Factors Strengthening the Fundamental Concept of Human Relations in Islamic Financial Institutions of Indonesia

Budi Sukardi (1), Fachrurazi Fachrurazi (2), Eko Asmanto (3)
(1) Faculty of Islamic Economics and Business, Universitas Islam Negeri Raden Mas Said Surakarta
(2) Faculty of Islamic Economics and Business, Institut Agama Islam Negeri Pontianak
(3) Faculty of Islamic Religion, University of Muhammadiyah Sidoarjo
Fulltext View | Download
How to cite (SHIRKAH) :
Sukardi, B., Fachrurazi, F., & Asmanto, E. (2022). Factors Strengthening the Fundamental Concept of Human Relations in Islamic Financial Institutions of Indonesia. Shirkah: Journal of Economics and Business, 7(1), 17–32. https://doi.org/10.22515/shirkah.v7i1.464

This study seeks to manifest the factors in strengthening and improving the fundamental concepts of human relations in Islamic banking including motivation, concepts and perceptions of individuals, power, decision-making, communication, leadership, mentality, social environment, individual differences, and human dignity. They are scrutinized in Islamic financial institutions in Indonesia. This quantitative study employed a non-experimental approach. 38 Islamic financial institutions were involved as the representative sample. Data from the questionnaire were analyzed using factor analysis to reduce the data by summarizing several factors and renaming them as new factors. Verification using factor analysis with correlation matrix showed that the human dignity provides a significant relationship to all factors in human relations in Islam with a significance of < 0.05. All factors were found valid with the highest validity of 0.802 (human dignity). The results of the reduction factor brought up three new factors social, psychological, and leadership factors. This study proves that the essential components to strengthen and improve human relations in Islamic banking are implementing and improving social, psychological, and leadership aspects.

Abdul-Baki, Z., & Uthman, A. B. (2017). Exploring the “social failures†of Islamic banks: A historical dialectics analysis. Journal of Islamic Accounting and Business Research, 8(3), 250–271. https://doi.org/10.1108/JIABR-06-2014-0021

Ab. Wahab, M., & Masron, T. A. (2020). Towards a core Islamic work value. Journal of Islamic Accounting and Business Research, 11(1), 179–200. https://doi.org/10.1108/JIABR-11-2017-0158

Aldulaimi, S. H. (2016). Fundamental Islamic perspective of work ethics. Journal of Islamic Accounting and Business Research, 7(1), 59–76. https://doi.org/10.1108/JIABR-02-2014-0006

Alserhan, B. A. (2017). The principles of Islamic marketing. Routledge. https://doi.org/10.4324/9781351145688

AlTayyar, A. A. M. (2017). Human relations in Islam. Academic Publishing and Press, King Saud University.

Balmer, J. M. T. (2017). The corporate identity, total corporate communications, stakeholders’ attributed identities, identifications and behaviours continuum. European Journal of Marketing, 51(9), 1472–1502. https://doi.org/10.1108/EJM-07-2017-0448

Brady, E., & Phemister, P. (2012). Human-environment relations. In E. Brady & P. Phemister (Eds.), Springer Netherlands. Springer Netherlands. https://doi.org/10.1007/978-94-007-2825-7

Creswell, J. W. (2016). Research design: Pendekatan metode kualitatif, kuantitatif, dan campuran (4th ed.). Pustaka Pelajar.

Creswell, J. W., & Creswell, J. D. (2018). Research design : qualitative, quantitative, and mixed methods approaches (Fifth, Issue July). SAGE Publications.

