The implementation of a merit system in Islamic educational institutions is a crucial strategy for improving human resource quality and institutional management. This study aims to analyze the concept of the merit system, the challenges faced, and the solutions for its implementation in Islamic educational institutions. Using a descriptive method with a qualitative approach based on literature review, this research explores the social and cultural phenomena influencing the success of the merit system. The findings reveal that the merit system offers various advantages, such as improved efficiency, productivity, and fairness in human resource management. However, its application in Islamic educational institutions faces challenges, including traditional work culture, internal resistance, lack of accountability, and limited resources. Proposed solutions include the socialization of the merit system, capacity building for educators, strengthening performance evaluation mechanisms, and ensuring transparency in decision-making. This study concludes that consistent implementation of the merit system can foster a professional work environment, support educational quality improvement, and reduce favoritism practices. Therefore, institutional commitment is essential to overcoming obstacles and integrating the merit system as part of Islamic educational management.
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