Islam And Human Resource Management

Published on July 15, 2015

Manager HR, Shared Services, Center of Expertise, SHRM Certified
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 Comment25
 “This Artic

le is based on online research/Islamic practices/listening from parents

and others from early childhood till date. It may or may not cover all
aspects of Islamic directions which are given by Allah Subahn o Talah. ”
Muhammad Haseeb

“May Allah Forgive any mistake in this Article” Ameen. I am open to

correct myself wherever I did mistake.

Starting the topic Islam and HR. The companies cannot afford to ignore the potential
contribution that human resource management can make in practicing Islamic Perspective. From
the Islamic perspective, the Holy Quran often reminds of honesty and justice in business, and
demands for an impartial and fair distribution of wealth in the society Islamic management very
much emphasizes on these principles. This requirement is stated in the Holy Qur’an (Nissa
4:Verse 58), “God doth command 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 heareth and seeth all things.”

The issue of justice and equality is dominant in all of human resource management activities.

Let’s take the few HR functions or activities to learn what Islam teaches us regarding these
functions

 Recruitment and Selection

 Training and Development
 Performance Appraisal
 Compensation and Employment
 Organizational Behavior (Employer and Employee)
 Employee Relations and Arbitration
Let’s talk about them one by one.

Recruitment and selection

 In recruitment and selection of employees, favoritism and preference has always influenced
hiring decisions. Selection is one of the most complicated tasks in organization. This is due to
the fact that when there are many candidates applying for the jobs, employers have plenty of
potential candidates to select from. In order to ensure the recruitment is fairly conducted and a
just treatment is given to all applicants, Islam requires the person in charge of recruitment to be
pious and just. A manager is obliged to perform prayers, fasting, zakat and other pillars of Islam
so to attain best level of religiousness. The Quranic standard of eligibility for a job is the required
merit and competence for it. It stresses the importance of competence and honesty since without
these pre-requisites one could not be efficient.

The Holy Qur’an states, (Qusus 28:Verse 26) “Said one of the (damsels): “O my (dear) father!
Engage him on wages: truly the best of men for thee to employ is the (man) who is strong and
trust worthy.”

Fact is, to overlook the needed competence for a job and to select an applicant for any other
considerations are equivalent to dishonest as well as injustice.

In Islam, employee selection is abided by certain principles.

1. Justice. Ali Ibn Abi Talib wrote; “Do not nominate them (officers) on
account of favoritism or egois These two attributes reflect injustice and
treachery.”
2. An employee is selected based on his competency. The individual is
not to be appointed based on kinship or blood relationship, friendship,
wealth, age, race, and political power or alike.
3. Third principle is honesty. Both the applicant and recruiter have to be
hones
4. Fourth, Islam forbids assignment of work that will exceed the
individual’s capacity.
the Qur’an states, (2:233): “No soul shall have a burden laid on it greater than it can
bear.” This is because the individual may not be able to perform the assigned job due to their
inadequacies.

Employers are required to inform the truth about the jobs offered to applicants. These include the
job requirements, the criteria of the job holders, and the compensation to be paid. It is important
for the information to be fairly provided to applicants so that they can evaluate and match well
the job suitability with their competency, capability, interest, and rewards.

Training and Development

Training is the process of developing qualities in human resources that will enable them to be
more productive and thus to contribute more to organizational goal attainment. According to the
Quran, man’s basic qualification for being the representative of Allah on earth is to possess
knowledge. Allah Almighty said, Indicates towards knowledge (2:30-33) Conclusion: “When
the Angels questioned Adam’s suitability for representation, God cited Adam’s knowledge to
convince them.” Points may be drawn from these verses of the Holy Quran. Adam’s progeny is
entitled to a position as Allah’s vicegerent on earth on the basis of knowledge. Those among the
children of Adam who are more deserving of vicegerents are those pre-eminent in
knowledge. Men of knowledge surpass others, and limit the reception of admonition to those
endowed with knowledge and understanding in ranks in the presence of their Lord, and are more
favoured than others.

