Chapter 1: Introduction of Management in Islam

CHAPTER 1:
Introduction to Management in
Islam
By:
Dr. Mohd Adib Abd Muin
IBS, UUM
BIMS1043 Principles of Management in Islam - Dr. Mohd Adib Abd Muin (A201) 1

Chapter outline:
Introduction of Management
Organizations and the need for management from Islamic
perspective.
The Islamic management concept
Example on practice of Islamic Management in organizations.

1.0 Introduction of Management
• Management definitions
• The act, art, or manner of managing, or handling, controlling, directing, etc. ...
The definition of management is the way something is handled, careful
treatment, supervising skills, or those in charge of a business or group. An
example of management is how a person handles their personal finances.
• Management as a process "consisting of planning, organizing, actuating and
controlling, performed to determine and accomplish the objectives by the use
of people and resources." Firstly it considers management as a "process" i.e. a
systematic way of doing things.

Cont..
 The Process of Administering and Coordinating
Resources (human or material) Effectively and Efficiently
in order to achieve the goals of the organization.
 The goals achieved according to Effectiveness and Efficiency
Effectiveness: “ doing the right things”
Efficiency: “ doing things right”

1.1 General function of Management
• At the most fundamental level, management is a discipline that
consists of a set of five general functions: planning, organizing,
staffing, leading and controlling. These five functions are part of a
body of practices and theories on how to be a successful manager.
• It has been said that management has four basic functions –
planning, organizing, leading and controlling. Common sense dictates
that without these principles of management being in place an
organization would have trouble achieving its aims, or even coming
up with aims in the first place.
• Some said 7 Functions of Management: Planning, Organising,
Staffing, Directing, Controlling, Co-Ordination and Co-Operation.

1.2 The importance of management
• It helps in Achieving Group Goals - It arranges the factors of
production, assembles and organizes the resources, integrates the
resources in effective manner to achieve goals.
• Management converts disorganized resources of men, machines,
money etc.
• The main objective of management is to secure maximum outputs
with minimum efforts & resources. Management is basically
concerned with thinking & utilizing human, material & financial
resources in such a manner that would result in best combination.

1.3 The Characteristics of Management
• The characteristics of management are:
• Goal-oriented.
• Pervasive.
• Multi-dimensional.
• Continuous process.
• Group activity.
• Dynamic function.
• Intangible force.

Organizations and the need for management from
Islamic perspective.
• What is Organization?
• An organization is a group of people who work together, like a
neighborhood association, a charity, a union, or a corporation.
Organization is also the act of forming or establishing something (like
an organization). It can also refer to a system of arrangement or
order, or a structure for classifying things.
• Organization refers to the act of putting things into a logical order or
the act of taking an efficient and orderly approach to tasks, or a group
of people who have formally come together.
• There are different types of organizations that a company can adopt,
such as functional, flat, matrix, and divisional organizations.

