Professional Documents
Culture Documents
BusinessasManagement
Quran
taught by
the
part1
Toyota in particular owe their phenomenal success to adherence to certain golden principles of
management, which includes: elimination of wastage/optimum capacity utilization, struggle for continuous
improvement (Jihad), JIT, Visual Control, and TQM, to name a few—all which is explicitly advertised by
the Holy Quran since 1400+ years. The Holy Quran even laid down the institutional framework for
achieving these principles. What now remains desired is a sincere study of it and its practical
implementation. This article discusses only a few of these golden principles.
BY OMAR JAVAID
ISLAMIC CONCEPT OF MANAGEMENT1 “This Ayat (43:32) encompasses the [43:32] “…We raise some of
them above others in ranks,
entire philosophy and wisdom of so that some may command
anagement today is defined as modern management. It emphasizes,
M
work from others...”
“getting things done through
others.” Following this concept, in essence, the creation of This Ayat reveals in a nutshell as to why God
a Manager is now understood as
the person who works through appropriate hierarchies and the raised some people over others in ranks,
that being, that they can get work done from
others. A good manager, therefore, is a division of responsibilities subject to them. This Ayat (43:32) encompasses the
person who not only knows what is to be entire philosophy and wisdom of modern
done but exactly how to get it done. The individual capabilities.” management. It emphasizes, in essence, the
Holy Quran confirms: creation of appropriate hierarchies and the
division of responsibilities subject to
individual capabilities. It basically implies
CRITIC Magazine | January ‘08 47
VIEWPOINT
the creation of organizational charts from [3:159] “…pass over (their righteousness.
the top management to the lower faults), and ask for (God's)
management. forgiveness for them; and There can be no better pattern for equal
consult them in affairs (of opportunities than the one spelled out by
It basically implies the creation of moment). Then, when you have the above Quranic Ayat. In the realm of
organizational charts from the top taken a decision put your trust management, it would mean that the criteria
management to the lower management. in God, for God loves those for entitlement to any benefit, reward,
“…we raise some of them above others in who put their trust (in Him).” position, or status shall be such that any one
ranks, so that some may command work having requisite qualifications and
from others….” experience should have equal opportunity
PRINCIPLE OF EQUAL to achieve it. This will obviously go a long
The Holy Quran has also laid down the OPPORTUNITIES way towards maintain the requisite degree
institutional framework for putting this of harmony in the work environment
golden rule into practice: The principle of equal opportunities conducive to the smooth working of the
postulate that all members of an organization management process.
1.Obedience and Respect for Authority; shall have equal and fair chances to grow,
contribute, and be rewarded accordingly.
2.Principles of Equal Opportunities; and MOTIVATION & COMMITMENT
The Holy Quran emphasis this golden rule:
3.Motivation and Commitment. Making people what they are supposed to
do requires a certain degree of commitment
Continuous and aggressive pursuit of which can only be achieve through
OBEDIENCE AND RESPECT FOR wastage elimination led Toyota to motivation. It is an established fact that the
AUTHORITY way a Manager behaves or deals with the
become one of the most efficient subordinates determines the level and
Obedience and respect for authority is the manufacturing organizations in the vitality of their motivation and commitment
basic fundamental requisite for taking work to a great extent.
from others and getting it done. Working world. The Holy Quran had already
The Holy Quran too speaks about this golden
through people actually presupposes the
willingness of people to obey. It is therefore
spoken against wastage and lavish rule:
necessary for those people who are given expenditures, It says: (17:26-27, 7:31)
the job to complete a task to obey all legal [3:159] “(telling the Prophet)
and reasonable orders and perform it “… waste not in the manner of a If you had been stern and fierce
responsibly, as Holy Quran instructs: spendthrift.” of heart they (the companions
and followers) would have
[4:59] “Obey Allah and His disappeared from around you.
