Article Details
Vol. 6 No. 2 (2026): June
Relationship between Islamic Human Resources Management (IHRM) Practices and Organizational Justice: An Empirical Study
Abstract
Purpose: This study analyzes the influence of Islamic Human Resource Management (IHRM) practices on Organizational Justice, with Islamic Remuneration and Compensation as a moderator.
Research Methodology: A quantitative approach using primary survey data collected from employees of Islamic financial institutions in Indonesia was used. Hypotheses were tested using Structural Equation Modeling with Partial Least Squares (PLS-SEM). The measurement model confirmed the validity, reliability, and discriminant validity of all constructs, including factor loadings, composite reliability, and the Fornell-Larcker criterion.
Results: Islamic Recruitment and Selection significantly and positively affected Organizational Justice. Islamic Training and Development had no significant direct effect. Islamic Remuneration and Compensation significantly affect Organizational Justice and successfully strengthen the positive relationship between Islamic Recruitment and Selection and Organizational Justice. The research model demonstrates strong explanatory power for the variance in Organizational Justice, with a substantial R-squared value.
Conclusions: This study highlights the critical role of Islamic Recruitment and Selection and Islamic Remuneration in fostering a fair organizational climate. This emphasizes the necessity of an integrated IHRM system to improve perceptions of justice in Islamic financial institutions.
Limitations: This study is limited by its focus on Islamic financial institutions in Indonesia, which may reduce generalizability. Additionally, the cross-sectional design and reliance on self-reported data may introduce biases.
Contributions: This study contributes to the field of IHRM by integrating Islamic values with contemporary HR practices, offering practical insights into enhancing organizational justice in Islamic institutions, and providing a methodological framework for future research.
Keywords
How to Cite
Download Citation
References
- Abdelwahed, N. A. A., Al Doghan, M. A., Saraih, U. N., & Soomro, B. A. (2025). Unleashing potential: Islamic leadership’s influence on employee performance via Islamic organizational values, organizational culture and work motivation. International Journal of Law and Management, 67(2), 165-190. doi:https://doi.org/10.1108/IJLMA-01-2024-0019
- Adams, J. S. (1965). Inequity in Social Exchange. Advances in Experimental Social Psychology, 2, 267-299. doi:https://doi.org/10.1016/S0065-2601(08)60108-2
- Adula, M., Kant, S., & Birbirsa, Z. A. (2022). Systematic literature review on human resource management effect on organization performance. Annals of Human Resource Management Research, 2(2), 131-146. doi:https://doi.org/10.35912/ahrmr.v2i2.1418
- Aflah, K. N., Suharnomo, S., Mas'ud, F., & Mursid, A. (2021). Islamic work ethics and employee performance: The role of Islamic motivation, affective commitment, and job satisfaction. The Journal of Asian Finance, Economics and Business, 8(1), 997-1007. doi:https://doi.org/10.13106/jafeb.2021.vol8.no1.997
- Aini, Q. (2020). Analysis of the effect of Islamic leadership on Islamic motivation and performance of employees both directly or indirectly through Islamic work ethics. Journal of Political Science and Leadership Research, 6(1), 1-14.
