Literature Review of Islamic Banking

Contents
Research Hypothesis and Constructs 2
Type of Research 6
Sample 7
Instrumentation 7
Research Design 8
Conclusions and Recommendations 11
References 11

International Journal of Islamic and Middle Eastern Finance Management

Article Name: Organizational Climate and Turnover in Islamic Banking in the UAE

Authors: Abubakr M. Suliman & Hanan Al Obdaili
Research Hypothesis and Constructs

The article describes the various ways in which the organizational climate affects the functioning of banks and the way in which Islamic Banking has developed in the UAE. Islamic Banking has been an integral part of the banking sector in the UAE which is one of the major reasons for discussing it when the topic is about the financial sector in the Middle East. The subject in this article basically focuses on the employee turnover with respect to the organizational climate in the banks that constitute Islamic Banking in the UAE. Thus, the hypothesis can be stated as the follows:
“To examine the nature, strength and significance of the links between the organizational climate and the employee turnover”
The subject has two major terms which have to be extensively discussed by the researcher in order to form a clear idea in the readers mind and these terms are:
1) Employee Turnover: The rate at which any organization or employer loses and gains employees, labor or workers, depending on the nature of work, can be called as the employee turnover for that organization. (Education Portal, 2014)

2) Organizational Climate: The organizational climate of an organization consists of various rules and regulations that impact the working and policies of the organization and its methodologies. This would consist of the Vision, various policies, organizational goals and beliefs that the company strongly adheres to.
There are a few more terms that the authors have describes as key definitions that would help the reader understand the concepts that are discussed as and when the authors delve deeper in the article progressively. In this regard, the following definitions are important to be considered:
Organizational Justice: The perception of the staffs regarding the justice served to them on various occasions pertaining to the decisions taken by the management with respect to fairness and credibility can be termed as organizational justice. (Qureshi, Rasli & Zaman, 2014)
Performance Reward: This kind of reward is these days encouraged by various organizations provided to the employees in return for their good performance as a token of appreciation and in order to bring motivation.
Decision Making: The process of taking decisions after considering all the aspects of the situation and all the perspectives, with the consideration of maintaining ethical boundaries and justice based results. (Qureshi, Rasli & Zaman, 2014)
The authors have divided the entire article into a number of major constructs that influence the way in which the entire article is written. The outline of the research is designed in such a way that each and every section forms the foundation for the next section.
The first major construct in this regard is the Purpose or Introduction of the article which describes the research question under discussion and the founding opening statements that are integral in forming a clear idea as to how the research is to be conducted and carried out. The topic is justified and clarified in this statement in such a way that it paves the way to further discussions in the paper. This section is not only important in making it possible for people to understand the foundation on which the subject is based but also forms an idea as to what the reader should expect in the segments following the research.
Literature Review section is basically included in a research paper as a section in which the researcher reviews the various previous researches done by scholars related to the topic under discussion while covering all the aspects that could impact the outcomes of the research. This section would also cover the comparisons and contrasts between various researches conducted by different researchers in the form of an analysis, which would essentially contribute in understanding different perspectives of each and every subject. In this case, since the authors are describing the relationship between the organizational climate and the employee turnover in the Islamic banks that are present in the UAE. In this regard, the authors have chosen to undertake research on topics like Corporate Climate, Corporate Climate and Turnover, and have finally concluded their literature review with the UAE studies on Corporate Climate and Turnover.
The next section that is covered by the researchers in the article is the Methods section. The authors have essentially described the various methods and elements of the methodologies that are related to carrying out researches that they have used in this article. The authors have defined the various major terms related to the research methodology that the author have utilized in the research. This is an important section as it provides a clear outline of the way in which the research has been conducted.
Once the methodology in which the research has been conducted has been clarified, the next major aspect of the research would be to actually analyze and discuss the results that are vital in understanding the conclusions that the researchers derive on a later stage. This section also describes the various ways in which the data that has been collected is analyzed and evaluated so that appropriate conclusions can be derived out of them. In this paper, the authors have used tools like SPSS in order to evaluate the various statistics related to the subject. This analysis essentially evaluates the various ways in which the corporate culture of any organization has impacted in the employee turnover in that organization. This analysis also has various statistics that relate the turnover in various companies in the UAE strongly with the organizational culture that is present in the organizations of UAE. The authors have also integrated extensive discussions related to the each and every aspect that has gained focus through the analysis.
In the final section defined as conclusions and recommendations, the authors have summarized the research that has been carried out and the results that could be found out of the analysis and evaluations that were carried out in the previous section. This is followed by a series of recommendations that could help the subject under discussion in getting to a better light and in forming a good understanding of the links between various key concepts of the research hypothesis. In this case, the authors have highlighted the importance of understanding the relationship between the organizational climate and its impacts on the employee turnover of the organization.
Dependent and Independent Variables
The dependent variables are the variables that are influenced by the other aspects of the research and as a result influence the overall results of the research. These variables are the values that could assume the form of numbers that would change the results of the research conclusions and results. (Glanville, 1999) In this case, the variables are:
 Employee Turnover Rate
 Employee Demographics
 Employee Performance
The independent variables are the variables that are independent of the other aspects of the research and would usually take up the central stage in any kind of research. These variables would influence the results in a major way but would influence the other aspects accordingly instead of getting influenced by themselves. (Glanville, 1999) In this case, the independent variables are:
 Organizational Climate
 Organizational Culture
These variables together constitute the model that is applied by the researchers in order to understand the relationship between the Organizational Climate and the Employee Turnover in any organization in the UAE.

