American Journal of Economic and Management Business

e-ISSN: 2835-5199

Vol. 4 No. 1 January 2025


 

Organizational Justice in HR Management: An Islamic Values Perspective and its Relevance to Employee Engagement

 

Sukirman1*, Sulaiman. S.2, Kumoro D.F.C.3, Nuryadi S.4

Universitas Muhammadiyah Jakarta, Indonesia1,2,3,4

Emails: [email protected]

 

Abstract

This study aims to analyze the effect of organizational justice in human resource management based on the perspective of Islamic values and its implications for employee engagement. The research method used is literature study from various related sources, such as scientific journals, books, and research reports. While the data analysis method uses thematic analysis to identify important themes related to the concept of organizational justice, Islamic values, and employee engagement. The results showed that the implementation of organizational justice in human resource management based on Islamic values, such as justice, honesty, and responsibility, has a positive influence on increasing employee engagement. This is because employees feel treated fairly and feel valued, so as to increase employee commitment, motivation, and involvement in achieving organizational goals. The practical implication of this research is the importance of implementing human resource management practices in companies that are in line with Islamic values to improve employee engagement and organizational performance in a sustainable manner.

Keywords: employee engagement, human resource management, islamic values, organizational justice

 

INTRODUCTION

In the world of human resource management (HRM), organizational justice is one of the key variables that influence employee performance, loyalty, and engagement. Organizational justice includes employee perceptions of fairness in treatment, resource distribution, and procedures within the organization. These perceptions greatly influence work motivation, retention, and the relationship between employees and the organization. Without justice, employees tend to experience dissatisfaction, lose motivation, and ultimately have the potential to leave the company (Rusbadrol et al., 2021).

In the context of Islamic values, the principle of justice ('adl) is one of the main foundations governing all aspects of life, including in HR management practices. Islamic teachings emphasize the importance of justice as part of the responsibility of a leader and organization to realize common welfare (maslahah) (Toumi & Su, 2022) . The word of Allah in the Qur'an letter An-Nahl verse 90 states:

"Verily Allah enjoins (you) to be just and to do good and to give to relatives..."

This verse shows that justice is not just a moral obligation but also a religious commandment that supports the creation of harmony and trust in the organization. Justice in the Islamic perspective is not only related to material aspects such as salary and promotion but also includes spiritual, emotional, and procedural aspects that affect employee well-being holistically (Basir et al., 2021 ).

Along with the increasingly complex challenges of modern organizations, employee engagement is an important focus in efforts to improve organizational performance and productivity. Employee engagement is defined as the emotional, cognitive, and behavioral attachment of employees to organizational goals (Shahid, 2019). Various studies show that employees who feel they are treated fairly are more likely to have high levels of engagement, work with enthusiasm, and have long-term loyalty to the organization (Udin et al., 2022 ). However, within the framework of Islamic values, employee engagement is not only related to professional aspects but is also seen as part of worship and trust in work.

Although the concepts of organizational justice and employee engagement have been widely researched, there are still research gaps that need to be filled, especially regarding the integration between organizational justice in an Islamic perspective and its relevance to employee engagement. Previous studies have mostly analyzed the two variables separately or only in the context of general values. For example, research on the effect of organizational justice on work engagement conducted by Deepa (2020 ); the effect of organizational justice on organizational commitment conducted by Anggoro et al. (2020); and the effect of justice on positive organizational behavior conducted by Pan et al. (2018). The results of these studies show that the more employees feel treated fairly by the organization, the higher their commitment and engagement with the organization. However, Islamic values as the majority religion in Indonesia have not been widely explored in relation to organizational justice and employee engagement. Islamic values such as justice ('adl), honesty (sidq), and responsibility (amanah) can provide a different perspective in understanding human resource management practices in organizations.

Based on these conditions, this study seeks to analyze the influence of organizational justice in human resource management from the perspective of Islamic values and its relevance to employee engagement. This research is expected to make theoretical and practical contributions to organizations, particularly in developing HR policies that are fair, ethical, and in line with Islamic values to improve employee engagement. In a global context, the results of this study are also expected to enrich the treasure of HR management literature with an Islamic perspective that has not been widely explored. Likewise, the conceptual framework built can be a foundation for further research in the future.

 

RESEARCH METHODS

This research uses a descriptive qualitative approach that focuses on exploring the concept of organizational justice in the perspective of Islamic values and its relevance to employee engagement. This approach was chosen because it allows researchers to understand the phenomenon in depth through descriptive and interpretive data analysis.

This research fully uses secondary data obtained from various credible sources. Secondary data includes: First, articles published in national and international journals that discuss the topics of organizational justice, Islamic work ethics, and employee engagement. Second, textbooks and reference books that discuss theoretical and conceptual studies related to the research topic. Third, research reports and surveys of trusted institutions that examine related phenomena. Fourth, digital sources such as official organizational websites and online articles that discuss similar topics.

