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 is based on the
teachings generated from the holy Al’-Quran
and the As’-Sunnah. It provided guidance in
making decisions.
 DEFINITION
• ♛ The leadership under the 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.
• The prophet Mohammmed s.a.w had practiced planning in many
incidents that he had gone. 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 chose 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 are human equality, justice, and
sympathy are for the weak.
 PLANNING (SETTING OBJECTIVES)

• Therefore the 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 their purpose. They are:
• A long-term objective/ goal
• A short-term objective/ goal
 PLANNING (SETTING OBJECTIVES)

• 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.
 PLANNING (SETTING OBJECTIVES)

• 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 of these
objectives. One cannot be too obsessed
to achieve the long-term goal and forget
about the short-term goal and vice versa.
 ORGANIZING

• It is the structure of projects as well as the

structure of roles to be undertaken by human
efforts.
• It means in Islam, organizing comprises the
structuring of 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 their long-term best interest.
• Islam says that a leader should serves and
helps others get ahead.
 LEADING/MOTIVATION
• THE CHARACTERISTICS OF AN ISLAMIC LEADER:
• 1. He has allegiance to Allah (faithful)
• 2. He has global perceived goals of organization
not only in terms 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
LEADERS:
• 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 the prophet Mohammed s.a.w
leadership. The practice of Syura which 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.
 THE PRINCIPLES TO BE EFFECTIVE ISLAMIC
LEADERS:
• FREEDOM
• Muslim leaders are encouraged to provide for and even invite
constructive criticism. Two-way communication is practiced 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.
 THE PRINCIPLES TO BE EFFECTIVE ISLAMIC
LEADERS:
• MASRUI’YAH
• This is the concept legality where 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.
• 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.
 THE PRINCIPLES TO BE EFFECTIVE ISLAMIC
LEADERS:
• 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”.

• 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
simpler terms, this means carrying out the
plans and assuring that the results will
conform to the actual plans.
THE PRINCIPLES OF ISLAMIC MANAGEMENT

• 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.
• 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.
THE PRINCIPLES OF ISLAMIC MANAGEMENT

• 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.
• 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.
THE PRINCIPLES OF ISLAMIC MANAGEMENT

• 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.
• 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.
THE PRINCIPLES OF ISLAMIC MANAGEMENT

• 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).
• It is the responsibility of the management to provide
conducive and healthy working conditions in the
work-place. Management should employ people as
a whole considering both their emotional and
psychological needs.
THE PRINCIPLES OF ISLAMIC MANAGEMENT

• Employees must be paid sufficiently promptly

and fairly.
• There should be conductive rewards for
exceptional achievement and adequate
measures to detect and prevent violations.
• 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.