A Proposed Islamic Performance Measurement Model

Abstract

Performance Management (PM) system available nowadays mostly measures and appraises performance solely on outcomes of material aspects, while ignoring humanistic aspects leading to unfair employees’ performance appraisal. This concept paper aims to propose a PM model embedded with Islamic values which emphasizes that measuring and appraising performance should not only focus on outcomes, but also on effort exerted by the employees. Such measurement is seen as necessary as it will self-regulate employees to view work as an ‘ibadah’ which promotes self-supervision on the concept of ‘ihsan’ leading to highly ethical workforce. Previous literature, focusing on PM articles, especially those related to Islamic views, Islamic management, and related parts of al-Quran and Sunnah were reviewed. Combination of different viewpoints gives a rich source of knowledge to achieve the paper’s objective. Findings from the review are used to argue and propose an Islamic PM model believed to produce satisfied employees that is grounded on the tenet that PM should combine both materials and spiritual aspects. It should start with the selection of a right leader who ensures Islamic work culture (which are universally accepted) to first be created and embraced and to apply Maqasid al-Syariah in designing its PMS based on both materiality and spirituality aspects. This study contributes to new knowledge as it tries to extend limited available literature on this topic, especially on integrating effort together with outcomes in measuring and appraising employees’ performance, thus contribute to productive workers with better quality of work life.