Impact of Islamic Human Resource Practices on Organizational Commitment - A Study on Islamic Banks in Pakistan

Abstract

With the introduction of Islamic Banking in many countries, researches are being done in order to evaluate what various reasons are leading towards growth of Islamic banking across the globe. The following research paper is based on a similar thought but with a different perspective. The purpose of this study is to find out the relationship with Recruitment, Selection, Planning, Training, and Compensation on Organizational Commitment. Qualitative method is being chosen to evaluate the study. A questionnaire was developed consisting of 36 questions to acknowledge staff about the Human Resource Practices prevailing in their organization, which are Islamic Banking. This survey is carried out in Pakistan; questionnaires were distributed among both genders, the professionals in order to evaluate the results. About 163 responses were selected from the subsequent questionnaire. The analysis includes reliability analysis, factor analysis, and regression analysis. The results have shown that the people working in an Islamic Banks whether Muslims or non-Muslims all are being influenced by the Recruitment, Planning and Training practices of Islamic banking and has a significant effect on Organizational Commitment. Therefore, it can be recommended that Islamic Banks should comply their policies of significant factors in order to increase the Organizational Commitment in their employees.

Keywords: Islamic Banking (IB), Recruitment (R), Selection (S), Planning (P), Training (T), Compensation (C), Organizational Commitment (OC)