2.0 The Need For Management From Islamic
Perspective.
• Islamic management is the management from the perspective of Al-Quran and
Al-Hadith or the whole process of management including organizational
resources depend on the guidance of Allah (SWT) and His Prophet (Peace Be
Upon Him).
• Islamic management system emphasizes that some of you are raised by Allah on
others in skills, knowledge, expertise and temperament which is most vital for
smooth management. It also emphasizes on obedience and mutual respect,
cooperation, equal opportunities, commitment to the work and full use of
capacity.
َ‫ق‬ َ‫و‬ ‫ا‬ً‫ب‬‫و‬ُ‫ع‬ُ‫ش‬ ْ‫م‬ُ‫ك‬‫َا‬‫ن‬ْ‫ل‬َ‫ع‬َ‫ج‬ َ‫و‬ ٰ
‫ى‬َ‫ث‬ْ‫ن‬ُ‫أ‬ َ‫و‬ ٍ
‫ر‬َ‫ك‬َ‫ذ‬ ْ‫ن‬ِ‫م‬ ْ‫م‬ُ‫ك‬‫َا‬‫ن‬ْ‫ق‬َ‫ل‬َ‫خ‬ ‫ا‬َّ‫ن‬ِ‫إ‬ ُ‫اس‬َّ‫ن‬‫ال‬ ‫ا‬َ‫ه‬ُّ‫ي‬َ‫أ‬ ‫ا‬َ‫ي‬
ْ‫ك‬َ‫أ‬ َّ‫ن‬ِ‫إ‬ ۚ ‫وا‬ُ‫ف‬ َ‫ار‬َ‫ع‬َ‫ت‬ِ‫ل‬ َ‫ل‬ِ‫ئ‬‫ا‬َ‫ب‬
ْ‫م‬ُ‫ك‬‫ا‬َ‫ق‬ْ‫ت‬َ‫أ‬ ِ َّ
‫اَّل‬ ََْ‫ن‬ِِ ْ‫م‬ُ‫ك‬َ‫م‬ َ‫ر‬
ۚ
‫ير‬ِ‫ب‬َ‫خ‬ ‫يم‬ِ‫ل‬َِ َ َّ
‫اَّل‬ َّ‫ن‬ِ‫إ‬
O mankind, indeed We have created you from male and female and made you peoples and
tribes that you may know one another. Indeed, the most noble of you in the sight of Allah is
the most righteous of you. Indeed, Allah is Knowing and Acquainted. (Surah Al-Hujuraat
Verse 13)

Cont..
ُ‫ه‬َ‫ن‬ْ‫ي‬َ‫ب‬ ‫َا‬‫ن‬ْ‫م‬َ‫س‬َ‫ق‬ ُ‫ن‬ْ‫َح‬‫ن‬ ۚ َ‫ك‬ِ‫ب‬َ‫ر‬ َ‫ت‬َ‫م‬ْ‫ح‬َ‫ر‬ َ‫ون‬ُ‫م‬ِ‫س‬ْ‫ق‬َ‫ي‬ ْ‫م‬ُ‫ه‬َ‫أ‬
َ‫و‬ ۚ ‫ا‬َ‫ي‬ْ‫ن‬َُّ‫ال‬ ِ‫ة‬‫ا‬َ‫ي‬َ‫ح‬ْ‫ال‬ ‫ي‬ِ‫ف‬ ْ‫م‬ُ‫ه‬َ‫ت‬َ‫ش‬‫ي‬ِ‫ع‬َ‫م‬ ْ‫م‬
‫َا‬‫ن‬ْ‫ع‬َ‫ف‬َ‫ر‬
َ‫ب‬ ْ‫م‬ُ‫ه‬ُ‫ض‬ْ‫ع‬َ‫ب‬ َ‫ذ‬ ِ‫خ‬َّ‫ت‬َ‫ي‬ِ‫ل‬ ٍ‫ت‬‫ا‬َ‫ج‬َ‫ر‬ََ ٍ
‫ض‬ْ‫ع‬َ‫ب‬ َ‫ق‬ ْ‫و‬َ‫ف‬ ْ‫م‬ُ‫ه‬َ‫ض‬ْ‫ع‬َ‫ب‬
َ‫خ‬ َ‫ك‬ِ‫ب‬َ‫ر‬ ُ‫ت‬َ‫م‬ْ‫ح‬َ‫ر‬ َ‫و‬ ۗ ‫ًّا‬‫ي‬ ِ
‫ر‬ْ‫خ‬ُ‫س‬ ‫ا‬ً‫ض‬ْ‫ع‬
‫ا‬َّ‫م‬ِ‫م‬ ‫ْر‬‫ي‬
‫ون‬ُ‫ع‬َ‫م‬ْ‫ج‬َ‫ي‬
Do they distribute the mercy of your Lord? It is We who have
apportioned among them their livelihood in the life of this world and
have raised some of them above others in degrees [of rank] that they
may make use of one another for service. But the mercy of your Lord is
better than whatever they accumulate. (Surah Az-Zukhruf Verse 32)

