Islamic Human Resource Management (IHRM) Influence on Employee Turnover Intention in Multi-National Corporations (MNCs) in Malaysia

  • Salmi Bawasa Universiti Teknologi MARA, Shah Alam
  • Abdul Kadir Othman Universiti Teknologi MARA, Shah Alam
Keywords: Behavior, Employee Turnover Intention, Trends, Islamic Human Resources Management (IHRM), Multi-National Corporations

Abstract

This paper investigates the dynamics affecting employees' intentions to leave their jobs in multinational corporations (MNCs) in Malaysia, focusing on the influencing factors of Islamic human resource management (IHRM). The increasing trends of employee turnover intention have significant implications for businesses, as they can impact strategic objectives and plans. The consequences encompass higher expenses, elevated costs for hiring and replacing employees, the need for time-consuming training, disruptions in productivity and supply, and a decrease in morale. To investigate this phenomenon, a positivist research design with a correlational study approach was adopted. The study population consisted of diversified MNCs, with a sample of 277 MNC employees as the unit of analysis. Questionnaires were used as the research instrument. The findings revealed a strong relationship between Islamic recruitment and hiring and employee turnover intention, and between Islamic performance and compensation and employee turnover intention. This study highlights the importance of integrating Islamic human resource management into organizational practices, identifying specific management strategies that can help mitigate and address employee turnover intention.

Downloads

Download data is not yet available.

