ISLAMIC HUMAN RESOURCE MANAGEMENT, SPIRITUAL MOTIVATION, AND JOB SATISFACTION: AN EMPIRICAL STUDY OF ISLAMIC BANK IN SOUTH SUMATERA, INDONESIA

• Published in: Economic and Social Development: Book of Proceedings pp. 196 - 206
• Main Authors: Hadjri, Muhammad Ichsan, Perizade, Badia, Marwa, Taufiq, Hanafi, Agustina
• Format: Conference Proceeding
• Language: English
• Published: Varazdin Varazdin Development and Entrepreneurship Agency (VADEA) 17.10.2019
• Subjects: Banking; Banking industry; Empirical analysis; Employees; Human resource management; Islamic financing; Job satisfaction; Measuring instruments; Motivation; Nepotism; Political power; Principles; Random sampling; Recruitment; Statistical sampling; Wages & salaries; Workloads; Sumatra; Indonesia
• ISSN: 1849-6903; 1849-6903

As a country with the largest Muslim population in the world, Indonesia is expected to become one of the largest sharia banking bases in the world. However, the fact implies that currently, the total assets of Islamic banking in Indonesia are considered very small compared to the total assets of the banking industry in Indonesia. One factor that influences organizational performance is the practice of Islamic Human Resource Management (IHRM). IHRM is an HRM concept by Islamic principles based on Al-Quran and Hadith. Organizations that carry out sharia principles in their operational activities are expected to implement the IHRM in the management of human resources, including Islamic banking. Indonesia, the country with the largest Muslim population in the world and has a lot of Islamic banking is expected to have a lot of research on IHRM, so that it can be a reference for Islamic banking managers. However, currently, research on IHRM is very few in Indonesia. This study aims to analyze the effect of IHRM directly on spiritual motivation and job satisfaction. This study also investigated the impact of IHRM on job satisfaction indirectly through spiritual motivation. The unit of analysis in this study is the Islamic Bank in South Sumatra, Indonesia, where the average assets of Islamic banking in South Sumatra are under the average assets of Indonesia's national Islamic banking. Instruments for measuring variables are questionnaires distributed to respondents in the unit of analysis. Respondents of 136 Islamic Bank employees were selected using proportional stratified random sampling method. The results showed that IHRM consisting of Islamic Recruitment and Selection and Islamic Training variables had a direct positive effect on spiritual motivation and job satisfaction, while Islamic Compensation had a positive effect on spiritual motivation, but negative effect on job satisfaction. IHRM also has a positive effect on job satisfaction indirectly through spiritual motivation.