Cont..
• ْ‫م‬ُ‫ك‬ْ‫ن‬ِ‫م‬ ٍ‫ل‬ِ‫ام‬َِ َ‫ل‬َ‫م‬َِ ُ‫ع‬‫ي‬ ِ
‫ض‬ُ‫أ‬ َ
‫َل‬ ‫ي‬ِ‫ن‬َ‫أ‬ ْ‫م‬ُ‫ه‬ُّ‫ب‬ َ‫ر‬ ْ‫م‬ُ‫ه‬َ‫ل‬ َ‫اب‬َ‫ج‬َ‫ت‬ْ‫س‬‫ا‬َ‫ف‬
ْ‫ع‬َ‫ب‬ ْ‫ن‬ِ‫م‬ ْ‫م‬ُ‫ك‬ُ‫ض‬ْ‫ع‬َ‫ب‬ ۖ ٰ
‫ى‬َ‫ث‬ْ‫ن‬ُ‫أ‬ ْ‫و‬َ‫أ‬ ٍ
‫ر‬َ‫ك‬َ‫ذ‬ ْ‫ن‬ِ‫م‬
ۖ ٍ
‫ض‬
َ‫و‬ ‫ي‬ِ‫ل‬‫ي‬ِ‫ب‬َ‫س‬ ‫ي‬ِ‫ف‬ ‫وا‬ُ‫ذ‬‫و‬ُ‫أ‬ َ‫و‬ ْ‫م‬ِ‫ه‬ ِ
‫ار‬َ‫ي‬َِ ْ‫ن‬ِ‫م‬ ‫وا‬ُ‫ج‬ ِ
‫ر‬ْ‫خ‬ُ‫أ‬ َ‫و‬ ‫وا‬ُ‫ر‬َ‫ج‬‫ا‬َ‫ه‬ َ‫ين‬ِ‫ذ‬َّ‫ال‬َ‫ف‬
ْ‫م‬ُ‫ه‬ْ‫ن‬َِ َّ‫ن‬ َ‫ر‬ِ‫ف‬َ‫ك‬ُ َ
‫َل‬ ‫وا‬ُ‫ل‬ِ‫ت‬ُ‫ق‬ َ‫و‬ ‫وا‬ُ‫ل‬َ‫ت‬‫ا‬َ‫ق‬
َ‫ئ‬ِ‫ي‬َ‫س‬
ْ‫م‬ِ‫ه‬ِ‫ت‬‫ا‬
‫ا‬ً‫ب‬‫ا‬ َ‫و‬َ‫ث‬ ُ‫ار‬َ‫ه‬ْ‫ن‬َ ْ
‫اَل‬ ‫ا‬َ‫ه‬ِ‫ت‬ْ‫ح‬َ‫ت‬ ْ‫ن‬ِ‫م‬ ‫ي‬ ِ
‫ر‬ْ‫ج‬َ‫ت‬ ٍ‫ت‬‫ا‬َّ‫ن‬َ‫ج‬ ْ‫م‬ُ‫ه‬َّ‫ن‬َ‫ل‬ ِ‫خ‬َُْ َ
‫َل‬ َ‫و‬
َّ‫ث‬‫ال‬ ُ‫ن‬ْ‫س‬ُ‫ح‬ ُ‫ه‬ََْ‫ن‬ِِ ُ َّ
‫اَّل‬ َ‫و‬ ۗ ِ َّ
‫اَّل‬ َِْ‫ن‬ِِ ْ‫ن‬ِ‫م‬
َ‫و‬
ِ‫ب‬‫ا‬
And their Lord responded to them, "Never will I allow to be lost the
work of [any] worker among you, whether male or female; you are of
one another. So those who emigrated or were evicted from their homes
or were harmed in My cause or fought or were killed - I will surely
remove from them their misdeeds, and I will surely admit them to
gardens beneath which rivers flow as reward from Allah, and Allah has
with Him the best reward." (Surah Ali-Imran Verse 195)

2.1 The Weakness Of Conventional
Management
• Too focused on the profit of the organization without concern to
the needs and values of society..
Lack of spiritual and humanitypractice
Ignoring the good deeds( al-falah) and wrongdoing ( al-
fasad)
Manipulation human right for organization purpose
Separation between the value of religion and management

