CHAPTER 1Introduction to

Islamic Management

Prepared by:Pn sharifah nurulhuda bt s ab latif

Lecturer of syariahFaculty of islamic study (kuisas)

ISLAMIC WORLDVIEWIslam means “The Surrender”, that is, man

surrendering to God’s will and purpose. Islam is an Arabic word that connotes

submission, surrender and obedience. Another literal meaning of the word Islam is

‘peace’ One can achieve real peace of body and mind

only through submission and obedience to Allah. Islam consists of submission and obedience to

Allah, the Lord of the universe (Mawdudi,1960).

Islam created a unique management paradigm nurtured civility, prosperity, diversity and happiness among people of different creeds and ethnic origins around the globe for more than 1000 years (Abbasi et al.2010).

Islamic perspective on management studies is an important area of research for modern management scholars (Abbasi et al., 2010).

Islamic perspectives are described and discussed on the basis of revealed sources of Islamic knowledge, al-Qur’n and Hadith, considering them as valid for the purpose of research (Kazmi, 2003)

MANAGEMENT IN ISLAMIC PERSPECTIVE

The concept of management in Islamic perspective is to manage all things.

To know yourself: We as a man is a khalifah of Allah (God vicegerent) To believe in God To manage & to administer everything on the

earth according to the will of Allah to manage oneself, family, belonging, position

& so on

" Integrated activities of thinking, planning, organizing, leading and controlling,

interconnected with decisions, involving the use of resources - human, financial, time,

information, and physical, with the objectives of attaining the goals of Maqasid al-Shariah, by means of effective and efficient methods“

SHAYA’A OTHMAN

Management today is defined as “Getting things done through others.” Following this concept, a manager is now

understood as the person who works through others. A good manager, therefore, is a person who not only knows what is to be done but exactly how to get it done.

TheHoly Quran confirms:“…We raise some of them above others in

ranks, so that some may command work from others...”(43:32)

  “Management is coordinating work activities so that they are completed effectively and efficiently with and through other people.” “Efficiently” means that proper usage of

resources and less wastage of them. This is one of very important aspect of management.

Wastage—either in terms of: material, human capital, energy, machine utilization, or processing time, creates inefficiencies resulting in the increase of costs and consequent decrease in profits.

The holy Quran has spoken against wastage and lavish expenditure in following words:  “And render to the kindred their due rights,

as (also)to those in want, and to the wayfarer. But waste not (your wealth,time, health, talents, opportunities and etc) in the manner of a spendthrift.”[17:26] 

“For the wasteful are the brothers of Satan; and Satan is ungrateful to his Lord.”[17:27]

The transformation of Islamic management systems within the Tawhidic paradigm harmonizes the spirit if Tawhid (Unity of God) with planning, organization, leading and controlling.

Management system will achieve the firm’s mission and objectives by implementing mutually reinforcing values- promotion of goodness (‘amr ma’ruf) and prevention of evil (nahr al munkar)

ISLAMIC MANAGEMENT BASED TAWHIDIC

WORLDVIEW

Allah mentioned in surah al-Talaq: verse 3: “And He provides for him from (sources) he never could imagine. And if anyone puts his trust in Allah (SWT)sufficient is Allah for him,

for Allah SWT will surely accomplish His purpose verily for all things has Allah SWT

appointed a due proportion”.

ISLAMIC MANAGEMENT BASED TAWHIDIC

WORLDVIEW

Fundamental principles of duniyawi-ukhrawi view

ISLAMIC MANAGEMENT VERSUS CONVENTIONAL MANAGEMENT

ISLAMIC MANAGEMENT CONVENTIONAL MANAGEMENT

All human activity can be Ibadah provided they are guided by Allah's commandments.

Human activity are separated religious aspect is a private matter of individuals, while work is in the public domain.

The purpose of human existence is to obey and fulfill Allah’s commandments and act as the vicegerent of Allah on earth.

The purpose of human existence is to utilize natural resources to satisfy one’s needs, wants and desire and to remain happy.

Sources of ethic and values governing: the revealed knowledge (al-Quran) and the traditions of the Prophet ( SAW) constitute the ultimate sources of business ethics and personal values.

Ethics is relative and values are derives from multiple sources such as upbringing, society, experiences.

Organizational control has to operate in a way designed to make the human being subservient TO the will of Allah (SWT)

Organizational control has to operate in a way designed to align human objectives with the organizational objectives.

FUNCTION OF MANAGEMENT

Principles of PlanningForward thinking based on the past Rational use of resources Consultation before decision making decision-Apply fairness to others

PLANNING

ORGANIZING Authority: Given by AllahShura: Consultation or collective decision:

decisionResponsibilityAccountability

LEADINGQualities of an Islamic LeadershipKnowledge and wisdom Taqwa Adl (justice) Rahmah (compassion) Forgiving Courage and bravery Shura (mutual consultation) Sabr (patience) Spirit of self secrifice

MOTIVATIONMotivatingThe purpose of motivation in Islam is to have

a good worker and to produce an excellence service

To understand that working is not only to get the salary but to do virtuous deed (amalamalsalihsalih)

Working is ibadahTo attain alal-Falah (true success)

MOTIVATION THROUGH REWARD AND PUNISHMENT

SalaryPositionIncentiveBonusReward- Jannah and JahannamSense of “losing face’; shame for self and

family Sense family

CONTROLLING

Basic control –Amar ma’ruf Nahi mungkarJob specificationEstablish standard performance Keep the performers informed prior to their

actionCaring sense Simple languageRemedial action