Project On

Recruitment/ Hiring/ selection through Islamic point of view

Submitted to

Mohammad Kashor Miah Ph.D.

Professor in HRM

Department of MBA and EMBA

North South University

Submitted by

TEAM A

Name ID
Nafiz Jawad Talukder 1935020060
Amina Khatun 1935025660
Fardin Rahman 2025128660
Faiyaz Mashfiq Islam 2016570060

Course: Bus 601

Section :1
 Table of Content
Topics Page no

Introduction 1-2

Literature Review 3-4

4-6
Discussion of HRM Functions/Practices

Significance of Islamic Principles in the 7-8

Recruitment & Selection practices in the
21st century

The difference between Islamic recruitment 9-10

and traditional recruitment.

Case study on Islamic Recruitment 11-13

Case study on Traditional recruitment 13-14

Recommendations 14

Conclusions 14-15

References 15
 Executive Summery

Islamic recruitment practices follow the Islamic Management model and based on that they
design the recruitment process. It based on different values like ethics, trusts, loyalty,
truthfulness etc. The recruitment has some ways which are the process should be very
transparent and fair. No chance of any nepotism, and other unfair activities. They select people
on the base of justice, competency and honesty.

The significance of the is many and these are discussed on the report. It follows a complete
Islamic guideline so it is very helpful and beneficial for both parties.

There are some major differences in Islamic and traditional recruitment process. While Islamic
recruitment is based on transparency, in traditional process it is not necessary to be fully fair and
transparent.

In our country only few companies are currently following the Islamic recruitment process. Most
of the companies don’t even know the rules and regulations since they are only comfortable with
the traditional methods but few banks are following this.
 Introduction
Human resource management (HRM) is a vital function of organizations. It is known as the form
of a collective relationship between management and employees. The Islamic HRM practices are
based on ethical values, trust, and voluntary motivation and consider employees more than mere
resources as the traditional practices do. Islamic HRM is a set of perceptions, concepts and
thoughts connected with the training of the Muslim in accordance with Islamic asset to
understand Islamic HRM we should adopt an acceptable level of knowledge about Islamic
sharia. The Basic Source of Islamic HRM based on Quran and sayings of prophet Muhammad
(SAW). Hiring employees there is a saying “One of the women said,” o my father, hire him.
Indeed, the best one you can hire is the strong and the trust worthy.”(Surat Al-Qasas: 26). In the
selection perspective there is a saying “Do not nominate them (officers) on account of
favouritism or egoism. These two attributes reflect injustice and treachery.” ( Hazrat Ali Ibn Abi
Talib).

Islamic point of view is applicable to all human beings because Islam provides a complete code
of life globally. Human resource is the blood line of any organizations it is the combination of
many functional areas like hiring, staffing, recruitment, selection, training, development etc. The
recruitment and selection process has the greatest contribution to the overall success of any
organization because without screen and trustable stuff no organization can reach their desire
destination. Traditional HRM approaches focus on functional activities such as HR planning,
Job analysis, Recruitment and selection. Also maintaining performance appraisal, Compensation
management to obtain through employee’s relation. It attempts to drive employee performance
and achieve organizational goals by making employees adhere to such carefully crafted
documents. In Traditional HRM the recruitment and selection activities strictly follow laid down
norms such as job analysis first, advertising the vacancy based on the job specifications and job
requirements, collecting resumes, conducting written tests, interviews and any other selection
method, as well as creating a rank list based on the published selection criteria. On the other
hand, Islamic HRM believes that individual to identify his or her strengths and make full use of
them the concept of Islamic HRM aims to understanding the needs and hopes employees in a
better way. In traditional HRM there may be a strict rule are applied but sometimes favouritism
and egoism taking place in hiring and selection process.

