitment, selection, performance appraisal, training and development, and compensation – are gathered from the existing literature and other sources of information such as zakat institutions’ websites and publications. The present study is among the first to describe the key elements of modern HRM practiced by zakat institutions in Malaysia today. The fourth section presents the proposed HRM model for zakat institutions.

Zakat institutions in Malaysia
HR Practice
Strategic orientation
Conclusion
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