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CHAPTER 3:
MANAGEMENT THEORY AND
DEVELOPMENT
By: Dr. Mohd Adib Abd Muin, IFP, CQIF (Wealth Management)
Islamic Business School (IBS), UUM
mohdadib@uum.edu.my
1
Outline..
• History of Management
• Management from Islamic Perspective
• Islamic Great scholar in Management
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 2
3.1: The History of Management
The concept of management has been around for thousands of years.
Socrates, around 400 BC, stated that management was a competency
distinctly separate from possessing technical skills and knowledge
(Higgins, 1991). The Romans, famous for their legions of warriors led
by Centurions, provided accountability through the hierarchy of
authority.
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 3
Cont…
 The Industrial Revolution, a time from the late 1700s through the 1800s, was a period of great upheaval and
massive change in the way people lived and worked. Before this time, most people made their living farming
or working and resided in rural communities.
 With the invention of the steam engine, numerous innovations occurred, including the automated
movement of coal from underground mines, powering factories that now mass-produced goods previously
made by hand, and railroad locomotives that could move products and materials across nations in a timely
and efficient manner. Factories needed workers who, in turn, required direction and organization.
 As these facilities became more substantial and productive, the need for managing and coordination became
an essential factor. Think of Henry Ford, the man who developed a moving assembly line to produce his
automobiles. In the early 1900s, cars were put together by craftsmen who would modify components to fit
their product.
 With the advent of standardized parts in 1908, followed by Ford’s revolutionary assembly line introduced in
1913, the time required to build a Model T fell from days to just a few hours (Klaess, 2020). From a
managerial standpoint, skilled craftsmen were no longer necessary to build automobiles.
 The use of lower-cost labor and the increased production yielded by moving production lines called for the
need to guide and manage these massive operations (Wilson, 2015). To take advantage of new technologies,
a different approach to organizational structure and management was required.
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 4
Cont..
Socrates defined management as a skill separate from technical
knowledge and experience. Plato also recognized management as a
separate art and promoted principles of specialization.
In The Republic, Plato describes how carefully selected young men
should be trained so that they would develop the appropriate
personalities and skills necessary to serve as leaders.
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 5
The Scientific Era – Measuring Human Capital
• With the emergence of new technologies came demands for increased productivity and
efficiency. The desire to understand how to best conduct business centered on the idea
of work processes. That is, managers wanted to study how the work was performed and
the impact on productivity. The idea was to optimize the way the work was done.
• One of the chief architects of measuring human output was Frederick Taylor. Taylor felt
that increasing efficiency and reducing costs were the primary objectives of
management. Taylor’s theories centered on a formula that calculated the number of
units produced in a specific time frame (DiFranceso and Berman, 2000).
• Taylor conducted time studies to determine how many units could be produced by a
worker in so many minutes. He used a stopwatch, weight measurement scale, and tape
measure to compute how far materials moved and how many steps workers undertook
in the completion of their tasks (Wren and Bedeian, 2009).
• Beyond Taylor, other management theorists including Frank and Lilian Gilbreth,
Harrington Emerson, and others expanded the concept of management reasoning with
the goal of efficiency and consistency, all in the name of optimizing output. It made little
difference whether the organization manufactured automobiles, mined coal, or made
steel, the most efficient use of labor to maximize productivity was the goal.
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 6
Cont..
• The necessity to manage not just worker output but to link the entire
organization toward a common objective began to emerge.
Management, out of necessity, had to organize multiple complex
processes for increasingly large industries.
• Henri Fayol, a Frenchman, is credited with developing the
management concepts of planning, organizing, coordination,
command, and control (Fayol, 1949), which were the precursors of
today’s four basic management principles of planning, organizing,
leading, and controlling.
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 7
Employees and the Organization
• With the increased demand for production brought about by scientific measurement, conflict
between labor and management was inevitable. The personnel department, forerunner of
today’s human resources department, emerged as a method to slow down the demand for
unions, initiate training programs to reduce employee turnover, and to acknowledge workers’
needs beyond the factory floor.
• The idea that to increase productivity, management should factor the needs of their employees
by developing work that was interesting and rewarding burst on the scene (Nixon, 2003) and
began to be part of management thinking. Numerous management theorists were starting to
consider the human factor.
