Integration of shari’ah governance framework in human resource management practice in Malaysia
Abstract: The discussion on Shari`ah governance has gained significant attention and concerns in the Islamic finance industry. The Central Bank of Malaysia (BNM) introduced the Shari`ah Governance Framework for Islamic Financial Institutions (SGF) in 2010 for the purpose of promoting effective a...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Blue Eyes Intelligence Engineering & Sciences Publication (BEIESP)
2019
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/77463/ http://irep.iium.edu.my/77463/ http://irep.iium.edu.my/77463/ http://irep.iium.edu.my/77463/1/77463%20-%20Integration%20of%20shari%E2%80%99ah%20governance%20framework%20in%20human%20resource%20management%20practice%20in%20Malaysia.pdf |
| Summary: | Abstract: The discussion on Shari`ah governance has gained
significant attention and concerns in the Islamic finance industry.
The Central Bank of Malaysia (BNM) introduced the Shari`ah
Governance Framework for Islamic Financial Institutions (SGF)
in 2010 for the purpose of promoting effective and good Shari`ah
governance practices of Islamic Financial Institutions. The IFIs
are expected to integrate necessary elements of good Shari’ah
governance structure and processes in order to sustain their
business in this complex environment as well as to ensure effective
implementation of SGF through effective Human Resources
Management (HRM). Many studies have been done on the
Shariah governance aspects, processes and its effectiveness but
not on the impact of HRM in SGF implementation. Therefore, the
present study examines the SGF from HRM perspective
particularly on the integration between SGF and HRM. It
approached the topic from the perspective of job design and
description through a literature review and a survey of
professionals from the Shari`ah Division and HR Division of
different types of IFIs in Malaysia. The data were collected from
the literature review and survey responses from 78 respondents
from different IFIs. The study found seven HRM scopes
highlighted in the framework and found that the respondents’
general understanding of SGF implementation and HRM
practices was satisfactory. Remarkably, it is also found that
theIFIs have effectively used their HRM practices from the job
design and description perspective as a tool to manage their key
Shari`ah governance organs. Several limitations and
recommendations were also presented to further enhance SGF
implementation from this perspective. |
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