Allah Almighty said (58:11); “Are those who know equal to those who know not?” But only they
who are endowed with understanding keep this in mind.”

The Prophet Muhammad ‫ ﷺ‬said: Verily, God loves if any of you does a job, he does it with
perfection”

Prophet Muhammad ‫ ﷺ‬in this Hadith, addressed this valuable wisdom to all mankind, male or
female, old or young. The Prophet ‫ ﷺ‬through this Hadith directed the speech to all professionals
and urged them to strive to achieve excellence, proficiency, and perfection.

Shaddid b. Aus said: “Two are the things which I remember Prophet Muhammad (‫ )ﷺ‬having
said: Verily God has enjoined goodness to everything; so when you kill, kill in a good way and
when you slaughter, slaughter in a good way. So every one of you should sharpen his knife, and
let the slaughtered animal die comfortably” (Sahih Muslim: Chapter 11, 21:4810).

The Holy Prophet (‫ )ﷺ‬said: "When any man does any work, Allah wishes him to give it
perfection and grace (i.e. the man is expected to do his work in the best possible way)".

The beautiful Deen of Allah has regulated every facet of man's activity. Divine directives are
both perfect and compatible to every age and era. Adherence to these directives will ensure peace
and stability, whilst aversion to the same may perpetuate strife, loss, and oppression.

Islam made education obligatory for all rich and poor. It is the duty of rich people to facilitate
education for poor people.

Prophet Mohammed (‫ )ﷺ‬Said: “Seeking knowledge is obligatory for all muslim men and
women” (Ibn Majah).

Allah calls for job mastery. Thus, it is an obligation for Muslims to seek knowledge diligently
and obtain excellence in performance. Muslims are urged to seek knowledge from the cradle to
grave. This great concept creates a state of knowledge continuity.

The duty of seeking knowledge lies on the individual as well as the employer. It is obligatory
for Muslim employees to seek knowledge to serve his employer well. The employer, on the
other hand, is responsible to provide opportunities to enable the employees to improve their
competencies. The decision on who should attend training organized by employer is always
subject to the superior. Superior will need to review pertinent information regarding the
employee’s performance and potentials to recommend the employee for training. Of course,
some employees are more fortunate than others. The unfortunate ones usually perceive they are
unfairly treated.

Performance appraisal
Performance appraisal is a formal system of setting work standards, assessing performance, and
providing feedback to employees for the purpose of motivation, corrections and continuation of
their performance Information obtained from performance appraisal is used as a basis for pay
and promotion decisions. In Islam, there are rewards and punishments in worldly life and the
Hereafter. Good news and warning from Allah to humankind are sent through His Divine
sources of revelation and His Messengers, Al- Qur’an states (18:87-88): “Whoever doth wrong,
him shall we punish; then shall be sent back to his Lord, and He will punish him with a
punishment unheard of (before). But whoever believes, and work righteousness, he shall have a
goodly reward, and easy will be his task as we order it by our command.”

Performance appraisal is another HRM activity that is subjected to justice. Appraiser biases are
well documented. There are almost a dozen of known phenomena which prove that supervisors
tend to appraise employees inaccurately because of subconscious tendencies. Managers at times
find it difficult to appraise their employees effectively. This is due to religious consideration,
personal relationship and bureaucratic tendencies. We should be aware that measuring
performance in Islam must take into account the concept of accountability and
responsibility. Given the responsibility to appraise employees, managers must be fair and care
for their employees.

Compensation and Employment

Distributive justice and procedural justice are commonly associated with employees’
compensation. The purpose of any compensation, whether direct or indirect, is to recognize the
performance value of employees and to establish ways to motivate them to work with full
efficiency in an ever changing business environment. In the early years of Muslim State, the
compensation was based on five foundations.