• Two giants credited with moving management thought in the direction of understanding worker
needs were Douglas McGregor and Frederick Herzberg. McGregor’s Theory X factor was
management’s assumption that workers disliked work, were lazy, lacked self-motivation, and
therefore had to be persuaded by threats, punishment, or intimidation to exert the appropriate
effort.
• His Theory Y factor was the opposite. McGregor felt that it was management’s job to develop
work that gave the employees a feeling of self-actualization and worth. He argued that with more
enlightened management practices, including providing clear goals to the employees and giving
them the freedom to achieve those goals, the organization’s objectives and those of the
employees could simultaneously be achieved (Koplelman, Prottas, & Davis, 2008).
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 8
Cont..
• Frederick Herzberg added considerably to management thinking on employee behavior with his
theory of worker motivation. Herzberg contended that most management driven motivational
efforts, including increased wages, better benefits, and more vacation time, ultimately failed
because while they may reduce certain factors of job dissatisfaction (the things workers disliked
about their jobs), they did not increase job satisfaction. Herzberg felt that these were two
distinctly different management problems. Job satisfaction flowed from a sense of achievement,
the work itself, a feeling of accomplishment, a chance for growth, and additional responsibility
(Herzberg, 1968). One enduring outcome of Herzberg’s work was the idea that management
could have a positive influence on employee job satisfaction, which, in turn, helped to achieve the
organization’s goals and objectives.
• The concept behind McGregor, Herzberg, and a host of other management theorists was to
achieve managerial effectiveness by utilizing people more effectively. Previous management
theories regarding employee motivation (thought to be directly correlated to increased
productivity) emphasized control, specialized jobs, and gave little thought to employees’ intrinsic
needs. Insights that considered the human factor by utilizing theories from psychology now
became part of management thinking. Organizational changes suggested by management
thinkers who saw a direct connection between improved work design, self-actualization, and
challenging work began to take hold in more enlightened management theory.
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 9
Cont..
• Management theories continued to evolve with additional concepts being put forth by other innovative thinkers. Henry Mintzberg
is remembered for blowing holes in the idea that managers were iconic individuals lounging in their offices, sitting back and
contemplating big-picture ideas. Mintzberg observed that management was hard work. Managers were on the move attending
meetings, managing crises, and interacting with internal and external contacts. Further, depending on the exact nature of their
role, managers fulfilled multiple duties including that of spokesperson, leader, resource allocator, and negotiator (Mintzberg,
1973). In the 1970s, Tom Peters and Robert Waterman traveled the globe exploring the current best management practices of the
time. Their book, In Search of Excellence, spelled out what worked in terms of managing organizations. Perhaps the most relevant
finding was their assertion that culture counts. They found that the best managed companies had a culture that promoted
transparency, openly shared information, and effectively managed communication up and down the organizational hierarchy
(Allison, 2014). The well managed companies Peterson and Waterman found were built in large part on the earlier managerial
ideas of McGregor and Herzberg. Top-notch organizations succeeded by providing meaningful work and positive affirmation of
their employees’ worth.
• Others made lasting contributions to modern management thinking. Steven Covey’s The Seven Habits of Highly Successful People,
Peter Senge’s The Fifth Discipline, and Jim Collins and Jerry Porras’s Built to Last are among a pantheon of bestselling books on
management principles. Among the iconic thinkers of this era was Michael Porter. Porter, a professor at the Harvard Business
School, is widely credited with taking the concept of strategic reasoning to another level. Porter tackled the question of how
organizations could effectively compete and achieve a long-term competitive advantage.
• He contended that there were just three ways a firm could gain such advantage: 1) a cost-based leadership – become the lowest
cost producer, 2) valued-added leadership – offer a differentiated product or service for which a customer is willing to pay a
premium price, and 3) focus – compete in a niche market with laser-like fixation (Dess & Davis, 1984). Name a company that fits
these profiles: How about Walmart for low-cost leadership. For value-added leadership, many think of Apple. Focus leadership is a
bit more challenging. What about Whole Foods before being acquired by Amazon? Porter’s thinking on competition and
competitive advantage has become timeless principles of strategic management still used today. Perhaps Porter’s most significant
contribution to modern management thinking is the connection between a firm’s choice of strategy and its financial performance.
