Project Leader : Amrizah Kamaludin
In the knowledge economy, where innovations and development of ideas are the focus of every organization, talented people (human capital) become the source of competitiveness. Thus, the human resource management (HRM) function is pressurized to give a more serious thought to the efficient management of their human resources, employee relations towards achieving organizations’ competitive advantage. Studies have shown that organization which function on Islamic principles successfully and outperform others not only in normal economic situation but even during the economic crisis. Tayeb (1997) proposed a model which is based on religious ideals for HRM. The study describes the ethics and values to be followed in work place and how different Islamic countries are managing their employees. Metwally (1997) highlights the desire of many muslim countries to turn to Islamic Laws and teachings in modelling their economic behavior.
Thus, lack of understanding on the effectiveness of HRM in IMF institutions and lack of HRM and HC model founded on Islamic principles, aspire the researchers to examine the current practices of HRM in Islamic Microfinance (IMF) Institution and to develop HRM and HC model founded on Islamic principles. Development of knowledge is influenced by the different in economic background, culture and social life of muslim nation. Thus their interpretation of HRM principles and HC interpretation may differ country to country. The current study aims to compare the results of effectiveness of HRM function and HC development with IMF institutions in Indonesia.