Islam and Management: What Can

Be Learned?
Samir Abuznaid

Executive Summary
Religion has a major impact on human behavior, social interactions, and social rela-
tions. This research article discusses the impact of Islam on managers’ behavior. The
impact is exerted from the five pillars of Islam: faith, prayer, alms, fasting, and pil-
grimage. From the article, it is evident that such pillars have a direct effect on Moslems’
behavior. Besides that, the article shows the significant impact of Allah supreme names
on managers’ behavior and style. Allah names have a direct interrelationship with
management functions like planning, organizing, and directing. A Moslem manager,
in fact, can use Allah supreme names as a guide to his management style and action.
Finally, the article sheds light on major Islamic management principles and their
effect on managers’ behavior and perception. © 2006 Wiley Periodicals, Inc.

INTRODUCTION

Religion has a great and direct impact on human behavior, social interactions,
and social relations. In fact, religion might influence the political and educational
system of any society. Concerning this, Weber (1964) pointed out that “the reli-
gious determination of life conduct, however, is also one, not the only one of the
determinants of the economic ethic. Of course, the religiously determined way
of life is itself profoundly influenced by economic and political factors operating
within given geographical political, social and national boundaries” (p. 268).

The combination of religion and nationality is a form of identification for the

majority of Middle Eastern cultures. The synthesized identity has, for centuries,
influenced the sense of belonging, political lifestyle, and communal cohesion.

Dr. Samir Abuznaid, associate professor of management and organization at Hebron University,
West Bank, where he established the School of Finance and Management in 1994, and has taught
business at An-najah University Nablus, West Bank for eleven years. He has given lectures in Pales-
tine, United States, United Kingdom, France, Spain, Italy, Jordan and Germany, and is the recipi-
ent of several rewards and honors . Most recently he was selected as a Fulbright scholar where
he had to teach cross-cultural management courses at Portland Community College, Portland, Ore-
gon, USA (sameerz@hebron.edu).

Thunderbird International Business Review, Vol. 48(1) 125–139 • January–February 2006

Published online in Wiley InterScience (www.interscience.wiley.com).
125
© 2006 Wiley Periodicals, Inc. • DOI: 10.1002/tie.20089
 Samir Abuznaid

Presumably, different cultural traditions emerged across geographical

boundaries because of the communities’ isolation.

The influence of religion on most aspects of one’s life is obvious,

including matters such as divorce, baptism, courtship, death, and
marriage. In fact, Islamic conservatism is at present the dominant ide-
Religious identity ological force in Arab society (Sharabi, 1983, p. 203).
served as a very
important means The most important instrument through which religion exercised its
of social differ- hold on the individual was the traditional particular extended family.
entiation in the As the family system was supported by religion, being a religious
Arab world. institution, family and religion eventually supported each other (Ata,
1984, pp. 95–126).

Religious identity served as a very important means of social differ-

entiation in the Arab world. Consciousness of social distance is clearly
marked among the Arabs (Prothro, 1952, p. 10). Moslems are an
overwhelming majority in every Middle Eastern country (ITN News,
1987).

In this article, I intend to give a thorough description of the main pil-

lars of Islam, managerial themes in Islamic culture, and characteristics
of a Moslem leader and examine the impact of Allah Almighty names
on managers’ behavior and practice. It is believed that this article will
make a contribution to the literature on management in Islam, as
there is little literature that examines the relationship between Islamic
practices and management behavior and actions.

This article is divided into four major sections. The first section
attempts to give a thorough description of the major pillars of Islam.
The second section deals with economic prosperity, as well as the
main practices of managers as their way of belief. The third section
discusses the main managerial themes in Islam. The final section
examines the impact of Allah Almighty names on management
behavior and actions.

MEANING OF ISLAM

Every religion of the world has been named either after the name of its
founder or after the community and nation in which that religion took
its birth. For instance, Christianity takes its appellation from the name
of its prophet, Jesus Christ, and Judaism, from the name of the tribe

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 Islam and Management: What Can Be Learned?

