Instructors Guide Manual of MIP

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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.
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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. (Sources of MIP)
Êther 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.

ÿ
ÿ Õ

ÿ No demarcation between
the secular and the ÿ Õlear demarcation between
religious;human life is an the secular and the
organic whole; All human religious; human activities
activity can be are separated; spiritual or
provided they are guided by religious aspect is a private
Allah¶s commandments matter of individuals while
work is in public domain
Ñ

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Úurpose of human
Úurpose of human existence is to utilize
existence is to obey natural resources to
and fulfill Allah¶s satisfy one¶s needs,
commandments and wants and desires and
act as the vice-regent to remain happy
of Allah on earth.
[

slamic management Õonventional

management
Organizations are meant Organizations are meant
to be groups of people to be groups of people
coming together for coming together to
attaining the purpose of attain the organizational
human existence. goals


management
Organizational objectives
are both economic and Organizational objectives
non-economic and are are both economic and
subservient to larger non-economic in nature
purpose of human and are subservient to
existence organizational interests

slamic Õonventional management

management Ethics is relative and values are
The revealed knowledge and derived from multiple
the traditions of the Úrophet sources such as upbringing,
(SAAS) constitute the society, and experiences.
ultimate source of business Ethics could be relative as in
ethics and personal values
utilitarian theory.
·
Õ

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


management
The locus of control is The locus of control is
internal. Each person is external and lies in the
responsible and realm of the
accountable for his organization
actions
å

slamic management Õonventional management

Human being has choice, Responsibility and accountability
free will and freedom of vested in the chief executive
who delegates it. Employees
action therefore is controlled through
responsible and organizational systems to
accountable for all ensure responsibility and
actions accountability
åå
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Õ Õ

Areas of slamic Economics and

Finance have been slamized a
lot. The success has been so
great that we have moved from
slamizing concepts to
application of these concepts in
real life, e.g. slamic Banking
and investments. But we can¶t
speak in the same confidence
about management. The å
slamizing of management
Books: slamic Management
º n his book,´ slam and
Management´ Naceur Jabnoun
(å) says that the slamic
evolution has made remarkable
and highly essential
contributions in many areas of
human life.
º n addition, in regards to
management and leadership,
Jabnoun (å) presented
several leadership traits, as to å
how a Muslim leader should

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º weadership is an essential aspect of management and this fact

motivated Omar Hasan Kasule, Sr.(å) to develop and write
modules for training in leadership skills. His module was to be
introduced at the Muslim weaders' Forum held in August å, a
forum especially catering for Muslim leaders.
º From a management point of view and with an objective to
produce dynamic Muslim leaders, a book written by Hisham Al- Al-
Talib(åå)hh *Training Guide For would be very
Talib(åå)
useful. The book is addressing potential Muslim leaders willing
to acquire knowledge and wisdom and practice Dawah with the
perspective in view to come to pioneer in social change, and this
through a convincing and effective communication.
å

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º slamic Management of Excellence:
Revitalizing Úeople for the Future´ a book
written by Alhabshi et al. (å ) explains
the importance of a stable family institution.
º According to authors education would be
the avenue for producing the right kind of
individuals for a nation.
º n regards to management for excellence
and its slamic perspective, the authors of
this book further introduced important
concepts such as

,, justice and
benevolence.
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Õonventional and slamic
Approaches to Management
º A work by Azhar Kazmi ( ),
titled µA Úreliminary Enquiry into
the Úaradigmatic Differences
among the Õonventional and
slamic Approaches to
Management Studies¶ was
carried out.Approaches
out.Approaches to
Management.doc
å
Other Studies«
º There other studies undertaken
by different author (s). Annexure
A.doc
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Ë There are alternatives to the paradigm
of competition and competitiveness as
perceived in conventional strategic
management for the purpose of strategy
formulation.
Ë Islamic revealed knowledge sources
offer a solution out of this dilemma
31