References

Ahmad, K. (2008). Challenges and practices in human resource management of the Muslim world. The Journal of Human Resource and Adult Learning, 4(2), 34–42.
Alkahtani, A. (2014). An application of Islamic principles in building a robust human resource management system (in Islamic countries). International Journal of Recent Advances in Organizational Behaviour and Decision Sciences (IJRAOB), 1(3), 183–194. www.globalbizresearch.org
Azmi, I. A. G. (2015). Islamic human resource practices and organizational performance: Some findings in a developing country. Journal of Islamic Accounting and Business Research, 6(1). https://doi.org/10.1108/JIABR-02-2012-0010
Balla, Z. I., Alias, R., Isa, A. A. M., Zaroog, O. S., & Osman, Y. (2016). Impact of Islamic value as strength of human resources management practice on organization commitment; conceptual framework. International Review of Management and Marketing |, 6(S8), 306–309.
Çelik, M. (2018). The effect of psychological capital level of employees on workplace stress and employee turnover intention. Innovar, 28(68), 67–75. https://doi.org/10.15446/innovar.v28n68.70472
Chakrabarti, S., & Guha, S. (2016). Differentials in information technology professional category and turnover propensity: A Study. Global Business Review, 17(3), 90S-106S. https://doi.org/10.1177/0972150916631086
Cho, Y. J., & Lewis, G. B. (2012). Turnover intention and turnover behavior: Implications for retaining federal employees. Review of Public Personnel Administration, 32(1), 4–23. https://doi.org/10.1177/0734371X11408701
Dhar, B. K., Rahouma, H. M., Masruki, R., & Absar, M. M. N. (2017). Impact of Islamic human resource practices on organizational performance through organizational commitment in the banking sector of Bangladesh. The 7th Islamic Economic System Conference (ECONS 2017).
Fesharaki, F., & Sehhat, S. (2018). Islamic human resource management (iHRM) enhancing organizational justice and employees’ commitment: Case of a Qard al-Hasan bank in Iran. Journal of Islamic Marketing, 9(1), 204–218. https://doi.org/10.1108/JIMA-03-2017-0029
Guest, D. E. (1997). Human resource management and performance: A review and research agenda. International Journal of Human Resource Management, 8(3), 263–276. https://doi.org/10.1080/095851997341630
Hadjri, M. I., Perizade, B., Marwa, T., & Hanafi, A. (2019). Organizational commitment and employee performance: A case study on Sharia bank in south Sumatera. International Review of Management and Marketing, 9(1), 123–128. https://doi.org/10.32479/irmm.7529
Hashim, J. (2008). The Quran-based human resource management and its effects on organizational justice, job satisfaction, and turnover intention. The Journal of International Management Studies, 3(2), 148–159.
Hashim, J. (2009). Islamic revival in human resource management practices among selected Islamic organizations in Malaysia. International Journal of Islamic and Middle Eastern Finance and Management, 2(3), 251–267. https://doi.org/10.1108/17538390910986362
Hossin, M. S., Ali, I., & Sentosa, I. (2020). Human resource management practices from an Islamic perspective; a study on Bangladesh context. International Journal of Academic Research in Business and Social Sciences, 10(6), 391–405. https://doi.org/http://dx.doi.org/10.6007/IJARBSS/v10-i6/7310
Hussain, S., & See, H. X. (2019). Factors affecting employee turnover intention in construction companies in Klang, Selangor. KnE Social Sciences, 2019, 108–131. https://doi.org/10.18502/kss.v3i22.5047
Ivanovic, T., & Ivancevic, S. (2018). Turnover intentions and job hopping among Millennials in Serbia. Journal of Sustainable Business and Management Solutions in Emerging Economies, 24(1), 53–62. https://doi.org/10.7595/management.fon.2018.0023
Jeon, J. H., & Yom, Y.-H. (2014). Roles of empowerment and emotional intelligence in the relationship between job embeddedness and turnover intention among general hospital nurses. Journal of Korean Academy of Nursing Administration, 20(3), 302–312. https://doi.org/10.11111/jkana.2014.20.3.302
Khan, B., Farooq, A., & Hussain, Z. (2010). Human resource management: An Islamic perspective. Asia-Pacific Journal of Business Administration, 2(1). https://doi.org/10.1108/17574321011037558
Maxwell, J. A. (2012). Qualitative research design: An interactive approach (J. A. Maxwell, Ed.; 3rd ed.). SAGE Publications.
Michaels, C. E., & Spector, P. E. (1982). Causes of employee turnover: A test of the Mobley, Griffeth, Hand, and Meglino’s model. Journal of Applied Psychology, 67(1), 53–59. https://doi.org/10.1037/0021-9010.67.1.53
Norton, A. R. (2011). Al-Najaf: Its resurgence as a religious and university center Augustus: Vol. XVIII (Issue 1).
Oliveira, L. B. De, & Rocha, J. D. C. (2017). Work engagement: Individual and situational antecedents and their relationship with turnover intention. Review of Business Management, 19(65), 415–431. https://doi.org/10.7819/rbgn.v19i64.3373
Rahman, N. M. N. A., Alias, M. A., Shahid, S., Hamid, M. A., & Alam, S. S. (2013). Relationship between Islamic human resource management (IHRM) practices and trust: An empirical study. Journal of Industrial Engineering and Management, 6(4), 1105–1123. https://doi.org/http://dx.doi.org/10.3926/jiem.794
Rokhman, W. (2010). The effect of Islamic work ethics on work outcomes. Electronic Journal of Business Ethics and Organization Studies, 15(1), 21–27. http://ejbo.jyu.fi/
Sadeq, A. H. M. (2018). Islamic ethics in human resource management. International Journal of Islamic Management and Business, 7(1), 43–55.
Salahudin, S. N. bin, Osman, A., Abdullah, M. S., Ramli, A. A., & Lim, S. N. A. (2016). Intention to quit and the demand-control model: A case of Malaysian super corridor status companies. Mediterranean Journal of Social Sciences, 7(2), 217–227. https://doi.org/10.5901/mjss.2016.v7n2p217
Salkind, N. J. (2007). Encyclopedia of measurement and statistics. In N. J. Salkind (Ed.), Encyclopedia of Measurement and Statistics. Sage Publications, Inc. https://doi.org/10.4135/9781412952644
Turnbull, S., Walsh, L. H., & Boulanouar, A. (2016). The advertising standardization debate revisited: Implications of Islamic ethics on standardization/localization of advertising in Middle East Islamic States. Journal of Islamic Marketing, 7(1), 2–14.
Winne, S. De, Marescaux, E., Sels, L., Beveren, I. Van, & Vanormelingen, S. (2019). The impact of employee turnover and turnover volatility on labor productivity: A flexible non-linear approach. International Journal of Human Resource Management, 30(21), 1–58. https://doi.org/10.1080/09585192.2018.1449129
Published
2024-05-29
How to Cite
Bawasa, S., & Othman, A. K. (2024). Islamic Human Resource Management (IHRM) Influence on Employee Turnover Intention in Multi-National Corporations (MNCs) in Malaysia . Information Management and Business Review, 16(2(I)S), 129-137. https://doi.org/10.22610/imbr.v16i2(I)S.3778
Section
Research Paper