Principles of Management - Assignment # 2

Hamza Javed

“Islam” the religion of peace, which has over 1.6 billion followers or about 23% of the world
population, is not only a religion but also a complete way of life, The Holy Quran; the most
comprehensive divine book of the world has the solution to every problem. Let it be personal or
issues related with economics, business or politics. It’s a vast source of knowledge. It tells us about
history, Geography, Astronomy, Biology, and Management etc. The Holy Quran, has the most
comprehensive collection of guiding principles, teaches us, guides us and shows us light in every
walk of life.

Islamic Concept of Management:

 The basis for Islamic Management is the Al-Quran and the Al-Sunnah.
 Islamic Management is the right way of managing people and organization.
 Practicing the principles of Islamic Management enables leaders and managers to achieve
unity among the followers/members of the organization quickly and this enhances quality
performance.

Principles of Islamic Management:

The principles of Islamic management can be traced back to the time of Prophet Muhammad
(PBUH) when he laid down the foundation of an Islamic Society. Those principles were
administered by the Shura – a group of his companions for consultation. Al-Hirrawi (1986) was
of the view that being a Prophet his companions were supposed to obey him without questioning,
however, Prophet Muhammad (PBUH) created a conducive environment of consultation and
participation. It is pertinent to mention that the Shura or council comprised of honest and pious
members. The Holy Quran clearly states on the significance of justice, honesty and fairness in
employee and employer’s relationship. Besides, it encourages and stresses on the learning of skills
and struggle for good work to benefit the community as well. Islam firmly believes on consultation
and cooperation in work. Some of these main principles of Islamic management are as follows:
Consultation:

Consultation is an extremely important concept and principle of human resource management.

Islam also give due importance to consultation in management. Consultation is the process by
which manager and employees of the organization aims to understand the needs, wants and
expectation of the organization in better way1. Consultation is an active process through which
manager opens formal and informal channels of communication. Effective management depends
on the strong decision-making power of the manager. Decision making has important role
management and it affects other people also. Islam gives due importance to the process of
consultation in management. That is why Islam stresses to take consultation before taking any
important decision2. Allah says in the Quran that:

“those who listen to their Lord, and establish regular prayer: who (conduct) their affairs
by mutual consultation….”
(Al-Quran: Chapter 42: Verse: 38).

“And make counsel with them in the affair; so when you have decided, then place your
trust in Allah; surely Allah loves those who trust”
(Al-Quran: Chapter 3: Verse: 159).

Thus, both wisdom and narrations combine to indicate the sensitive position and the significance
of consultation. It is better for Muslims to make use of this great Islamic command which is the
very basis of prosperity and social improvement.

The Prophet used to advise people to have consultation. He himself made use of it frequently. In
the Holy War of Badr, prior to his confrontation with the enemy, he consulted with his followers:

“Tell me your views concerning the combat with Quraish. Shall we advance? Shall we
confront the enemy? Or shall we return back?”
(Sirah Ibn Hisham, vol 1, p. 615; Maghazi Waqedi, p. 48)

The leaders of the Muhajirin (Immigrants) and the Ansar (the Prophet's close followers) presented
two differing views; but the Prophet accepted that of the Ansar.

In the Holy War of Badr the elders believed, that they must stay in Medina to defend the
strongholds, by throwing arrows and stones from the strongholds and rooftops of their houses. But
the youth preferred confronting the enemy outside the city. The Prophet S.A.W. adopted the
second view6.

In the Holy War of Khandaq (ditch) the Prophet convened a military council and accepted
Salman's proposal of digging a ditch around the vulnerable areas of Medina and carried out his
suggestion7.

In the Holy War of Taef, the Prophet, in accordance with suggestions by some of the military
officers, changed the location of their headquarters8.

Consultation is therefore an important feature of human resource management because

consultation process brings fairness and justice in organization. In organization, different problem
may arise between managers and employees and these problems can be resolved through mutual
consultation.

Manager is the leader of the organization. According to teaching of Islam, the leader should seek
suggestions from followers through consultation. Islam is against autocratic style of management.
According to teaching of Islam, all matters of life whether these are social, economic or political
should be decided through mutual consultation2. Principle of Shura or consultation is an important
concept of Islamic management and it guides managers of the organization to deal with employees
with justice. It is the duty of every individual to keep promises. In Islamic administration, a
manager is required to seek suggestions and advice from subordinates before taking any important
decision. The key characteristics of a manager according to teaching of Islam is that he/she consult
with subordinates and take important decision3.

Delegation of Authority:

Delegation of authority means to entrust someone else to perform part of your job. A manager in
organization cannot perform all tasks alone. Manger delegate authority to his subordinates who
has competencies and knowledge. Delegation of authority involves some important steps which
are assignment of duties to someone else, granting of authority, and creating responsibility and
accountability. It is one of the essential tools for effective management of any organization.
Delegation of authority strengthens the internal control system of the organization, it clarifies
responsibility for decision making. Islam also gives due importance to delegation of authority.
Holy Prophet Muhammad (PBUH) started administrative organization by appointing rulers and
officers in states and cities. Delegation of authority is effective Islamic principle of management
and administration. The importance of delegation of authority is well-enshrined in the statements
of renowned Muslims scholars4.

