(4)Impacts of Islamic Human Development Policies on Productivity of Employees: An Empirical Evidence from Banking Sector of Pakistan

Abstract

Purpose - The purpose of this paper is to investigate the relationship among human resource development policies and employee productivity in banking sector. This paper aims at providing guidelines for policy makers to develop HR policies in the light of Islamic teachings.

Design/Methodology/Approach – OLS regression is run to estimate impacts of employees’ financial benefits and their branch strength on their productivity and the resultant impact on profitability of banks. Pooled data of almost all the banks operating in Pakistan during 2004 to 2009 has been used in this study. Data has been collected from audited reports published by each bank.

Findings – Regression results pointed out that salary per employee of a bank had positive and highly significant impacts on productivity of banking sector employees. Similarly, strength of employees in a branch also contributed positively in productivity of employees. However, this factor did not show statistically significant impact.

Originality/Value – This study has practical significance for human development management practitioners, academia, scholars, managers and general public as it provides inferences that guide them in decision making. This study is also linked with Islamic philosophy of human resource as Islamic stresses the need of timely and appropriate payments to the employees.