Islamic Management

Chapter outline

Philosophy and Principles Islamic ManagementExample on Practice of Islamic organization

10.0ISLAMIC MANAGEMENT

Philosophy and principles Islamic managementIslamic management

Management from Islamic perspective is defined as the ability to utilize resources both material and human, optimally in order to achieve goals either short term or long term goals. The Islamic Management is generated holy Al-Quran and As-Sunnah and as sources for decision making.

Surah Al-Imran:19Truly, the religion with Allah is Islam. Those who were given the Scripture ( Jews and Christians) did not differ except, out of mutual jealousy, after knowledge had come to them.

10.0 ISLAMIC MANAGEMENT (cont…)Management Function in Islam1. Planning – is a process of setting objectives or goals for

short term (improvement in performance ) and long term (be the worthy servants of Allah). Muslims are taught to balance both of these objective.

2. Organizing – is the structure of projects as well the structure of roles to be undertaken by human efforts.

3. Leading – refers to the process of moving people in a planned direction that is in their long term best interest. Leader should serve and help others (followers) get ahead.

4. Controlling – is defined as the application of the procedures prescribed and organised according the plans as well as the performance of the roles defined as specified under the organisation.

Management Functions In Islam- Planning

According to tan Sri Dr Mohammed Abd Rauf in his book “Management and Administration (An Islamic Perspective) –to ensure successful management, we need planning, especially in the fast moving, ever changing and complex environment we are living in.Planning was practised by our Prophet Muhammad S.A.W in many incidents that he had gone through. One of the prominent, ones is seen in his carefully planed actions and moves to preach the faith of Islam to the world.

Management Functions In Islam- Planning

He had two choice whether to do it publicly or to it cautiouslyHe choose to do secretly at first, since the people at Mecca at that time,the Quraisysh tribe did not hold the same values the Islamic faith was bringing.The Islamic faith emphasizes on human equality, justice and sympathy for the weak.

Management Functions In Islam- Planning

The Quraisyh tribe on the other hand valued wealth, prestige and honor.Therefore,our Prophet Muhammad SAW choose the preach Islam secretly and quietly at first to his closest and trusted friends and families.To start preaching the new religion openly would jeopardize its chance to success.

Management Functions In Islam- Planning

The planning process of setting objectives’goals is also practised in IslamHuman being are created by Allah SWT to be ‘khalifah’ on the earth. This means our lives and activities must be focused to fulfilled two purposes.

A long term objective/goalA short term obejctive/goal

Management Functions In Islam- Planning

A long term objective/goal1. Is to be the worthy servant of Allah2. Avoiding sins 3. Preparing ourselves to be rewarded in paradise by

performing good deeds and obeying the teachings demanded by the Al-Quran and As-Sunnah

A short term obejctive/goal1. Is productivity may it be in the form of service or product2. Academic achievement, financial profit or improvement

performance

Muslim are taught to be balance both these objectives. Muslim are taught to be balance both these objectives. One cannot be obsessed to achieve the long term One cannot be obsessed to achieve the long term

goals and forget about the short term goalsgoals and forget about the short term goals

Management Functions In Islam- Organizing

Organizing is the structure of project as well Organizing is the structure of project as well as the structure of roles to be undertaken by as the structure of roles to be undertaken by human effort.human effort.This mean in Islam, organizing comprises This mean in Islam, organizing comprises the structuring or an organization the structuring or an organization structure(organization chart).structure(organization chart).--utilization of utilization of resources(human), authority, power and the resources(human), authority, power and the practise practise of delegation as well as of delegation as well as decentralization and centralizationdecentralization and centralization

Management Functions In Islam- Organizing

The The practise practise of organizing can be seen in of organizing can be seen in the incident of the incident of Hijrah Hijrah lead to prophet lead to prophet Muhammad SAW Muhammad SAW If careful planning and organizing had not If careful planning and organizing had not been done, prophet Muhammad SAW been done, prophet Muhammad SAW would have been murdered or captured and would have been murdered or captured and the course of history would not have been the course of history would not have been the same.the same.

Management Functions In Islam- Leading

From the Islamic point of view, leadership From the Islamic point of view, leadership refers to the process of moving people in a refers to the process of moving people in a planned direction by motivating them.planned direction by motivating them.Good leadership moves people in a best Good leadership moves people in a best direction that is in their long term best direction that is in their long term best interest.interest.Islam says that a leader should serve and Islam says that a leader should serve and help others (followers) get ahead.help others (followers) get ahead.

Management Functions In Islam- Leading

The characteristics of Islamic Leader are:The characteristics of Islamic Leader are:1.1. He has allegiance to Allah (faithful)He has allegiance to Allah (faithful)2.2. he has global perceived goals of organization he has global perceived goals of organization

not only in terms of individual or group interest not only in terms of individual or group interest but also from wider Islamic perspectivebut also from wider Islamic perspective

3.3. He adheres (obeys) to He adheres (obeys) to syariah syariah and the Islamic and the Islamic manner of doing thingsmanner of doing things

4.4. He delegates trustHe delegates trust

Management Functions In Islam- Controling/ExecutionControlling from Islamic perspective is Controlling from Islamic perspective is defined as the application of the procedures defined as the application of the procedures prescribed and organized according to plan prescribed and organized according to plan as well as the performance of the roles as well as the performance of the roles defined and specified under the defined and specified under the organization.organization.In simple terms this means carrying out the In simple terms this means carrying out the plans and assuring that the results will plans and assuring that the results will confirm to the actual plans. confirm to the actual plans.