Edwards, M. (2011). Introduction: Civil society and the geometry of human relations. In The Oxford Handbook of Civil Society. Oxford University Press. https://doi.org/10.1093/oxfordhb/9780195398571.013.0001

Enciso, S., Milikin, C., & O’Rourke, J. S. (2017). Corporate culture and ethics: From words to actions. Journal of Business Strategy, 38(6), 69–79. https://doi.org/10.1108/JBS-01-2017-0001

Garver, G. (2019). A systems-based tool for transitioning to law for a mutually enhancing human-earth relationship. Ecological Economics, 157(June), 165–174. https://doi.org/10.1016/j.ecolecon.2018.09.022

Gheitani, A., Imani, S., Seyyedamiri, N., & Foroudi, P. (2019). Mediating effect of intrinsic motivation on the relationship between islamic work ethic, job satisfaction, and organizational commitment in banking sector. International Journal of Islamic and Middle Eastern Finance and Management, 12(1), 76–95. https://doi.org/10.1108/IMEFM-01-2018-0029

Goyena, R. (2015). Social relations in human and societal development. In C. Psaltis, A. Gillespie, & A.-N. Perret-Clermont (Eds.), Palgrave Macmillan. Palgrave Macmillan UK. https://doi.org/10.1057/9781137400994

Groep, S. van de, Meuwese, R., Zanolie, K., Güroğlu, B., & Crone, E. A. (2020). Developmental changes and individual differences in trust and reciprocity in adolescence. Journal of Research on Adolescence, 30(S1), 192–208. https://doi.org/10.1111/jora.12459

Hahn, T., Pinkse, J., Preuss, L., & Figge, F. (2015). Tensions in corporate sustainability: Towards an integrative framework. Journal of Business Ethics, 127(2), 297–316. https://doi.org/10.1007/s10551-014-2047-5

Hajali, A. R., Noordin, K., & Achour, M. (2018). The Islamic approach of obligations in mutual relations between employee and employer. International Journal of Ethics and Systems, 34(3), 338–351. https://doi.org/10.1108/IJOES-12-2017-0227

Hassan, A., & Mollah, S. (2018). Islamic fnance. Springer International Publishing. https://doi.org/10.1007/978-3-319-91295-0

Hassan, M. K., & Lewis, M. K. (2007). Handbook of Islamic banking. In Edward Elgar Publishing Limited. Edward Elgar Publishing, Inc.

Husein, U. M. (2018). Islam, communication and accounting. Journal of Islamic Accounting and Business Research, 9(2), 138–154. https://doi.org/10.1108/JIABR-01-2016-0008

Ioppolo, G., Cucurachi, S., Salomone, R., Saija, G., & Shi, L. (2016). Sustainable local development and environmental governance: A strategic planning experience. Sustainability, 8(2), 180. https://doi.org/10.3390/su8020180

Iqbal, Z., & Mirakhor, A. (2017). Ethical dimensions of Islamic finance. Springer International Publishing. https://doi.org/10.1007/978-3-319-66390-6

Ishii, A., Yomura, I., & Okano, N. (2020). Opinion dynamics including both trust and distrust in human relation for various network structure. 2020 International Conference on Technologies and Applications of Artificial Intelligence (TAAI), 131–135. https://doi.org/10.1109/TAAI51410.2020.00032

Jacobsen, M. H. (2017). The interactionist imagination. Palgrave Macmillan. https://doi.org/10.1057/978-1-137-58184-6

Kanani, I., Ahmadi Ramchahi, A., Zarasi, M., Zulkifli, M. Y., & Raja Yusof, R. J. (2017). The relationship of Muslims with non-Muslims based on the concept of MuwÄlÄt (loyalty) in the QurʾÄn. Humanomics, 33(3), 258–273. https://doi.org/10.1108/H-12-2016-0096

Khalid, M., Bashir, S., Khan, A. K., & Abbas, N. (2018). When and how abusive supervision leads to knowledge hiding behaviors. Leadership & Organization Development Journal, 39(6), 794–806. https://doi.org/10.1108/LODJ-05-2017-0140

Kitson, A., & Campbell, R. (1996). The ethical organisation. Macmillan Education UK. https://doi.org/10.1007/978-1-349-24405-8

Kizilkaya, A. N., & Azid, T. (2017). Labor in an Islamic setting. Routledge. https://doi.org/10.4324/9781315591278