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We know that successful selection largely depends on successful recruitment this responsibility
usually is shouldered by the human resource manager it must be done fairly and all recruitment
decision must be made wisely to ensure the hired candidate is suited for the job. Islam requires
the person who is in charge of recruitment to be pious and just. Islamic HRM system elaborated
that all the employees should performance religious obligations such as prayers, fasting, zakat
and other pillars of Islam this is to ensure that the recruitment is fairly conducted and a just
treatment is given to all applicants. A true working Muslim who observes his religious
obligations would reflect him being a responsible man towards his earthly duties as he is
responsible towards Almighty Allah and His commands. Now HRM of an organization should
concern about safety, health and welfare of people engaged in work or employment. In
traditional HRM goals of occupational safety and health programs include to foster a safe and
healthy work environment. In an Islamic HRM health and safety is the first of everything.
Islamic HRM believes that in accordance with Quran “No soul shall have a burden laid on it
greater than it can bear.”(Surat Al – Baqarah). In Traditional HRM performance management is
a process of employee activities and outputs contribute to the organizational goal. If an employee
is corrupted traditional HRM give punishment either firing the employee from the job and follow
the law of their individual organization act. In case of Islamic HRM it believes one who is doing
wrong will get punished by following the rule of Islamic sharia which is completely different
from all other traditional HRM. In terms of reward traditional HRM set a margin which
employee has to complete by the organizational terms to get fixed rewards but Islamic HRM
don’t have any fixed rewards it believes give something to (Someone) in recognition of their
services, efforts or achievement because Allah said in the verse of Surah Al – Khaf “We never
waste the reward of anyone who did good”

Religion is a key component of everyday life and activities Islamic HRM is also helpful for non-
Muslim manager many western counties is also including Islamic HR system with traditional HR
system to make sure proper solid management system in their organization.

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 Literature Review

According to [ CITATION FLa97 \l 1033 ], who closely observed a sample of Iranian managers at
work over a period of time, discovered that employees viewed their managers as sympathetic
brothers and sisters or compassionate fathers and mothers. Some of those interviewed said they
would make their time and organizations available for high school and university students who
would wish to conduct a research project or acquire work experience as part of their courses.
They saw this as fulfilling a part of their responsibility to the society and to the next generation
of managers.

[ CITATION FLa97 \l 1033 ] also stated the following work-related characteristics that the employees
and the employers showed:
 Equality before God
 Individual responsibility within a framework of co-operation with others
 A view that people in positions of power should treat subordinates kindly, as if their
subordinates are their brothers or sisters
 Fatalism but also a recognition of personal choice
 Encouragement of consultation to all levels of decision making, from family to the wider
community, to the country as a whole.

While, Islamic organization is needed to fulfill all requirements of Sharia to maintain the
relationships among organization and their stakeholders, top level management, suppliers,
customers, and employees. The main purpose of Islamic HRM is to rigorously maintain and
practices Islamic law in the relationships between management and employee with in the
organizational phenomenon [ CITATION Has09 \l 1033 ]. Indeed, Islamic HRM is significant to
establish the Islamic way of managing employees’ as well as a vital function that performed
and facilitates, the most effective and efficient use of employees to accomplish
organizational goals [ CITATION Mon97 \l 1033 ].

According to [ CITATION Abb00 \l 1033 ], The result support this proposition and consistent with
literature that the Shariah law strictly prohibited favoritism and nepotism, and select merit and

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competence candidate only with full trustworthiness in recruitment and selection process, which
directly influence employees to enhance their trust in management and organization.

Islamic HRM practices and employee trust in organization based on the

holy Qur’an and Hadith. In the Qur’an (4: 58-59); Recruitment is stated that “Allah doth
command you to render back your trust to those to whom they are due; and when ye judge
between man and man, that ye judge with justice; verily how excellent is the teaching which
He giveth you! For Allah is He who heareth and seeth all things. O ye who believe!
Obey Allah and the Messenger, and those charged with authority among you. If ye differ in
anything among yourselves, refer it to Allah and His Messenger if ye do believe
in Allah and the Last Day: that is the best, and most suitable for final determination.”
Principally, the recruitment process must be done fairly and piously. It is also required in
Islamic HRM practices that all recruitment decision must be made wisely, to ensure hired
candidate is the best suited for this particular job. Moreover, Islam requires the person who
is in charge of recruitment to be pious and just [ CITATION Moh95 \l 1033 ].