- Ali, A. (1988). Scaling an Islamic work ethic. The Journal of Social Psychology, 128(5), 575-583. doi:https://doi.org/10.1080/00224545.1988.9922911
- Ali, A. A. A., & Habtoor, N. (2022). Islamic work ethics and its impact on enhancing organizational commitment in Bahraini private educational universities. International Journal of Intellectual Human Resource Management (IJIHRM), 3(2), 33-42. doi:https://doi.org/10.46988/ijihrm.03.02.2022.005
- Ali, M. A., Shirazi, S. Z., Arshad, S. A., & Kemal, M. U. (2024). Assessment of human resource management framework from Islamic paradigm: Proposition of an islamic model of human resource management. Bulletin of Business and Economics (BBE), 13(1), 763-769. doi:https://doi.org/10.61506/01.00267
- Ali, S. A., Loussaief, A., & Ahmed, M. (2022). A comparative analysis of employees’ and customers’ attitude towards Islamic banking. International Journal of Ethics and Systems, 38(2), 209-234. doi:https://doi.org/10.1108/IJOES-03-2021-0053
- Amaliasita, M., & Astuti, R. J. (2023). Islamic work ethic and employee performance: The role of job satisfaction as a mediator. International Journal of Islamic Business Ethics, 8(2), 83-93. doi:https://doi.org/10.30659/ijibe.8.2.83-93
- Aman-Ullah, A., & Mehmood, W. (2023). Role of Islamic work ethics in shaping employees’ behaviour: Evidence from the banking sector in Azad Jammu and Kashmir. Journal of Islamic Accounting and Business Research, 14(7), 1033-1047. doi:https://doi.org/10.1108/JIABR-12-2021-0309
- Amankwaa, A., Gyensare, M. A., & Susomrith, P. (2019). Transformational leadership with innovative behaviour: Examining multiple mediating paths with PLS-SEM. Leadership & Organization Development Journal, 40(4), 402-420. doi:https://doi.org/10.1108/LODJ-10-2018-0358
- Asch, S. E. (1946). Forming impressions of personality. The Journal of Abnormal and Social Psychology, 41(3), 258-290. doi:https://psycnet.apa.org/doi/10.1037/h0055756
- Astuti, S. D., Shodikin, A., & Ud-Din, M. (2020). Islamic leadership, Islamic work culture, and employee performance: The mediating role of work motivation and job satisfaction. Journal of Asian Finance, Economics and Business, 7(11), 1059-1068. doi:https://doi.org/10.13106/jafeb.2020.vol7.no11.1059
- Azmi, I. A. G. (2015). Islamic human resource practices and organizational performance: Some findings in a developing country. Journal of Islamic Accounting and Business Research, 6(1), 2-18. doi:https://doi.org/10.1108/JIABR-02-2012-0010
- Bawasa, S., & Othman, A. K. (2024). How work-related support alleviates turnover intentions in Islamic HRM contexts. Journal of Emerging Economies and Islamic Research (JEEIR), 12(2), 1-23. doi:https://doi.org/10.24191/jeeir.v12i2.1520
- Belay, B. N., & Belay, Z. N. (2023). Role of employee recruitment and selection on performance of Ethiopian electric power corporation, Mekelle Branch. Annals of Human Resource Management Research, 3(1), 63-81. doi:https://doi.org/10.35912/ahrmr.v3i1.1829
- Blau, P. M. (1964). Justice in social exchange. Sociological Inquiry, 34(2), 193-206. doi:http://dx.doi.org/10.1111/j.1475-682X.1964.tb00583.x
- Bonache, J., & Festing, M. (2020). Research paradigms in international human resource management: An epistemological systematisation of the field. German Journal of Human Resource Management, 34(2), 99-123. doi:https://doi.org/10.1177/2397002220909780
- Brewster, C., Houldsworth, E., Sparrow, P., & Vernon, G. (2016). International Human Resource Management. London: Kogan Page Publishers.
- Budhwar, P. S., & Mellahi, K. (2016). Handbook of Human Resource Management in the Middle East. Cheltenham: Edward Elgar Publishing.
