CHAPTER 10:

MANAGEMENT FROM ISLAMIC PERSPECTIVE

DEFINITION

♛ Management from Islamic perspective defined as, the ability to utilize

resources both material and human, optimally in order to achieve goals, be it

short term or long-term goals.

♛ It has been practiced since the era of our prophet, Muhammad s.a.w. It based

on the teachings generated from the holy Al’-Quran and the As’-Sunnah. It

sources that provided guidance in making decisions.

♛ The leadership under our prophet Muhammad s.a.w through the Islamic way

of managing things had created a strong Islamic Muslim society with

prominent characteristic such as:

✿ Team spirit that practice teamwork

✿ 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

FUNCTIONS OF MANAGEMENT

(ISLAMIC POINT OF VIEW)

The Islamic way of doing or managing things can be seen to practice the

elements or functions of management, that is:

☃ Planning / objectives / goals

☃ Organizing

☃ Leading (motivation)

☃ Controlling (execution)

PLANNING (SETTING OBJECTIVES)

According to Tan Sri Dr Mohammed Abdul Rauf in his book, management and

administration (An Islamic Perspective), planning is needed to manage,

especially in the fast moving, ever changing and complex environment we are

living in to ensure success.

Our prophet Mohammmed s.a.w in many incidents that he had gone through

practiced planning. One of the prominent ones is seen in his carefully planned

actions and moves to preach the faith of Islamic to the world.

He had two choices whether to do it publicly or to do it cautiously. He choose

to do it secretly at first since the people of Mecca at that time especially the

Quraisysh tribe did not hold the same values the Islamic faith was bringing

that human equality, justice, and sympathy for the weak.

Therefore our prophet Mohammed s.a.w chose to preach Islamic secretly and

quietly at first to his closest and trusted friends and families.

So, human beings according to Islam 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 to purpose. They are:

A long-term objective/ goal

A short-term objective/ goal

A long-term objective

Is to be worthy servants of ALLAH s.w.t, avoiding sins and preparing

us to be rewarded in paradise by performing good deeds and obeying

the teaching demanded by the Al-Quran and As-Sunnah.

A short-term objective

It is related to productivity, whether it is in services or products,

academic achievement, financial profit or improvement in performance.

Muslim is thought to balance both these objectives. One cannot be too

obsessed to achieve the long-term goal and forget about the short-

term goal and the opposite holds true too.

ORGANIZING

It is the structure of projects as well as the structure of roles to be

undertaken by human efforts.

Means in Islam, organizing comprises the structuring an organization

structure (organization chart), utilization of resources (human), authority,

power and the practice of delegation as well as decentralization and

centralization.

LEADING/ MOTIVATION

Leadership refers to the process of moving people in a planned direction by

motivating them.

Good leadership moves people in a direction that is in a direction that is in

their long-term best interest.

Islam says that a leader should serve and help others get ahead.

THE CHARACTERISTICS OF AN ISLAMIC LEADER:

1. He has allegiance to Allah (faithful)

2. He has global perceived goals of organization not only in term of individual or

group interest but also from a wider Islamic perspective.

3. He adheres to the Syariah and the Islamic manner of doing things

4. He delegates trust.

THE PRINCIPLES TO BE EFFECTIVE ISLAMIC LEADER:

1. SYURA (Mutual Consultant)

This is 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 practice is seen in our prophet Mohammed s.a.w leadership The

practice of Syura will enables members of an organization to participate in

the decision making process.

Monitors the leader conduct of behavior so that he will not deviate from

the collective goals of his followers.

Allow group members to express opinion and grievances freely without

the feeling of embarrassment.

2. FREEDOM

Muslim leaders are encouraged to provide for and even invite constructive

criticism. Two-way communication is practice here. Members may freely

voice their view or objections and have their questions answered. An

example was during the leadership of Khulafa-al Rashidin ,Sayyidin Umar

Ibn al-Khattab(ra) , while addressing members of the mosque, was

intercepted by a woman correcting him. He readily acknowledged his

error and thanked Allah s.w.t.

According to Islamic leadership style, 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 matters of

interest to the group.

3. MASRUI’YAH

This is the concept legality whereby the management has to ensure that

any action taken must be within the legal boundary of the common/man-

made laws and the Syariah laws.

4. QUALIFICATION

This principle looks at the importance of selecting the right management

personnel. It should be based on two main elements ‘uwwah (strength) and

amanah (trustworthy). The selection of new personnel should not be based

on self-interest or favoritism. It should be based on the person ability,

expertise, experience and other suitable criteria that fit the job.

5. REWARD

Managers must be fair in any action and reward people accordingly.

Employees who performed their tasks or responsibilities well should be

given reward. However, the Islamic Management views reward as the

compensation /benefits earned not only today but till one dies. This is

known as “Pembalasan Dunia dan Akhirat”.

6. JUSTICE Leader should deal with people justly and fairly regardless of race, color,

national origin or religion. Al-Quran commands Muslims to be fair even when dealing with people

who oppose.

CONTROLLING (EXECUTION)

Controlling from 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 defined and specified under the organization. In

simple terms this means carrying out the plans and assuring that the results

will conform to the actual plans.

THE PRINCIPLES OF ISLAMIC MANAGEMENT

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 term and long

term goals such as serving Allah, worshipping HIM and seeking his worthy

pleasure and reward.

2. The moral/religious value of work should be integrated in the work or

activities we do. Working is not merely means for material gains, but also

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 a

commodity. This statement requires us to use our time efficiently by being

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-restraint, self-discipline and fear of Allah.

5. Self criticism should be exercised periodically both individually and

collectively and should be practiced by all workers at all levels. Each

individual should review his/her work and analyze his actions and attitudes.

6. There shall be no favoritism and discrimination. Heads of departments,

managers and leaders must be fair to employees. There should not be

discrimination and favoritism because of mutual interests of family ties etc.

7. Human nature and needs should be both considered simultaneously. Both

psychological and economical contracts of a person must be met. For

example, working hours must be reasonable and fair. The pay system should

be fair (equity).

8. It is the responsibility of the management to provide conductive and healthy

working conditions in the work-place. Management should employ people as

a whole considering both their emotional and psychological needs.

9. Employees must be paid sufficiently promptly and fairly.

10. There should be conductive rewards for exceptional achievement and

adequate measures to detect and prevent violations.

11. Lastly and the most important is the concept of al-Syura, it is a consultation

based on mutual discussion and inculcating cooperation among members of

organization.