-------Islamic Management

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Chapter outline

z Philosophy and Principles IslamicManagement

z Example on Practice of Islamic organization

10.0 ISLAMIC MANAGEMENT

z Philosophy and principles Islamic managementz Islamic 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…)z Management Function in Islam

1. 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 InIslam- Planning

z 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.

z 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 InIslam- Planning

z He had two choice whether to do it publicly orto it cautiously

z He 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.

z The Islamic faith emphasizes on human equality, justice and sympathy for the weak.

Management Functions InIslam- Planning

z The Quraisyh tribe on the other hand valuedwealth, prestige and honor.

z Therefore,our Prophet Muhammad SAW choose the preach Islam secretly and quietly at first to his closest and trusted friends and families.

z To start preaching the new religion openly would jeopardize its chance to success.

Management Functions InIslam- Planning

z The planning process of settingobjectives’goals is also practised in Islam

z Human 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.z A long term objective/goal

z A short term obejctive/goal

Management Functions InIslam- Planning

z A long term objective/goal1. Is to be the worthy servant of Allah2. Avoiding sins3. Preparing ourselves to be rewarded in paradise by

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

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

performance

MuslMusliimm araree taughtaughtt ttoo bbee balancbalancee botbothh thesthesee objectives.objectives.OnOnee cannocannott bbee obsesseobsessedd ttoo achievachievee ththee lonlongg termterm

goalgoalss anandd forgeforgett abouaboutt ththee shorshortt tertermm goalsgoals

Management Functions InIslam- Organizing

zz OrganizingOrganizing isis thethe structurestructure ofof projectproject asas wellwellasas thethe structurestructure ofof rolesroles toto bebe undertakenundertaken byby humanhuman effort.effort.

zz ThisThis meanmean inin Islam,Islam, organizingorganizing comprisescomprises thethe structuringstructuring oror anan organizationorganization structure(organizationstructure(organization chart).chart).--utilizationutilization ofof resources(human),resources(human), authority,authority, powerpower andand thethe practisepractise ooff delegatiodelegationn aass welwelll asas decentralizatiodecentralizationn anandd centralizationcentralization

Management Functions InIslam- Organizing

zz TheThe practisepractise ooff organizinorganizingg cacann bbee seeseenn ininthethe incidentincident ofof HijraHijrahh leadlead toto prophetprophetMuhammadMuhammad SAWSAW

zz IIff carefucarefull planninplanningg anandd organizinorganizingg hahadd notnot beenbeen done,done, prophetprophet MuhammadMuhammad SAWSAWwoulwouldd havhavee beebeenn murderemurderedd oorr capturecapturedd andand thethe coursecourse ofof historyhistory wouldwould notnot havehave beenbeen thethe same.same.

Management Functions InIslam- Leading

zz FromFrom thethe IslamicIslamic pointpoint ofof view,view, leadershipleadershiprefersrefers toto thethe processprocess ofof movingmoving peoplepeople inin aa plannedplanned directiondirection byby motivatingmotivating them.them.

zz GooGoodd leadershileadershipp movemovess peoplpeoplee iinn aa bestbest directiondirection thatthat isis inin theirtheir longlong termterm bestbest interest.interest.

zz IslamIslam sayssays thatthat aa leaderleader shouldshould serveserve andand helhelpp otherotherss (followers(followers)) gegett ahead.ahead.

Management Functions InIslam- Leading

zz TheThe characteristicscharacteristics ofof IslamicIslamic LeaderLeader are:are:1.1. HHee hahass allegiancallegiancee ttoo AllaAllahh (faithful)(faithful)

2.2. hhee hahass globagloball perceiveperceivedd goalgoalss ooff organizationorganization nonott onlonlyy iinn termtermss ooff individuaindividuall oorr grougroupp interestinterest bubutt alsalsoo frofromm widewiderr IslamiIslamicc perspectiveperspective

3.3. HHee adhereadheress (obeys(obeys)) ttoo syariasyariahh anandd ththee IslamicIslamic mannemannerr ooff doindoingg thingsthings

4.4. HHee delegatedelegatess trusttrust

Management Functions InIslam- Controling/Execution

zz ControllingControlling fromfrom IslamicIslamic perspectiveperspective isisdefinedefinedd aass ththee applicatioapplicationn ooff ththee proceduresprocedures prescribeprescribedd anandd organizeorganizedd accordinaccordingg ttoo planplan asas wellwell asas thethe performanceperformance ofof thethe rolesroles definedefinedd anandd specifiespecifiedd undeunderr thethe organization.organization.

zz InIn simplesimple termsterms thisthis meansmeans carryingcarrying outout thethe plansplans andand assuringassuring thatthat thethe resultsresults willwill confirmconfirm toto thethe actualactual plans.plans.

10.0 ISLAMIC MANAGEMENT (cont…)

z 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, and no 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!’

z Tauhid did not complete until Tauhid Illahiyyah is combined withTauhid 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…)

z 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 mission

z Al- adl / Justice- is the rendering trust where it is due. Trusts here refer to all aspects of human life including economics, social and legal both at 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 Consultationz

- 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: 38

And 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…)z 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: 14

Say ) 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…)z F

z

reedomAccording to the Islamic leadership style, a leader should strive to create anatmosphere of freethinking, healthy exchange of ideas and advise so thatthe followers feel very comfortable in discussing matters of interest to thegroup. The leader also has to accept what the member complains aboutthem so the discussion will be done smoothly.

z Amanah/ Trustworthyz The leader must be trustworthy because all the member’s problem should be

secret from other. If not, the members will not respect them.z Selection of a new personal staff should not be based on self- interest of

favoritism but from personal ability, experience and other suitable criteriathat 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…)z Reward

Every 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.

10.0 ISLAMIC MANAGEMENT (cont…)

z Amar Makruf Nahi Munkar

Can 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 rightalthough 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: 104

Let 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…)

z 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.

z 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.

z 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…)

z 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.