Determination of organizational essential needs as the basis for developing a maslahah - based performance measurement

Author

Firdaws, Achmad

Source

ISRA International Journal of Islamic Finance

Issue

Vol. 13, Issue 2 (31 Aug. 2021), pp.229-250, 22 p.

Publisher

International Shari'ah Research Academy for Islamic Finance

Publication Date

2021-08-31

Country of Publication

Malaysia

No. of Pages

22

Main Subjects

Islamic Economics and Finance

Abstract EN

Purpose – The purpose of the study is twofold: first, it is to develop each aspect of masla hah darūriyah (essential needs), i.e.

dīn (faith/religion), nafs (soul), ʿaql (intellect), nasl (descendants) and mal (wealth), into various aspects of organisational essential needs; second, it is to formulate masla hah-based performance measurement.

Design/methodology/approach – The research is an exploratory study that uses a two-stage design: defining the research question and developing the research design.

The research question is how each element of masla hah darūriyah can become an element of organisational essential needs.

The research design developed is to formulate masla hah-based performance measurement.

Findings – The study concludes that masla hah darūriyah could be developed as a basis for identifying organisational essential needs.

The five elements of masla hah darūriyah are developed into the following organisational essential needs: worship orientation, internal process orientation, talent orientation, learning orientation, customer orientation and wealth orientation.

Masla hah-based performance measurement uses five variables: strategic objective, measure, formula, target and strategic initiatives and applies the modified plan – do – check – action cycle: performance planning, performance implementation, performance evaluation and performance action.

Practical implications – Organisational essential needs can be developed by Islamic financial institutions (IFIs) into performance measurement.

IFIs have six essential needs that can be developed into performance variables.

Key performance indicators that can be developed for each need are worship orientation (social responsibility, regulatory compliance and Sharīʿah compliance); internal process orientation (innovation process, digital adaptation and employee satisfaction); talent orientation (career development, talent pool, compensation and benefits); learning orientation (training programme, training evaluation and return on training investment); customer orientation (customer engagement, customer satisfaction, customer survey and promotion programme); wealth orientation (profitability, cost-cutting, share prices, dividends, cost efficiency and financial sustainability).

Originality/value – This paper contributes to new knowledge.

The study attempts to discuss the organisational essential needs based on the masla hah darūriyah concept, while previous studies discussed organisational needs based on Maslow’s hierarchy of needs.

In developing performance measurement, organisational performance is measured in a balanced manner.

According to the concept of masla hah, not only financial factors but also worship, internal processes, talents, learning and customers define organisational needs.

Thus, organisational needs are considered not only in terms of material factors but also in terms of spiritual (worship) factors.

American Psychological Association (APA)

Firdaws, Achmad. 2021. Determination of organizational essential needs as the basis for developing a maslahah - based performance measurement. ISRA International Journal of Islamic Finance،Vol. 13, no. 2, pp.229-250.
https://search.emarefa.net/detail/BIM-1429357

Modern Language Association (MLA)

Firdaws, Achmad. Determination of organizational essential needs as the basis for developing a maslahah - based performance measurement. ISRA International Journal of Islamic Finance Vol. 13, no. 2 (2021), pp.229-250.
https://search.emarefa.net/detail/BIM-1429357

American Medical Association (AMA)

Firdaws, Achmad. Determination of organizational essential needs as the basis for developing a maslahah - based performance measurement. ISRA International Journal of Islamic Finance. 2021. Vol. 13, no. 2, pp.229-250.
https://search.emarefa.net/detail/BIM-1429357

Data Type

Journal Articles

Language

English

Notes

Includes bibliographical references : p. 247-250

Record ID

BIM-1429357