Messenger and those in position So pardon them and ask
of authority among you.” [49:13] “O people We created forgiveness for them and consult
you from a single male and them in the conduct of affairs”
This Ayat is a commandment and not a plea. female couple and then divided
To be a good Muslim, it is incumbent upon you in nations and tribes so This beautiful ayat emphasizes upon two
the believer to observe the ruling with that you may recognize one aspects: one, that compassionate and
willingness and honesty. When this spirit of another. “Verily the most sympathetic behavior towards companions
voluntary obedience is instilled in the mind honorable among you in the and followers, and second, the adoption of
of an employee, the scope of the hierarchy sight of Allah is he who is participatory approach when dealing with
as envisaged by the Ayat is strengthened most righteous of you.” them i.e. consulting them, is the most
[43:32]. Needless to say, without the spirit effective way of management. If this golden
of voluntary obedience among those who Our beloved Prophet Muhammad (P) rule is not observed then “they will disappear
work, the creation of hierarchy will not serve expounded the verse for us on the occasion from you” i.e. they won’t pay attention nor
any purpose. of Hajat-ul-Widaa, in the following words: any interest in you or what your work entails.
“In the light of this Quranic Both these golden rules play vital role in the
verse no Arab has any motivation of subordinates and inculcating
JOINT CONSULTATION & TEAM superiority over a non-Arab in them the spirit of commitment and
WORK nor does any non-Arab have any passion for work.
superiority over an Arab.
The modern world realized the importance Neither black is superior to
of joint consultation (Shura) and team-work white nor white is superior to
when the Japanese based its management black. Of course, if there is THE CORNERSTONE OF TOYOTA’S
style on it and proved to the world of its any criterion of superiority SUCCES: ELIMINATION OF WASTE
effectiveness. and respectability in the sight
of Allah, it is Taqwa Wastage—either in terms of: material,
The Holy Quran advocates for this concept: (righteousness).” human capital, energy, machine utilization,
or processing time, creates inefficiencies
[42:83] “...and those who do These words suggest that despite the fact resulting in the increase of costs and
their work through mutual that we are all equal, human beings can consequent decrease in profits.
consultation.” excel over one another in certain aspects of
life. One such aspect could be in terms of The Holy Quran has spoken against wastage
48 CRITIC Magazine | January ‘08
and lavish expenditures in sternest of words: A Muslim must also strive to eliminate sometimes lead to minor or major changes
in the system which is not always welcomed,
[17:26] “And render to the any wastage around him, at home, and are resisted by the stakeholders of the
status quo environment. Therefore, the
kindred their due rights, as
(also) to those in want, and workplace, or in society even when management then also has to struggle
to the wayfarer. But waste not faced with resistance. A very common against the resistance and make the change
(your wealth, time, health, acceptable by different means.
talents, opportunities etc) in example would be to control the use
the manner of a spendthrift.” of water, food, and electricity A Muslim must also strive to eliminate any
wastage around him, at home, workplace,
[17:27] “For the wasteful are according to the needs. Wastage of or in society even when faced with
the brothers of Satan; and resources such as material in the resistance. A very common example would
Satan is ungrateful to his be to control the use of water, food, and
Lord.” workplace, man-hours, machine- electricity according to the needs. Wastage
of resources such as material in the
[7:31] “O Children of Adam! hours, human potential, and time workplace, man-hours, machine-hours,
wear your beautiful apparel at should also be minimized. human potential, and time should also be
every time and place of prayer: minimized. While 100% elimination is not
eat and drink: But waste not possible we should still try to get as close to
by excess, for Allah loveth it as possible, and this can only be achieved
not the wasters.” through continuous struggle (Jihad). Muslims
would find this easier to do than non-
It was Toyota who first understood and The concept of Just-in-Time has Muslims because they have been explicitly
implemented this golden rule in business, revolutionized the Inventory instructed by the Holy Quran. Continuous
not the Muslims. Their success is thus based striving is the only way available to achieve
on two principles: Management Systems in the minimum possible wastage or maximum
1. Complete Elimination of Wastage; and
manufacturing organizations possible efficiency, which is nothing but Jihad
in Arabic.