Recruitment and selection of new employees is the vital step for Islamic HRM practices.
Organization should ensure that recruitment and selection process is completed by guideline
prescribes in Qur’an and Hadith and following with full of ‘amanah’. The employers are
required to inform the truth and facts about the job such as pay packages, responsibility and
select only qualified employees [ CITATION Has09 \l 1033 ].

Discussion of HRM Functions/Practices

Islamic Human Resource Management Model

It is the process of analyzing and managing organization’s human resources to ensure of its
strategic objectives. There are several processes under HRM. For example, recruiting, selecting,
training and development, appraising the performance of employees, deciding compensation and
providing benefits, motivating employees, maintaining proper relations with employees and
ensuring employees safety, welfare and health measures.

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Islamic human resource management (IHRM) practices are mainly practiced by the Sharia
organizations. It has same processes like HRM such as recruiting, selecting, training, appraising,
providing benefit, etc. but the practices are based on ethical value, trust and voluntary
motivation. Islamic organizations follow HRM system based on Al-Qur’an (The words of Allah)
And Hadith (The words of Prophet Muhammad; Peace be upon Him). The experience of our
Prophet Muhammad’s (PBUH) socio-economic practices are explained in the Hadith. Sharia
organizations strictly follows the Sharia law (Islamic law), which is derived from Al-Qur’an and
Hadith. Sharia law guides human to be honest and made ethical decisions. As per the Islamic
perspective, human resource management has an integral value since its implementation started
as Islam grew from early times and human resources are considered as valuable asset rather just
servants. It is because a successful organization depends on the performance of the employee and
leadership of the employer as they will lead to successful of the organizational objectives.

Islamic HRM believes that individual to identify his or her strengths and make full use of them
the concept of Islamic HRM aims to understanding the needs and hopes employees in a better
way. Employers are required to inform the truth about the jobs offered like requirements, criteria
of the job holders and the compensation to be paid to the applicants.

Islamic Recruiting/Selection Practice

Recruiting process must be carried out in fair manner. Recruiting manager should not
discriminate while recruiting. Favoritism and preference has always influenced hiring decisions.
This is due to the fact that when there are many candidates applying for the jobs, employers have
plenty of potential candidates to select from. In order to ensure the recruitment is fairly
conducted, the employer has to be devoutly religious (who fears Allah) so that he does not
practice discrimination while recruiting. The employer has to believe that if he is not fair then he
is committing a sin. Assessment of employees can be done in many ways like interviews, written
exams, mcqs, online assessment programs, etc. Islamic encourages the delegation of positions to
those who deserve it on the basis of merit and administrative capability. The Holy Quran says:
“Verily God directs you to assign trusts/duties/things to the care of whom they are due and to
judge with justice when you decide between people”.

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Nowadays, recruiting is advertised in social medias and all the information of the job post is
mentioned there. Information like salary, job responsibility, required skills, compensation, etc. is
mentioned in the job post. The recruiting manager can take an assessment test of the applicants
by providing the same questionnaires to the applicants. All the applicants of that job post should
get the same questions so that the assessment is kept fair. According to the result of the
assessment the recruiter should short list of the applicants to take further assessment/interview or
just select one applicant based on the first assessment. The applicants those who will not get the
job shouldn’t be humiliated rather the recruiting manager should motivate them to do better next
time.

Recruitment is followed by interviews of short-listed candidates and finally making the selection
decision. Islam defines the process of selection to be based on five broad areas, which include
competency, experience, shouldering responsibility, organizational fit and reputation within the
community. In Islam, the employee selection is embedded in three principles. The first principle
is Justice that demands nominating a worker on basis other than favoritism or egoism. The
second principle is Competency that is the selection should be made on the basis of competency
not on the basis of kinship or blood relation, age, friendship, race and political power. The third
principle is honesty of both the hiring manager and the hired employee.

For the candidates not considered right by the selection panel, reasons for rejection must be
conveyed to them in a way that provides them feedback on improving their abilities for future.
For the candidates selected by the panel, the terms of job i.e., probation, salary package, timings,
benefits, job requirement, tasks, etc, must be clearly mentioned in the job offer letter. This is to
ensure the Islamic practice of promise, truthfulness and transparency in dealings. The selection
must be done wisely and with responsibility according to the above-mentioned criteria and that
the final decision for the selection be made on the basis of the majority and not on the fancy
glamour of candidates.