Business Relationship Model
In this case, in order to justify the hypothesis of the researchers and to demonstrate the relationship that the researchers are trying to examine through this research, the model would be as follows:

This model highlights the relationship between the various factors of the corporate climate of the organization which in turn influence the employee turnover.
Type of Research

The type of research that has been conducted in this article is solely primary research. Primary research is the kind of research where the researcher makes use of means such as surveys and interviews, through which the researcher then collects data related to the subject. In this research, the important part is that the respondents should be cooperative and receptive to the idea of participation in the survey in order to provide unbiased and justified results.
Sampling for instance constitutes as a major part of the survey that is conducted by the researchers as it would decide the type of outcomes that would shape the results of the research. (O’Muircheartaigh & Payne, 1977)
In that regard, the survey questionnaire and the sample among whom the survey questionnaire is to be distributed are the major parts of the research that is being conducted in this article.
Sample
The group of people that the researchers decide to conduct the survey with are termed as the ‘sample’ for the research. The sample size and the type of respondents that the researcher decided to conduct the survey on has a huge impact on shaping the outcomes of the research. (Glanville, 1999) In this regard, the authors in this case have taken the sample size as 70 respondents who are to be surveyed and their responses recorded. The respondents were chosen to be the employees working in one of the Islamic Banks in the UAE. The questionnaires were passed on to these 70 employees to be answered spontaneously and with respect to the subject so as to generate utilizable and credible outcomes. In this case, 50 out of the 70 questionnaires were reverted back after filling out the answers which shows a success rate of 71 percent.
Instrumentation
The primary data contributes to the majority of the results that can be obtained from the research and the other major integral part of the research methods is the instrumentation or the measures that are used to describe the various factors of the research. (Glanville, 1999) These factors are derived from the different questions that are a part of the questionnaire which is why instrumentation has a big role to play when it comes to the survey questionnaire that is used in the project. (O’Muircheartaigh & Payne, 1977) The measures that have been taken into consideration in this article can be divided into three major categories:
 Demographic Data: The gender and the age would be one of the main considerations while collecting the survey results from people and evaluating the results. This would also be one of the main points of consideration while carrying out the analysis of the survey responses.

 Employee Turnover: The rate of people leaving and joining the organization plays a major role in the survey questionnaire as that is one of the main parts of the subject under discussion.

