Islamic Management

Management from the Islamic Perspective Definition ?The ability to utilize resources both material and human, optimally in order to achieve goals, be it short term goals or long term goals. ?The Islamic management has been practised since the era of Prophet Muhammad s. a. w. ?It was based on the teachings generated from the holy Al-Quran and As-Sunnah. ?The holy Al-Quran and As-Sunnah were sources that provided guidance in making decisions. ?The Islamic leadership under Prophet Muhammad s. a. w had created strong (Muslim) society with prominent characteristics such as: 1)Team spirit that practised teamwork )A strong clear vision and mission 3)Values for loving and caring 4)Emphasis for trust and relationship, cooperation and teamwork. 5)The practice of consensus decision making Philosophy and Principles Islamic Organizations 1. The ultimate goal of our life should be harmoniously linked with the worldly aims. •Humans as “khalifah” must be able to balance their short and long term goals such as serving Allah, worshipping Him and seeking his worthy pleasure and rewards. 2. The moral/religious value of work should be integrated in the work or activities we do. Working is not merely a means for material gains, but also a moral obligation and a measure of pleasing Allah and getting nearer to Him. 3. Time to be well invested, not to be wasted. •Time should be treated as commodity. •Punctual, doing diligent work, never play around not to procrastinate and engage ourselves in meaningless conversation. 4. We should uphold and internalize the Islamic ethical values. •In whatever we do, we should internalize Islamic values of truthfulness, honesty, dedication, self restraints, self-discipline and fear of Allah. 5.

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Self criticism should be exercised periodically both individually and collectively and should be practices by all workers at all levels. •Each individuals should review his/her works and analyse workers at all levels. 6. There shall be no favoritism and discrimination. •Heads of departments, managers and leaders must be fair to employees. •They should not be discriminated and favourite because of mutual interests or family ties etc. 7. Human nature and needs should be both considered simultaneously. •Both psychological and economical contracts of a person must be met.

Working hours must be reasonable and fair. The pay system should be fair (equity) 8. Employees must be paid sufficiently, promptly and fairly. 9. There should be conducive rewards for exceptional achievement and adequate measures to detect and prevent violations. 10. Concept of al-Shura- a consultation based on mutual discussion and inculcating cooperation among members of organization. Management Function in Islam 1. Planning (setting objectives) •According to Tan Sri Dr. Mohammad Abdul Raub, management and administration (an Islamic perspective) to ensure successful management we need planning. The planning process of setting objectives/goals is also practised in Islam. •According to Islam, human beings are created by Allah s. w. t to be the “khalifah” on the earth. •This means our life and activities must be focused to fulfill two purpose. •A long term objective/goal i. To be the worthy servants of Allah, avoiding sins and 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 objective/goal i. Productivity may it be in the form of services or products, academic achievement, financial profit or improving in performance. . Organizing •The structure of projects as well as the structure of roles to be undertaken by human efforts. In Islam, organizing comprises the structuring an organization structure (organizational chart), utilization of resources (human), authority, power and the practise of delegation as well as decentralization and centralization. •This practise of organizing can be seen in incident of Hijrah led by Prophet Muhammad s. a. w. •If careful planning and organizing had not been done, Prophet Muhammad s. a. w. 3. Leading (Motivation) From the Islamic point of view, leadership refers to the process of moving people in a plan direction by motivating them. •Good leadership moves peoples in a direction that is in their long term best interest. •Islam says that a leader should serve and help others (followers) get ahead. •The characteristics of an Islamic leader: i. Has allegiance to Allah ii. Has global perceived goals of organization not only in terms of individual or group interests but also from a wider Islamic perspective iii. He adheres to the Syariah and the Islamic manner of doing things iv.

Delegates trust •Effective Islamic leaders: i. Syura (mutual consultations) ?The first principle. The Al-Quran has made clear that Muslim leaders are obligated to consult those with knowledge and those who would provide good advice. ?This practise of Syura will enable members of an organizations to participants in the decision making process. ?Monitors the leaders condust behaviour so that he will not deviate from the collective goals. ?Allows group members to express opinion and grievances freely without the feeling of embarrassment. ii. Justice The second hallmark of Islamic leadership. ?The leader should deal with peoplejustly and fairly regardless of race, colour, national origin, or religion. ?The Al-Quran commands Muslims to be fair even when dealing with people who oppose them. iii. Freedom of expression ?Muslim leader are encouraged to provide for and even invite constructive criticism. ?Two way communication is practised here. ?Members may freely voice their views or objections and have their questions answered. ?Example: Khulafa al-Rashidin, Saidina Umar Ibn al-Khattab. ?According to Islamic leadership Style, a leader should strive to create an atmosphere of free thinking, healthy exchange of ideas, criticism, and advice. iv. Masruiah ?The concept of legality whereby the management have to ensure that any actione must be within legal boundary of the common/man-made laws and the “Syariah Laws”. v. Qualification ?The important of selecting the right management personnel ? Based on two element: 1. “Quwwah” (strength) 2. Amanah (trustworthy) ?It should be based on the person ability expertise, experience and other suitable criteria and fits the job. i. Reward ?Managers must be fair in any action and reward people ?The Islamic management views rewards as the compensation/benefit earned not only today but till one dies. ?This known as “Pembalasan Dunia dan Akhirat” 4. Controlling (Execution) •The Islamic perspective is defined as the application of the procedures prescribed and organized according to plan as well as the performance of the roles and specifined under the organization. •Carrying out the plans and assuring that the results will conform to the actual plans.


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