Judah, where it was born. This is also true of other religions. But not
so with Islam (Maududi, 1980, p. 9), which has been described by
Weber as the religion of world-conquering warriors, a knight order of
disciplined crusaders (Weber, 1964, p. 279). Islam is not associated
with any particular person or group. It does not convey any such rela-
tionship, for it does not belong to any particular person, people, or
country. Neither it is the product of any human mind or confined to Islam is an Ara-
any particular community. Islam, as a matter of fact, is an attributive bic word connot-
title. Whosoever possesses this attribute, may he or she belong to any ing submission,
race, community, country, or clan, is a Moslem (Maududi, 1980, p. 9). surrender, and
obedience.

WHO IS A MOSLEM?

Islam is an Arabic word connoting submission, surrender, and obedi-

ence. As a religion, Islam stands for complete submission and obedience
to Allah—and that is why it is called Islam. Another literal meaning of
the word Islam is peace, and this signifies that one can achieve real peace
of body and mind only through submission and obedience to Allah.
Such a life of obedience brings peace of the heart and establishes real
peace in the society at large. In contrast to the Moslem person described
above there is the man who, although born a Moslem and uncon-
sciously remaining one throughout his life, does not exercise his facul-
ties of reason, intellect, and intuition for recognizing his Lord and cre-
ator and misuses his freedom of choice by choosing to deny Him. Such
a man becomes an unbeliever in the language of Islam, a Kafir. Kufre
is a form of ignorance; actually, it is ignorance pure and simple.

PILLARS OF ISLAM: HOW DO THEY AFFECT BEHAVIOR?

Islam is built on five pillars. They are the testimony of faith, prayer, alms,
fasting, and pilgrimage to the city of Makkah. These pillars of Islam will
be treated in some detail due to their importance, as they are practiced
daily by Moslems and therefore affect Moslems’ daily behavior.

Faith (Al-Shahadatan)
Faith is summarized in the two confessions: “There is no God but
Allah, Mohammed is His messenger.” It is belief in one God, the cre-
ator. Mohammed is the last of all prophets and has brought to man
the final revelation that God has for them (Tritton, 1966, p. 23). It
is believed that faith makes the believer dedicate his life to one God,
Allah, and pleasing others, such as the boss, becomes secondary.

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 Samir Abuznaid

Prayer (Salah)
Moslems pray five times a day; at dawn, at noon, in the afternoon,
after sunset, and after dark. It seems that this timing is intended to
avoid any suggestion of worshipping the sun. The prayers differ in
their length and section. The Morning Prayer has two sections, the
noon four, the afternoon four, the sunset three, and the night four.
Moslems pray
five times a day; On the festivals the feast of sacrifice (Eid al-Adha) and the ending of
at dawn, at the fast (Eid al-Fitr), the sermon follows the prayer, in contrast to
noon, in the Friday prayer, in which the two sections are preceded by the sermon
afternoon, after (Qutb, 1982, p. 85). It is believed that prayer affects managers in sev-
sunset, and after eral ways:
dark.
1. Prayer makes managers better at time management and being
organized. From prayer, managers learn to become better and
more prompt.
2. Prayer makes practitioners look nice and in good uniform with
good smell.
3. The prayer element has forced businesses to allocate mosques
in their facilities for worship; in addition, it allows workers to
halt production for the sake of making prayer.

Alms (Az-zakat)
Legal alms or obligatory charity would be better names for this insti-
tution. Clear distinction should be made between Az-zakat and alms.
Az-zakat is an ordinance prescribed by the laws. Charity, on the other
hand, is voluntary. It cannot be imposed by the law or by order of
rulers (Tritton, 1966, pp. 15–26). Az-zakat is a tax collected and dis-
tributed among the poor by the state and not by the rich people, so
that a poor man can maintain his dignity by not taking Az-zakat from
other people. Almsgiving is thought to be the religious and social
responsibility of managers.

Fasting (Siyam)
Fasting begins during the daytime, starting from the time it is possi-
ble to distinguish a white thread from a black one until the sunset.
The believer must abstain from food, drink, carnal intercourse, smok-
ing, and even chewing gum. Children, pregnant women, the sick,
aged, and travelers are excused (Tritton, 1966, p. 26). Fasting lasts
for a whole month (Ramadan).

