CHAPTER 12

Management From The

Islamic Perspective
 DEFINITION OF ISLAMIC MANAGEMENT

 The ability to utilize resources both material and

human, optimally in order to achieve goals, be it
short term or long term goals.
 Long term goals – do as much as good deeds
as possible, obey the Islamic teachings and avoid
sins to achieve paradise in the hereafter
 Short-term goals – quality and productivity in
whatever we do, financial profit, customer
satisfaction.
 Goals - the organizational goals, employees’
goals as well as the goals of the society`
The basis of ISLAMIC MANAGEMENT:

 Al Qur’an
 As Sunnah
 ISLAMIC MANAGEMENT will create a strong
(Muslim) society with these characteristics:

 Teamwork spirit – all individuals work together in

harmony
 Sufficient society
 Values for loving and caring
 Emphasis for trust and relationship, corporation
and teamwork
 The practice of consensus in decision making
(syura)
 Amanah
 Helpful
 Management Functions in ISLAM

1. Planning
 Developing goals (long-term and short –term
goals) and also strategies
 Prophet Muhammad saw did effective planning

2. Organizing
 The structuring of an organization structure,
utilization of resources, authority and power and
the practice of delegation and determining the
location of decision making
 Management Functions in ISLAM

3. Leadership / Motivation
 The process of motivating people to perform work
and to become a good individual
 Management must look into their satisfaction and
welfare as well.

4. Controlling
 Management monitor the resources and activities
of employees – to assure results will conform to
the earlier plans.
 Internal control within the employees themselves –
much more effective than controlling by the
managers
 Principles of ISLAMIC MANAGEMENT

1. Tauhid

 This is the basic foundation of Islamic management.

Allah is the creator of the universe and human
beings are created as the caliphs on the earth and
they are given the trust (amanah) to manage this
world.
 Managers must observe the Islamic teachings and
manage the organization and people based on ‘iman’
 Principles of ISLAMIC MANAGEMENT

2. Syura (mutual consensus)

 Managers get other people’s opinions and ideas in planning,

decision making, etc. (practice teamwork in the organization)
 Benefits of syura
• employees feel proud (management sought their
opinions). In this way they become more motivated and
will give full support and commitment to the management.
• more people means better quality decisions, planning, etc
• it will also monitor the management conduct (they will not
deviate from the collective goals of the followers because
the employees are also involved in planning, etc.)
 Principles of ISLAMIC MANAGEMENT

3. Justice

 Managers must lead the people justly and

fairly regardless of race, color, gender or
religion. These should be no favoritism and
discrimination.
 Justice must be practice in in hiring,
promotion, relationship with employees,
recognition, giving rewards, etc
 Principles of ISLAMIC MANAGEMENT

4. Freedom of expression

 Managers must establish an atmosphere

where employees could give constructive
ideas and criticism, free thinking, healthy
exchange of ideas, etc.
 Employees are not afraid to voice out their
ideas, opinions and feelings.
 Principles of ISLAMIC MANAGEMENT

5. Masrui’ah (Legal)

 The practice of Islamic management must

follow syari’ah (the intentions, actions and the
goals must be legal according ‘syari’ah’ laws)
 In Islam, ‘the ends do not justify the means’ .
To be successful, the intentions, goals and
actions must follow the Islamic syari’ah.
 Principles of ISLAMIC MANAGEMENT

6. Qualification
 The managers must be qualified to manage the
organization. They must have the necessary
knowledge, skills and capability to carry out their
duties as managers.
 Managers also must appoint qualified individuals
(based on the person’s ability expertise, experience,
etc) to hold a particular post in the organization.
 They should not hire employees based on their self-
interest or personal liking.
 Principles of ISLAMIC MANAGEMENT

7. Take care of other people’s interest

(maslahah)
 Managers should give priority to the interests
of majority first and then only the interest of
an individual
 They must take care of these interests:
• the interest to live
• the interest to own wealth
• the interest to practice their religion
• the interest to improve themselves (to grow
intellectually)
• self-esteem
 Principles of ISLAMIC MANAGEMENT

8. Salary / wages
 Employees should be given fair rewards
based on their effort (material and non-
material rewards)
 The rewards must also be given on time
(promptly)
 Hadith Nabi Muhammad saw ‘Berikan
seseorang pekerja itu haknya sebelum
peluhnya kering’.
 Principles of ISLAMIC MANAGEMENT

9. Utilize time effectively

 Time should be used efficiently by being

punctual, doing diligent work, not to
procrastinate and engage in meaningless
activities and conversation.
 Principles of ISLAMIC MANAGEMENT

10. Cooperation
 All members (managers and employees)
must work together as a team (towards
righteousness and taqwa only)
 They must work towards achieving the same
goals
 A verse form Al Qur’an ‘Hendaklah kamu
saling berkerjasama diatas kebenaran dan
taqwa dan jangan sekali-kali diatas dosa dan
permusuhan.’
 Principles of ISLAMIC MANAGEMENT

11. Authority and responsibility

 The managers must specify the authority and
responsibilities of the employees.
 Authority given to them must be sufficient to
fulfill their responsibility
 The employees must obey the managers –
when they do only the right things
 Principles of ISLAMIC MANAGEMENT

12. Uphold and internalize the Islamic

ethical values

- We should uphold and practice all the

Islamic ethical values in whatever we do
truthfulness, honesty, dedication, self-
discipline, self-restraint and fear of
Allah.
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