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 Significance of Islamic Principles in the Recruitment & Selection
practices in the 21st century

Recruitment and selection process is one of the most important steps in human resource
management HRM. Skilled and honesty is a greater thing of employees who make the
organization to run smoothly. In the process of recruitment, a great advertisement of job position
offered and complete information about job specification will attract people who qualified to
apply the job position in a company. Now there is a lot of research took place on Islamic human
resource management by including the principle of Islamic values. Meanwhile Islamic principle
in 21st century shows a lot of promising significance that could bring the smoothness and
efficiency in a organization by removing favoritism and nepotism in any recruitment and
selection process. There are some internal factor in recruitment process include promotion from
within and nepotism while the external environment include labor market condition and legal
issues . Traditional HRM allow the nepotism recruitment where Islamic principle there is no
place to nepotism in recruitment process there is no civil rights violation because Islam doesn’t
discriminate in hiring candidates. Discrimination includes race, color, sex, religion and national
origin. In 21st century Islam comprehensively covers all aspects of human life Islamic concept of
HRM has a multi directional approach where employees, organizations and other society
welfares are included. In every aspects of human life our Holy Quran guided us mostly which
has been characterized by comprehensive guidelines and principles in Islam derived from Quran
and Sunnah Islamic teaching has got popularly in many countries where Islamic work behavior
has better significance than conventional work behavior because Islamic work behavior has been
accepted as a most ethical behavior in the world. Interestingly non- Muslim organizational
cultures applied Islamic ethical values as well because there is no chance of creating unnecessary
and unethical malfunction in recruitment and selection process which decided the fate of an
organization future.

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Islamic principle of business ethics create trust, legitimate and Halal earning honesty and decent
behavior in dealing and fulfilling promises obligation .Islamic principle provides ample amount
of guidelines on how to deal with human beings and establish justice fair play and true
consistency . Islam signifies religion as a social order which aims to producing a distinct culture
in a organization. Major human resource function is performed in accordance to guide line stated
in Al-Quran and Hadith. In Islamic principle in recruitment and selection process includes trust
and faire responsibility. It has been mention in Quran Surah-Al Nisa verses 58 “Indeed Allah
commands you to render trust to home they are due and when you judge between people , judge
the with justice . Excellent is what Allah instruct you. Indeed, Allah is ever hearing and seeing “.
Our Prophet Muhammad (SAW) Has been practice recruitment process where he said “Whoever
believes in Allah and the day of judgment should not employ a worker until he/she knows what
they arte going to receive “(Sahih Muslim 5 /66). Our Prophet Muhammad (SAW) also said “We
do not or shall not employ a person who desires to be so appointed”. That means Islamic
principle implies that a person should be recruited not just because he/she asked for a job but
rather there should be a recruitment pool to select candidates based on their true skill.

Islamic principle makes sure that there is no place for frauds and corruption. Effective selection
is more better and qualified approach in 21st century we can see lot of organization are facing
fraud ,corruption and many unethical management problem . Islamic HRM system can be proven
as a best choice for run an organization with smoothness where everything is neat and clean
because Islamic principle provide the best technique forever . Islamic principle makes sure that
there is no place for poor selector who will overlook the necessity of clear role information.

It can be said that the major differences between Islamic and traditional HRM obviously in terms
of faith Islam have the main sources which is Al-Quran and Hadith. In 21st Century Traditional
method can be reconstructed into Islamic Principle as well.

