An Analysis of Islamic Economic Model

The aim of this paper is to discuss some economic Islamic models given by some prestigious Islamic economists. The Islamic model is one of the examples for international economies in the starting of new millennium. It has its evaluation in the 1970s as an alternate to conventional banking system. The model is based on profit loss sharing and would not be based on interest. The study will focus on the proposed model and will discuss the issues that the model will be supposed to address. It was also address whether the model is applicable to Pakistan economy or not it will also be discussed. As we know that there is dual banking system in Pakistan. In order to make banking system to be truly Islam, there should be legal prohibition of riba. In other words, riba should be made unlawful and whoever deals with it can be prosecuted by law. By prohibiting riba, it will force the bank to be more creative in offering financing products rather than just loaning money. The study will attempt to show the comparison between conventional system and Islamic financial and discusses whether the Islamic system works smoothly on the economy of Pakistan. It also shows that Pakistan should change its dual banking system in Islamic banking system to change structure change. In addition, Islamic financing contract require real activities to be created. There will not be loans to finance extravagance lifestyle which is the source of bankruptcies among the younger generation. It is strongly recommended that Pakistan should enforce truly Islamic financial system to sustain its economy and avoid another economic crisis in the future.

Individual Conflicts, Abilities and Situational Forces As Redictor of Decision Making Behavior and Organizational Performance

This research work was performed to study the antecedents of individual decision making in the higher education sector of Pakistan and to examine the effects of such decisions on organizational performance. Specifically, eight theoretically driven and significant antecedents, including work-family conflict and interpersonal conflict as individual conflicts; leadership skills, emotional intelligence and self-efficacy as individual abilities; and time pressure, information level and risk as situational forces, were studied in relation to faculty decision making, which was measured in terms of rational, intuitive, dependant, avoidant and spontaneous decision-making styles employed by faculty members. In addition, the consequent effects of such faculty decision-making styles on organizational (University) performance were examined. Nine hypotheses (H1-H9) were formulated to test the theoretical model based on the relationships among individual conflicts, abilities, situational forces, decision-making styles and organizational performance in the higher education environment. The hypotheses were partially supported, except for one fully supported hypothesis (H4). The questionnaire method was utilized to collect data using quota sampling from a targeted sample that consisted of faculty members working in these higher education institutions (HEIs) of Pakistan. A total of 722 questionnaires were distributed to these faculty members, from which 516 valid questionnaires were returned, yielding a response rate of 72%. The survey results showed that individual conflicts are significant predictors of individual decision-making behavior because individual conflicts inversely predict rational and intuitive decision-making styles, resulting in higher usage of avoidant and spontaneous decision-making styles. Correspondingly, higher individual abilities resulted in more use of rational and intuitive decision making by faculty members, which made them less inclined towards avoidant and spontaneous decision making. Similarly, time pressure, information level and risk as situational forces were also found among the significant antecedents of individual decision-making styles. Likewise, faculty conflicts and situational forces were also found to be significant moderators for the relationships between faculty abilities and University performance. Such faculty decision-making styles also significantly contribute towards University performance and mediate the relationship of their antecedents and University performance. The significance and implications of the study findings are also discussed. These findings can be comprehensively utilized in the formulation of faculty development programs and for the betterment of the higher education institutions in Pakistan.