First, employment is a contract, thus the fulfillment of a contract is an obligation for both
employer and employee to meet. The Qur’an not only instructs believers to meet conditions, but
also to avoid any attempt to go around the contract (7:85), “Nor withhold from the people the
things that are their due.”

Second, Islam emphasizes that workers should be given adequate and reasonable wages for
their work, keeping in view the quality and quantity of work, their needs and requirement, and
the overall economic condition of the society. The Qur’an acknowledges various gradations
among workers on the basis of the quality and quantity of their work; some workers need
specific skills, whereas some can do manual work. This provides an ample proof that wages for
all workers cannot be equal in all cases. The Qur’an states, (46:19) “And to all are ranked
according to their deeds.”

Third, compensation must be determined in advance and wage has to be given immediately
once the work is completed. Prophet (‫ )ﷺ‬said; “Whoever believes in God and the Day of
Judgment, should not employ a worker, until he or she knows what he or she is going to receives:

Prophet (‫)ﷺ‬: "Pay the labourer his wages before his sweat dries".

Fourth, compensation can either be monetary or non-monetary.

Fifth, wages and compensations are based on prior agreement and should be increased
according to circumstances. Islam forbids any misuse or misappropriation of an employer’s
property by his employee, who is entitled to the mutually agreed wages only. Appropriation of
anything beyond the stipulated wages is either an act of dishonesty or stealing both of which are
expressly prohibited. In addition, wages and compensation should be sufficient to provide a
decent living. if the wage is too low, the individual may not feel motivated to put in an adequate
amount of effort, on the other hand, stated that a worker is entitled to a fair and just wage for his
work.

The Qur’an instructs that wages must be determined with mutual consultation and consent
(Qur’an 28:26-28). Islam strictly prohibits coercion and forced labour. As narrated by Abu
Huraira, the Prophet (‫ )ﷺ‬has said; “God says that I will act as a plaintiff, on the Day of Judgment
against the person who engages some worker on work and takes full work from him but does not
give him (full) wages” (Sahih Bukhari, Volume 3:34:430). At the same time, Islam denounces
slavery and gives proper recognition to the dignity of work and employment. As narrated by Al-
Miqdam, the Prophet (‫ )ﷺ‬has said, “Nobody has ever eaten a better meal than that which one has
earned by working with one’s own hands” (Sahih Bukhari, Volume 3:34:286).

Prophet Mohammed (‫ )ﷺ‬said:“ One who exercise his authority and power unjust way will not
enter Paradise” (Ahmed , Ibn Majah, Tirmidi)

It’s the signal to all Managers and authorities to exercise their duties with full commitment and
honesty.

Prophet Mohammed (‫ )ﷺ‬said: “All of you are shepherds and each of you is responsible for his
flock.”

Employer must protect employee from hunger by giving his wages and providing security of
job and employee must provide business security of his employer by saving from losses. Allah
Said: “Let them adore the lord of his house who provides them food against hunger and security
against fear (danger)” (Quran Surah 106, verses 3&4)

Employer and employee both must be honest to each other. Cheating and deception from
both sides are not allowed in Islam. Employee should not cheat at work and work less while he
takes full salary. On the other hand employer should not cheat in paying less while employee
works in full.

Allah Said: “Woe to those that deal in fraud, those who when they have to receive by measure
from men, exact full measure. But when they have to give by measure or weight to men give
less than due” (Quran: Surah 83, Verses 1 to 7)

Prophet Mohammed (‫ )ﷺ‬Said “Whoever cheats us is not of us” (Muslim, Tirmide, Abudawood)

Organizational Behavior (Employer and Employee)

EMPLOYER
Give wages of employee at agreed time: Remember delay may cause difficulty to the employee,
may be he will not have money to buy food and other basic necessities. Prophet Mohammed (‫)ﷺ‬
Said: “Give the wages of employee before his sweat dry” (Ibn Majah, Hadith no. 2468)

Wages should be in right amount: Employer should pay the right amount as agreed. Unlawful
deduction is not permissible in Islamic religion. Allah Said: “Do not withhold from the people
the things that are their due” (Quran: Surah 7: Verse 85)