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 The difference between Islamic recruitment and traditional recruitment.
Islamic recruitment
The first and main difference is Islamic
recruitment is based on Islamic
Management Model. This model is the
proper detailed guideline of human
lifestyle in terms of Holy Quran. It is a
process that assures equality in every
social class, this model is based on the
rules of Quran and gives certain
instructions. (Ahmed, 1995).
Mostly focus on the quality like honesty, The traditional recruitment processes
loyalty, transparency and believe in
equality. No nepotism takes place.
The base of the Islamic recruitment is
equality and fairness because here the
preference is providing justice not any
nepotism or unfair activities. The
companies follow the Islamic model to
recruit employees. In Islamic
recruitment, they focused mostly on
qualities like honesty, loyalty, lifestyle,
dedication etc. They mainly focus if the
employee is leading the life in term of
Islam or not. They also focus on other
skills along with these traits.
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Traditional Recruitment
The traditional recruitment process is a
regular or normal way of selecting
employees. It has some common steps to
follow but different organizations have
different set of rules and they run their
process accordingly.
Mostly focus on different skills.
Nepotism occurs
It is a process where different
organizations hire employees for
different roles. They hire employees on
the base on their qualifications, if the
qualifications match with the
requirements, they hire the person.
Companies hire employees considering
their future needs of employees,
turnover and budgets and different
organizations has different set of rules to
hire.
In recruitment process, they can ask In recruitment process, they can ask
different conceptual or situational different conceptual or situational
question to understand their mentality or question to understand their mentality or
way of thinking’s. In term of Islamic way of thinking’s. In term of Islamic
recruitment, the recruiters also have to recruitment, the recruiters also have to
be honest and fair while hiring. be honest and fair while hiring.
In traditional recruitment process, many
In Islamic recruitment, the process take corruptions occur. Starts from nepotism
place based on 3 principles and they are to bribing and others. The process is not
justice, competency and honesty. The transparent.
interview process should be transparent
and there should be justice. He
interviewer needs to clear everything
about the working hours, advantages
salaries. The selection process should be
fair and not biased towards any specific
person.

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 Case Study on Islamic Recruitment Process:

Islamic Bank Bangladesh Limited is a bank which conducts its operation in Islamic way. In
Bangladesh banking can be conducted in 2 ways one is general another is in Islamic perception.
Islamic banks follow the Islamic rules and regulation based on the Quran and sunnah. The
motive is use to serving people with transparency and honestly while making profit. Islamic
Bank Limited not only follow the Islamic rules only to serve the customers they also follow them
for their internal operations that includes hiring, recruiting, selection and other operational
process.

Islamic Bank Limited recently opened a new branch and they needed a bunch of new employees
for different posts. So, the CEO of Islamic Bank Limited posted a job circular in all the news
papers and also their official websites. The circular clearly contained all the necessary
information abut the positions and the requirements. Hundreds of people applied for the job and
their HR has shortlisted few appropriate candidates They choose them based on their skills and if
they are matching with these requirements. The selection processes were very transparent and
fair.

On the day of the interview all the applicants arrived and waiting for heir call. He interviews was
conducted by the branch manager and HR manger. The first applicant was MR Ahmed Reza who
mentioned in his CV that he has done MBA in accounting and he had 5 years of working
experience on banking sector. Upon asking we were able to answer all the relevant questions
which are related to the job. He brought all his certificates along with him as proof of his
academic’s qualifications. The HR manager asked some situation base question to know about
his personality and mentality and the answers satisfies him. They also discussed the advantages
he will be getting if he gets selected and about the salaries and working hours with full
transparency. The said the applicant that he will be notified shortly.

The second applicant was Mr Zahid Rahman. He said in the CV that he is a business graduate
and have relevant work experience. HE also mentioned that he has all the skills they are looking
for like excel and others. But when the Branch manager asked a relevant question, he could not
answer. Although he mentioned that he had relevant job experiences but he could not show any

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proof if it. He Branch Manager politely told him that he was not the candidate they were looking
for and wish him luck for this future.

The third candidates name was Sharmin Ahmed. She was a fresh graduate from university of
Dhaka banking department. She has also done advanced level computer courses. Since she is a
fresh graduate, she did not have any relevant work experiences. The HR manager asked her few
academic and skilled related questions and she answered them correctly. And then she asked
some situation-based question to know her thought process and she satisfied them with her
answer. Miss Sharmin also is a niece of the branch manager who was also conducting the
interview. Although she did not have any relevant experiences but she was shortlisted because
she proved all her skills. SO they discussed the further things related salaries and advantages and
she was told that she will be notifies shortly.