Data collection techniques were conducted through two main ways, namely literature study and document analysis. Literature study was conducted by identifying, reading, and analyzing various journal articles, books, reports, and other publications relevant to the research variables, namely organizational justice, Islamic values, and employee engagement. Data analysis was conducted using the content analysis method, which identifies, categorizes, and interprets patterns and themes that emerge from the collected data. The data analysis process was carried out by coding, categorizing, and interpreting the data inductively.

Furthermore, a synthesis between empirical findings and theoretical concepts is carried out to produce a comprehensive proposition or conclusion about organizational justice in the perspective of Islamic values and its relevance to employee engagement. In addition, organizational reports and previous research were reviewed to understand the patterns of relationships between the variables under study. This process also involved an in-depth exploration through trusted academic databases to obtain accurate and relevant data.

The data obtained was analyzed using the thematic analysis method. This method involves several stages, namely: First, data reduction by identifying the main themes from various data sources. Second, Coding and Categorization, where the reduced data is then classified based on the similarity of themes. Third, Identification of Themes and Patterns, namely analyzing the relationship between themes and patterns that emerge. Fourth, Interpretation and Synthesis, where researchers construct meaning from the identified themes and draw conclusions. Interpretation is done by linking the findings of this research with the theory and results of previous research.

To ensure data quality and validity, this research applied three strategies: First, Source Triangulation, by collecting data from different sources to verify the accuracy of the information. Second, Audit Trail, which is documenting the research process in detail so that it can be accounted for. Third, Consistency of Analysis, which is to analyze data carefully and consistently to avoid interpretation bias.

 

RESULT AND DISCUSSION

This study explores organizational justice in the perspective of Islamic values and its relevance to employee engagement. The results of this study are categorized into four main themes, namely:

Organizational Justice and its Dimensions

According to Cropanzano et a l. (2007), organizational justice is defined as individuals' perceptions of the moral propriety of how they are treated. This justice is the glue that allows people to work together effectively. Justice defines the essence of an individual's relationship with the company. In contrast, injustice can undermine bonds within the community. Injustice is painful for individuals and harmful for organizations.

Furthermore, Cropanzano et al. (2007) outlined three core dimensions of organizational justice:

1)   Distributive justice: Concerns the appropriateness of results or outcomes. It includes principles such as equity (rewarding based on contribution), equality (providing relatively equal compensation), and need (providing benefits based on personal needs).

2)   Procedural justice: Concerns the appropriateness of the allocation process. Principles include consistency, absence of bias, accuracy, representation of all relevant parties, correction mechanisms, and ethics.

3)   Interactional justice: Concerns the appropriateness of the treatment one receives from authority figures. This includes how information is communicated and the quality of interpersonal treatment.

Meanwhile, according to Indrawati (2020), organizational justice has important implications for employee attitudes and behavior, such as job satisfaction, organizational commitment, organizational citizenship behavior, and intention to leave. The four dimensions of organizational justice are: distributive, procedural, interpersonal, and informational. The dimensions of organizational justice and their implications for employee engagement can be seen in Table 1 below:

Table 1. Dimensions of Organizational Justice

Dimensions

Definition

Implications on Engagement

Distributive Justice

Profit sharing in line with employee contribution.

Increased motivation and job satisfaction.

Procedural Justice

Transparent, accurate and bias-free process.

Loyalty and trust in the organization.

Interactional Justice

Respectful treatment, empathy, and positive communication.

Fosters a sense of value and engagement.

Source: Indrawati (2020)

 

By understanding the dimensions of organizational justice, HR management practices can be designed to meet employees' sense of justice.

Islamic Values and the Principle of Justice

Islamic values in the context of organizational justice are rooted in the principles of 'adl (justice), amanah (trust), and ihsan (kindness in action). These principles form an ethical foundation that encourages organizations to treat employees fairly and responsibly (Omar et al., 2021; Ismail et al., 2023).

Figure 1. Principle of Islamic Values in Organizational Justice

 

Principle of Islamic Values in Organizational Justice

Islamic values applied in HR management policies and practices create a fair and harmonious work environment, thereby increasing emotional engagement and employee loyalty ( Eliza & Pratiwi, 2021 ).

Relationship between Organizational Justice and Employee Engagement

The results of the analysis show that the implementation of organizational justice in accordance with Islamic values contributes positively to employee engagement. Employees who feel they are treated fairly exhibit: higher levels of work motivation, loyalty and trust in the organization and decreased turnover intention.

Thus, organizational justice creates a positive work climate and makes employees feel valued and thus more engaged and committed to the organization. This is in line with what states that organizational justice can increase employee engagement through emotional ties and feelings of "belonging" to the organization (Ramadhani, 2022).