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arrated by Sahl bin Sa'd, on the carnal nature of human beings:
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Ë The Islamic perspective to competition

and competitiveness is that they are
acceptable and desirable if the intention
is to strive and achieve in the cause of
Allah. But if the intention is dishonorable
such as envy, jealousy, mutual rivalry,
boasting, reveling in vanquishing
opponents, and hoarding worldly assets
for the sake of hoarding them and not
letting others benefit from them then 3D
competition and competitiveness
ORGANIZATIONAL
RELATIONSHIP
MANAGEMENT FROM
ISLAMIC PERSPECTIVES
35
Stakeholders
Organizations have stakeholders who
hold interest directly or indirectly.
There are internal stakeholders such
as the managers and employees
There are external stakeholders
such as the customers, community,
and government
36
Stakeholders·
perspective to strategic
management
Strategic management based on an analysis of
the economic power, political influence,
rights and demands of various stakeholders
leads to strategy formulation.
The source of competitive advantage is based
on superior linkages with stakeholders
leading to trust, goodwill, reduced
uncertainty, improved business dealings and
ultimately higher firm performance
Overall, the organization that is able to
manage its stakeholder relationship is likely
to gain greater success 37
Corporate governance
Companies are funded by
shareholders, managed by the top
management, and overseen by the
board of directors. The relationship
of these three groups is called
corporate governance.
38
Problems in corporate
governance
Various problems have been
experienced in the governance of
corporations. The shareholders are
often visualized as a group
interested only in its narrow self-
interest of earning money. The top
management is often accused of
unethical practices or mixing up
corporate interest with personal
interest. The board of directors is
thought of as a group uninterested or 39
ineffectual, or both, in overseeing
Root cause is unfair and
biased dealings with
stakeholders
Stakeholders management is difficult
when there is unfair and biased
dealings with the stakeholders
Organizations do not necessarily have
to deprive one stakeholder in order
to benefit another stakeholder
Stakeholder relationship need to be
based on mutual trust and
understanding
Ñ
Islamic teachings are
clear
Islamic revealed knowledge sources
are clear on the nature of human
behavior. The Holy Quran provides
extensive references to what is the
right and wrong behavior.
Right behavior is the key to just
stakeholder management
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What Muslim Followers Are Required to Do
Muslims must
> appoint a leader during a trip

> select a leader to lead the prayer
> choose a leader for other group activities

Is it they who would portion out the Mercy of your

Lord? It is We Who portion out between them their
livelihood in the life of this world: and We raise some
of them above others in ranks so that some may
command work from others. But the Mercy of your
Lord is better than the (wealth) which
they amass (Qur¶an, Zukhruuf, 43: 32).

Ahadith
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X commander Gof he Mu lim i a hield for hem.´
According to Islam, the two primary roles of a leader

are those of servant-leader and guardian-leader.
A leader is the servant of his followers G ayyid al

qawn khadimuhum). He is to seek their welfare and
guide them towards good.
As the guardian-leader the Muslim leader protects

his community against tyranny and oppression,
encourages God-consciousness and aqwa, and

promotes justice.
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Leadership in Islam is rooted in belief and willing submission

to the Creator, God. It centers on serving Him.
To serve God, a Muslim leader is to act in accordance with the

injunctions of God and His Prophet G aw), and must develop a
strong Islamic moral character.
This moral character will be reflected by his increasingly strong

belief in God as he progresses through four stages of spiritual
development:
i lam, iman, aqwa and ih an.
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Because of his or her iman, a leader who practices I lam

will never see himself as supreme.
Ali Ibn Abu Talib¶s Gra) letter to Malik al-Ashtar an-Nukai,
the new Governor of Egypt, stresses this point in the
following manner:
Malik, you mu never forge ha if you are a ruler over hem,
hen he Caliph i a ruler over you, and God i he upreme

Lord over he Caliph.
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A leader with a strong iman will consider himself and all his
possessions as belonging to God. He will bow his ego, his
ideas, his passions and his thinking to God.
Iman also implies belief in the life hereafter and in one¶s

ultimate accountability for one¶s deeds. A leader with a firm
iman will not dodge responsibility for his actions,
and will continuously emphasize good deeds.
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When imbued with aqwa, a person¶s frame of mind²his

thoughts, emotions and inclinations²will reflect Islam.
Taqwa will restrain a Muslim leader or follower from
behaving unjustly²whether to community
members, to customers, to suppliers or to anybody else.
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The Prophet Muhammad G aw) describes ih an as follows:

³To worship God as if you see Him, and if you cannot
achieve this state of devotion then you must consider that
He is looking at you.´
The constant feeling that God is watching is likely to prompt

any leader or follower with Ih an to behave at his best.
%ww!$($(w&$(*w$%&$'(##'$#%'$&%'$%($&*
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Rafik Beekun, Ph.D.