In Moslem countries during the month of Ramadan, most busi-

nesses, if not all, private or public, cut down their daily working times
and change working hours. This is because people who are fasting are
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 Islam and Management: What Can Be Learned?

more vulnerable to thirst, hunger, and fatigue. In addition, Ramadan

is a good season for fundraising since people are more willing to give
and donate in Ramadan. Rand (1967), in his article “Learning to Do
Business in the Middle East,” commented, “Ramadan is a month
long Arab fasting period. Although employees are required to come
to work, output historically falls to under 25 percent U.S level dur-
ing that month” (pp. 49–51). Restaurants and dining rooms in areas It is the duty of
where the majority are Moslems close their doors for business for the every Moslem to
entire month of Ramadan or modify their opening times. Other busi- make a pilgrim-
nesses use the time of Ramadan to renovate and bring new ideas to age at least
improve their workings. once during
his/her lifetime if
Pilgrimage (Al-Hajj) certain condi-
It is the duty of every Moslem to make a pilgrimage at least once dur- tions are met.
ing his/her lifetime if certain conditions are met. The hajji, or pil-
grim, must be of age, of sound mind, and able to afford the expenses.
This pilgrimage is the one to Arafat, a little hill some 16 miles to the
east of Makkah.

In the pilgrimage to Arafat, a pilgrim should not hunt or cut wood.

In addition, pilgrims may not indulge in sexual intercourse, not even
a husband and wife. Pilgrims may not wear rings for ornament, use
perfumes, or cut their hair. The pilgrim who avoids vice and wicked-
ness comes out of his sin as on the day his mother gave birth to him;
in other words, he is innocent and clean (Tritton, 1966, p. 28).

The pilgrimage in itself is a symbol of equality and equity where supe-

riors and subordinates wear the same clothing and carry out rituals
together.

These are the five pillars of Islam. From this, it is becoming clear that
religious convictions influence practically every act during each
moment in life.

ISLAM AND ECONOMIC PROSPERITY

The issue of Islam and economic prosperity has been the subject of
discussion by many writers. It has caught the attention of Moslems
and non-Moslems, the economists and the historians, the sociologists
and the anthropologists. The literature reveals that some of these
scholars are sympathetic toward Islam by arguing that nothing in
Islamic teaching and traditions is opposed to the adoption of modern
and progressive economic methods (Adams, 1976, p. 29). Others, on

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 Samir Abuznaid

the contrary, have endeavored to show that Islam forbids those who
hold it to engage in any fruitful economic endeavors, thus dooming
them to stagnation (Rodinson, 1974, p. 2). Indeed, since the publi-
cation of Weber’s “The Protestant Sects and the Spirit of Capitalism,”
many writers and academicians have agreed that Islam is in fact the
main impediment to economic and industrial development in the
…many writers Arab world (Bendix, 1960, pp. 103–116).
and academi-
cians have Others went even further to blame all economic backwardness in the
agreed that Arab world on Islam and its teaching. Contrary to these claims is that
Islam is in fact of Rodinson, who argues that Islamic teaching and Koranic values are
the main impedi- not antiethical either to capitalism or to socialism (Rodinson, 1974,
ment to eco- p. 13). Another scholar, Robert, confirmed that trade and business
nomic and activities have always had a significant place in the minds of Moslems
industrial devel- (Robert, 1982, pp. 145–152).
opment in the
Arab world. However, it is beyond the scope of this article to indulge in the sub-
ject of Islam and capitalism or Islam and socialism. Rather, it aims to
present a general overview of the various business practices that are
allowed or prohibited in Islam. It is believed that such discussion will
help clarify some of the misconceptions about Islam and its responsi-
bilities either for economic prosperity or backwardness in the Arab
and Moslem world.

First and foremost, it must be clear that the prescriptions of the

Moslem religion are codified in one precise and well-defined book
called “The Koran: God’s Word as Conveyed to the Prophet
Mohammed” and in the “Sunna” traditions, which record what the
prophet Mohammed is supposed to have said and done (Rodinson,
1974, p. 186). In other words, traditions are the deeds and the prac-
tices of the prophet Mohammed. These, Koran and these traditions
represent the Moslem code of behavior. With regard to Islam and its
relationships to economic development, the Islamic teachings reveal
the following facts:

1. It is quite obvious that the Koran has nothing against private

property, since it lays the rule for inheritance. For example,
the Koran even advises that inequalities in this regard should
not be challenged (Rodinson, 1974, p. 15). However, it
denounces the habitual impiety of rich men and the use made
of whatever is owned in the making of usury. Moreover, own-
ers of private property are obliged to give alms. In addition, it
should be clear that the right of ownership is limited by the
condition that everyone has the right to life. This means that
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 Islam and Management: What Can Be Learned?

any person dying of hunger is justified in taking, even by force,

the amount of food needed to keep him/her alive (Rodinson,
1974, pp. 15–16). However, if a man takes more than what he
needs or if he sells what he takes, he will then be considered a
thief and deserves prosecution.
2. Labor wage is a natural right to which there is no objection in
Islam. In Islam, employees have rights. A money right is the The prophet
financial obligation by an employer toward his employees. The Mohammed in
prophet Mohammed in his hadith said, “Give the employee or his hadith said,
worker his wage before his sweat dries up.” “Give the
3. Economic activities such as the making of profits, trade, and employee or
production are looked upon with no less favor by Moslem worker his wage
tradition than by the Koran itself. In fact, the prophet before his sweat
regarded trade so highly that it is reported in the hadith that dries up.”
he said, “The Merchant who is sincere and trustworthy will
(at the judgment day) be among the prophets, the just and
the martyrs.”

The importance of trade originated from the society in which

Islam was born, Makkah, which was the center of capitalistic trade.
Rodinson (1974) indicated that the inhabitants of Makkah,
belonging to the tribe of Qurayshi, caused their capital to fructify
through trade and loans in a way that Weber would call rational
(Rodinson, 1974, p. 28). Robert (1982) also indicated that trade
and business activities have always had a significant place in the
minds of Moslems. (p. 28).

However, it should be pointed out that certain commercial practices

and goods are forbidden by Islam, thus indicating that there is no
laissez-faire in Islam. Prohibited practices include all that is fraudu-
lent, games of chance (maysir), and the making of riba (that is,
usury). On the other hand, forbidden goods include all products that
are religiously regarded as impure, like the selling and handling of
spirits, wine, and pigs and the selling of primary goods that should be
free, such as grass and fire. However, it is very common in the
Moslem world to find people and even governments who put their
savings in banks to gain interest and people who sell water and grass.
These people, however, are thought to be business-oriented and not
religiously minded. Yet despite the fact that there were not many
Islamic financial institutions a decade ago, many financial organiza-
tions in the Moslem world are going international.

Global financial institutions are starting to adopt some Islamic themes

in their dealings in order to meet the needs of their Moslem clients. In

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 Samir Abuznaid

fact, in the Moslem world, the code of conduct is absent in many orga-
nizations. As a result, managers and laborers believe that the ethical
part of their lives comes from the inside and is something more per-
sonal. In the Arab world, it is believed that employees, not manage-
ment, can force self-discipline, or what is called holy work.

Global financial
institutions are MANAGERIAL THEMES IN ISLAM
starting to adopt
some Islamic While nobody can claim that Islam provides a comprehensive theory
themes in their in management, nevertheless one cannot ignore a set of general
dealings in order guidelines that could be applied to management. These guidelines
to meet the can be easily detected in the Koran and the sayings and deeds of the
needs of their prophet Mohammed. Since the Koran is a comprehensive book that
Moslem clients. is concerned with all aspects of human life, the existence of such
guidelines is inevitable and natural. Chiefly concerned with the orga-
nization of human activities and the regulation of individual and
group responsibilities, these guidelines are aimed at the realization of
individual and group interest, without prejudicing the other. Need-
less to say, Islam provides a very delicate balance between the rights
and duties of both individuals and groups (e.g., the state). According
to the Islamic doctrine, the individual has certain rights and freedoms
that are God-given and cannot be denied or violated. Such rights
include the right to live, the right to have the basic amenities of life,
and the right to be safe and secure. However, the rights of individu-
als and their duties and responsibilities toward themselves and their
immediate and forward society at large are inextricably entwined.
The individual’s rights should not be at the expense of society’s rights
and vice versa.

It is an established fact, however, that Islam is, at the same time, reli-
gion and state, right and might, mosque and school; in brief, it is a
comprehensive system that regularizes all walks of life and good to
each time and place.