- Candra, W., Tubastuvi, N., Santoso, S. B., & Haryanto, E. (2022). Analysis of the Islamic leadership, Islamic work ethics and intellectual intelligence on employee performance with Islamic organization culture as moderated variables. Journal of Islamic Economic and Business Research, 2(1), 1-14. doi:https://doi.org/10.18196/jiebr.v2i1.21
- Creswell, J. W., & Miller, D. L. (2000). Determining validity in qualitative inquiry. Theory into Practice, 39(3), 124-130. doi:https://doi.org/10.1207/s15430421tip3903_2
- Daulay, R., & Kurnia, E. (2021). The influence of Islamic organizational culture, work ability and emotional intelligence on employee performance in Islamic education institutions. Proceeding International Seminar of Islamic Studies, 2(1), 833-842. doi:https://doi.org/10.3059/insis.v2i1.6451
- Deutsch, M. (1975). Equity, equality, and need: What determines which value will be used as the basis of distributive justice?. Journal of Social Issues, 31(3), 137-149. doi:https://doi.org/10.1111/j.1540-4560.1975.tb01000.x
- Dwita, V. A. (2022). The effect of Islamic work ethics and affective commitment on quality of work life and turnover intention of sharia bank. Journal of Islamic Economic and Business Research, 2(1), 90-103. doi:https://doi.org/10.18196/jiebr.v2i1.52
- Firdaus, A., & Ahmad, K. (2023). Islamic Business and Performance Management: The Maslahah-Based Performance Management System. London: Routledge.
- Greenberg, J. (1987). A taxonomy of organizational justice theories. Academy of Management Review, 12(1), 9-22. doi:https://doi.org/10.5465/amr.1987.4306437
- Hair, Babin, B., Anderson, R., & Black, W. (2019). Multivariate Data Analysis. England: Pearson Prentice.
- Hidayatullah, M. S., Azhari, F., Yusuf, M., & Fadillah, R. (2024). Reconceptualization of ideal Islamic bankers in the Sharia framework (An effort to create a Sharia compliance ecosystem). Afkaruna: Indonesian Interdisciplinary Journal of Islamic Studies, 20(1), 107-127. doi:https://doi.org/10.18196/afkaruna.v20i1.21393
- Hubais, A. M., Islam, M. K., & Atiya, T. (2024). Exploring the relationships of practices of human resource management on employee performance in Oman, and the organizational justice moderating role. WSEAS Transactions on Environment and Development, 20, 87-94. doi:https://doi.org/10.37394/232015.2024.20.10
- Islam, M. N., Absar, M. M. N., & Mahmood, M. (2022). A systematic review of 50 years of human resource management research in Bangladesh: Retrospective reflections and forward trajectories. South Asian Journal of Human Resources Management, 9(2), 196-224. doi:https://doi.org/10.1177/23220937221124745
- Karizi, A., & Ghalehney, A. (2022). The impact of Islamic human resource management on employee empowerment and social responsibility of the organization (Case study: Torbat Heydariyeh University of Medical Sciences). Management in Islamic University, 11(23), 219-240.
- Kekeocha, M. E., Anoke, A. F., Chukwuemeka-Onuzulike, N., & Ngozi, N. H. (2023). Work-Life Balance and Employees' Commitment in Plastics Manufacturing Firms in Anambra State, Nigeria. Annals of Human Resource Management Research, 3(2), 141-154. doi:https://doi.org/10.35912/ahrmr.v3i2.2047
- Khaled, A. S., Mahmood, N. S., & Belhaj, F. A. (2023). Islamic human resource management in gulf countries: A literature review. WSEAS Transactions on Business and Economics, 20(2023), 514-525. doi:https://doi.org/10.37394/23207.2023.20.47
- Khassawneh, O., & Abaker, M.-O. S. M. (2022). Human Resource Management in the United Arab Emirates: Towards A Better Understanding. In T. A. Adisa & C. Mordi (Eds.), HRM in the Global South: A Critical Perspective (pp. 103-128). Cham: Springer.
- Khoso, A. A., & Pathan, M. S. K. (2023). The mediating role of job satisfaction in the relationship between organizational culture and employee commitment in Islamic banking. International Research Journal of Management and Social Sciences, 4(2), 13-30.