“Appointment of an individual by the Imam, to whom the administration of matter is

completely entrusted, allowing him to make decision according to his own judgement”
(Al-Marwadi).

“Delegation of authority is rational and necessary because no individual is capable of

performing all matters alone”
(Ibn Khaldun).

As it has been already mentioned, holding religious positions in Islam and social positions in
Islamic government are all based on authorization, and every measure taken without having the
permission of the holders of authority would be considered as meddle in the Almighty God's
affairs. Therefore, it is only ordered to obey Almighty God, the messenger (S) and the holders of
authority, and this obedience is obligatory. The Glorious Qur'ān says (Al‐Nisā IV, 59):

“O, you who believe! Obey Allāh and obey messenger and those from among you who
have received divine authorities. If you differ in anything among yourselves, refer it to
Allāh and His messenger, if you believe in Allāh and in the Last Day, this is better and
more suitable for conclusion.”

The Leader of the believers Imam Ali (A) in the decree to Malik Ashtar says:

“O, Malik, when you hear the orders of your superior officer, you should compare it with
the commandment of Allah. If Almighty God forbids you to do such an action, beware not
to sacrifice the creator's decree in the way of the creature's desires. Never say that I am
an agent and excused from any responsibility. Never say that I am ordered to do so, and I
have to obey unquestioningly. Never be tempted that other peoples should obey you
unquestioningly. Never impose your leadership on other people just for this reason that
you are backed by the position of caliphate5.
Justice:

Justice is an important principle of Islamic management system. Justice plays most important role
in effective management and administration. Injustice creates disharmony in organization. Justice
means to treat everyone fairly according to his position. Justice is the characteristic that everyone
should develop irrespective of his level of employment, his status in the organization and gender.
Islam also gives due importance to justice in management dealings with other people. In
organization where manager treats his subordinates with justice, employees show more
commitment to manager and to organization4. In the holy Quran Allah Almighty says:

“O you who believe stand firmly for Allah as witnesses to fair dealing and let not the
hatred of others to you swerve to wrong and depart from justice…”
(Al-Quran: Chapter 5: Verse 8)

Justice is a virtue and is obligatory for everyone whether he/she is manager or subordinate, to
develop it. Justice create harmony in organization and it increases job satisfaction and commitment
of the employees. In Islam, all human beings are equal regardless of sex, race, religion, wealth,
knowledge, and status. Only good actions and good deeds are counted for exalted position9.
Prophet Mohammad said in his last sermon that

“there is no preference of Arab over non-Arab or no-Arab over Arab or black one over
white one or white one over black one, except those who is more pious”
(Ahmad (22978) narrated from Abu Nadrah)

In Islamic management, there is no room for personal interest and other consideration to affect
justice. The important role off justice cannot be ignored in protecting individual freedom and
equality. In Islam there is no compulsion to adhere to a particular religion. Islam gives full freedom
to non-Muslims to worship their religion. Islam gives full freedom to everyone in their beliefs10.
Allah says in the Quran that:

“there is no compulsion in religion”

(Al-Quran: Chapter 2: Verse 256)

Justice result in equality in the organization and it also develop a sense of oneness among
employees. The manager should have a sense of humility in order to maintain equality and justice
in the organization. When employees are treated and rewarded equally and impartially in
organization, it results in better performance of the organization. In such organization manager
treats their subordinates with respect and courtesy. Where justice prevails in organization, manager
never ignores suggestions and opinions of the subordinates. In such organization, laws and policies
are effectively implemented are employees strictly followed procedures of the organization11.

References:

[1] Alarimy. J. S. (2015). Islamic and Western Approaches to Human Resource Management in
Organization: A Practical Approach. International Journal of Information Technology and
Business Management. Vol, 39

[2] Abuznaid, S. (2006), “Islam and management: What can be learned?” Thunder bird
International Business Review, vol. 48, No. 1

[3] Jawad Syed 2010. “An historical perspective on Islamic modesty and its implications for
female employment” Equality, Diversity and Inclusion: An International Journal vol. 29 No.
2, 2010 pp 150-166

[4] Abdus Sattar Abbasi, Kashif Ur Rehman. Islamic Management Model, African Journal of
Business Management. 2010; 4(9):1873-1882.

[5] Decree of Imam Ali (A) addressed to Mālik Ashtar, printed by the Ministry of Economic and
Financial Affairs (1992), p. 14.

[6] Maghazi Waqedi, vol. 3.

[7] Sirah Ibn Hisham, vol. 1, p. 615

[8] Maghazi Waqedi, vol. 3, p. 925

[9] Sarmadi MR (2002) Islamic Management (Educational Science), Payam Noor University.

[10] Ahmad, Khaliq. (2007). Management from Islamic Perspective: Principles and Practices. Kuala
Lumpur: Research Management Centre, IIUM.

[11] Syed, J. (2008a), “A context-specific perspective of equal employment opportunity in Islamic

societies,” Asia Pacific Journal of Management, Vol. 25 No. 1, pp. 135-51.