CHAPTER 10: MANAGEMENT FROM ISLAMIC PERSPECTIVE

DEFINITION

Management from the Islamic Perspective is defined as the ability to

utilize resources both material and human, optimally in order to
achieve goals, be it short term goals or long term goals
Islamic ways has been practiced since the era of our Prophet
Muhammad s.a.w based on holy Al-Quran and the As-Sunnah
Prophet Muhammad s.a.w. had created a strong Muslim society with
characteristics such as:
Team spirit teamwork
A strong and clear vision and mission
Values for loving and caring
Emphasis for trust and relationship, cooperation and teamwork
The practice of consensus decision making
MANAGEMENT FROM ISLAMIC PERSPECTIVE

The ultimate goal of our life should be harmoniously linked with the
worldly aims. Human as Khalifah must be able to balance their
short term and long term goals such as serving Allah, worshipping
Him and seeking His worthy pleasure and rewards
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 near to Him

Time is to be well invested, not to be wasted. Time is commodity

(product), therefore use time efficiently by being punctual, be
diligent
We should uphold and internalize the Islamic ethical values i.e.
truthfulness, honesty, dedication, self-discipline and fear of Allah
Self criticism should be exercised and should be practiced by all at
all levels

 There shall be no favoritism and discrimination- be fair to all

Human nature and need should be both considered
simultaneously. Both psychological and economical contracts of a
person must be met
i.e. working hours is reasonable and fair

Employee must be paid sufficiently promptly

There should be conducive rewards for exceptional achievement
and adequate measures to detect and prevent violation
Lastly and the most important is the concept of al-Shura =
consultation based on mutual discussion and inculcating cooperation
among members of organization
CHARACTERISTICS OF AN ISLAMIC LEADER
Has loyalty to Allah
Has global perceived goals of organization, not only in terms of individual
or group interest but also from a wider Islamic perspective
He adheres to Syariah and the Islamic manner of doing things
He delegates trust

Principles in Islamic Management

Syura ( Mutual Consultation)
Emphasizes on Importance of managing through learn work. Enable
members of an organization to participate in decision making process.
Allow members to express opinions and grievances freely
The importance of managing through teamwork

Freedom of Expression
Criticism is welcome and two-way communication is practiced
A leader should strive to create an atmosphere of free thinking, healthy
exchange of ideas, criticism and advice so that the followers feel very
comfortable in discussing any matters

Masruiah

 Is the concept pf legally whereby the management has to ensure that any
action taken must comply with legal boundary of the man-made law and
syariah law
Legally of actions within the common laws and syariah law

Qualification
Selection of employee/ management personnel based on expertise, ability,
experience and other suitable criteria that require by the job.
2 elements : quwwah (strength) and Amanah (trustworthy)

Reward
employee who perform well must be rewarded

Justice
The leader should deal with people justly and fairly regardless of race,
color, national origin or religion
The Al-Quran commands Muslims to be fair even when dealing with
people oppose them

FUNCTIONS IN ISLAMIC MANAGEMENT

Islamic Management practices the following elements:
Planning / Objectives / Goals
Organizing
Leadership (Motivation)
Controlling (Execution)

Planning (Setting Objectives)

Planning is needed to manage, especially in fast moving and complex
environment to ensure success
The planning process of setting objectives is also practices. Human
according to Islam created by Allah SWT to be the Khalifah on the earth.
This means that our life and activities must be focused to fulfill two
purposes. They are:
Long term goal is to be the worthy servant of Allah, avoiding sins and
preparing ourselves to be rewarded in paradise by performing good deeds
and obeying the teachings demanded by Al-Quran and As-Sunnah
Short term goal is productivity may it be in the form of services or
product, financial profit or improvement in performance

Muslims are taught to balance both these objectives.

In Conventional Management,
The long term and short term goal based on the range of time to achieved it
and the goals is more towards productivity

Organizing
Structure of projects as well as the structure of roles to be undertaken by
human efforts.
In Islam, organizing comprises the structuring of resources (i.e. human),
authority, power and the practice of delegation as well as decentralization
and centralization
The practice of organizing can be seen in the incident of Hijrah led by our
Prophet Muhammad SAW. If carefully planning and organizing had not
been done Prophet Muhammad SAW would have been murdered or
captured and the course of history would not have been the same

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

Controlling (Execution)
Application of the procedures prescribes and organized according to plan
In simple terms this means carrying out the plans and assuring that the
results will conform to the actual plans
Summary
Islamic Management is the right way of managing people and organization
The basis for Islamic Management is the Al-Quran and the As-Sunnah
Practicing the principles of Islamic Management enable leaders and
managers to achieve unity among the followers/members of the
organization quickly this enhances quality performance