The fourth candidate was MD Salim Ali. He was the most qualified applicant with a master’s
degree form a well-known university and 7 years of relevant work experiences. He was senior
from all of the rest of the candidates and both of the HR manager and Branch manager was
exited to interview him. He showed all the valid documents the interview session was good and
he answered all the questions which make them satisfies. They also discussed the salaries and
other important issues. Like everyone, Hr manager sked him a situation-based question and his
answer was not quite satisfactory. The question was about being full transparent to customers
and he thought that for the banks benefits they should not be transparent always. They have
interview couple f more candidates but finally shortlisted Mr Ahmed Reza, Miss Sharmin
Ahmed and MD Salim Reza. All three of them was qualified enough for the post. But in spite of
being a relative of the branch manager, they rejected Miss sharmin since she had no work
experience but others had his so they were more qualified for the particular post. It took a lot of
time and discussion to choose between Mr Ahmed Reza and MD salim Ali but finally they
choose Mr Ahmed Reza. Although Salim Ali was more skilled and experienced and a perfect fit
for the job but in term of Islamic point of view, he was not a good fit.

Questions:

1. Why they rejected Mr Zahid Rahman. Answer it in Islamic point of view.

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 2. Islamic Recruitment/ Selection process does not support any nepotism and believe in
fairness. Explain it with a suitable scenario from the case.
3. Who do you thing that they though Md Salim Ali was not a good fit for the position?
4. From this case what do you learn about Islamic recruitment?
5.

A case based on traditional recruitment process:

Recruitment process usually follow few steps and more or less all companies of Bangladesh
follow them. The process is selecting, recruiting, training etc. and some companies have their
own way of recruitment. Most of the companies follow the traditional recruitment process and
md Jamal’s company also do the same. Mr. Jamal is a HR manager of a multinational company
and he is widely related to the selection process.

Mr Jamals company is looking for some fresh employees for different field and for that they
have posted circular on their website and newspaper. Although, they gave already shortlisted 2 of
the employees because they are related to the CEO of the company. All the applicants were
present and the interview started.

The interview session went well and they have shortlisted few candidates. While interviewing
they did not revile the details about the salaries and working hour. They were not transparent at
all. They focused on whether the applicants can make profit for the organizations or not. If they
proved themselves that they would be profitable, they shortlisted them. They Actually giving a
handsome salary for candidates who have experienced and they were interested to hire male
candidates,

They already selected two employees without even interviewing because they were relatives of
CEO. For that 2 eligible candidates did not get the jobs. They did not go to their qualifications
and thy were not that qualified but still managed to get the jobs because of nepotism.

After they sorted the applicants for the second round, they called them again and all the
candidates were present. It was a written test and few applicants already got the question paper
earlier. Someone from the company actually leaked it for money. Although it was unfair to the
others but they were least bothered about it.

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After the written test they selected the final candidates and a viva board have been made. 4
people got job but not all of them got it based on their qualifications.

Questions:

1. What are the steps of traditional recruitment process?

2. What do you think about the transparency and fairness of the process?
3. Give some suitable solutions.

Recommendations:

Very few companies follow the Islamic recruitment process in our country. Only few banks are
following them and very few companies. Islamic process is known for its fairness and
transparency and it is beneficial for both employees and recruiters. Being transparent is always
good for the future of any companies. But sometimes it not possible to share all the information
initial state because every organizations have some privacy and they do not want to lose it. Few
recommendations are

1. The companies should follow Islamic recruitment process because it is fair. It doesn’t
care about applicants’ social class, religion, gender or anything, If the person is qualified,
they offer the job to them which was the base of Islamic recruitment.
2. Since it is not possible to share every detail, the recruiter can share and make clear about
the basic things like salaries and working hour.
3. To avoid the nepotism, strict rules should be introducing and people who are actually
related to this get proper punishments.

Conclusions:

Islamic recruitment is based on Islamic management model. Islamic management model actually
based on the instructions given on Holy Quran. The process focuses on the quality like honesty,
truthfulness, loyalty etc. These qualities will be helpful to lead a proper lifestyle and also
important for business. It taught us being transparent which is also necessary in every phase of

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our life. It supports equality that means if someone is eligible for the job, they can get it. So,
corruptions like nepotism, bribes take place. So, every companies should follow this process.

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Islamic Thought.

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https://www.emerald.com/insight/content/doi/10.1108/01425459710170086/full/html

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