Proceeding from the Islamic conceptualization of how human inter-

relation and interaction ought to be, one can cite certain Islamic per-
ceptions and guidelines that could well be applied to management.

Consultation (Al-Shura)
Consultation is an immensely important Islamic principle governing
the administration and management of public interest. The prophet
Mohammed himself was instructed by God to consult with his com-
panions about various matters affecting the group. The following
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 Islam and Management: What Can Be Learned?

Koranic verse describes how the relation between the leader and the
subordinates should be: “It is part of the mercy of God that thou
dost deal gently with them: wert thou severe or harsh-hearted, they
would have broken away from about thee. So pass over their faults,
and ask for God’s forgiveness for them, and consult them in affairs
(of moment). Then when thou has taken a decision, put trust in God,
for God loves those who put their trust in him” (Holy Koran, 3:159). Islam urges
Al-Gufeili (1983) has described Islamic management as consultative Moslems to be
management. constantly mind-
ful and aware of
The merit of consultation in management, as well as in other God’s observa-
spheres of collective activities, cannot be overestimated. Consulta- tion of them.
tion enhances the spirit of solidarity between employees and their
managers.

Moreover, consultation diminishes whatever mutual suspicions and

lack of confidence that may exist between the various parties. In addi-
tion, one should always remember the internal wisdom that says that
one should never regret consulting others. One simply has nothing
to lose by doing so. The Arab proverb says, “When you consult oth-
ers, you share them their minds.” Besides that, it is believed that
those who get consulted will become more serious and more com-
mitted to the success of such a decision made because he/she took
part in its making. The Islamic tradition of consultation stands dia-
metrically the opposite to authoritarianism.

Honesty (Sidk)
Honesty is the soul of every endeavor. Islam urges Moslems to be
constantly mindful and aware of God’s observation of them. In his
approach to the study of Islamic management, Al-Gufeili (1983) has
characterized Islamic management as management of one’s self and
ethic.

Employees in all spheres and all people at large ought to do the right
thing, not simply because it is expedient for them but because doing
otherwise would be a disobedience to God. The Koran describes
those who forget God as transgressors and warns them against the
hellfire.

As far as management is concerned, Islam urges Moslems to carry out

tasks that are entrusted to them efficiently and completely. The prophet
Mohammed said in the hadith, “Allah likes that when a man does a cer-
tain task he does it well.” The absence of honesty corrodes business and
renders any enterprise precarious in the long run.

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 Samir Abuznaid

Firmness (Al-Hazm)
Firmness is necessary if one is to carry out responsibilities and execute
instruction efficiently and effectively. Islam considers any slackness or
negligence in carrying out one’s tasks and responsibilities, especially
public trust, a great sin against God and His Messenger. The Koran
admonishes believers not to be treacherous by not keeping their
One of the trusts. However, firmness should not be at the expense of fairness.
names of Allah is
the merciful, the Mercy (Al-Rahmah)
compassionate. One of the names of Allah is the merciful, the compassionate.
Moslems ought to be merciful and beneficent, too. Mercy, however,
cannot be treated in isolation, but should rather be considered in the
context of other principles of work. Excess leniency could be as harm-
ful as excessive injustice. In Islam, management pays attention to the
psychological needs, soul needs, and material needs of mankind.

Teamwork (Al-Amal Al-Jemae’e)

Islam urges Moslems to hold fast onto the robe of God. By the same
token, believers are instructed to adopt and put into practice the phi-
losophy of teamwork and cooperation. Islamic teachings and tradi-
tion alike urge believers to work and act in unity and avoid discor-
dance and disunity. In one of the Koranic verses, God said, “Hold fast
altogether by the rope which Allah stretches out for you and be not
divided among yourselves; remember with gratitude Allah’s favor on
you. For ye were enemies and He joined your hearts in love so that
by His grace ye became brethren; and ye were on the brink of the pit
of fire and He saved you from it (Holy Koran, 3:103). The hadith
says, “Allah is with the group.” Islam, however, urges its believers not
to interfere with others’ work. Believers are instructed not to indulge
in matters that are not their concern and not to criticize others when
they should not. The prophet had made it a rule that if anyone, for
example, was asked to pay money and was unable to put up the whole
amount, his neighbors, friends, colleagues, and fellow citizens should
help make up the amount by raising a subscription.

