CHAPTER 12

MANAGEMENT FROM THE ISLAMIC PERSPECTIVE

MGT 420
DEFINITION
The ability to utilize resources both material and
human, optimally in order to achieve goals, be it
short term goals or the long term ones.
The Islamic way of managing things has been
practiced since the era of our Prophet Muhammad
s.a.w
It is based on the teachings generated from the holy
Al-Quran and As- Sunnah.
The holy Al-Quran and Al-Sunnah were sources that
provided guidance in making decisions.
The Islamic leadership under our Prophet
Muhammad s.a.w through the Islamic way
managing things had created a strong (Muslim)
society with prominent chracteristics such as:
-team spirit that practiced 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 in decision making.
MANAGEMENT FUNCTIONS IN ISLAM
The Islamic management practices the following
elements:
1) Planning
2) Organizing
3) Leading
4) Controlling
 PLANNING
Planning is needed to manage, especially in the
fast moving, ever changing and complex
environment we are living in, to ensure success.
Planning was practiced by our prophet
Muhammad s.aw in many incidents that he had
gone through.
One of the prominent ones is seen in his carefully
planned and moves to preach (lecture) faith of
Islam to the world.
He had two choices: whether to do it publicly or to do
it cautiously.
He chose to do it secretly at first since the people of
Mecca at the time especially the Quraisysh tribe did
not hold the same values as the Islamic faith was
bringing the human equality, justice and sympathy for
the weak.
Therefore, our prophet Muhammad s.a.w chose to
preach Islam secrectly and quietly at first to his closest
and trusted friends and families.

To start preaching the new religion openly would

jeopardize its chance of success.
The planning process of setting objectives/goals is also
practiced in Islam.
Human beings according to Islam are created by Allah
s.wt to be the “khalifah” on the earth.
This means our lives and activities must be focused to
fulfill two purposes:
-a long term objective/goal
- a short term objective/goal
The long term objective is to seek to be worthy
servants of Allah, avoiding sins and preparing
ourselves to be rewarded in paradise by performing
goods deeds and obeying the teachings demanded by
the Al-Quran and Al-Sunnah.
The short term objectives is productivity may it be in
the form of services or products, academic
achievement, financial profit or improvement in
performance.
 ORGANIZING
Organizing is the structure of projects as well as the
structure of roles to be undertaken by human efforts.

In Islam, organizing comprises the structuring of an

organization (organization chart), utilization of
recourses (human), authority, power, and practices of
delegation as well decentralization and centralization.
The practice of the organizing can be seen in the
incident of Hijrah led by our Prophet Muhammad
s.a.w
If careful planning and organizing had not been done,
Prophet Muhammad s.a.w would have been murdered
or captured and the course of history would not have
been the same.
 LEADING
From the Islamic point of view, 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
their long term best interest.
Islam says that a leader should serve and help others
(followers) get ahead.
The characteristics of an Islamic leader are:
1. He has allegiance (loyalty) to Allah.
2. He has global perceived goals of the organization not
only in terms of individual or group interest but also
from a wider Islamic perspectives.
3. He adheres (hold on) to the Syariah and the Islamic
manner of doing things
4. He delegates trust
To be effective, Islamic Leaders follow these
principles. They are:
1. Syura
2. Justice
3. Freedom of Expression
4. Masrui’ah
5. Qualification
6. Reward
To be effective, Islamic Leaders follow these
principles. They are: (cont’d)
1) Syura
Syura emphasizes on the importance of managing
through teamwork.
The practice of Syura will enable members of an
organization to participate in the decision making
process.
To be effective, Islamic Leaders follow these
principles. They are: (cont’d)
Syura also monitors the leader’s conduct of behavior
so that he will be not deviate from the collective goals
of his followers.

Syura also allows group members to express opinion

and grievances freely without the felling of
embarrassment.
To be effective, Islamic Leaders follow these
principles. They are: (cont’d)
2) Justice
This is the second hallmark (character) of Islamic
leadership
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 who oppose them.
To be effective, Islamic Leaders follow these
principles. They are: (cont’d)
3) Freedom of expression
Muslim leaders are encouraged to provide for and
even invite constructive criticism.
Two-way communication is practiced here
Members may freely voice their views or objectives
and have their questions answered.
To be effective, Islamic Leaders follow these
principles. They are: (cont’d)
4) Masrui’ah
-this is the concept of legality whereby the mangement
has to ensure that any action taken must be within the
legal boundary of the common/made laws and
“syariah” laws.
To be effective, Islamic Leaders follow these
principles. They are: (cont’d)
5) Qualification
-This principle looks at the importance of selecting the
right management personnel.

- It should be based on person ability, expertise,

experience and other suitable criteria that fits the job.
To be effective, Islamic Leaders follow these
principles. They are: (cont’d)
6) Reward
Managers must be fair in any action and reward
people
accordingly.
Employees who performed their tasks or
responsibilities well should be given rewards.
However, the Islamic Management views rewards as
the compensation/benefits earned not only today but
till the one dies.
 CONTROLLING
Defined as the application of the procedures
prescribed and organized according to plan as well as
the performance of the roles defined and specific
under the organization.

In the simple terms this carrying out the plans and
assuring that the results will conform to the actual
plans.
The Principles of Islamic Management Islamic
Management
1. The ultimate goal of our life should be
harmoniously linked with worldly aims.
The Principles of Islamic Management Islamic
Management (cont’d)
2. The moral/religious value of work should
be integrated in the work or activities we
do.
The Principles of Islamic Management Islamic
Management (cont’d)
3)Time is to be well
invested, not to be wasted.
Time should be treated as a commodity.
The Principles of Islamic Management Islamic
Management (cont’d)
4) We should uphold (maintain) and
internalize the Islamic ethical values.
The Principles of Islamic Management Islamic
Management (cont’d)
5) Selfcriticism should be exercised
periodically both individually and
collectively and should be practiced by all
the workers at the levels.
The Principles of Islamic Management Islamic
Management (cont’d)
6) There shall be no favoritism and discrimination.

7)Human nature and needs should be both

considered simultaneously. Both psychological
and economical contracts of a person must be met.
The Principles of Islamic Management Islamic
Management (cont’d)
8) Employees must be paid sufficiently, promptly and
fairly.

9) There should be conducive rewards for exceptional

achievement and adequate measures to detect and
prevent violations.
The Principles of Islamic Management Islamic
Management (cont’d)
10) Lastly and the most important is the concept of al-
Shura, it is a consultation based on mutual discussion
and uncalculating cooperation among members of
organization.