Cont..
• Conventional management do not have any fundamental root as the
concept of Islamic management based on Tauhid/Unification with Allah
s.w.t
• Aims only to achieve success, profitability, materialism, and worldliness
solely by using any method whether permitted or not. In conventional
management, they are free to practice any action as long as the planned
goals are achieved.
• The philosophy of conventional management also lacks the spirit of religion
which is not based on oneness with the creator.
• They assume that everything that happens whether they excel or fail is due
to their own strengths or

3.0 Islamic Management Concept
• Management from Islamic perspective is defined as the ability to utilize resources
both material and human, optimally in order to achieve goals either short term or
long term goals. The Islamic Management is generated holy Al-Quran and As-
Sunnah and as sources for decision making.
• 3.1 Management Function in Islam
a. Planning – is a process of setting objectives or goals for short term (improvement in
performance ) and long term (be the worthy servants of Allah). Muslims are taught to balance
both of these objective.
b. Organizing – is the structure of projects as well the structure of roles to be undertaken by
human efforts.
c. Leading – refers to the process of moving people in a planned direction that is in their long
term best interest. Leader should serve and help others (followers) get ahead.
d. Controlling – is defined as the application of the procedures prescribed and organised
according the plans as well as the performance of the roles defined as specified under the
organisation

3.1 (a) Planning
• Planning was practised by our Prophet Muhammad S.A.W in many
incidents that he had gone through. One of the prominent, ones is seen in
his carefully planed actions and moves to preach the faith of Islam to the
world.
• He had two choice whether to do it publicly or to it cautiously. He choose
to do secretly at first, since the people at Mecca at that time, the Quraisysh
tribe did not hold the same values the Islamic faith was bringing. The
Islamic faith emphasizes on human equality, justice and sympathy for the
weak.
• The Quraisyh tribe on the other hand valued wealth, prestige and honor.
Therefore,our Prophet Muhammad SAW choose the preach Islam secretly
and quietly at first to his closest and trusted friends and families. To start
preaching the new religion openly would jeopardize its chance to success.

Cont..
• The planning process of setting objectives’goals is also practised in
Islam. Human being are created by Allah SWT to be ‘khalifah’ on the
earth. This means our lives and activities must be focused to fulfilled
two purposes.
• A long term objective/goal (vision)
• Is to be the worthy servant of Allah
• Avoiding sins
• Preparing ourselves to be rewarded in paradise by performing good deeds and obeying
the teachings demanded by the Al-Quran and As-Sunnah
• A short term obejctive/goal (Mission)
• Is productivity may it be in the form of service or product
• Academic achievement, financial profit or improvement performance.

3.1 (b) Organizing
• Organizing is the structure of project as well as the structure of roles
to be undertaken by human effort.
• This mean in Islam, organizing comprises the structuring or an
organization the structure(organization chart). -utilization of
resources(human), authority, power and the resources(human),
practise of delegation as well as of decentralization and centralization.
• The practise of organizing can be seen in the incident of Hijrah lead to
prophet Muhammad SAW.
• If careful planning 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.

3.1. (c) Leading
• From the Islamic point of view, leadership refers to the process of moving
people in a planned direction by motivating them.
• Good leadership moves people in a best direction that is in their long term
interest.
• Islam says that a leader should serve and help others (followers) get ahead.
• The characteristics of Islamic Leader are:
1. He has allegiance to Allah (faithful);
2. He has global perceived goals of organization not only in terms of individual or
group interest but also from wider Islamic perspective;
3. He adheres (obeys) to syariah and the Islamic manner of doing things;
4. He delegates trust

3.1 (d) Controlling or Execution
• Controlling from 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 plans and will confirm to the actual plans.

3.2 What is Islamic Management?
The Process of Administering and Coordinating
Resources (human or material) Effectively and Efficiently
in order to achieve the goals of the organization and comply
with syariah value and rules.