10.0 ISLAMIC MANAGEMENT (cont…)

The principle of Islamic Management1. Tawhid /Unity

- Man’s ultimate accountability is to God alone. It also defines the unique relationship between God and man, man and man, and man and his environment. He is required to only serve God through all his actions

Surah Az-Zariyat:56And I (Allah) created not the jinn and mankind except that they should worship Me (Alone)

2. Tauhid Rububiyyah- Believed that everything in the earth and sky is belonging to him Allah.Only Allah can classify the human whether good or bad, andno one can challenge his power

Surah Al-Ankabut: 61And if you were to ask them: ‘Who has created the heavens and the earth and subjected the sun and the moon?’ they will surely reply ‘Allah’. How then are they deviating ( as polytheists and disbelievers)?

10.0 ISLAMIC MANAGEMENT (cont…)

3. Tauhid Ilahiyyah- Believed that Allah is the only God by doing His direction and did not have any god other than Him.

Surah Al-Aaraf :59Indeed, We sent Hun to his people and he said: ‘O my people! Worship Allah. You have no other God but Him (Allah).Certainly, I fear for you the torment of a Great Day!’

Tauhid did not complete until Tauhid Illahiyyah is combined with Tauhid Rububiyyah.

The Effects of Tauhid on Human Are:- It gives clearly mission on all life aspects especially individual,

family, community and country in economics, politics and socials. We will have the component of amanah and good attitude because we know that Allah S.W.T can see what we are doing and thinking.

10.0 ISLAMIC MANAGEMENT (cont…)Khalifah /Vicegerency - Is a special duty of man on earth. Man has endowed with all the spritual and mental characteristics, as well as material resources, to enable him effectively undertake this important missionAl- adl / Justice- is the rendering trust where it is due. Trusts here refer to all aspects of human life including economics, social and legal bothat the individual as well as the societal levels. If the conflicts between individual and societal interest arise, preference is always given to societal interests.

Surah Al-Ma’idah:8O you believe! Stand out firmly for Allah as just witnesses, and let not the enmity and hatred of others make you avoid justice. Be just: that is nearer to piety, and fear Allah. Verily, Allah is Well-Acquainted with what you do.

10.0 ISLAMIC MANAGEMENT (cont…)Syura / Mutual Consultation

- Used to be undertaken among leaders of various tribes or groups. Syura certainly implies transparency, open mindedness, which can only happen with the accompaniment of respect, trust, empowerment, freedom of expression, readiness to be criticized and acceptance of divergent views.

Surah As-Syura: 38And those who answer the call of their Lord ( to believe that He is the only One Lord (Allah), and to worship none but Him Alone, and perform As-Salat, and who ( conduct) their affairs by mutual consultation, and who spend of what We have bestowed on them.

10.0 ISLAMIC MANAGEMENT (cont…)Ikhlas / Sincerity- One has to make sure that the task is completed with the best of one’s ability. Sincerity is an absolute value in the sense that there is no such thing as more or less sincere. If one is less sincere, it implies that there exist some other elements in the intention. It may be arrogance, ride, conceit, etc. which will jeopardize the quality of performance.

Surah Az-Zumar: 14Say ) O Muhammad S.A.W): Alllah Alone I worship by doing religious deeds sincerely for His sake only ( and not to show off, and not to set up rivals with Him in worship)

10.0 ISLAMIC MANAGEMENT (cont…)Freedom

According to the Islamic leadership style, a leader should strive to create an atmosphere of freethinking, healthy exchange of ideas and advise so that the followers feel very comfortable in discussing matters of interest to the group. The leader also has to accept what the member complains about them so the discussion will be done smoothly.

Amanah/ TrustworthyThe leader must be trustworthy because all the member’s problem should be secret from other. If not, the members will not respect them.Selection of a new personal staff should not be based on self- interest of favoritism but from personal ability, experience and other suitable criteria that fit the job.

Surah Al-Anfal: 27O you who believe! Betray not Allah and His Messenger (s.a.w), nor betray knowingly your amanat (the things entrusted to you, and all the duties which Allah has ordained to you)

10.0 ISLAMIC MANAGEMENT (cont…)RewardEvery believer knows that they should be performing the acts of worship solely to seek Creator pleasure. In Islam we should seek our rewards from Allah s.w.t., not from other destitute people like ourselves. Islamic Management views rewards as the compensation or benefit earned not only today but till one dies.

Amar Makruf Nahi MunkarCan be defined as exclaiming people to do kindliness and to leave out all the bad behavior. To measure of what we are doing either it a fair or cruel (haq or batil), we should refer back to Al-Quran and As-Sunnah. Anything that is right in syara’ will always right although it is opposite to our passions and wants. Similarly if everything is stated in syara’ as illegal or wrong to be done by Muslim, it can’t never change until the end of the day.

Surah Al-Imran: 104Let there arise out of you a group of people inviting to all that is good (Islam), enjoining Al-Ma’ruf (all that Islam orders one to do) and forbidding Al-Munkar (all that Islam has forbidden). And it is they who are the successful.

10.0 ISLAMIC MANAGEMENT (cont…)

Maslahah MursalahLiterally, marsalah means benefit of interest, it refers to unrestricted public interest in the sense of not having been regulated by the Lawgiver and no textual authority can be found on its validity or otherwise.It describes the purpose of legislation in Islam is to secure the welfare of people by promotion their benefits of by protecting them against harm.Masru’iyyahThis is the concept of legality whereby the management has to ensure that any action taken must be within the legal boundary of the common or manmade laws and the syariah laws.

10.0 ISLAMIC MANAGEMENT (cont…)

BrotherhoodIs a spirit of friendship and respect to each other among Muslim. It is also regarding with good in giving order and communication with the easy message to understand and clear toleration and forgiveness.Surah Al-Hujurat: 10The believers are nothing else than brothers (in Islamic religion). So make reconciliation between your brothers, and fear Allah that you may receive mercy.

10.0 ISLAMIC MANAGEMENT (cont…)