- Laiqkafana, A. Z. (2023). Analysis the impact of Islamic leadership on the Islamic work ethics of Pegadaian Syariah employees. Journal of Islamic Economic and Business Research, 3(1), 125-137. doi:https://doi.org/10.18196/jiebr.v3i1.114
- Lestari, R., Nurjaya, D., & Wahyuningtyas, I. A. A. (2023). The effect of implementing work ethics and Islamic leadership on employee performance. International Journal of Entrepreneurship and Sustainability Studies, 3(2), 1-13. doi:https://doi.org/10.31098/ijeiis.v3i1.1668
- Mahadevan, J. (2020). Ethnographic studies in international human resource management: Types and usefulness. German Journal of Human Resource Management, 34(2), 228-251. doi:https://doi.org/10.1177/2397002220908214
- Mahfouz, S., Bahkia, A. S., & Alias, N. (2021). The impact of human resource management practices on employee performance and the mediating role of employee commitment. Journal of Governance and Regulation, 10(4), 222-234. doi:https://doi.org/10.22495/jgrv10i4siart3
- Mehra, H., & Narwal, M. (2025). Impact of ethical leadership on employees’ ethical behavior: mediation of ethical climate using PLS-SEM. International Journal of Ethics and Systems, 41(3), 761-779. doi:https://doi.org/10.1108/IJOES-08-2024-0267
- Musa, M. A., Sukor, M. E. A., Ismail, M. N., & Elias, M. R. F. (2020). Islamic business ethics and practices of Islamic banks: Perceptions of Islamic bank employees in Gulf cooperation countries and Malaysia. Journal of Islamic Accounting and Business Research, 11(5), 1009-1031. doi:https://doi.org/10.1108/JIABR-07-2016-0080
- Nasution, F. N., & Rafiki, A. (2020). Islamic work ethics, organizational commitment and job satisfaction of Islamic banks in Indonesia. RAUSP Management Journal, 55(2), 195-205. doi:https://doi.org/10.1108/RAUSP-01-2019-0011
- Nazir, H., Shoukat, M. H., Elgammal, I., & Hussain, S. (2022). Impact of servant leadership on employee life satisfaction through Islamic work ethics in the Islamic banking industry. Asian Journal of Business Ethics, 11(1), 137-157. doi:https://doi.org/10.1007/s13520-022-00144-3
- Nimtur, B. M., Kusa, N. D., & Olanrewaju, D. S. (2023). Job satisfaction on talent management and turnover intention among private secondary schools. Annals of Human Resource Management Research, 3(2), 129-140. doi:https://doi.org/10.35912/ahrmr.v3i2.1878
- Pervin, M. T., & Begum, R. (2022). Engaging employees in management and decision-making process: A case study on “Vision Garments Limited”. Annals of Human Resource Management Research, 2(1), 71-85. doi:https://doi.org/10.35912/ahrmr.v2i1.1225
- Phina, O. N., Patrick, O. A., & Nwabuike, C. (2022). Emotional resilience and employee performance of commercial banks in South-East Nigeria. Annals of Human Resource Management Research, 2(2), 105-115. doi:https://doi.org/10.35912/ahrmr.v2i2.1352
- Putra, A. H. P. K., Mansur, D. M., Ulfah, M., & Hajiali, I. (2023). Key factors of business sustainability: Strengthening leadership, psychology, and fairness aspects from an Islamic-management perspective. Nurture, 17(4), 694-710. doi:https://doi.org/10.55951/nurture.v17i4.500
- Putra, Y. S., & Istiyani, A. (2022). Developing organizational resilience with the mediating role of leader–member exchange. Annals of Human Resource Management Research, 2(1), 59-69. doi:https://doi.org/10.35912/ahrmr.v2i1.1120
- Rabbad, R., Astuti, H. J., Tubastuvi, N., & Pratama, B. C. (2024). The effect of Islamic leadership, organizational culture, motivation, work environment, and job satisfaction on employee performance. International Journal of Research in Business & Social Science, 13(3), 205-222. doi:https://doi.org/10.20525/ijrbs.v13i3.3402
- Rana, M. H., & Malik, M. S. (2017). Impact of Human Resource (HR) practices on organizational performance: Moderating role of Islamic principles. International Journal of Islamic and Middle Eastern Finance and Management, 10(2), 186-207. doi:https://doi.org/10.1108/IMEFM-04-2016-0060
- Rice, G. (1999). Islamic ethics and the implications for business. Journal of Business Ethics, 18(4), 345-358. doi:https://doi.org/10.1023/A:1005711414306
- Rousseau, D. M. (1989). Psychological and implied contracts in organizations. Employee responsibilities and rights journal, 2(2), 121-139. doi:https://doi.org/10.1007/BF01384942
- Sachdeva, L., Jena, L. K., Badhotiya, G. K., Baharul Islam, K., Mujtaba, B. G., & Pal, S. (2024). COVID-19 and human resource management: status, trends and research directions. Employee Relations: The International Journal, 46(4), 871-894. doi:https://doi.org/10.1108/ER-11-2023-0582
- Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill Building Approach Seventh Edition. New York: John Wiley & Sons.
