MANAGEMENT FROM ISLAMIC PERSPECTIVES TOPIC 10 MANAGEMENT FROM ISLAMIC PERSPECTIVES

DEFINITION Management from the Islamic Perspective is defined as the ability to utilize resources both material and human, optimally in order to achieve goals, be it short term goals or long term goals Islamic ways has been practiced since the era of our Prophet Muhammad s.a.w based on holy Al-Quran and the As-Sunnah Our Prophet Muhammad s.a.w. had created a strong Muslim society with characteristics such as Team spirit – 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 decision making

THE PRINCIPLES OF ISLAMIC MANAGEMENT The ultimate goal of our life should be harmoniously linked with the worldly aims. Human 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 rewards The moral/religious value of work should be integrated in the work or activities we do. Working is not merely a means for material gains, but also a moral obligation and a measure of pleasing Allah and getting near to Him Time is to be well invested, not to be wasted. Time is commodity (product) , therefore use time efficiently by being punctual, be diligent We should uphold and internalize the Islamic ethical values i.e. truthfulness, honesty, dedication, self-discipline and fear of Allah

There shall be no favoritism and discrimination- be fair to all Self criticism (muhasabah) should be exercised and should be practiced by all at all levels There shall be no favoritism and discrimination- be fair to all Human nature and need should be both considered simultaneously. Both psychological and economical contracts of a person must be met i.e. working hours is reasonable and fair Employee must be paid sufficiently promptly There should be conducive rewards for exceptional achievement and adequate measures to detect and prevent violation Lastly and the most important is the concept of al-Syura = consultation based on mutual discussion and inculcating cooperation among members of organization

FUNCTIONS IN ISLAMIC MANAGEMENT Islamic Management practices the following elements: Planning / Objectives / Goals Organizing Leadership (Motivation) Controlling (Execution)

1. PLANNING Planning is needed to manage, especially in fast moving and complex environment to ensure success The planning process of setting objectives is also practiced. Ensure that the objectives (goals) set do not harm the society. Human, according to Islam created by Allah SWT to be the “Khalifah” on the earth. This means that our life and activities must be focused to fulfill two purposes. They are: Long term goal is to be the worthy servant of Allah, avoiding sins and preparing ourselves to be rewarded in paradise by performing good deeds and obeying the teachings demanded by Al-Quran and As-Sunnah Short term goal is productivity may it be in the form of services or product, financial profit or improvement in performance Muslim are taught to balance both these objectives. In Conventional Management, The long term and short term goal based on the range of time to achieve it and the goals are more towards productivity & profitability.

2. ORGANIZING Structure of projects as well as the structure of roles to be undertaken by human efforts. In Islam, organizing comprises the structuring of resources (i.e. human), authority, power and the practice of delegation as well as decentralization and centralization The practice of organizing can be seen in the incident of Hijrah led by our Prophet Muhammad SAW. If carefulplanning and organizing had not been done Prophet Muhammad SAW would have been murdered or captured and the course of history would not have been the same

3. LEADERSHIP (MOTIVATON) Leadership refers to the process of moving people in planned direction by motivating them Good leadership moves people in a direction that is in their long term best interest Islam says that the leader should serve and help other (followers) get ahead

CHARACTERISTICS OF AN ISLAMIC LEADER Has loyalty to Allah Has global perceived goals of organization, not only in terms of individual or group interest but also from a wider Islamic perspective He adheres to Syariah and the Islamic manner of doing things He delegates trust

Principles of effective leadership Syura ( Mutual Consultation) Emphasizes on Importance of managing through teamwork. Enable members of an organization to participate in decision making process. Allow members to express opinions and grievances freely Freedom of Expression Criticism is welcome and two way communication is practiced 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 any matters Masrui’ah Is the concept of legality whereby the management has to ensure that any action taken must comply with legal boundary of the man-made law and syariah law. Legally of actions within the common laws and syariah law

Principles of effective leadership (con’t) Qualification selection of employee/ management personnel based on expertise, ability, experience and other suitable criteria that fits the job. Should not be based on self-interest and favouratism. 2 elements : quwwah (strength) and amanah (trustworthy) Reward employee who perform well must be rewarded Justice 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 oppose them

4. CONTROLLING (EXECUTION) Application of the procedures prescribes and organized according to plan In simple terms this means carrying out the plans and assuring that the results will conform to the actual plans

Summary Islamic Management is the right way of managing people and organization The basis for Islamic Management is the Al-Quran and the As-Sunnah Practicing the principles of Islamic Management enable leaders and managers to achieve unity among the followers/members of the organization quickly. This enhances quality performance