Should an organization fail to select and properly execute one of the three basic strategies, it faces the grave danger of being stuck
in the middle – its prices are too high to compete based on price or its products lack features unique enough to entice customers
to pay a premium price. Consider the fate of Sears and Roebuck, J.C. Penny, K-Mart, and Radio Shack, organizations that failed to
navigate the evolving nature of their businesses.
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 10
3.1.1: Management Movement
 Scientific management - Improve productivity and focus individual
General administrative management - Examines organizations as
total entities and focuses on ways to make them more effective and
efficient
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 11
Cont..
1. Scientific Management (improve productivity and focus individual)
Watt and Boulton
Robert Owen
Charles Babbage
Henry Varnum Poor
Frederick W. Taylor
Henry L. Gantt (wage incentive programme)
Frank and Lillian Gilbreth
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 12
Cont..
2. General Administrative Management (Total Management
Organization)
Henri Fayol (introduce “systematic management theory) which is
planning, organizing, commanding (leading), coordinating, and
controlling.
Max Weber
Chester I. Barnard
Luther Gulick
James Mooney
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 13
Overview and revolution of Islamic
Management
• Prophet Muhammad (pbuh) – History (The traditions and the sunnah, the actions of the Prophet (pbuh).
• The first Four Caliphs (632-661)
• Abu Bakar
• Umar
• Uthman
• Ali
• Umayyad Caliphate (661-750)
• Abbasid Caliphate (750-1258)
• Fathimid Caliphate (909-1171)
• Ayyubi Caliphate (1171 – 1260)
• Mamluk Sultanate (1261-1517)
• Ottoman Caliphate (1517-1924) --- Abolition of the caliphate by Mustafa Kamal Ataturk in Turki.
• https://en.wikipedia.org/wiki/Caliphate
• https://en.wikipedia.org/wiki/List_of_caliphs
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 14
Abu Bakr (Abu Bakar as-Siddiq) – 1st Caliph
• Abu Bakr Abdullah ibn Uthman was a companion and, through his
daughter Aisha, a father-in-law of the Islamic prophet Muhammad, as
well as the first of the Rashidun Caliphs.
• Born: October 27, 573 AD, Mecca, Saudi Arabia
• Died: August 23, 634 AD, Medina, Saudi Arabia (Aged 61)
• Full name: Abū Bakr aṣ-Ṣiddīq ‘Abdallāh bin Abī Quḥāfah
• Caliphate: 8 June 632 – 23 August 634 (2 years)
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 15
Omar (Umar Al-Khattab)- 2nd Caliph
• Omar, was one of the most powerful and influential Muslim caliphs in
history. He was a senior companion of the Islamic prophet
Muhammad. He succeeded Abu Bakr as the second caliph of the
Rashidun Caliphate on 23 August 634.
• Born: 584 AD, Mecca, Saudi Arabia
• Full name: Umar ibn Al-Khattāb
• Died: 644 AD, Medina, Saudi Arabia (Aged 60)
• Caliphate: 23 August 634 - 3 November 644 (10 year)
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 16
Uthman ibn Affan – 3rd Caliph
• Uthman ibn Affan, also spelled by the Turkish and Persian rendering
Osman, was a son-in-law and notable companion of the Islamic
prophet Muhammad, as well as the third of the Rāshidun, or "Rightly
Guided Caliphs".
• Born: 583, Taif, Saudi Arabia
• Full name: Uthman ibn Affan
• Assassinated: June 17, 656 AD, Medina, Saudi Arabia (aged 73)
• Caliphate: 11 November 644 - 17 July 656 (12 years)
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 17
Ali ibn Abi Talib – 4th Caliph
• Ali ibn Abi Talib was a cousin and son-in-law of the Islamic prophet
Muhammad, who ruled as the fourth caliph from 656 to 661. He is
one of the central figures in Shia Islam and is regarded as the rightful
immediate
• Born: September 13, 601 AD, Kaaba, Mecca, Saudi Arabia
• Assassinated: January 29, 661 AD, Grand Mosque of Kufa, Kufa, Iraq
(Aged 60)
• Caliphate: 17 July 656 - January 28, 661 (5 years)
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 18
3.2:Islamic Management Scholars
Islamic Great Scholars:
• Abu Yusuf,
• Al-Farabi,
• Al-Mawardi,
• Al-Ghazali,
• Ibn Taimiyah and
• Ibn Khaldun
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 19
3.3 : Fundamental of Islamic Management
Islamic management means conducting activities depending upon
the guidance of Allah (SWT) and following His prophet. (Mohiuddin,
2012).
