SLIDE PRESENTATION ON Strategic management from Islamic perspective Prof. Dr. Azhar Kazmi Department of Business Administration International Islamic University Malaysia

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. Islamic perspectives to SM/ Azhar Kazmi/2004-5

Islamic perspectives to SM/ Azhar Kazmi/2004-5 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. Islamic perspectives to SM/ Azhar Kazmi/2004-5

Paradigm guiding management of organizations Islamic management No demarcation between the secular and the religious;human life is an organic whole; All human activity can be Ibadah provided they are guided by Allah’s commandments Conventional management Clear demarcation between the secular and the religious; human activities are separated; spiritual or religious aspect is a private matter of individuals while work is in public domain Islamic perspectives to SM/ Azhar Kazmi/2004-5

Purpose of human existence dictating management of organizations Islamic Management Purpose of human existence is to obey and fulfill Allah’s commandments and act as the vice-regent of Allah on earth. Conventional management Purpose of human existence is to utilize natural resources to satisfy one’s needs, wants and desires and to remain happy Islamic perspectives to SM/ Azhar Kazmi/2004-5

Purpose of organization Islamic management Organizations are meant to be groups of people coming together for attaining the purpose of human existence. Conventional management Organizations are meant to be groups of people coming together to attain the organizational goals Islamic perspectives to SM/ Azhar Kazmi/2004-5

Nature of organizational objectives Islamic management Organizational objectives are both economic and non-economic and are subservient to larger purpose of human existence Conventional management Organizational objectives are both economic and non-economic in nature and are subservient to organizational interests Islamic perspectives to SM/ Azhar Kazmi/2004-5

Source of ethics and values governing management of organizations Islamic management The revealed knowledge and the traditions of the Prophet (SAAS) constitute the ultimate source of business ethics and personal values Conventional management Ethics is relative and values are derived from multiple sources such as upbringing, society, and experiences. Ethics could be relative as in utilitarian theory. Islamic perspectives to SM/ Azhar Kazmi/2004-5

Organizational Control Islamic management Organizational control has to operate in a way designed to make the human being subservient to the will of Allah Conventional management Organizational control has to operate in a way designed to align human objectives with the organizational objectives Islamic perspectives to SM/ Azhar Kazmi/2004-5

Islamic perspectives to SM/ Azhar Kazmi/2004-5 Locus of control Islamic management The locus of control is internal. Each person is responsible and accountable for his actions Conventional management The locus of control is external and lies in the realm of the organization Islamic perspectives to SM/ Azhar Kazmi/2004-5

Organizational responsibility and accountability Islamic management Human being has choice, free will and freedom of action therefore is responsible and accountable for all actions Conventional management Responsibility and accountability vested in the chief executive who dele-gates it. Employees controlled through organizational systems to ensure responsibility and accountability Islamic perspectives to SM/ Azhar Kazmi/2004-5