Prophet Mohammed (‫ )ﷺ‬said: “I am the adversary of a man who employs a worker but does not
pay him rightful wages” (Bukhari, Hadith No. 2114)

Work Load: Do not give employee workload more than his ability. If work load is heavy
help him. Prophet Mohammed (‫ )ﷺ‬said: “Do not give them workload more than their ability. If
workload is heavy help them” “People work under you also Human being like you do not throw
them into misery and suffering” (Targib & Tarhib, Ibn Habban)

WORK PLACE Safe work place, food, drink and uniforms at the time of work must be
provided, Prophet Mohammed said : “ Food Drinks and Cloths are the right of people working
under you” (Ibn Habban)
Make the Work Easy: Make the work easy for the employee, provide training, tools and
equipment’s as needed.
Prophet Mohammed (‫ )ﷺ‬Said: “The more you make work easy for your employee, the more
you will be rewarded by Allah” (Targib & Tarhib)

This reward is not only in life after death. One can see this reward in the form of better
performance and more profit in this world also.

Behavior: Behave well with your employee Prophet Mohammed (‫ )ﷺ‬Said: “One of the
actions that will be beneficial in your life after death is your good behavior with people working
under you” (Ahmed, Ibn Majah, Trimidi)
Employee’s Welfare: General welfare of the employee is a moral responsibility of
employer. Allah Said: “Do good to those whom your right hand possess (worker)” (Quran: Surah
4, Verse: 37)

Among good deeds education and health care are most important. The employee who does not
have money to send children to school and the employee who does not have money for medical
treatment deserve your support, even though it is not in the employment contract.

Health care is another very important subject the employee who is working so hard for you,
come up with help if cannot support self and family medical need, it is your duty to stand beside
him.

Prophet Mohammed (‫ )ﷺ‬Said: “Verily Allah, the exalted and Glorious would on the day of
resurrection ask: O son of Adam, I was sick but you did not take care of me. He would say: O
my lord, how could I take care thee whereas thou art of the worlds? There up he would say: did
not you know that such and such servant of mine was sick but did you not take care of him (pray
for his cure, show kindness and help him) and were you not aware of this that if you had cared
him, you would have found me by him. (Collected by Imam Muslim).

Respect, dignity and kindness to the employee: It is the duty of employer to

ensure through his managers, supervisors, the respect and dignity of employees irrespective of
their position. Allah has glorified shepherds, farmers, carpenters, blacksmiths by choosing his
prophets from them. Prophet Adam was farmer, Prophet Noah was carpenter, Prophet Daud was
blacksmith, Prophet Musa was shepherd.

Prophet Mohammed (‫ )ﷺ‬said: “I worked as shepherd for small wages” So it is the responsibility
of employer to make sure his employees at lower level is not mistreated.

Prophet Mohammed (‫ )ﷺ‬said: “One who mistreat those under him will not enter
Paradise”(Tirmidi)

EMPLOYEE
Working as an employee is one of the respectful means of earning livelihood. Islam considers
“Work” as “Worship”. A workman is benefitted for his work is this world and after life. It is
our duty to go out and engage in work for earning livelihood.

Allah Said: “Then when the prayer is ended, you may desperse through the land and seek the
bounty of Allah (by working) and remember Allah much, that you may be successful” (Quran:
Surah 62, Verse 10) Prophet Mohammed (‫ )ﷺ‬said: “Best earning is what is earned by the labor of
hand with sincerity” (Ahmed, Hadith No. 83 93)

While working under an employer the following obligations to employer need due attention:
Employee is required to do his job in best possible manner and to the best perfection for the
welfare of his employer Prophet Mohammed (‫ )ﷺ‬said: “Allah likes a worker to be perfect in his
work” He also said “ “ The employee who performs his duty to his employer and Allah in right
manner, Allah will give him double reward.” (Baihaqi, Hadith No. 5312 & Bukari, Hadith No.
4710)

Employee should be loyal to employer and work for the welfare of the employer.