Everything in Islam is ultimately focused on the akhirah-aspect (the
hereafter) without being unmindful of the duniya-aspect (worldly).
The ultimate aim of Islamic management system is to gain the
pleasure of Allah by executing all of the duties prescribed by Him.
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 20
Cont..
The main basic of Islamic management according to Aqidah, Syariah,
and Akhlak
Tawhidic (Aqidah/Iman) approach as the “mother” of Islamic
management.
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 21
3.4: Philosophy, Operation,and
Implementation of al-Hisbah
Philosophy of al-Hisbah
HISBAH is one of the main components in the implementation of
Islamic management.
Hisbah was first practiced during the time of the Prophet SAW and
his companions until the end of the Ottoman Empire around 680-
1342 Hijrah or 1281-1924
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 22
Cont..
Hisbah was created to uphold the process of monitoring, which includes
monitoring of individuals, organizations and society.
Monitoring body aimed at achieving the objectives of al-amr bi al-ma`ruf
wa al-nahy `an al-munkar. Aim is to care for the welfare of the society
Example of hisbah during the time of Prophet Muhamamd SAW:
Maksud: Bahawa Rasulullah SAW pada suatu ketika telah berjalan melalui
satu longgokan makanan (di pasar), lalu baginda Rasulullah SAW telah
memasukkan tangannya ke dalam longgokan tersebut, jari Baginda SAW
tersentuh sesuatu yang basah lantas Rasulullah SAW bertanya kepada
penjual itu: “Apakah semua ini?” Jawab penjual tersebut: Makanan ini
terkena hujan. Nabi Muhammad SAW bersabda: “Kenapa engkau tidak
meletakkannya di atas supaya dapat dilihat oleh orang ramai, baginda
SAW menyambung lagi: Sesiapa yang menipu maka dia bukan dari
kalangan kami.”
 Hisbah to monitor malpractice like above
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 23
Cont.
Besides that, there are academicians that give a definition of Hisbah
in the current context by looking at Hisbah as an institution.
For example, Muhamad Abdul Qadir al-Mubarak stated that Hisbah is
a monitoring body formed by the government to monitor the
activities of individuals related to morality, religion and economy
(the general social life) with the intention to maintain justice and
honor as mentioned by the Islamic syariat and in accordance with
the current situation and time
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 24
Cont..
What is HISBAH?
Linguistic : Hisbah originated from the word ‘ihtisab’, which means
retribution from Allah SWT or seeking wages AND ‘Hisbah’ originated
from the word ‘husban’, which means calculation.
Syarak perspective: Hisbah is a comprehensive expression that invites
one to do good and abstain from misdeeds(al-Ghazali, Ibn Taimiyyah,
al-Shihawi, al-Mawardi, Ibn Khaldun
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 25
Operation and Implementation of al-Hisbah
A more specific aim of the Hisbah institution would be to form a
society that is of high morals and capable of abstaining from
misdeeds.
Every act of carelessness in carrying out the task of monitoring
matters pertaining to misdeeds is not welcomed and is completely
disliked in the teachings of Islam
Hisbah is an institution that is complete from the implementation of
justice and legislation aspect, considering the role of the institution is
to monitor all forms of malpractices that exist.
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 26
The Position of Hisbah in the Islamic Management
system
Islamic Management System
MANAGEMEENT PROCESS
Planning
Organizing Leading
Controlling
al-Hisbah
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin
27
3.5: Tawhidi Management Method
The term “tawhid‟ in Arabic defined as unity of God, „Oneness of
God .
 Kalima shahada
Tawhid increased the spirit of relationship between Allah and human
beings, human beings and human beings, and human beings with
other creatures, based on two core values - trust (amanah) and
justice (adl).
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 28
Cont..