Chair and Associate Professor of Management and Strategy
University of Nevada
and
Jamal Badawi, Ph.D.
Associate Professor of Management
St Mary¶s University
Motivation from slamic
Úerspective
THE SwAMÕ AÚÚROAÕH TO
MOT ATON & MANAGEMENT
The slamic approach to management is an
emerging discipline, often referred to as
slamic management, looks at the
management of organizations from the
perspective of the knowledge from the
revealed sources and other slamic sources
of knowledge and results in applications
compatible with the slamic beliefs and
practices. Similarly, many«

Õontinue«
«of the theories on motivation in the
literature reflect the European world-
world-view
and would not be applicable to Muslims. The
workers who are Muslims find their
motivation in their religion and their cultural
heritage. Any approach to motivation that
ignores this will not succeed. The Úrophet
(ÚBUH) taught that every human endeavor
is an act of worship and charity. Thus a
working Muslim knows he is worshipping his
word and this is a powerful motivator in itself
irrespective of any material gain.
Õ |

ö The Muslim worker¶s motivation for work

and excellent service is derived not only
from notion of self-
self-fulfillment, upward
mobility, uplift of the material standards of
living or service to the nation, but also more
fundamentally, from the belief that, as a
holder of
on earth,
ö (a). he must search industrially for the
bounty § has provided for his
sustenance, either in the form of natural
resources to be explored or new processes
to utilise available resources;
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ö (b). his work is a form of virtuous deed

( )
) which is the key to the
attainment of (
()) true success in this
world and well-
well-being in the Hereafter;
ö $. his work is also a form of ( )
)
servitude to God in the broader sense of the
word, insofar as it is in conformity with the
Divine norms and values; and
ö (d). the reward for his good deeds is not
confined to this world, but extends to the
Hereafter, and similarly punishment for bad
deeds is not restricted to worldly life, but
Õ |

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ö Thus, in striving to gain the pleasure of
§ and avoid His wrath, the worker¶s
performance is not entirely dependent
upon the reward system of the
organisation he is in or the society in
which he works. When he works with a
loftier objective, namely, the well-
well-being in
this world as well as in the Hereafter (
(
and

,,

),), any reduction in the value of
worldly and materialistic reward does not
necessarily affect his performance
adversely. He will be more ready to defer
Factors in Motivation
ö The four components of motivation are as
drive (an aroused state due to physiological
need), instincts and innate biological
determinants of behavior, commitment
(
);
); and incentives (external stimuli).

Need Theory
A Muslim looks at the wages, salary and
other material benefits as a means to enable
him feed, clothe, and house himself and his
family so that he can devote his energy to
the work. He does not look at them as a just
return for his labor. His labor is worship and
only Allah can recompense for it.
å
nstincts and innate biological
determinants of behavior /Behavioral
theories--
theories
å. Humans have . Some people try to
freedom to choice in deceive to make
the behavior/ work behavior appear good
that they do (Al-
(Al-Quran (Al--Quran :å &
(Al
:). The Quran :å). Bad behavior
emphasizes the is condemned and
importance of work has a bad reward.
(:å & :å). Good one reflects
There is reward for underlying faith (Al-
(Al-
any behavior (Al-
(Al- Quran : & å: -
Quran :). They ). t is rewarded in
can be good, the hereafter (Al-
(Al-

or bad, Quran : & :)
ncentives (external stimuli)
ö Every work is
å.
is a positive rewarded according

motivator.
to the intention
is a negative one. behind it. Every
Reward for good person is rewarded
work behavior is according to his/her

otherwise it is
.. The amount

of reward is
rewarded in the form
commensurate with
of
the intention

Õommitment (
())-
å. Motivation can be intrinsic (self . Highly motivated individuals
motivation), extrinsic (rewards), have clarity of vision and
or reactionary (not real and objectives, strategic and
temporary). tactical plans for achieving
. Motivation is internal whereas objectives, high expectancy,
manipulation is external. energy, drive and self
. Õommitment,
,, was confidence, need for
described in the Quran in responsibility and control,
several verses ( :å & :).
t is expressed in the intention, strong communication skills,

