Human Resource Management Based on Sharia: How Employees Determine Sharia Law in the Context of Islamic Finance (Case Study: Bank Syariah Indonesia in Malang City, East Java)

Abstract

Abstract. This research explores employee perceptions of Sharia principles in the context of Human Resource Management (HRM) at Bank Syariah Indonesia in Malang City, East Java. The study employs a case study design with a qualitative approach, chosen for its ability to provide an in-depth understanding of how employees perceive and apply Sharia principles within the framework of Sharia-oriented HRM at the bank. Data were collected through in-depth interviews, direct observation, and document analysis involving a purposive sample of 15 employees from various positions within the bank, including staff and managers, with diverse lengths of service and demographic characteristics. The findings suggest that education and training focused on Sharia principles are crucial in shaping employees' understanding and attitudes. Additionally, a Shariah-oriented organizational culture positively influences employee behaviors and attitudes, aligning them more closely with the institution's values. These results offer practical implications for Islamic financial institutions, emphasizing the need to strengthen educational programs and enhance organizational culture to foster Sharia-compliant human resources. Furthermore, the study highlights opportunities for better employee development, particularly in developing technical skills and integrating Islamic ethical values. In conclusion, this research significantly contributes to the literature on Islamic-oriented HRM and provides valuable insights for practitioners and researchers in the field. Keywords: Human Resource Management (HRM), sharia principles, employee perception, islamic finance