Kovács, L., & SütÅ‘, Ã. (2020). On improving financial literacy. Economy & Finance, 7(1), 131–140. https://doi.org/10.33908/EF.2020.1.6

Lerner, M. J., & Vermunt, R. (1991). Social justice in human relations (H. Steensma & R. Vermunt (eds.)). Springer US. https://doi.org/10.1007/978-1-4899-2629-6

Macke, J., & Genari, D. (2019). Systematic literature review on sustainable human resource management. Journal of Cleaner Production, 208, 806–815. https://doi.org/10.1016/j.jclepro.2018.10.091

Malik, A. (2018). Strategic human resource management and employment relations. Springer. Springer Singapore. https://doi.org/10.1007/978-981-13-0399-9

Mertzanis, C. (2016). The absorption of financial services in an Islamic environment. Journal of Economic Behavior & Organization, 132, 216–236. https://doi.org/10.1016/j.jebo.2016.10.025

Moghimi, S. M. (2018a). Individual differences: Personality in Islamic management. In Emerald Publishing Limited (Organizati, pp. 19–30). Emerald Publishing Limited page 19-30. https://doi.org/10.1108/978-1-78769-677-820181002

Moghimi, S. M. (2018b). Leadership syles in Islamic management. In Organizational Behavior Management (pp. 159–220). Emerald Publishing Limited. https://doi.org/10.1108/978-1-78769-677-820181009

Moghimi, S. M. (2018c). Motivation in Islamic management. In Organizational Behavior Management (pp. 41–65). Emerald Publishing Limited. https://doi.org/10.1108/978-1-78769-677-820181004

Moghimi, S. M. (2018d). Organizational control in Islamic management. In Principles and Fundamentals of Islamic Management (pp. 235–266). Emerald Publishing Limited. https://doi.org/10.1108/978-1-78769-673-020181008

Moghimi, S. M. (2018e). Organisational behavior management. Emerald Publishing Limited. https://doi.org/10.1108/9781787696778

Moghimi, S. M. (2018f). Principles and fundamentals of Islamic management. Emerald Publishing Limited. https://doi.org/10.1108/9781787696730

Murad, K. (2005). Inter personal relations an Islamic perspective (A. R. Siddiqui (ed.)). The Islamic Foundation.

Mursi, A. H. (1997). SDM yang produktif: Pendekatan Al-Qur’an dan sains (Pertama). Gema Insani Press.

Qadri, H. M.-D. (2019). Business ethics in Islam. Routledge. https://doi.org/10.4324/9780429326189

Rahayu, A. R., Normah, O., Asheq, R., & Ruhaini, M. (2018). Islamic ethical values of corporate top leadership and real earnings management. International Journal of Law and Management, 60(3), 869–884. https://doi.org/10.1108/IJLMA-03-2017-0029

Rana, M. H., & Malik, M. S. (2017). Impact of human resource (HR) practices on organisational performance. International Journal of Islamic and Middle Eastern Finance and Management, 10(2), 186–207. https://doi.org/10.1108/IMEFM-04-2016-0060

Reece, B. L., Brandt, R., & Howie, K. F. (2011). Effective human relations: interpersonal and organisational applications. In South-Western Cengage Learning (Eleventh).

Rofcanin, Y., & Anand, S. (2020). Human Relations Virtual Special Issue: Flexible Work Practices and Work-Family Domain. Human Relations, 73(8), 1182–1185. https://doi.org/10.1177/0018726720935778

Syed, J., & Ali, A. J. (2010). Principles of employment relations in Islam: A normative view. Employee Relations, 32(5), 454–469. https://doi.org/10.1108/01425451011061630

Tiby, A. M. El, & Grais, W. M. (2015). Islamic finance and economic development: Risk management, regulation and corporate governance. John Wiley & Sons.

Warner, J. M. (2015). Rousseau and the problem of human relations. The Pennsylvania State University Press.