Cont..
 Islamic management related to three (3) main point namely:
1) Human- Obey with Syariah law and value as a servant of Allah.
2) Practice- Good deeds either in organization or anywhere
3) Organization-Place to practice a good deeds according to syariah
law.

Cont..
1. Akidah-Strong belief in Allah swt.
2. Syariah- Islamic rule and value
3. Akhlak- Practice morality and manner in Islamic ways.

3.3 Foundation of Islamic Management

3.4 General Objective of Islamic Management
(Maqasid Syariah)
Purpose of Maqasid Syariah
(Level of Necessity)
Necessities
(Daruriyah )
Luxuries
( Tahsiniyyah)
Need
( Hajiyyah )
Religion Life Wealth Mind Lineage

Cont..
DARURIYAH-to fulfil the basic necessities in human life (as food,
beverage, shelter, clothes, and safety )
HAJIYYAH-additional necessities in life that human beings perceive
as part of the important things to have.(fresh food and beverage,
household inventory, and hygienic surroundings.)
TAHSINIYYAH-added value to human life that is derived from
human desires and demands( luxury cars, fanciful and luxury
accommodation, branded shoes and attires)

3.5 Management and 5 Principles of Maqasid
Syariah
Include religious values and rules in
management activities
RELIGION
(AGAMA)
Avoiding from any dangerous activities
LIFE (NYAWA)
Manage and organize wealth by the right way
WEALTH
(HARTA)

Cont..
Avoiding from any negative feeling and major sin
MIND (AKAL)
Preservation of lineage from the prohibited
relationship
LINEAGE
( KETURUNAN)

3.6 Principles of Islamic Management
• Tawhid /Unity - Man’s ultimate accountability is to God alone. It also
defines the unique relationship between God and man, man and
man, and man and his environment. He is required to only serve God
through all his actions Surah Az-Zariyat:56 And I (Allah) created not
the jinn and mankind except that they should worship Me (Alone)
• Tauhid Rububiyyah - Believed that everything in the earth and sky is
belonging to him Allah.Only Allah can classify the human whether
good or bad, and no one can challenge his power Surah Al-Ankabut:
61 And if you were to ask them: ‘Who has created the heavens and
the earth and subjected the sun and the moon?’ they will surely reply
‘Allah’. How then are they deviating ( as polytheists and disbelievers)?

Cont…
• Tauhid Ilahiyyah - Believed that Allah is the only God by doing His
direction and did not have any god other than Him. Surah Al-Aaraf :59
Indeed, We sent Hun to his people and he said: (‘O my people!
Worship Allah. You have no other God but Him (Allah).Certainly, I fear
for you the torment of a Great Day!’ )
• Tauhid did not complete until Tauhid Illahiyyah is combined with
Tauhid Rububiyyah. The Effects of Tauhid on Human Are: - It gives
clearly mission on all life aspects especially individual, family,
community and country in economics, politics and socials. We will
have the component of amanah and good attitude because we know
that Allah S.W.T can see what we are doing and thinking.

3.7 Examples of Islamic Management
Principles in Organizations
• The Five Pillars are the core beliefs and practices of Islam:
1. Profession of Faith (shahada). The belief that "There is no god but God, and
Muhammad is the Messenger of God" is central to Islam. ...
2. Prayer (salat). ...
3. Alms (zakat). ...
4. Fasting (sawm). ...
5. Pilgrimage (hajj).

3.7 Examples of Islamic Management
Principles in Organizations
• Khalifah /Vicegerency - Is a special duty of man on earth. Man has endowed with all the
spritual and mental characteristics, as well as material resources, to enable him
effectively undertake this important mission.
• Al- adl / Justice - is the rendering trust where it is due. Trusts here refer to all aspects of
human life including economics, social and legal both at the individual as well as the
societal levels. If the conflicts between individual and societal interest arise, preference is
always given to societal interests. Surah Al-Ma’idah:8 (O you believe! Stand out firmly for
Allah as just witnesses, and let not the enmity and hatred of others make you avoid
justice. Be just: that is nearer to piety, and fear Allah. Verily, Allah is WellAcquainted with
what you do.)
• Syura / Mutual Consultation - Used to be undertaken among leaders of various tribes or
groups. Syura certainly implies transparency, open mindedness, which can only happen
with the accompaniment of respect, trust, empowerment, freedom of expression,
readiness to be criticized and acceptance of divergent views. Surah As-Syura: 38 (And
those who answer the call of their Lord ( to believe that He is the only One Lord (Allah),
and to worship none but Him Alone, and perform As-Salat, and who ( conduct) their
affairs by mutual consultation, and who spend of what We have bestowed on them.)