Prophet Mohammed (‫ )ﷺ‬said: “When an employee looks to the welfare of his employer and
worship Allah, he has two rewards for him” (Muslim: book 15, chapter 11, No.4097)

Employee needs to fulfill obligations to his employer.

Prophet Mohammed (‫ )ﷺ‬said: “When an employee fulfills obligations of Allah and obligations
of his employer he has two rewards for him” (Muslim, books 15, chapter 11, No.4100)

Employee must not neglect his work nor harm employer whether he sees or not. He should work
sincerely and take care of property of the employer. Allah said: “Do deeds! Allah will see your
deeds and (so will) his messenger and the believers. And you will be brought back to the “all
knower” of unseen and the seen. Then he will inform what you used to do” (Quran: Surah 9:
Verse 105)

Employee needs to maintain work place safe, clean and hygienic. Prophet Mohammed (‫ )ﷺ‬said:
“Cleanliness is half of the faith (Iman)” (Muslim, Book2, chapter 1 No, 0432)

Employee should take up his job in the spirit of worship for the satisfaction of Allah. In fact this
is the Islamic motivating force which leads to success of organizations and individuals as well.
Prophet Mohammed (‫ )ﷺ‬said: “The worker if employed and takes what is right and gives what is
right is like a “Mujahid” (who struggles in the cause of Allah) till he returns home” (At
Tabarani).

Employee Relations and Arbitration

Allah All-knower know of everything is clear about the obligations of employer and employee,
human error might occur. In this situation people sometime fails to resolve dispute among
themselves. For this situation “Allah” made system of Arbitration. “Judiciary system” needs to
be in place to resolve any unresolved issues between “employer and employee” God fearing
impartial judges shall be appointed to judge both party and give verdict. Judgment should be
honest and impartial; no matter rich or poor, employer or employee, General Manager or a
cleaner. Any attempt to influence Judge is unlawful. Few references on above are as follows:

Allah Said: “And if two groups of believers fall to fighting then make peace between
them” (Quran: surah 49 Verse 9) Allah said “ And so judge among them by what Allah has
revealed and follow not their vain desires” (Quran: Surah 5 Verse 49)

Allah Said: “And eat up not one another’s property unjustly, nor approach and influence the
judge that you may knowingly eat up a part of the property of others sinfully”

(Quran: Surah 2, Verse 188)

Prophet Mohammed (‫ )ﷺ‬said: “The people before you were destroyed because they used to
inflict the legal punishment on the poor and forgive the rich” (Albhukari, Volume 8, book 88
No.778).

Allah Said: “O you who believe! Stand out firmly for justice, as witness to Allah, even though it
be against yourselves, or your parents, or your Kins, be he rich or poor, Allah is a better protector
to both (than you) so follow not the lusts (of your hearts), lest you avoid justice, and if you
distort your witness or refuse to give it verily. Allah is ever well-acquainted with what you do”
(Quran: Surah 4, Verse 135)

Conclusion:
Islamic principles stated above are balanced way to ensure welfare of both employee and
employer on the basis of Justice. Employer’s money and employee’s labour both together bring
lot of benefits for many people also. Let us take an example of a Industry. Employer invests
money to make Industry, workers get salary and people get output. Everybody is
benefitted. Setting up Industry is a welfare job, thousands of people are saved from hunger by
salary from the Industry. Working in the Factory also Welfare, it helps to get money for self and
family. Ultimately with the help of employer, two hands of employee make something for the
people. How great is this! Only needs a pure mind and pure intention, Intention to serve
mankind. If it is so no one is harmed, everyone is benefitted. These benefits are not only for
Muslims but for all. It is the responsibility of the Muslim nation to do welfare for the entire
humanity. Allah Said: “you are the great nation. You are created for the welfare of mankind.
You order people to do the right and stop wrong doing” (Quran “ Surah 3, Verse 110)