In general, there are various methods of managing motivation that have been adopted by Islamic institutions. Nevertheless, a question remains whether there is any method that can enhance employees' motivation? What is the role of Islamic law and how can its principles be incorporated in the motivation management method? This needs to be emphasised as some motivation management methods, such as having a reward ceremony, are against Islamic law due to the serving of alcohol and the unethical interaction between male and female employees. In Islam, the issue of halal and haram has been discussed clearly and in detail. Halal in Islam is naturally holistic, as it can be integrated into the entire lifestyle and it is not only limited to aspects of food, dressing and economy but extends to the aspect of employee management. This paper was written with two objectives in mind. The first objective was to identify the method of managing employee motivation that has been applied by the management of Islamic institutions. The second objective was to analyse the method based on a halal lifestyle. This paper work unravelled the answers by using the qualitative approach that applied document analysis. Based on the analysis, it was found that there are three methods of managing employee motivation and these methods are consolidated by the halal aspect to ensure that they are consistent with the Islamic Shari'a. After the questions were answered, this paper tried to clarify to society, especially the management, that halal is not small in scope but it goes even further than that because halal in Islam is holistic, and it needs to be practised in all aspects of a lifestyle.