TOPIC 10

MANAGEMENT FROM ISLAMIC PERSPECTIVES

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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
Our 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
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THE PRINCIPLES OF ISLAMIC MANAGEMENT

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, selfdiscipline and fear of Allah
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 Self criticism (muhasabah) 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 alSyura = consultation based on mutual discussion and
inculcating cooperation among members of
organization

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FUNCTIONS IN ISLAMIC MANAGEMENT

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

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1. PLANNING
Planning is needed to manage, especially in fast moving and
complex environment to ensure success
The planning process of setting objectives is also practiced.
Ensure that the objectives (goals) set do not harm the society.
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
Muslim are taught to balance both these objectives.
In Conventional Management,
The long term and short term goal based on the range of
time to achieve it and the goals are more towards productivity
& profitability.
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2. 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 carefulplanning 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
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3. LEADERSHIP (MOTIVATON)
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 other (followers) get ahead

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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

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Principles of effective leadership

Syura ( Mutual Consultation)

Emphasizes on Importance of managing through

teamwork. Enable members of an organization to
participate in decision making process. Allow members
to express opinions and grievances freely

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 of legality 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
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Principles of effective leadership (cont)

Qualification
selection of employee/ management personnel
based on expertise, ability, experience and other
suitable criteria that fits the job. Should not be
based on self-interest and favouratism.
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
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4. 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

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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
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