The practice of teamwork is as old as the concept itself. The practice

is demonstrated by the following story:

When the prophet Mohammed went on a journey with his com-

panions they had to spend the night in a camping place. Upon
their arrival, the prophet got up to collect some wood to start a
fire for cooking the food. His companions protested and said:
“Oh Messenger of Allah! Why should you bother yourself with
that when all of us are here to do whatever may be necessary?”
Mohammed said: “No, no, it is my duty to do my share of what-
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 Islam and Management: What Can Be Learned?

ever may have to be done”, and he went out and collected the fire
wood from the jungle.

This story can be seen as an example of leadership where the leader

does his part by helping subordinates with their work when necessary.

Planning (Al-takhteet) As an Islamic

Planning is no stranger to Islam and the Islamic civilization. The leader, one
Koranic verse, “Against them make ready your strength to the utmost should be prag-
of your power, including steeds of war, to strike terror into (the matic. He should
hearts of) the enemies of Allah and your enemies, and others besides, think of himself
whom ye may not know, but whom Allah doth know (Holy Koran, as a model.
8:60). Islam urges believers to plan in advance and then and only
then put their trust in God. Imam Ali, one of the successors of the
prophet Mohammed, said, “[F]or your world, act as if you live exter-
nally; and for your hereafter, act as if you will die tomorrow.” The
Moslem manager believes that Allah the Almighty is the administra-
tor. He knows things, their consequences and runs things in his own
way and wisdom. Also God the Almighty is known to be wise, all-
knowing, correct in every estimation, and in control of things; all of
this gives the Moslem incentives to apply in his behavior the mean-
ings of God’s names and quality.

Supervision and Follow-Up (Al-Ishraf and Al-Mutabaa)

The role of a Moslem manager does not end at giving orders and
instructions to his subordinates but continues along the entire oper-
ation. An effective control throughout all the stages of operations is
not optional. It is a must. The life of the prophet Mohammed is rich
with examples of effective leadership of men, and undoubtedly,
supervision is one of the conspicuous features of leadership as well as
of management. Management leadership in Islam is characterized as
compromise leadership, humanitarian leadership, group leadership,
leadership that focuses on objectives, and politically skilled leadership
(Abusin, 1984, p. 193).

Setting an Example
As an Islamic leader, one should be pragmatic. He should think of
himself as a model. In the field, he should be the first to take up
responsibilities. Being an example should be manifested in the
leader’s behavior in his dealing with others. A good example of this
is the role of the prophet Mohammed in collecting the wood and his
role in digging up a trench and in fighting in the battlefield. A leader
in Islam should set an example to those under his supervision practi-
cally and theoretically (Dohohayan, 1991, pp. 151–158).
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 Samir Abuznaid

Allah Supreme Names and Their Application in Management

It is believed that Allah supreme names have laid the foundation for
good management and leadership. It is quite relevant to say that a
Moslem manager and leader must observe these names as guidelines
for his behavior (see Figure 1). It is noticed that most of these names,
if not all, have business connotations and can therefore be applied to
management functions and principles like planning, organizing, deci-
sion making, controlling, and motivating.

Planning
God the Almighty has the best, greatest, highest, and most honorable
names, which he gave to himself and ordered. He should not be
called and named by other names that are not mentioned in the
sharia to avoid attributing to him meanings unfitting for his highness
and greatness.

Figure 1. Allah Almighty Names and Their Application in Management

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 Islam and Management: What Can Be Learned?

Also, God the Almighty is known to be wise, all-knowing, and correct

in every estimation and everything, and in control of things. All of this
gives the Moslem administrators incentives to apply in their behavior
the meanings of God’s names and qualities. In addition to that, God
urges Moslems to pay more attention to the function of planning.

Organizing In Islam, God is

There is much in God’s names and qualities to indicate the impor- named the
tance of organizing in one’s life like the Calculator, the Wise, the chooser: “Thy
Chosen, and others. The Koranic verse says, “[the Lord] surrounds Lord does create
(all the mysteries) that are with them, and takes account of every sin- and choose”
gle thing (Holy Koran, 72:28). (Holy Koran,
28:68).
Decision Making
The ability to make decisions is not an easy task. In Islam, God is named
the chooser: “Thy Lord does create and choose” (Holy Koran, 28:68).