2. Equal Level of Respect for All throughout the world. It is based on
Continuous and aggressive pursuit of the golden principle of keeping only The Holy Quran confirms this fact:
wastage elimination led Toyota to become that much amount of inventory that [5:35]“You who believe! Have
one of the most efficient manufacturing
organizations in the world. The company is is needed and that too in continuous fear of Allah and seek the
means of drawing near to Him,
now able to produce the best quality of movement in order to avoid in- and strive in His Way, so that
automotive products at the least possible hopefully you will be
cost while maintaining the highest pay-scale process buffer inventory as much as successful.”
for its employees. Their success-story has possible until it is completely
inspired many companies throughout the
globe, including those in Pakistan and transformed into the finished good. JUST-IN-TIME (JIT) SYSTEM FOR
adoption of these principles and
methodologies in these companies The Holy Quran spoke about JIT in INVENTORY MANAGEMENT
concerning continuous elimination of waste 2:219, 9:34, 10:58 “…spend what is The concept of Just-in-Time which has been
is already underway. Jeffery K Liker in his
book The Toyota Way has described that beyond your needs (i.e. do not hoard)” invented by Toyota has revolutionized the
Toyota production system today comprises Inventory Management Systems in the
of 14 principles that have evolved as a result manufacturing organizations throughout the
of continues pursuit of Toyota since the very world. It is based on the golden principle of
beginning. Some of these processes are keeping only that much amount of inventory
technically known as Kaizen, JIT, and 5-S. that is needed and that too in continuous
movement in order to avoid in-process buffer
In order to solve any problem, the inventory as much as possible until it is
completely transformed into the finished
KAIZEN: THE MANAGEMENT JIHAD manager or supervisor at Toyota is good.
AGAINST INEFFICIENCY obligated to go and see for himself
A Muslim should be a born JIT expert. The
Kaizen is a Japanese word meaning the issue, analyze it, and take Holy Quran instructs him in 2:219 that he
continuous improvement. For Toyota, Kaizen corrective actions. Second hand should spend on himself only as much as he
is a means to strive and struggle to achieve needs and to give away the excess in the
their golden rule of “elimination of waste.” information is simply not accepted. way of Allah.
To implement Kaizen, the management
continuously seeks to identify areas where This fundamental principle of business [2:219] “… They ask thee how
wastage is being done. Once identified, they management is also mentioned in the much they are to spend in the
then set out to analyze the problem, suggest way of Allah; Say: ‘What is
a solution, plan its implementation, Holy Quran (17:36) “You shall not beyond your needs.’”
implement it, and finally reviews the change
for success or failure (PDCA cycle). This is
accept any information unless you [10:58] “The men on the heights
not easy as implementation of Kaizen verify it for yourself…” will call to certain men whom
CRITIC Magazine | January ‘08 49
VIEWPOINT
The western organizations finally practices these principles almost religiously5. ACTION BOX
realized that customer satisfaction If principle (1) is not implemented and the 1. Study Quran: Be analytical. Connect the
machines are overloaded, then a lot of work- dots—find answers to your daily needs. Study
is vital for their survival and growth. in-process inventory may pile up which will Quran from the perspective of your profession.
This gave birth to the concept known lead to added expenses in terms of material
2. Struggle—Jihad: Strive for continuous
handling and holding cost. If the employees
as Quality Management Systems are overloaded, they may feel frustrated, improvement of yourself and your business
along with the society and people who you
including all its various tools and de-motivated, and get tired very quickly, know. Promote virtue. Suppress V ice.
making them inefficient and prone to
methodologies such as the Six-Sigma mistakes which will lead to wastage of time 3. Eliminate Wastage—of time, of talents, of
and money. material, of wealth, of health, of opportunities
and TQM which are solely focused etc. Make effective and efficient use of
towards customer satisfaction.. The If principle (2) is not implemented and the whatever resources you have.
machines or employees are under-utilized,
Holy Quran spoke about Quality the company will face an obvious wastage 4. Do Business For the Service of Society:
in the form of fixed overheads. Besides, idle Address their needs. Meet their expectations.