• The main reason for worship (‘ibadat) to be performed with trust and
justice is to be consistent with the job description of vicegerent
(khalifa) as stated in Sura al Baqarah 2:
“Note the occasion, when our Rabb [Lord] said to the angels: I am going
to place a vicegerent on earth. They said: “Will You place there one who
will make mischief and shed blood while we sing Your praises and
glorify Your name? Allah said: “I know what you know not.” (Sura al
Baqarah 2:30)
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 29
Tawhidi Paradigm and Management
Transformation of Islamic management systems by integrated the
managerial function (POLC) with both the hereafter (al-Akhirah) and
the world (Al-Duniya) requirements.
Promotion of goodness (‘amr bil ma’aruf) and the prevention of evil
(nahi ‘Anil munkar).
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 30
Tawhidic paradigm reflects true submission to Allah and absolute
devotion to His commandments. As a consequence of the
recognition of kalimah shahaada, man has to recommence two:
which are the servant and vicegerent of Allah. The roles must be
executed trust, justice, promoting goodness, and preventing evil .
which mean:
The concept of Tawhid guides a manager to be able to perform his
obligations along with his subordinates and to be a good leader so
that the subordinates may strive to serve their best together in their
works
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 31
Tawhidi Paradigm and Managerial Function
(POLC)
Managerial Function (POLC) Islamic Management
PLANNING
P applies Tawhidi values of
setting goals, strategies and decision
ORGANIZING
O applies Tawhidi value via iman,
‘amal and fahm in assigning tasks
and arranging resources
LEADING
L applies iman and ‘ibadah in
influencing and motivating people
CONTROLLING
C applies thrust (al-amanah) and
justice (al-‘adl)
Servant and
Vicegerent of Allah :
1) Trust
2) Justice,
3)Promoting
goodness and
preventing evil
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 32
Cont..
1) Planning and Tawhid
Tawhidi paradigm (TP)= purpose of doing things that is solely for
Allah; to secure His Pleasure
 Planning = the process to formulate goals for future performance
together with the resources required.
HOW TO ADOPT TAWHIDI IN PLANNING PROCESS?
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 33
Cont..
With Tawhidi approach,
-at the beginning of the managerial task, the managers should be
conscious that the top priority is to worship Allah at all times. The
managers need to translate awareness into plans and action as below:
How to relate planning with the task to worship Allah?
To worship Allah means to execute all the Commandments of Allah
through planning activities. The core task of servant and vicegerent of
Allah is to obey and disseminate Allah‟s Commandments in the tasks
at hand.
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 34
Cont..
2) Organizing and Tawhid
Organizing = the arrangement of tasks, responsibilities,
accountability, and resources allocation to enable the organization to
execute activities that attaining the goals.
HOW TO ADOPT TAWHIDIC IN ORGANIZING PROCESS?
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 35
Cont…
With Tawhidi approach,
= In organizing tasks for fellow men and women, the managers in
particular must be consistent with total submission to the Will of Allah.
Faith or iman is very vital in engaging in any activity under the Tawhidi
paradigm. The spirit of worship integrates into all of these activities.
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 36
Cont..
3) Leading and Tawhid
Leading = about the use of influence on employees so that they are
motivated, willing and ready to perform the tasks assigned to them.
HOW TO ADOPT TAWHIDIC IN LEADING PROCESS?
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 37
Cont…
With Tawhidi approach,
= Work is ‘ibadah (an act of worship). Drawing motivation from one’s
faith, and maintaining its connection with work and the work place are
inseparable. The basic principles of faith, and man’s mission and nature
suggest what constitutes his motivation anywhere.
Man’s vicegerency is a serious task that requires them to work with
fellow mankind as vicegerent without forgetting the vital duty also as
servant of Allah
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 38
Cont..
4) Controlling and Tawhid
Controlling= monitoring employees and resources so that they are on
the right track to achieve the goals of the organization.
HOW TO ADOPT TAWHIDIC IN LEADING PROCESS?
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 39
Cont..
With Tawhidi approach,
=In Islam, controlling function of management is related to the execution of
trust (al amanah), in comparing the goals (expected outcomes) with the
actual outcomes for the sake of doing necessary corrective actions. Trust (al
amanah) is very essential value in Islam.
The duty of servant of Allah task is not separate from the duty as
vicegerent of Allah, and that every deed, decision and action must be
executed within the conditions of the trust as servant and vicegerent of
Allah, as the ultimate aim is to worship Allah. The entire life system of man
must be in accordance with the aim to worship Allah („ibadah).
