Contemporary Islamic Finance: Innovations, Applications and Best Practices

CHAPTER 13

Islamic Human Resources Practices

WILLIAM MARTY MARTIN

Associate Professor of Management, DePaul University

Strategic human resources management (SHRM) aligns the human resources policies, practices, and procedures with the vision and strategy of the organization. The formulation of organization strategy involves a three-step process: analysis, synthesis, and creation. Strategic analysis deploys tools such as a SWOT analysis (strengths, weaknesses, opportunities, and threats), environmental scanning, and scenario planning, to name a few. After these strategic tools have been deployed, the data has to be translated and synthesized into knowledge that can then be transformed into the creation of strategies. Michael Porter outlined three generic corporate strategies: low cost, differentiation, and niche. Researchers (Boxall 2003) have posited that specific human resources strategies are aligned with each of Porter's three generic corporate strategies. For instance, a company with a low-cost corporate strategy may decide to offshore jobs to less expensive areas of production throughout the world. As an illustration, assume that a manufacturing plant moves production facilities from the United States to Indonesia: The human resources department must adjust scheduling to accommodate times of prayer for Muslim employees and assure that the meals provided in the cafeteria are prepared in accordance with Islamic traditions. This particular discussion is beyond the focus of this ...