- Sodiq, A., Ratnasari, R. T., & Mawardi, I. (2024). Analysis of the effect of Islamic Leadership and Job Satisfaction on sharia engagement and employee performance of Islamic Banks in Indonesia. Cogent Business & Management, 11(1), 1-18. doi:https://doi.org/10.1080/23311975.2024.2362772
- Spence, M. (1978). Job market signaling. Uncertainty in Economics, 281-306. doi:https://doi.org/10.1016/B978-0-12-214850-7.50025-5
- Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571-610. doi:https://doi.org/10.5465/amr.1995.9508080331
- Sugiyono. (2017). Metode Penelitian Kuantitatif, Kualitatif dan R&D. Bandung: Alfabeta.
- Toumi, S., & Su, Z. (2023). Islamic values and human resources management: A qualitative study of grocery stores in the Quebec province. International Journal of Cross Cultural Management, 23(1), 79-112. doi:https://doi.org/10.1177/14705958221136691
- Umar, U. H., AbuBakar, M., Baita, A. J., Kademi, T. T., & Haron, M. H. (2021). Do academic and professional institutions promote the awareness and knowledge of Islamic banking and finance in Nigeria?. Journal of Islamic Accounting and Business Research, 12(3), 401-417. doi:https://doi.org/10.1108/JIABR-05-2020-0171
- Wahab, M. A., & Masron, T. A. (2020). Towards a core Islamic work value. Journal of Islamic Accounting and Business Research, 11(1), 179-200. doi:https://doi.org/10.1108/JIABR-11-2017-0158
- Wood, G., Cooke, F. L., Brou, D., Wang, J., & Ghauri, P. (2024). Rethinking contexts and institutions for research on human resource management in multinational enterprises in an age of polycrisis: reflections and suggestions. The International Journal of Human Resource Management, 35(19), 3173-3206. doi:https://doi.org/10.1080/09585192.2024.2401021
- Zaim, H., Erzurum, E., Zaim, S., Uluyol, B., & Seçgin, G. (2024). The influence of Islamic leadership on work performance in service industry: an empirical analysis. International Journal of Ethics and Systems, 40(1), 127-152. doi:https://doi.org/10.1108/IJOES-12-2021-0242
- Zuhdi, H., & Etikariena, A. (2022). Knowledge sharing behavior as mediating role on openness to experience and innovative work behavior. Annals of Human Resource Management Research, 2(1), 31-41. doi:https://doi.org/10.35912/ahrmr.v2i1.1038
- Zulkifli, Z., Purwati, A. A., Renaldo, N., Hamzah, Z., & Hamzah, M. L. (2023). Employee performance of Sharia Bank in Indonesia: The mediation of organizational innovation and knowledge sharing. Cogent Business & Management, 10(3), 1-25. doi:https://doi.org/10.1080/23311975.2023.2273609
License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.