Islamic Management

Chapter outline
z Philosophy and Principles Islamic
Management
z Example on Practice of Islamic organization
 10.0 ISLAMIC MANAGEMENT
z Philosophy and principles Islamic management
z 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:19
Truly, 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 In
Islam- 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 In
Islam- Planning
z He had two choice whether to do it publicly or
to 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 In
Islam- Planning
z The Quraisyh tribe on the other hand valued
wealth, 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 In
Islam- Planning
z The planning process of setting
objectives’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 In
Islam- Planning
z A long term objective/goal
1. Is to be the worthy servant of Allah
2. 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
z A short term obejctive/goal
1. Is productivity may it be in the form of service or product
2. Academic achievement, financial profit or improvement
performance

Muslim are taught to be balance both these objectives.

One cannot be obsessed to achieve the long term
goals and forget about the short term goals
 Management Functions In
Islam- Organizing
z Organizing is the structure of project as well
as the structure of roles to be undertaken by
human effort.
z This mean in Islam, organizing comprises
the structuring or an organization
structure(organization chart).-utilization of
resources(human), authority, power and the
practise of delegation as well as
decentralization and centralization
 Management Functions In
Islam- Organizing
z The practise of organizing can be seen in
the incident of Hijrah lead to prophet
Muhammad SAW
z If careful 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.
 Management Functions In
Islam- Leading
z From the Islamic point of view, leadership
refers to the process of moving people in a
planned direction by motivating them.
z Good leadership moves people in a best
direction that is in their long term best
interest.
z Islam says that a leader should serve and
help others (followers) get ahead.
 Management Functions In
Islam- Leading
z The characteristics of Islamic Leader are:
1. He has allegiance to Allah (faithful)
2. he has global perceived goals of organization
not only in terms of individual or group interest
but also from wider Islamic perspective
3. He adheres (obeys) to syariah and the Islamic
manner of doing things
4. He delegates trust
 Management Functions In
Islam- Controling/Execution
z Controlling from Islamic perspective is
defined as the application of the procedures
prescribed and organized according to plan
as well as the performance of the roles
defined and specified under the
organization.
z In simple terms this means carrying out the
plans and assuring that the results will
confirm to the actual plans.
10.0 ISLAMIC MANAGEMENT (cont…)
z The principle of Islamic Management
1. 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:56
And 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: 61
And 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 :59
Indeed, 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 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…)
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:8
O 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…)
z 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: 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 Freedom
z 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.
z Amanah/ Trustworthy
z 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 criteria
that fit the job.
Surah Al-Anfal: 27
O 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 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: 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 Mursalah
Literally, 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’iyyah
This 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 Brotherhood
Is 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: 10
The believers are nothing else than brothers (in
Islamic religion). So make reconciliation between
your brothers, and fear Allah that you may receive
mercy.