The purpose of this paper is to illustrate and explore the Islamic approaches and practices to human resource management (based on Al-Quran and Sunnah). The methodology adopted in this paper is based purely on qualitative approach. The study argues that one of the main cause for the hindrance and lack of progress and development in Islamic countries such as Pakistan is the disparity between universal integration and local receptiveness due to surplus advance circulation of western management and practices of business with small perceptive. The view adopted in this study is that there is a gap exists between the information and awareness possessed by both national and international managers to manage at local level. The following areas of HR functions and activities to learn what the Islamic approach is in this regard are selected for the study;
- Hiring and Selection
- Guidance and Development
- Performance Evaluation
- Compensation and Employment
- Managerial Behaviour (Employer and Employee)
- Employee Relations and Arbitration
Findings: The study reveals that an issue of impartiality and equal opportunity is leading in all of human resource management activities. Management in Islamic countries including Pakistan is heavily influenced by the western or non-Islamic tradition and cultural values as well as norms of different countries rather than Islamic principles based on the Quran and Sunnah.
Practical implications: Considering the Islamic management principles the implementation of policy could help to build up a more appropriate kind of management. It is also argued in the study that national cultural perspectives and diverse views of work values have made a key impact on the capability of the organizations to deal HRM issues in diverse cultural environment.