For example, if the organization implements procedures that are fair, transparent and provide opportunities for participation, then employees will feel valued and trust the organization. Conversely, when employees perceive injustice, they tend to be less engaged at work and exhibit dysfunctional behavior. (Rahman & Mas'ud, 2022; Indrawati, 2020)

 

Table 2. Effect of Organizational Justice on Engagement

Justice Factor

Influence on Engagement

Source

Distributive Justice

Increase job satisfaction and motivation.

(Wati & Anisah, 2021)

Procedural Justice

Build loyalty and commitment.

(Rais & Parmin, 2020)

Interactional Justice

Encourage open and positive communication.

(Pratama & Syarifah, 2020)

 

Integration of Organizational Justice and Islamic Values

The integration of Islamic principles of justice with HR management policies results in a more comprehensive approach in creating a fair and inclusive work environment. This result is reinforced by previous research which shows that the application of Islamic values in organizational justice can increase employee engagement because they feel respected, trusted, and supported by the organization ( Irkhami et al., 2021; Saripudin & Abang , 2022).

Figure 2. Relationship between Organizational Justice, Islamic Values, and Employee Engagement

 

The implementation of organizational justice based on Islamic values has a significant impact on employee engagement. The dimensions of distributive, procedural, and interactional justice integrated with the principles of 'adl, amanah, and ihsan create a harmonious, transparent, and respectful work environment. This increases employee motivation, loyalty, and commitment to the organization.

The Principle of Justice in HRM and its Relevance to Islamic Values

The concept of justice ('adl) in Islamic teachings emphasizes the importance of giving rights proportionally to each individual according to their position, responsibility, and contribution. This principle is very relevant in modern HRM management that focuses on fair treatment, equal opportunity, and fair distribution of rewards. Here are some applications of the principle of justice in HRM:

1)   Fairness in recruitment and selection: The principle of 'adl directs companies to be objective and transparent in the recruitment process. Selection based on meritocracy (skills, qualifications, and competencies) is in accordance with Islamic values. In the context of modern HRM, organizations are increasingly using digital technologies such as AI-driven recruitment tools that ensure the selection process is more free from bias (Husna et al., 2021). A practical example is a global company that implements a blind recruitment system, where the identity of prospective employees is hidden to avoid discrimination. In Islam, this is in line with the principle of 'adl, which rejects discrimination based on ethnicity, religion or gender.

2)   Distribution of wages and rewards: Islam teaches to give proper and timely wages to employees, as the Prophet Muhammad's hadith states: "Give wages to workers before their sweat is dry" (HR Ibn Majah). In contemporary research, fairness in wage distribution has a positive correlation to employee engagement and job satisfaction ( Arianto & Wahyuningsih , 2022). Practical examples are transparent compensation policies, performance-based incentives, and proportional bonus schemes.

3)   Career development and promotion: In addition to resource distribution, the principle of 'adl also emphasizes equality of opportunity in career development. Companies should avoid nepotism or subjectivity in the promotion process, instead prioritizing merit, competence and employee contribution.Practical examples are a clear career path map, equitable mentoring and training programs, and an objective talent management system.

4)   Discipline development: In the context of indiscipline, Islam teaches to enforce sanctions fairly and transparently without discrimination. This is important to ensure there is no abuse of office or position by management. Practical examples are clear disciplinary policies, procedural sanctioning processes, and consistency of implementation.

5)   Employment relationship: From an Islamic perspective, the relationship between employers and employees should be built on mutual trust, respect, and cooperation. Practices of empowerment, two-way communication, and deliberative conflict resolution realize the harmony of industrial relations. Practical examples include management transparency, consultation and feedback mechanisms, and fair dispute resolution.

The Principle of Amanah in Employee Management

The concept of trust emphasizes the importance of integrity and responsibility in managing human resources. A leader or manager is responsible for nurturing employees, ensuring their rights are met, and maximizing their potential. Here are some applications of the trust principle in HRM:

1)   Trust in leadership: Leadership in trust-based HRM is oriented towards transparency, accountability, and honesty. This is reflected in the servant leadership style, which is also promoted in various modern leadership theories. Leaders are responsible for serving the needs of employees and facilitating their development ( Armila & Sopianingsih , 2022). Contemporary facts show that leaders with integrity and values of fairness and trustworthiness tend to build high trust among employees, which has implications for increasing employee engagement and retention.

2)   Corporate responsibility for employee welfare: In the contemporary era, companies are required to care more about work-life balance. The value of trust teaches that companies are responsible for maintaining the physical and mental well-being of employees. This is in line with global trends such as hybrid working and flexible hours, which are desired by generation Z employees ( Basir et al., 2021 ).

