CHAPTER 10:

MANAGEMENT FROM ISLAMIC PERSPECTIVE

DEFINITION
Management from Islamic perspective defined as, the ability to utilize
resources both material and human, optimally in order to achieve goals, be it
short term or long-term goals.
It has been practiced since the era of our prophet, Muhammad s.a.w. It based
on the teachings generated from the holy Al-Quran and the As-Sunnah. It
sources that provided guidance in making decisions.
The leadership under our prophet Muhammad s.a.w through the Islamic way
of managing things had created a strong Islamic Muslim society with
prominent characteristic such as:
Team spirit that practice teamwork
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

FUNCTIONS OF MANAGEMENT
(ISLAMIC POINT OF VIEW)
The Islamic way of doing or managing things can be seen to practice the
elements or functions of management, that is:
Planning / objectives / goals
Organizing
Leading (motivation)
Controlling (execution)

PLANNING (SETTING OBJECTIVES)

According to Tan Sri Dr Mohammed Abdul Rauf in his book, management and
administration (An Islamic Perspective), planning is needed to manage,
especially in the fast moving, ever changing and complex environment we are
living in to ensure success.

 Our prophet Mohammmed s.a.w in many incidents that he had gone through
practiced planning. One of the prominent ones is seen in his carefully planned
actions and moves to preach the faith of Islamic to the world.
He had two choices whether to do it publicly or to do it cautiously. He choose
to do it secretly at first since the people of Mecca at that time especially the
Quraisysh tribe did not hold the same values the Islamic faith was bringing
that human equality, justice, and sympathy for the weak.
Therefore our prophet Mohammed s.a.w chose to preach Islamic secretly and
quietly at first to his closest and trusted friends and families.
So, human beings according to Islam are created by ALLAH s.w.t to be the
khalifah on the earth. This means our life and activities must be focused to
fulfill to purpose. They are:
A long-term objective/ goal
A short-term objective/ goal
A long-term objective
Is to be worthy servants of ALLAH s.w.t, avoiding sins and preparing
us to be rewarded in paradise by performing good deeds and obeying
the teaching demanded by the Al-Quran and As-Sunnah.
A short-term objective
It is related to productivity, whether it is in services or products,
academic achievement, financial profit or improvement in performance.
Muslim is thought to balance both these objectives. One cannot be too
obsessed to achieve the long-term goal and forget about the shortterm goal and the opposite holds true too.

ORGANIZING
It is the structure of projects as well
undertaken by human efforts.
Means in Islam, organizing comprises
structure (organization chart), utilization
power and the practice of delegation
centralization.

as the structure of roles to be

the structuring an organization
of resources (human), authority,
as well as decentralization and

LEADING/ MOTIVATION
Leadership refers to the process of moving people in a planned direction by
motivating them.
Good leadership moves people in a direction that is in a direction that is in
their long-term best interest.
Islam says that a leader should serve and help others get ahead.
THE CHARACTERISTICS OF AN ISLAMIC LEADER:
1. He has allegiance to Allah (faithful)
2. He has global perceived goals of organization not only in term of individual or
group interest but also from a wider Islamic perspective.
3. He adheres to the Syariah and the Islamic manner of doing things
4. He delegates trust.
THE PRINCIPLES TO BE EFFECTIVE ISLAMIC LEADER:

1. SYURA (Mutual Consultant)

This is the first principle. The Al-Quran has made clear that Muslim
leaders are obligated to consult those with knowledge and those who
would provide good advice.
This practice is seen in our prophet Mohammed s.a.w leadership The
practice of Syura will enables members of an organization to participate in
the decision making process.
Monitors the leader conduct of behavior so that he will not deviate from
the collective goals of his followers.
Allow group members to express opinion and grievances freely without
the feeling of embarrassment.

2. FREEDOM
Muslim leaders are encouraged to provide for and even invite constructive
criticism. Two-way communication is practice here. Members may freely
voice their view or objections and have their questions answered. An
example was during the leadership of Khulafa-al Rashidin ,Sayyidin Umar
Ibn al-Khattab(ra) , while addressing members of the mosque, was
intercepted by a woman correcting him. He readily acknowledged his
error and thanked Allah s.w.t.

 According to Islamic leadership style, 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 matters of
interest to the group.

3. MASRUIYAH
This is the concept legality whereby the management has to ensure that
any action taken must be within the legal boundary of the common/manmade laws and the Syariah laws.

4. QUALIFICATION
This principle looks at the importance of selecting the right management
personnel. It should be based on two main elements uwwah (strength) and
amanah (trustworthy). The selection of new personnel should not be based
on self-interest or favoritism. It should be based on the person ability,
expertise, experience and other suitable criteria that fit the job.

5. REWARD
Managers must be fair in any action and reward people accordingly.
Employees who performed their tasks or responsibilities well should be
given reward. However, the Islamic Management views reward as the
compensation /benefits earned not only today but till one dies. This is
known as Pembalasan Dunia dan Akhirat.

6. JUSTICE
Leader should deal with people justly and fairly regardless of race, color,
national origin or religion.
Al-Quran commands Muslims to be fair even when dealing with people
who oppose.

CONTROLLING (EXECUTION)
Controlling from the Islamic perspective is defined as the application of the
procedures prescribed and organized according to plan as well as the
performance of the roles defined and specified under the organization. In
simple terms this means carrying out the plans and assuring that the results
will conform to the actual plans.

THE PRINCIPLES OF ISLAMIC MANAGEMENT

1. The ultimate goal of our life should be harmoniously linked with the worldly
aims. Humans 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 reward.
2. The moral/religious value of work should be integrated in the work or
activities we do. Working is not merely means for material gains, but also
moral obligation and a measure of pleasing Allah and getting nearer to him.
3. Time to be well invested, not to be wasted. Time should be treated as a
commodity. This statement requires us to use our time efficiently by being
punctual, doing diligent work, never play around, not to procrastinate and
engage ourselves in meaningless conversation.
4. We should uphold and internalize the Islamic ethical values. In whatever we
do, we should internalize Islamic values of truthfulness, honesty, dedication,
self-restraint, self-discipline and fear of Allah.
5. Self criticism should be exercised periodically both individually and
collectively and should be practiced by all workers at all levels. Each
individual should review his/her work and analyze his actions and attitudes.
6. There shall be no favoritism and discrimination. Heads of departments,
managers and leaders must be fair to employees. There should not be
discrimination and favoritism because of mutual interests of family ties etc.
7. Human nature and needs should be both considered simultaneously. Both
psychological and economical contracts of a person must be met. For
example, working hours must be reasonable and fair. The pay system should
be fair (equity).
8. It is the responsibility of the management to provide conductive and healthy
working conditions in the work-place. Management should employ people as
a whole considering both their emotional and psychological needs.
9. Employees must be paid sufficiently promptly and fairly.
10.There should be conductive rewards for exceptional achievement and
adequate measures to detect and prevent violations.
11.Lastly and the most important is the concept of al-Syura, it is a consultation
based on mutual discussion and inculcating cooperation among members of
organization.