Abstract
Blockchain technology has evolved and has now entered the non-finance function since some organizations have begun to use blockchain to facilitate human resources management practices. One of them is to make psychological work contract formation process more efficient and effective. This paper analyzes the potential and challenges of using Blockchain-based application for Islamic human resources management practices. Drawing from the current literature review existence, the paper discussed various interesting mechanism to support the formation and maintenance of psychological work contract that can bring some potentials and benefits. The paper also underlined the challenges facing in applying blockchains in Islamic HRM and some strategies to face the challenges. We argue that blockchain has the ability to harmonize differing sharia-compliance in work contract or work agreement between employee and employers.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Elton, W.: The Importnce of an Employment Contract, ZEGAL Articles HR, [Online] (2021). https://zegal.com/blog/post/importance-of-employment-contract/
Schwarzkopf Professional, The Importance of an Employment Contract, Business (2021). https://www.schwarzkopf-professional.se/en/home/education/ask/business/0614/the-importance-of-an-employment-contract.html. Accessed 02 Dec 2021
Maheshwari, M., Samal, A., Bhamoriya, V.: Role of employee relations and HRM in driving commitment to sustainability in MSME firms. Int. J. Product. Perform. Manag. 69(8), 1743–1764 (2020)
Rincon-Roldan, F., Lopez-Cabrales, A.: The impact of employement relationships on firm sustainability. Empl. Relations, vol. ahead-of-p, no. ahead-of-print (2021)
Szabó-Szentgróti, G., Végvári, B., Varga, J.: Impact of industry 4.0 and digitization on labor market for 2030-verification of Keynes’ prediction. Sustain 13(14), 1–19 (2021)
Charlton, E.: What is the gig economy and what’s the deal for gig workers?,” World Economic Forum (2021). https://www.weforum.org/agenda/2021/05/what-gig-economy-workers/. Accessed 05 Dec 2021
Wood, A.J., Lehdonvirta, V.: Antagonism beyond employment: how the ‘subordinated agency’ of labour platforms generates conflict in the remote gig economy. Socio-Econ. Rev. 19(4), 1369–1396 (2021)
Connelly, C.E., Fieseler, C., Matej, Č., Giessner, R.: Working in the digitized economy : HRM theory & practice. Hum. Resour. Manag. Rev. 31(1) pp. 1–7 (2020)
Goswami, M.: Revolutionizing employee employer relationship via gig economy. Mater. Today Proc. (2020)
Mohamed Jaafar, S., Nik Mat, N.H.: A conceptual analysis of effective gig works system for sustainable employment in challenging times. J. Contemp. Issues Bus. Gov. 27(1), 1427–1440 (2021)
Chinyamurindi, W.T.: The Dynamism of psychological contract and workforce diversity: implications and challenges for industry 4.0 HRM. In: Coetzee, M., Deas, A., (eds.) Redefining the Psychological Contract in the Digital Era: Issues for Research and Practice, no. April, Springer (2021)
Braganza, A., Chen, W., Canhoto, A., Sap, S.: Productive employment and decent work: the impact of AI adoption on psychological contracts, job engagement and employee trust. J. Bus. Res. 131, 485–494 (2021)
Blau, P.M.: Exchange and Power in Social Life. Wiley, New York, NY (1964)
Donohue, R., Tham, T.L.: Chapter 3 : psychological contracts essential reading. In: Contemporary HRM Issues in the 21st Century, vol. 44, no. 2, pp. 299–306 (2006)
Wang, X., Feng, L., Zhang, H., Lyu, C., Wang, L., You, Y.: Human resource information management model based on blockchain technology. In: Proceedings - 11th IEEE International Symposium on Service-Oriented System Engineering, SOSE 2017, pp. 168–173 (2017)