.. Work is the taking risks, accepting
consequence of the intention. correction or criticism, want for
(Al--Bukhari)
(Al recognition, doing interesting
work, and having authority.

Õommitment (
())-
. These characteristics .There are aspects of
are not in-
in-born; they Muslim character that
can be cultivated and affect motivation:
nurtured in any (fear of losing
individual. face, shame for self
and family),
(reward in the
hereafter),
(generosity), and
(fulfilment). (Al-
(Al-Hadith)

Motivated Úersonality
å. Motivated leaders clarify goals, set objectives, consult
and respect followers, deal with followers kindly,
humanely, and with fairness.
. t is also due to the level of moral development and
spiritual maturity of the person.
. Spiritually people are classified as those who have:
§ w

. Firstly,, § those who have negative
Firstly
motivation is due to worries, lack of self-
self-confidence, low
self--esteem, low self
self self--worth, and never respect other¶s
right and make followers not to feel secure.

Satisfied Úersonality
. Secondly,
Secondly, w who are
motivating ones and belive work is
challenging, meaningful; has opportunities
for advancement, learning and personal
growth.
. Thirdly
Thirdly,,
that provides a

high level of the sense of responsibility
towards Allah and independence from any
kind of fear and anxiety; and gives job
satisfaction. They subscribe the idea of
(fear of losing face, shame for self
and family), (reward in the
Õonclusion
The essence of personal development is
purification of the soul. f the soul is good
the rest of the body becomes good.
Úrofessionals may be so engrossed in their
work that they forget themselves until they
find themselves in spiritual crises that in turn
have adverse effects on their professional
work.

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ö ' = B and Õ are
communicating horizontally among
themselves and vertically with µA¶, while §
is giving instruction to c.

Õ
ö Õommunication is the process of passing
information as well as its understanding from
one person to another. The communication
process consists of six basic elements: the
sender (encoder), the message, the channel
(medium), the receiver (decoder), noise, and
the feedback.

Õ

Medium
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ö The Quran states:

§

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(:å-
(:å-)
ö slam emphasizes the importance of effective
communication in human life.
ö The following is a systematic account (Do¶s
and Dont¶s) of these principles in the light of
the Quran and Sunnah.

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ÿ The word ³control´, originates from a French root; and the
word ³contre´, which means µagainst¶, and the word ³role´
which means µa function assumed by someone¶ (Webster
dictionary). Koontz and Donnell (å : ) defined control,
as µthe measuring and connecting of activities of
subordinates to assure that events conform to plans¶. Thus,
the term measures performance against set goals and
plans. The act of controlling reveals deviations and assists
in assuring the accomplishment of plans.
·

The concept of standards in this regard is
divided into two broad categories, such as:
å. Quantity standards; and
. Quality standards.
Î
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! ! Õ
ÿ µQuality Õontrol' is a term used to cover
Õ scope of this type of control of all aspects
of organizational activities that cannot be
ÿ n the first group, one would find
matters, which can be quantified, quantified.
and thus in these group specific ÿ Thus, the standards set in these types of
measures of standards can be set activities will to a certain extent be
and should be met accordingly. µelastic¶ in nature.
ÿ Among such standards would be
those for sales, production,
machine utilization; output per
worker and many others.
·
Approaches to Õontrolling Activity
There are basically three approaches to the activity of controlling and

they are as follows: (å) wegal approach, ( ) Social & Õlan approach; and
() Market approach.
ÿ w : The law of the land and company rules provides a