 Organizational Climate: The organizational climate is considered as an independent variable in this scenario as it derives a major part of the analysis and impacts the employee turnover.
Research Design

The analysis of the collected data is the most crucial part of the research as this part is largely based on the skills and knowledge that the researcher possesses. In that sense, the analysis is influenced by the kind of research design that the researcher chooses to carry out his research in. There are two major types of research design: Qualitative and Quantitative. This design varies on the basis of the data that is collected to a large extent. (Smith, 1984)
In this case, the research design is completely quantitative which is why the authors are calculated in their approach. For that matter, the most important factor that influences the results is the selection of tools that are used to make the design appropriate and reliable. Here, the authors have chosen the software SPSS in order to analyze and evaluate the results and in order to understand the various ways in which the derived numbers establish the relationship between organizational climate and employee turnover.
Various tests have been conducted in order to make sure that the numbers that have come up as a result of the survey results are placed in a perfect manner and are organized appropriately. Most parts of the research require extensive tests and thus the most appropriate tests have been used in order to summarize the suitable results for the research. (Smith, 1984)
Here the major tests that have been conducted are:
 Multiple Regression Analysis
 Descriptive Statistics
 Reliability Test
 Multivariate Correlation Test
These tests have been conducted with the intention of finding the most appropriate ways in which the data and numbers that have been derived from the survey can be presented in a concise and organized way. The outcomes of the survey would be considered as the raw data that has to be processed in the software to realize the final results in a tabular form. Here the descriptive study is carried out first, based on which the reliability test is conducted. This in turn would be important to carry out the correlations test. The final test would be the regression analysis which would give the assurance the result data is processes and ready to be presented.
The results of the tests are presented as following:

Figure 1 Descriptive Statistics

Descriptive statistics analyzes the responses in an objective manner and present the research as required in an organized form, so that the reader can comprehend the responses of the survey and figure out the raw data. (Smith, 1984)

Figure 2 Reliability Test
The reliability test is carried out with reference to the responses of the surveys by taking into account Cronbach’s α which would denote the amount of reliability that the factor has.

Figure 3 Correlation Test
The correlation test takes into account the various ways in which the factors are interrelated and how strong the correlation is in accordance with the subject under investigation by the researchers.

Figure 4 Regression Analysis
The regression analysis of the data that is collected through the survey would be derived in order to makes sure of the predictions that could be made using the present data that is available related to it.
Conclusions and Recommendations

The conclusions and recommendations are based on the analysis that is carried out in the form of various tests and analysis. The authors have summarized the study in the conclusion and have derived various explanations in which the two factors – organizational climate and employee turnover are closely linked with each other. The author describes the importance of all the three factors that play a role in linking the corporate culture and climate along with the employee turnover. In the recommendations part, the authors have contributed with their opinions in order to understand the relationship between these two factors and how the organizations could manage this efficiently.
References

Education Portal,. (2014). What Is Employee Turnover? – Definition, Cost & Reasons | Education Portal. Retrieved 27 November 2014, from http://education-portal.com/academy/lesson/what-is-employee-turnover-definition-cost-reasons.html
Glanville, R. (1999). Researching Design and Designing Research. Design Issues, 15(2), 80. doi:10.2307/1511844
O’Muircheartaigh, C., & Payne, C. (1977). The Analysis of survey data. London: Wiley.
Qureshi, M., Rasli, A., & Zaman, K. (2014). A New Trilogy to Understand the Relationship among Organizational Climate, Workplace Bullying and Employee Health. Arab Economic And Business Journal, 9(2), 133-146. doi:10.1016/j.aebj.2014.05.009
Small Business – Chron.com,. (2014). Employee Turnover Definitions & Calculations. Retrieved 27 November 2014, from http://smallbusiness.chron.com/employee-turnover-definitions-calculations-11611.html
Smith, T. (1984). Present Position and Potential Developments: Some Personal Views: Sample Surveys. Journal Of The Royal Statistical Society. Series A (General), 147(2), 208. doi:10.2307/2981677

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March 8, 2018

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