Religiosity and threshold effect in social and financial performance of microfinance

institutions

Mohammad Ashraful Mobin

Human Resource
Management in Islamic
Micro Finance
Institutions
By: Syed Hussain Haider

Director, Akhuwat Institute of Social Enterprise and

Management

CSO, Akhuwat Education Services

Adjunct Faculty, LUMS

RBE --- KBE

Introduction to HRM
Two questions:
Does it matter?
Why does it matter?

What is HRM?
Organizations methods and procedures
for managing people to enhance skills
and motivation
Activities to enhance the organizations
ability to attract, select, retain and
motivate people

The Death of HR ?
Traditional personnel
function
Recordkeeping
Perceived as a dumping ground

The death of HR?

HRs rebirth
Sources: Caudron (2003); Schuler (1990); Schuler & Walker (1990);
Stewart (1996); Sunoo & Laabs (1999); Ulrich (2000); Wells (2003)

HRM and Personnel

Management differences
HRM:
places more emphasis on strategic fit and
integration,
is based on a management philosophy,
Places more emphasis on mutuality,
is more holistic,
specialists are more like facilitators than
administrators,
treats people as assets and not only as
an expense.

Definition of HRM
Strategic
and
coherent
approach to the management
of
an
organizations
most
valued asset the people
working there who individually
and collectively contribute to the
achievement of its objectives.

What Is Human Resource

Management?
The Management Process
o Planning
o Organizing
o Staffing
o Leading
o Controlling

Elements of human
resource cycle
1.Selection: matching available
human resources to jobs
2.Appraisal: performance
management
3.Rewards: focus on organizational
performance (most under-utilized
and mishandled tool)
short-term and long-term

4.Development developing high

quality employees

Human Resource Management

and
y e e i on s
plo
t
Em r Rela
o
Lab

Human
Resource
1
Planning

Safety and
Health

Hu
m
De an
ve Re
lo s o
pm u
en rce
t

Co m
pen
sati
on

af
t
S

ng

11

The Harvard Framework

Why Is Human Resource Management

Important to All Managers?
No manager wants to:
o Hire the wrong person for the job
o Experience high turnover
o Have your employees not doing
their best

Aims of HRM
1. Organizational effectiveness (HRM makes a
significant impact on firm performance)
2. Human capital management (HC is the
prime asset the aim is to develop the inherent
capacities of people)
3. Knowledge management (support the
development of firm-specific knowledge)
4. Reward management (enhance motivation,
job engagement)
5. Employee relations (harmonious relationship
between partners)
6. Meeting diverse needs (stakeholders,
workforce)
7. Bridging the gap between rhetoric and

HRM concepts
People Management

Human Resources
Management

The policies and practice which

govern how people are
managed and developed in
organizations

Human Capital
Management

The strategic and coherent

An approach to obtaining,
approach to the management
analyzing and reporting on
the most of organizations
data which informs the
most valued assets the
direction of value adding
people working there who
people management strategic
individually and collectively
investment and operational
contribute to the achievements
Personnel Managementdecisions at corporate level
of its objectives
Personnel mmanagement is and at the level of front line
management
concerned with obtaing,
organizing and motivating
human resources required by
enterprise

Human Resource
Management
Part of total management process
Focus on staffing processes
o Job analyses
o Recruiting
o Selecting
o Orientation
o Compensation
o Performance
o Compliance issues
o Research

Trends in Human Resource

Management

Technological advances

Globalization and competition

Indebtedness (Leverage) deregulation
Trends in the nature of work
Demographic and workforce trends
Economic challenges and trends

Trends in Human Resource

Management

More knowledge work

Aging workforce
Economic downturn
De-leveraging

Deregulation slowdown
Slower economic growth

The New Human

Resource Manager

The New Human Resource Manager

Focus More on Strategy
Focus on Improving Performance
Measure HR Performance and Results
Use Evidence-Based Human Resource
Management
They Add Value
They Use New Ways to Provide HR Services

The New Human Resource Manager

They Take a Talent Management Approach

They Manage Employee Engagement

They Manage Ethics

They Understand Their Human Resource

Philosophy

They Have New Competencies

Evidence-based
Human Resource
Management

Big
picture

Competencies
Performance,
results,
evidencebased practice

Transactional
Services

The New
Human
Resource
Managers

Employee
Engagement

Talent
Management

Ethics

Human Resource Managers

Competencies
Strategic positioners
Credible activists
Capability builders
HR innovators and
integrators
Technology proponents

Q&
A?

AlHuda CIBE FZ LLE - U.A.E

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