CHAPTER 10

MANAGEMENT FROM THE

ISLAMIC PERSPECTIVE

@MUHAMMAD HANIF ABDUL GAFAR/UiTM KEDAH/2011

 The Principles of Islamic Management
• Time is to be well invested, not to be wasted

• Uphold and internalize the Islamic ethical values

• Should be no favoritism/bias and discrimination

• Employees must be paid fairly and equally

• Al-Shura consultation based on mutual discussion and cooperation among

members

• The moral/religious value of work should be integrated in the work

• Should be conducive rewards for exceptional achievement to prevent violations

• Human nature and needs should be both considered simultaneously

The Islamic Approach to Management

The Islamic approach to management is an emerging discipline,

often referred to as Islamic management, looks at the
management of organizations from the perspective of the
knowledge from the revealed sources and other Islamic sources
of knowledge and results in applications compatible with the
Islamic beliefs and practices.
 SOURCES OF KNOWLEDGE FOR DERIVING
IDEAS REGARDING ISLAMIC PERSPECTIVES
TO STRATEGIC MANAGEMENT

The primary revealed knowledge source is the Holy Quran.

This basic source is elaborated through the Ahadith - the traditions

and the Sunnah, the actions of the Prophet (SAW)

There are Islamic scholars who treat Fiqh, the science of Islamic
jurisprudence, as a source of revealed knowledge too.
 
Other sources are the reported sayings and actions of the first four Caliphs (RAA);
instances from Islamic history, studies in Islamic administration and management,
studies in Islamic social sciences, studies in Islamic culture, writings of leading
Islamic scholars, and the writings of leading and authentic non-Muslim scholars.
 Nature of organizational
objectives
Islamic Conventional
management management

Organizational Organizational
objectives are both objectives are both
economic and non- economic and non-
economic and are economic in nature
subservient to larger and are subservient
purpose of human to organizational
existence interests
 Organizational responsibility
and accountability
Islamic Conventional
management
management
Responsibility and
Human being has choice, accountability vested in
free will and freedom of the chief executive who
action therefore is dele-gates it. Employees
responsible and controlled through
accountable for all organizational systems to
ensure responsibility and
actions
accountability
 Leadership/Motivation
• Leadership refers to the process of moving
people in a planned direction by motivating
them
• The characteristics of an Islamic leader
are:
– He has allegiance to faithful
– He has global perceives goals not individual
– He adheres to the Syariah
– He delegates trust
 Islamic Leaders Follow These
Principles

• Syura (mutual consultation)

• Justice
• Freedom of expression
• Masrui’ah
• Qualification
• Reward
 Organizational Control
Islamic management Conventional
management

Organizational control Organizational control

has to operate in a has to operate in a
way designed to way designed to align
make the human human objectives with
being subservient to the organizational
the will of Allah objectives
 Locus of control
Islamic management Conventional
management

The locus of control is The locus of control is

internal. Each person external and lies in
is responsible and the realm of the
accountable for his organization
actions