basis for check on the activities and performance.
ÿ

: Social pressure and a check on human
behavior is considered as a basis for exercising a control on activities of
the individuals in an organization.
ÿ : This is quite common now days. The market forces
(demand and supply) and their manipulation is used for exerting
pressure on the business behavior.
·å
ÕONTROwNG FROM SwAMÕ ÚERSÚEÕT E
ÿ The basis for controlling in slam is not necessarily the same, as that of the
above approaches of controlling. The mechanism of internal or external
control, business or personal and social or legal controls must not violate
basic principles of the Shariah.
ÿ slamic approach to control emerges from its worldview. Social and clan
control may be preferable over the legal and market control mechanisms. t
is rather human oriented in its outlook. The present mode of thinking gives
great emphasis on Western outlook. And since most of the contemporary
management gurus and practitioners are trained in that culture, thus
prescribe the same control policies and practices. However our culture
differs and we need to re-look at those prescriptions critically.
·
Õ %
The main concept remains true; and a prerequisite for

any type of control is of three fold as follows:
ÿ Úre-establish a standard of performance
ÿ Keep the performers informed in this regard prior to
their actions.
ÿ Take remedial measures, if required.
' § §
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Five axioms of Islamic ethical
philosophy
å : Concept of ࣞtawhidࣟ which means the totality of

integrated existence in and outside of the Universe

: Concept of ࣞadlࣟ which means a sense of
balance among the various facets of human life

: The ability of human beings to act without

external coercion but within the limits set by Allah and
as the vice regent of Allah on Earth.

)
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: Concept of ࣞIhsanࣟ
meaning an action carried out by a
human being without the expectation
of return or reward benefiting others
[
: The accountability of
human beings for all their actions

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å
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*| | $!|&
Quality management can be defined as the

³degree of excellence´ and with regards to
organizations, it refers to the quality of services
rendered or products offered. t clearly spells
the concept and requirement of a quality
management system as being depicted below.
The pursuit of quality management (TQM) and

customer satisfaction is admirable. But to
achieve greater consonance with spiritual
development, the pursuit must be accompanied
by social and ecological concerns under å
!
*| |
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Õ
Õ

slam always encourage for some extra
miles ± the best possible achievement.
This is evident in a tradition, which brings
to the effect, ³§

´ (narrated by al-Baihaqi).
å
Õontinuous mprovement for
Excellence
Õontinuous improvement is a basic

requirement in slam, which is evident in a
hadith narrated by Bukhari and Muslim to
the effects, ³§

´
å
Õ !
|
slam recognises the importance of documentation in all

activities of an organisation. n the Holy Quran Allah
S.W.T says ³

§

(Al-Quran,
: å- å).
The above verse is evident that every deed (right and

wrong) of man is recorded for the purpose of judgment in
the hereafter.
å

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The primary revealed knowledge source is the Holy Quran.

slamic management Õonventional

slamic management Õonventional

slamic Õonventional management

slamic management Õonventional

slamic management Õonventional

slamic management Õonventional management

Areas of slamic Economics and

how a Muslim leader should

º weadership is an essential aspect of management and this fact

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Ë The Islamic perspective to competition

> appoint a leader during a trip

Is it they who would portion out the Mercy of your

According to Islam, the two primary roles of a leader

 A leader is the servant of his followers G ayyid al

 As the guardian-leader the Muslim leader protects

Leadership in Islam is rooted in belief and willing submission

To serve God, a Muslim leader is to act in accordance with the

This moral character will be reflected by his increasingly strong

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When imbued with aqwa, a person¶s frame of mind²his

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The constant feeling that God is watching is likely to prompt

Rafik Beekun, Ph.D.

ö The Muslim worker¶s motivation for work

ö (b). his work is a form of virtuous deed

is a positive rewarded according

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There are basically three approaches to the activity of controlling and

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å : Concept of ࣞtawhidࣟ which means the totality of

: The ability of human beings to act without

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Quality management can be defined as the

The pursuit of quality management (TQM) and

Õontinuous improvement is a basic

slam recognises the importance of documentation in all

The above verse is evident that every deed (right and

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slamic management Õonventional

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As the guardian-leader the Muslim leader protects

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