Management Systems, and is employees are bored employees and highly
Make your product/service affordable. Don’t
take exorbitant profits. Contribute towards
mentioned in 6:152, 7:85, 11:84-85, de-motivated to carry out even the work Improvement of society.
which is assigned to them.
17:35, 26:181-182, 55:7-9, 83:1-3 5. Don’t Cheat: Ensure full weight and measure.
“…give full measure and weight; … do If principle (3) is not implemented and some Give them exactly what you promise. Put
customers first before profits.
employees are over-burdened while the
not withhold from people (including others are sitting in idleness, it will not only
customers) the things that are their create a feeling of injustice in the minds of The Holy Quran commands:
those employees working but a sense of
due; …woe to those who deal in discrimination coupled with frustration and [6:152] “And come not nigh to
anger which can easily ignite into a possible the orphan's property, except
fraud…” conflict. (I have witnessed this for myself). to improve it, until he attain
This is just a preview or an insight into the the age of full strength; give
vast field and scope of the subject at hand. measure and weight with (full)
These golden principles are not merely for justice;- no burden do We place
transgress (due) balance. So business management but for every person on any soul, but that which it
establish weight with justice from every walk of life and profession. It is can bear;- whenever ye speak,
and fall not short in the in fact a system of life as a whole (Deen). speak justly, even if a near
balance.” relative is concerned; and
fulfill the covenant of Allah.
[17:27] “For the wasteful are THE PHILOSOPHY BEHIND QUALITY Thus doth He command you that
the brothers of Satan; and ye may remember. “
Satan is ungrateful to his MANAGEMENT SYSTEM
Lord.” [7:85] “...Give just measure
A business cannot flourish in the long run if and weight, nor withhold from
[7:31] “O Children of Adam! it doesn’t give its customer what it promises the people the things that are
wear your beautiful apparel at to. Being a customer it is easy to understand their due; and do no mischief
every time and place of prayer: this but for a business it is usually not. The on the earth after it has been
eat and drink: But waste not main focus of a businessman is to make set in order: that will be best
by excess, for Allah loveth profits and not necessarily to satisfy the for you, if ye have Faith.”
not the wasters.” customer. It would not be wrong to say that
the only time the businessman realizes that [11:84-85] "O my people!
The principles mentioned in 2:286, 55:7-9, customer satisfaction is important is when Worship Allah. Ye have no other
17:27, 7:31 mean: he understand that this is directly related god but Him. And give not short
with his profitability margins. measure or weight: I see you
1. Do not over-burden any resource, whether in prosperity, but I fear for
it is a machine or an employee; This has been realized the hard way by the you the penalty of a day that
western organizations that customer will compass (you) all round.
2.Do not under-load any machine or satisfaction is vital for their survival and "And O my people! give just
employee; and growth. So, in order to achieve the highest measure and weight, nor withhold
levels of customer satisfaction, they have from the people the things that
3. Balance out the workload onto different put in considerable amount of research on are their due: commit not evil
machines or on different employees so the concept what is now known as Quality in the land with intent to do
that none of them is over-burdened or Management Systems including its various mischief.”
under-loaded with regards to their tools and methodologies such as the Six-
respective capacities. Sigma and TQM. [17:35] “Give full measure
when ye measure, and weigh with
For Toyota4, these three principles are called The West after years of experimentation and a balance that is straight:
Muri, Mura and Muda categorized under a failures has now found out this golden rule, that is the most fitting and
single principle called Heijunka, which means the same golden rule which was mentioned the most advantageous in the
to level out the workload. Toyota Company in the Holy Quran. final determination.”
[55:7-9] “And the Firmament so that measurement is carried out This fact is applicable not only in the
has He raised high, and He has business environment but also in our
set up the Balance (of Justice), most accurately. It also commands us individual, social and political environments.