3)   Accountability of HR management performance: A trustworthy leader will ensure that HR policies are implemented in an accountable and transparent manner. This increases employees' trust in management, and ultimately drives their engagement and commitment to the organization. An empirical example, some companies implement a 360-degree feedback system, so that management performance assessments do not only come from superiors, but also the views of subordinates and coworkers. This reflects a culture of trust that upholds accountability. In Islam, the concept of amanah also emphasizes one's accountability in the hereafter. Another example is the implementation of a transparent and fair remuneration program, in line with Islamic teachings on the importance of giving rights proportionally.

 

Ihsan Principles in Managing Employee Performance and Empowerment

The concept of ihsan in Islam refers to the act of doing work to the best of one's ability, which includes a high work ethic, productivity, and improved work quality. Here are some applications of the ihsan principle in HRM:

1)   Competency development based on the value of ihsan: In HRM, employee development through training and education is very important. Islamic teachings encourage humans to continue learning and improving themselves (iqra' - the command to read and demand knowledge). Many companies in the digital era have implemented e-learning platforms and learning management systems to improve employee competencies ( Yumnah, 2021 ). In this context, the value of ihsan also plays an important role to encourage employees to work optimally. A high work ethic helps create a productive and innovative work culture, which is a key factor in improving employee engagement and performance.

2)   Implementation of fair performance measurement: A performance evaluation system based on fairness and constructive feedback is needed. Companies can adopt the value of ihsan by ensuring that evaluations focus not only on target achievement, but also on employee effort and contribution.

3)   Employee empowerment through delegation of authority: The concept of ihsan in Islam also emphasizes the importance of empowerment and delegation of responsibility to individuals. By delegating authority to competent and responsible employees, they will feel empowered and motivated to give their best performance.

4)   Integrity and blessing-based performance measurement: In addition to target achievement, Islamic HRM also needs to consider aspects of goodwill, honesty, and blessings in every activity. Employees who work with integrity and hope for Allah's pleasure will foster a strong sense of meaning, which is positively correlated to employee engagement.

As an empirical example, companies can implement Islamic performance management that measures not only performance, but also the integrity, responsibility and dedication of employees. This can build a more meaningful work environment for employees. Another example is rewarding employees not only on the basis of KPI achievement, but also on the basis of innovative, proactive, and blessed contributions to the company. This will increase the sense of fairness and employee satisfaction.

The Principle of Honesty in HR Management

Islam emphasizes the principle of honesty (amanah) in all aspects of life, including in human resource management. Honesty is the foundation in building trust and credibility among leaders, employees, and other stakeholders. Here are some applications of the principle of honesty in HRM:

1)   Honesty in recruitment and selection: The recruitment and selection process should be based on the qualifications, competencies, and integrity of prospective employees, not other factors such as nepotism or discrimination. Example: Companies can adopt the value of honesty by setting objective and transparent competency test standards, and avoiding the practice of data falsification or information manipulation in the selection process.

2)   Honesty in compensation: A fair and transparent remuneration system is essential for building employee trust and motivation. Example: The company can implement a clear salary and benefits structure, and establish a policy of salary increases and promotions based on performance, not "like" factors.

3)   Honesty in performance evaluation: The performance appraisal process should be objective, constructive, and transparent. Example: Companies can implement 360-degree feedback, where assessments are not only from superiors, but also coworkers and subordinates.

4)   Honesty in dismissing employees: If it is necessary to dismiss an employee, this process must be done honestly, fairly, and with clear reasons. Example: The company can set objective dismissal criteria, and provide an opportunity for the employee to present a defense before a decision is made.

The application of the principle of honesty in various HRM practices will build a more transparent, fair, and credible work environment. This in turn will increase employee trust, satisfaction, and engagement with the organization.

 

CONCLUSION

The principles of justice in Islamic value-based HRM, such as merit, non-discrimination, and transparency in employee management practices, can encourage employee engagement by fulfilling employees' sense of justice and trust. The principle of organizational integrity in the form of trustworthy employee management, such as a leadership style with integrity, responsibility for employee welfare, and accountability for HR management performance, can increase employee trust, commitment, and attachment to the organization. The implementation of organizational justice principles based on ihsan values, such as competency development, fair performance measurement, employee empowerment, and appraisals that consider integrity and blessings, can contribute to improving work ethic, motivation and employee engagement. Overall, the implementation of the principles of justice, trust, and ihsan in HRM practices based on Islamic values has a strong relevance in increasing employee engagement in the organization. The results of this study can be a reference for organizations, especially in Indonesia, where the majority of the population is Muslim, to develop HRM models that are in line with Islamic teachings to improve employee engagement and performance. Practically, this research provides implications for organizations in applying Islamic value-based HRM principles that can increase employee engagement which are implemented comprehensively and integrated in all aspects of human resource management in the company

 

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Copyright holders:

Sukirman, Sulaiman. S., Kumoro D.F.C., Nuryadi S. (2025)

First publication right:

AJEMB � American Journal of Economic and Management Business