Cont..
• Ikhlas / Sincerity - One has to make sure that the task is completed with the best of one’s ability.
Sincerity is an absolute value in the sense that there is no such thing as more or less sincere. If
one is less sincere, it implies that there exist some other elements in the intention. It may be
arrogance, ride, conceit, etc. which will jeopardize the quality of performance. Surah Az-Zumar:
14 Say ( O Muhammad S.A.W): Alllah Alone I worship by doing religious deeds sincerely for His
sake only ( and not to show off, and not to set up rivals with Him in worship).
• Freedom - According to the Islamic leadership style, a leader should strive to create an
atmosphere of freethinking, healthy exchange of ideas and advise so that the followers feel very
comfortable in discussing matters of interest to the group. The leader also has to accept what the
member complains about them so the discussion will be done smoothly.
• Amanah/ Trustworthy - The leader must be trustworthy because all the member’s problem
should be secret from other. If not, the members will not respect them. Selection of a new
personal staff should not be based on self- interest of favoritism but from personal ability,
experience and other suitable criteria that fit the job. Surah Al-Anfal: 27 (O you who believe!
Betray not Allah and His Messenger (s.a.w), nor betray knowingly your amanat (the things
entrusted to you, and all the duties which Allah has ordained to you)

Cont..
• Reward - Every believer knows that they should be performing the acts of
worship solely to seek Creator pleasure. In Islam we should seek our rewards
from Allah s.w.t., not from other destitute people like ourselves. Islamic
Management views rewards as the compensation or benefit earned not only
today but till one dies.
• Amar Makruf Nahi Munkar - Can be defined as exclaiming people to do kindliness
and to leave out all the bad behavior. To measure of what we are doing either it a
fair or cruel (haq or batil), we should refer back to Al-Quran and As-Sunnah.
Anything that is right in syara’ will always right although it is opposite to our
passions and wants. Similarly if everything is stated in syara’ as illegal or wrong to
be done by Muslim, it can’t never change until the end of the day. Surah Al-
Imran: 104 (Let there arise out of you a group of people inviting to all that is good
(Islam), enjoining Al-Ma’ruf (all that Islam orders one to do) and forbidding Al-
Munkar (all that Islam has forbidden). And it is they who are the successful.)

Cont..
• Maslahah Mursalah - Literally, marsalah means benefit of interest, it refers to
unrestricted public interest in the sense of not having been regulated by the
Lawgiver and no textual authority can be found on its validity or otherwise. It
describes the purpose of legislation in Islam is to secure the welfare of people by
promotion their benefits of by protecting them against harm.
• Masru’iyyah - This is the concept of legality whereby the management has to
ensure that any action taken must be within the legal boundary of the common
or manmade laws and the syariah laws.
• Brotherhood - Is a spirit of friendship and respect to each other among Muslim. It
is also regarding with good in giving order and communication with the easy
message to understand and clear toleration and forgiveness. Surah Al-Hujurat: 10
(The believers are nothing else than brothers (in Islamic religion). So make
reconciliation between your brothers, and fear Allah that you may receive mercy.)

Pop Up Statement.
Is it Islamic Management and
Conventional Management
SIMILAR??

Here we go:
1. Model of Ilahiyah Management(Model Pengurusan Ilahiyyah)
2. Model of Tauhidik Management (Model Pengurusan Tauhidik)
3. Model of Syura Management (Model Pengurusan Syura )

Activity 1
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Chapter 1: Introduction of Management in Islam

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Chapter 1: Introduction of Management in Islam