Islamic Approach to Management

Manager as a trustee ;
In Islam , owner of all properties and rights is Almighty God and the man is trustee on His behalf. Viewed in this perspective, the manager,s role inb a bank is that of a trustee. This thought, if implemented, will change the outlook of the manager and, therefore, he will become service oriented. He should be God fearing. Possession of this quality help to him in making fair decision.

The importance of labour;

One of the best analytical approaches to Economicsis to look at four factors of production i.e, land, labour, capital and organization. Labour role is very vital in production because without them machines cannot be operated. Islam fully recognizes the importance of labour. Allah Almighty in His wisdom tells: But when the prayer is completed then disperse in the land and seek of Gods grace and remember God much that you may be successful. Prophet Daud was desired by Almighty Allah to manufacture broad coasts of arms and maintain excellent quality of work. Prophet Noah was commended by Allah to build the ark. Prophet Solaman, one of the renowned prophet, also stood out as a great industrial leader of workers. The importance and significance of labour is further highlighted in the following saying of the Holy Prophet (PBUH): no one has ever eaten better food than what he eats as a result of the labour of his hands and Allahs Prophet Daud used to eat he had worked for with his hands.

Our Holy Prophet (PBUH) himself pastured goats and performed work with His own hands an discouraged people from begging. According to Hazrat Abu Hurairah: God did not send a single prophet who did not pasture goats. on an enquiry from his companions, the Holy Prophet (PBUH) said that he himself pastured goats of inhabitants of Mecca against payment of wages.

Work Ethics an Motivation;

It has been generally argued that with its emphasis on hard work, fragility and self-denial, protestant ethics has been a major driving force among the people. The rationale for creating man in this world has been explicitly given by Almighty Allah in the following Quranic verse: surely, we have made man for hard work. In sharp contract to other religions, Islam emphasis earning through fair means (Halal) and completely forbids earning through civil way (Haram). Almighty Allah has encouraged workers to freely emigrate for seeking plentifulness. And said in Holy Quran: And God has spread out the earth for you. That you may walk therein by open ways. The Holy Prophet (PBUH) gave a practical training of lowest level of occupations, if the need be, but some people give objection than Holy Prophet addressed the people saying. What has happened to the people that abstain from work which I myself do and, by God, I have more knowledge and fear of God than you. Motivation to work is further provided by establishing a correlation of the result with the input of efforts as in indicated below. this is so because God does not alter His blessing with which He has blessed any people. Until they alter what is in their own hearts.

Consultative and participative approach;

Consultative and participative approach has been recommended in Holy Quran and Sunnah. The Holy Prophet (PBUH) motivated His companions to serve as goods carriers, and thus glorified the cause of physical work.

Relations between the employer and the employee;

The guidelines provided in the Quran and the Sunnah are the best on the relations between the employer and the employees should be built. The following principles emerge from the verses of Holy Quran: 1) The effort to resolve the issue should be for peaceful settlement. 2) If one of the parties does not agree to a peaceful settlement within the framework of the Holy Quran and Sunnah, he should be brought round by force so that peace is resorted. By having faith in being God fearing, majority of industrial disputes will be settled. 3) The basis of establishing the peace should rest on the following two factors: a) Justice b) Equity A tradition of the Holy Prophet (PBUH) has been quoted by muslim stating that every muslim must follow the following code of life: 1) 2) 3) 4) 5) Avoid misunderstanding Shun espionage of others Ward off prejudice and jaundice Avoid back-biting Live as humble servants of Almighty Allah and just like real brothers

The bonds of brotherhood are encouraged to be strengthened by requiring an employer to have an employee to sit with him for sharing meals. The following three cardinal principles relating to employee and employer relation connection with the story of Prophet Moses:

1) 2) 3)

work should not be extracted from a person except to the extent of his capacity. No torture should be inflicted on a worker. The determination of the wage should be based on mutual understanding.

The implementation of the value system enshrined in the Holy Quran is bound to result in harmonious industrial relations. Accountability for control purpose is an Islamic concept as is explained in the following Quranic verse: And then on that day you shall surely be asked about the blessing.

Basic rights of labourers;

1) 2) 3) 4) A labour is not to be given any work which is beyond his physical strength. He is entitled to a wage which enables him to enjoy a decent standard of living. Reasonable provision should be made for the payment of old-age person to the labour. He should be given suitable medical aid when sick and paid adequate sick-pay for the period. 5) He should be treated gently and politely, and forgiven if he makes any mistakes during work.

Adl-o-Ihsan;
The term Adl stand for justice. The coverage of justice is very and extends to man to man relationships and man to God relationship. The term Ihsan means doing good to others.comprehensive

Labour management relationships in islam;

These have been well covered under the title Dignity of labourand consultative and participative approach.

Value system in islam; Acts to be performed:

1) Justice 2) Doing good 3) Charity to the kindred

Acts not to be performed:

1) Indecencies (lewdness) 2) Wickedness 3) Oppression

Concept of fair wage; Wages:

Basic principles in the Holy Quran and various Hadith of payment of wages as below: 1) Almighty Allah has forbidden the employment of the labourer without first settling his wages. 2) The Holy Prophet (PBUH) gave clear instructions stating that the wages of the labourer should be paid before the sweat is dried up. 3) Islam is deadly against the practice of employing a worker and not paying him his wages after he has performed his job. 4) The concept of substance wageis based on the following Hadith: A servant has a right of receiving food and clothing. He should be asked to do such work as matches his capacity. 5) Payment, reward, or compensation in some shape is compulsory if work is extracted from an employee beyond his normal hours of work. Holly Prophet (PBUH) fixed the wages of government servants and there are some factors to determining such wages. Following points in determining the amount of grants and allowances: 1) 2) 3) 4) 5) What service has a person rendered to the cause of islam? What hardship has a person undergone or is undergoing for islam? How long a person served islam? What are the real needs of a person? What are the economic responsibilities of that person?

An addition of a child to the family of a government servant meant an increase in his allowances from the treasure.