Controlling and Evaluating

Functions like managerial control and performance evaluation are
necessary for the success of any business. Organizations must give
utmost importance to such functions, especially because they are con-
nected to the name of God, Al-Rageeb, which means controller (e.g.,
“. . . and verily it is Allah who hears and sees [all things] [Holy Koran,
22:61]; “Allah doth watch over all things” [Holy Koran, 33:52]; and
“for Allah ever watches over you” [Holy Koran, 4:1]).

Motivator
Allah is called the provider (Al-Razzaq) (e.g., “For Allah is He who
gives [all] sustenance, Lord of power, steadfast for ever [Holy Koran,
51:58] and “Allah doth enlarge, or grant by strict measure the suste-
nance” [Holy Koran, 13:26]).

Besides all of that, a Moslem leader should be distinguished from

other leaders by his good ethical behavior. The following characteris-
tics are regarded as essential characteristics of a Moslem leader who
takes charge and is responsible for others (Dohohayan, 1991, pp.
151–158).

• Good faith. A leader with good faith automatically exercises

self-control. As a result, he performs his duties in a way to
please God, and not to please others.
• Fairness. A leader in Islam should be fair with his subordinates.
He should be fair in dealing with employees, in exercising
power, and in assigning responsibilities.

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 Samir Abuznaid

• Security and assurances. A Moslem leader should provide secu-

rity and assurances to his employees. In an Islamic culture, a
faithful leader is never to be feared or worried about, mainly
because of this faith.
• Systematic thinking. At his fulfillment of the five prayers, a
Moslem leader is expected to be better organized and better at
A leader in time management because he is used to praying regularly, on
Islam should be time, and systematically.
fair with his • Commitment to work. Islam urges its believers to be faithful
subordinates. and more committed to their work. The prophet Mohammed
in his hadith said, “Allah likes that when a man does a certain
task he does it well.”
• Physically strong and trustworthy. The Koran says, “The best
recruit is the one who is strong and trustworthy” (26:26).
Strength could be, however, in the faith and in knowledge.
• Forgiveness. The Koran says, “[F]orgive them and overlook
their misdeeds, for Allah loveth those who are kind” (5:13).
And it also says, “Hold to forgiveness; command what is right;
but turn away from the ignorant” (7:199).

These are some of the characteristics of a Moslem leader as mani-

fested in the Holy Koran and Sunna. However, there are other char-
acteristics of Islamic a managerial style based on compromise, con-
cern for people, consultation, commitment to objectives,
administration of self-control, efficiency, ethics, responsibility, and an
obeyed authority.

CONCLUSIONS

This article explores management issues from an Islamic perspective.

It is obvious from this article that a Moslem administrator is influ-
enced highly by Islamic teachings and principles. A summary of the
main religious practices and beliefs in Islam is given in this article. It
is apparent from this article that a Moslem administrator is more
likely to be influenced in his thinking, behavior, and lifestyle by his
religious beliefs. From this article, it is apparent that Allah supreme
names have laid the foundation for good management and leadership
because of their business connotations.

Implications for International Businesses

As the pace of globalization accelerates, all must come to understand
the cultural differences that are increasingly evident in the interna-
tional arena. However, it is not easy for Western scholars and man-
138 Thunderbird International Business Review • DOI: 10.1002/tie • January–February 2006
 Islam and Management: What Can Be Learned?

agers to grasp Islamic notions of corporate citizenship, and this is due

to the dominant images of Moslems as terrorists. Yet we all must
come to understand that Islam is a way of life. Moslems see Islam as
the religion of trade and business, making no distinction between
men and women and seeing no contradiction between profit and
moral acts. Evidence for that can be found in the Holy Koran, as the
Koran devoted minor portions to theology and the rest for rules of
conduct and social and economic matters. This view is widely
accepted among Moslems, as they see no contradiction with Koranic
tenets.

It is believed that this article gives a better understanding of Islam

and Moslem societies. It also provides an opportunity to bridge the
gap between the two worlds and will help remove some of the
myths and misconceptions about Islam and ways of doing business
in Arab and Moslem countries and will make Western managers
work more effectively with Islamic managers, employees, and busi-
ness partners.

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