In order that ye may not to keep all our quality control and
transgress (due) balance. So The Holy Quran has instructed the Muslims
establish weight with justice quality assurance procedures and about this golden rule at several places:
and fall not short in the
balance.”
tools fully functional so that defected [17:34] “Allah says, ‘Fulfill
components are not passed on to the your contracts. Contracts will
[83:1-3] “Woe to those that be asked about.’”
deal in fraud,- Those who, when customers.
they have to receive by measure [16:91] “And the Almighty
from men, exact full measure, companies are many times more profitable says, ‘Be true to Allah's
But when they have to give by over other companies who do not have such contract when you have agreed
measure or weight to men, give intentions6. The author and researcher Jim to it.’
less than due. Do they not Collins describes such companies in his best-
think that they will be called selling books titled “Built to Last” and “Good [5:1] “The Almighty says, ‘O
to account?” to Great.” Two such companies are Sony and you who believe! Fulfill your
Merck. The founder of the Merck believed contracts.’
For a Muslim businessman, there is no that medicine is for the sick (end) and not
alternative but to satisfy his customer, even for making money out of it (means). The [61:2-3] “And the Almighty
if the market and economic forces are author states that these beliefs are even says, ‘O you who believe! Why
making it difficult for him to do so. It is his openly evident in their everyday activities do you say what you do not do?
obligation to God that he resists these forces within their companies. It is deeply abhorrent to Allah
and struggle and strive (wage Jihad) to fulfill that you say what you do not
the above-mentioned commandments, even It is a natural law that when “means” are do.’”
if he has to compromise on some profit or recognized as “means” and “ends” of human
put up some extra effort (up to his capacity). life are recognized as “ends”, only then the
For him, profit is only a “means” to keep his real process of socioeconomic, intellectual, CONCLUSION
business alive and to satisfy his customer and spiritual evolution takes places and takes
i.e. the “end.” us to the extremes of our potential. Success and prosperity is the outcome of
commitment to certain golden principles of
The wisdom behind the golden rule is that The following ayat reveals a lot than the life, and not out of luck and fate—principles
the welfare and wellbeing of the customers apparent: that are readily available to us in the Holy
and the society is far more important than Quran. These principles are independent
the profitability of a single entrepreneur. [26:182] “And weigh with scales and universal of any particular profession
Yes, by preferring customers over profit, a true and upright” and primarily aims at building a “whole”
business will reduce its income in the short- man capable of achieving his true potential
term but will surely improve its sustainability in the purpose of his life—either through
in the longer run. Besides, a Muslim knows some business setup of his own or through
that his job is to simply work within the FULFILLING CONTRACTS, as an employee. What remains desired is
framework of Quranic injunctions and the COMMITMENTS, & PROMISES the practical implementation of these
rest will itself follow. The Holy Quran principles in our socio-economic and political
authorizes this fact in 51:58 Whereas promises are verbal commitment, lives.
contracts are written. From the ‘Nikah
[51:58] “Allah is He who is Namah’ to a business plan, including any FOOTNOTES:
the provider of all Rizq financial agreement, are all different forms 1. From an article published in DAWN Newspaper
(Livelihood), the Lord of all of written promises that we make. If we 2.The Toyota Way by Jeffrey K liker p#223
Power.” look at it strictly from the business point- 3.Ibid p#223 to 236
of-view, commitments and promises are a 4.The Toyota Way by Jeffrey K liker p#114
[2:212] "And Allah provides daily routine affair. But how much do we 5.Ibid p#113 - 127
'Rizq' to whom he wishes without keep of the promises that we make, 5.Built to Last by Jim Collins; page#8, heading:
any account." promises as seemingly insignificant as: ‘I Myth#3
will call you back in 15 minutes?’ To run a 6.The 8th Habit by Dr. Stephan R. Covey; p#169
There are some western and far-eastern business successfully, a businessman should
organizations whose sole purpose is to meet not make promises that he cannot keep nor
the needs of the customer and society alone break any that he has made.
(“end”) by leaving profitability as a “means”
for it. Their main focus is to satisfy their Dr. Stephan R. Covey writes in his book ‘The
customers as much as possible in terms of 8th Habit’7 :
their expectations about the quality of the The author is an Engineer by profession. He
product or service, and they never “Nothing destroys trust faster may be reached at
compromise on it. Interestingly enough, such than making and breaking a Javaid_Omar@hotmail.com
CRITIC Magazine | January ‘08 53