Weatherburn, M. (2020). Human relations’ invented traditions: Sociotechnical research and worker motivation at the interwar rowntree cocoa works. Human Relations, 73(7), 899–923. https://doi.org/10.1177/0018726719846647

White, K. W., & Chapman, E. N. (1996). Organisational communication: An introduction to communication and human relations strategies. In A Simon & Schuster Custom Publishing (1st ed.). Prentice-Hall.

Zainuldin, M. H., Lui, T. K., & Yii, K. J. (2018). Principal-agent relationship issues in Islamic banks: A view of Islamic ethical system. International Journal of Islamic and Middle Eastern Finance and Management, 11(2), 297–311. https://doi.org/10.1108/IMEFM-08-2017-0212

Copyright

Copyright aims to protect the specific way the article has been written to describe an experiment and the results. Shirkah: Journal of Economics and Business is committed to its authors to protect and defend their work and their reputation and takes allegations of infringement, plagiarism, ethical disputes, and fraud very seriously. Automotive Experiences is published under the terms of the Attribution-NonCommercial 4.0 International (CC BY-NC 4.0). Authors retain copyright and grant the journal right of first publication (online and print) with the work simultaneously. We use the restrictive license (non-commercial) as follows:

BY (attribution): Users are allowed to share, distribute and redistribute the published article in any medium or format, with an identification of the authors and its initial publication in this journal. Authors are encouraged to post and distribute their articles immediately after publication (e.g., institutional or public repositories, personal websites). Authors are allowed to enter into additional contractual arrangements for the non-exclusive distribution of the published and an acknowledgment of its initial publication in this journal.
NC (non-commercial): Users are not allowed to use the article commercially without the permission of the authors. Authors agree explicitly that the published article is indexed worldwide in databases, repositories and indexation services, even if these services operate on a commercial basis. Authors grant Shirkah: Journal of Economics and Business explicit the right to include the published articles in databases, repositories and indexation services. 

License

License to Publish

The non-commercial use of the article will be governed by the Attribution-NonCommercial 4.0 International (CC BY-NC 4.0). The author hereby grants Shirkah: Journal of Economics and Business an exclusive publishing and distribution license in the manuscript include tables, illustrations or other material submitted for publication as part of the manuscript (the “Article”) in print, electronic and all other media (whether now known or later developed), in any form, in all languages, throughout the world, for the full term of copyright, and the right to license others to do the same, effective when the article is accepted for publication. This license includes the right to enforce the rights granted hereunder against third parties.

Author's Warranties

The author warrants that the article is original, written by stated author/s, has not been published before, contains no unlawful statements, does not infringe the rights of others, is subject to copyright that is vested exclusively in the author and free of any third party rights, and that any necessary written permissions to quote from other sources have been obtained by the author(s).

User Rights

Under the Creative Commons Attribution-Non Commercial 4.0 International (CC BY-NC 4.0) license, the author(s) and users are free to share (copy and redistribute the material in any medium or format) and adapt (remix, transform, and build upon the material). Users must give appropriate credit, provide a link to the license, and indicate if changes were made.

Rights of Authors

Authors retain the following rights:

  1. Copyright, and other proprietary rights relating to the article, such as patent rights,
  2. The right to use the substance of the article in future own works, including lectures and books,
  3. The right to reproduce the article for own purposes, provided the copies are not offered for sale, and
  4. The right to self-archive the article.

Co-Authorship

If the article was prepared jointly with other authors, the signatory of this form warrants that he/she has been authorized by all co-authors to sign this agreement on their behalf, and agrees to inform his/her co-authors of the terms of this agreement.

Royalties

This agreement entitles the author to no royalties or other fees. To such extent as legally permissible, the author waives his or her right to collect royalties relative to the article in respect of any use of the article by Shirkah: Journal of Economics and Business or its sublicensee.

Miscellaneous

Shirkah: Journal of Economics and Business will publish the article (or have it published) in the Journal if the article’s editorial process is successfully completed and Shirkah: Journal of Economics and Business or its sublicensee has become obligated to have the article published. Shirkah: Journal of Economics and Business may conform the article to a style of punctuation, spelling, capitalization, and usage that it deems appropriate.