ISLAMIC

MANAGEMENT
FUNCTIONS
Learning Outcomes:
•  At the end of this lecture, students should be able to
•  Recognize the rela6onships between Management Func6ons
from the perspec6ves of Islamic Management System
PLANNING
•  Defini6on:
 Planning Principles
Principles

1. Forward Build on what has been carried out in the past, and avoiding shortcomings
Thinking based from the past.
on Past “Did they not travel through the earth, and see what was the end of those
Experiences before them?”

2. Rational Usage Identifying potential resources.

of Resources Optimizing resources.
“Do you not see that Allah has subjected to your use all things in the heavens
and on earth, and has made His bounties flow to you in exceeding measure
both seen and unseen.”

3. Consultation Information seeking, advice and mutual consutation.

before Decision “Then ask the learned if you do not know, consult them in affairs of the
Making moment.”

4. Apply Fairness Balanced approach in assigning responsibilities to others for carrying out
to Others tasks, in handling authority to others, in allocating resources to accomplish.
“Give just measure and weight and do not withhold from people the things that
are their due”
Principles Of Comprehensive Planning From Islamic
Perspective

Principles
1. Trust in Allah Concept of Tawakkal
SWT “If Allah helps you, none can overcome you: if He forsakes
you, who is there after that can help you? In Allah, then, let
believers, put their trust” (Q.S. Ali Imran 3:160)

2. Shura Joint deliberation and consultation

“And it was of the mercy of God that you dealt gently with
them (your followers): had you been harsh or thick of heart
they would have dispersed from around you. So pardon
them and ask (God) for their forgiveness and maintain
Shura with them” (Q.S. Ali Imran 3:159)
ORGANIZING
•  Defini6on
Organising Principles
1. Setting organisational goal
2. Division of work
3. Defining relationship-authority and responsibility system
4. Communication
5. Coordination
Organizing Process Exercised During The Time Of ‘Umar Ibn
Khattab (Ra) The Second Caliph Of Ummah

1. Empower Delegated his authority to Governors or other officials, by applying

the basic principle of decentralization
2. Enhance Umar (ra) was willing to incorporate useful concepts/institutions/
technology borrowed from non-Muslim. E.g. borrowed the idea of
Ministry of Finance from the admin of King Persia, to handle
financial affairs for Ummah in Medina.
3. Disclose Change some rulings due to changes in environment. E.g. during
Protect the Prophet, the jizyah was one dinar for everybody, Umar
changed to 4 dinar for the rich, 2 for the middle income and 1 for
the poor.
4. Engage Shura – collective decision making. Decision based on consensus
5. Respect Structure: level of authority (rest at the top) and power (needs to
be shared with subordinate)
LEADING
•  Defini6on:



•  Conven6onal Leadership Theories
•  Bass (1989) Theory of Leadership; how people may turn leaders
•  Bolman, Lee & Deal (1991) Four Framework Approach
•  Blake & Mouton (1985) Managerial Grid
ISLAMIC PERSPECTIVE OF LEADING
•  Derived from Tawheed doctrine
•  Prophet Muhammad (SAW) is the best example
•  Hijra (migra6on) from Mecca to Medina

•  Leader vis-à-vis Ruler
Qualities of a Muslim Leader
•  Qur’anic (3:159)
•  Addresses the Prophet (SAW)
•  “It was by the mercy of Allah that you (O Prophet) were lenient with them,
for if you had been stern and hard-hearted, they would have dispersed from
around you. So forgive them and seek mercy for them and consult with them
in the conduct of affairs. And when you have resolved [on an issue], then put
your trust in Allah, Allah love those, who put their trust in Him
•  Elements
•  Knowledge and hikmah (wisdom, insight)
•  Taqwa (God-fearing)
•  ‘adl (jus6ce) and rahmah (compassion)
•  Courage and bravery
•  Shura (mutual consulta6on)
•  Decisiveness and being resolute
•  Eloquence
•  Spirit of self-sacrifice
•  Sabar (pa6ence)
CONTROLLING
•  Defini6on:

Why Control Is Needed In An Organisation From The Islamic
Management Perspectives

1. Environment changes Changes of demand, market, technology

2. Organisation enhancement Changes of size, structure
3. Handling problematic Need for performance standard/rules
workers
4. Delegations of power Empowerment effect
5. Amar Makruf and Nahi Dakwah culture of the people
Munkar
Continous Improvement Process Exercised During The Time
Of ‘Umar Ibn Khattab (Ra) The Second Caliph Of Ummah

•  Setting of a standard
1

•  Standards to be well clarified and communicated

2

•  Necessary input should be provided; required resources, skills training, required

3 authority

•  Continuous search for new approaches for improvement through a favourable

4 culture and assistance of some specifically designed programs

•  Both performance and output are to be closely checked against standard; regular
5 measurement, statistical quality control, customer surveys

•  Corrective actions must be taken for performance/output not conform to

6 standards

•  Possibility of increase in improvement of the performance if the performance

7 conform to standards