Michaelides, M.: The challenges of AI and blockchain on HR recruiting practices. Cyprus Rev. 30(1), 169–180 (2018)
Ni, X., Yuan, Y., Wang, F.Y.: Behavioral management for employees based on blockchain and smart contracts. In: Proceedings of - IEEE International Conference Service Operation Logistics Informatics 2019, SOLI 2019, pp. 248–252 (2019)
Peisl, T., Shah, B.: The impact of blockchain technologies on recruitment influencing the employee lifecycle. In: Walker, A., O’Connor, R.V., Messnarz, R. (eds.) EuroSPI 2019. CCIS, vol. 1060, pp. 695–705. Springer, Cham (2019). https://doi.org/10.1007/978-3-030-28005-5_54
Pinna, A., Ibba, S.: A blockchain-based decentralized system for proper handling of temporary employment contracts. In: Arai, K., Kapoor, S., Bhatia, R. (eds.) SAI 2018. AISC, vol. 857, pp. 1231–1243. Springer, Cham (2019). https://doi.org/10.1007/978-3-030-01177-2_88
Soules, C.: Blockcahin Technology as a Disruptive Innovator in Human Resource Management, WCBT Student Publications, [Online] (2020). https://digitalcommons.sacredheart.edu/wcob_sp/. Accessed: 23 Jun 2021
Lai, J.: The application prospects of blockchain technology in human resource management. Mod. Manag. Forum 4(4), 167–171 (2020)
Dolzhenko, R.: Blockchain as an imperative of labor relations digitalizing. SHS Web Conf. 93, 1–8 (2021)
Ahmad, K.: Leadership and work motivation from the cross cultural perspective. Int. J. Commer. Manag. 19(1), 72–84 (2009)
Habib Rana, M., Shaukat Malik, M.: Human resource management from an Islamic perspective: a contemporary literature review Int. J. Islam. Middle East. Financ. Manag. 9(1), 109–124 (2016)
Ahmed Haj Ali, A.R., Bin Noordin, K., Achour, M.: The Islamic approach of obligations in mutual relations between employee and employer. Int. J. Ethics Syst. 34(3), 338–351 (2018)
Argyris, C.: Understanding Organizational Behavior. Dorsey Press, Homewood, IL (1960)
Rousseau, E.F.: Psychological Contracts in Organizations: Understanding Writen and Unwriten Agreements. SAGE Publications, Thousand Oaks, CA (1995)
Morrison, E.W., Robinson, S.L.: When employees feel betrayed: a model of how psychological contract violation develops. Acad. Manag. Rev. 22, 226–256 (1997)
Conway, N., Briner, R.B.: Understanding Psychological Contracts at Work: A Critical Evaluation of Theory and Reseaerch. Oxford University Press (2006)
Casino, F., Dasaklis, T.K., Patsakis, C.: A systematic literature review of blockchain-based applications: Current status, classification and open issues. Telemat. Inform. 36, 55–81 (2019)
Gamage, H.T.M., Weerasinghe, H.D., Dias, N.G.J.: A survey on blockchain technology concepts, applications, and issues. SN Comput. Sci. 1(2), 1–15 (2020). https://doi.org/10.1007/s42979-020-00123-0
Yaga, D., Mell, P., Roby, N., Scarfone, K.: Blockchain technology overview (2018)
Akgiray, V.: Blockchain technology and corporate governance: technology, markets, regulation, and corporate governanc (2018)
Mirza, M.O.N.: Employer-employee relationships in Islam: a normative view from the perspective of orthodox islamic scholars. Int. J. Bus. Manag. 11(4), 59 (2016)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Fachrunnisa, O., Assyilah, F. (2022). Blockchain for Islamic HRM: Potentials and Challenges on Psychological Work Contract. In: Barolli, L., Kulla, E., Ikeda, M. (eds) Advances in Internet, Data & Web Technologies. EIDWT 2022. Lecture Notes on Data Engineering and Communications Technologies, vol 118. Springer, Cham. https://doi.org/10.1007/978-3-030-95903-6_13
Download citation
DOI: https://doi.org/10.1007/978-3-030-95903-6_13
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-95902-9
Online ISBN: 978-3-030-95903-6
eBook Packages: Intelligent Technologies and RoboticsIntelligent Technologies and Robotics (R0)