Abstract:

This research examines the effect of Islamic human resource management practices on organizational commitment in Islamic philanthropy institutions in Indonesia. The practices addressed are recruitment and selection, training and development, performance appraisal, and compensation. The hypotheses were tested by using Partial Least Squares (PLS) using 92 respondents obtained from questionnaires distributed to employees of Islamic philanthropy organization in Indonesia. The research finds that training and development, performance appraisal, and compensation affect organization commitment, while recruitment and selection do not. The findings suggest the philantrophy organizations to apply Islamic principles in the practice of human resource management as it supports organization commitment among employees.