The Awareness and Practices of Islamic Values in Performance Measurement System (PMS): The Case of a Malaysian Small and Medium Enterprise (SME)

Abstract

We explore the awareness and practices of Islamic values in the setting of a Malaysian Small and Medium Enterprise (SME), and how the values have been treated by the Performance Measurement System (PMS). In particular, we are interested in whether the Islamic values existed or were practised by the employees as well as adopted by the management of the SME in measuring the performance of their employees. Furthermore, the information on the importance and possible effects of the Islamic values have been sought after to see whether the values could improve the PMS and eventually the whole organisation. We present evidence from fieldwork conducted in the workplace of one SME in Terengganu, Malaysia, undertaken through participantobservation, casual conversations and interviews with four employees. Our findings suggest that Islamic values do exist and are widely practised, and at the same time, informally adopted by the management to a certain extent in measuring their employees" performance. The management also reveals that there is a high hope in the future to see the practices of Islamic values improved among the employees, raising the possibility that it could eventually be officially adopted in their PMS.Contribution/ Originality: This study is one of the very few studies which have investigated the treatment of Islamic values by the Performance Measurement System (PMS) of a Small and Medium Enterprise (SME) in measuring the performance of their employees. The findings suggest that Islamic values are widely practised and informally adopted in the PMS of the SME.