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 40
3.6: Management Method with Syura
Shura is an Arabic word which exactly means „consultation‟.
 Al-Mawardi has written that members of the majlis should satisfy
three conditions:
1. they must be just;
2. have enough knowledge to distinguish a good caliph from a bad one and
3. have sufficient wisdom and judgement to select the best caliph.
Al-Mawardi also said that in emergencies when there is no caliphate
and no majlis, the people themselves should create a majlis and
select a list of candidates for caliph; then the majlis should select a
caliph from the list of candidates.
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 41
Cont..
• Some Islamist interpretations of the role of the Majlis al-Shura are the following:
In an analysis of the shura chapter of the Qur'an, Islamist author Sayyid Qutb
argues that Islam only requires the ruler to consult with some of the
representatives of the ruled and govern within the context of the Sharia.
• Taqiuddin al-Nabhani, the founder of a transnational political movement devoted
to the revival of the Caliphate, writes that although the Shura is an important part
of "the ruling structure" of the Islamic caliphate, "(it is) not one of its pillars",
meaning that its neglect would not make a Caliph's rule un-Islamic such as to
justify a rebellion.
• However, the Muslim Brotherhood, the largest Islamic movement in Egypt, has
toned down these Islamist views by accepting in principle that in the modern age
the Majlis al-Shura is democracy but during its governance of Egypt in 2013, the
Muslim Brotherhood did not put that principle into practice.
BIMS1043 Principle of Management in Islam-Dr Mohd Adib
Abd Muin
42
Conclusion
The concept of management has been around for thousands of years.
Theory and development based on the western perspective is
acceptable if there is no against of Syarak.
We as a Muslim need to follow the Islamic Management based on
sirah nabawiyah (refer to Prophet Muhammad SAW) and khulafa Ar-
rasyidin (Abu Bakar, Umar, Uthman and Ali) System.
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 43
BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 44

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History of Management Evolution

  • 1. CHAPTER 3: MANAGEMENT THEORY AND DEVELOPMENT By: Dr. Mohd Adib Abd Muin, IFP, CQIF (Wealth Management) Islamic Business School (IBS), UUM mohdadib@uum.edu.my 1
  • 2. Outline.. • History of Management • Management from Islamic Perspective • Islamic Great scholar in Management BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 2
  • 3. 3.1: The History of Management The concept of management has been around for thousands of years. Socrates, around 400 BC, stated that management was a competency distinctly separate from possessing technical skills and knowledge (Higgins, 1991). The Romans, famous for their legions of warriors led by Centurions, provided accountability through the hierarchy of authority. BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 3
  • 4. Cont…  The Industrial Revolution, a time from the late 1700s through the 1800s, was a period of great upheaval and massive change in the way people lived and worked. Before this time, most people made their living farming or working and resided in rural communities.  With the invention of the steam engine, numerous innovations occurred, including the automated movement of coal from underground mines, powering factories that now mass-produced goods previously made by hand, and railroad locomotives that could move products and materials across nations in a timely and efficient manner. Factories needed workers who, in turn, required direction and organization.  As these facilities became more substantial and productive, the need for managing and coordination became an essential factor. Think of Henry Ford, the man who developed a moving assembly line to produce his automobiles. In the early 1900s, cars were put together by craftsmen who would modify components to fit their product.  With the advent of standardized parts in 1908, followed by Ford’s revolutionary assembly line introduced in 1913, the time required to build a Model T fell from days to just a few hours (Klaess, 2020). From a managerial standpoint, skilled craftsmen were no longer necessary to build automobiles.  The use of lower-cost labor and the increased production yielded by moving production lines called for the need to guide and manage these massive operations (Wilson, 2015). To take advantage of new technologies, a different approach to organizational structure and management was required. BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 4
  • 5. Cont.. Socrates defined management as a skill separate from technical knowledge and experience. Plato also recognized management as a separate art and promoted principles of specialization. In The Republic, Plato describes how carefully selected young men should be trained so that they would develop the appropriate personalities and skills necessary to serve as leaders. BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 5
  • 6. The Scientific Era – Measuring Human Capital • With the emergence of new technologies came demands for increased productivity and efficiency. The desire to understand how to best conduct business centered on the idea of work processes. That is, managers wanted to study how the work was performed and the impact on productivity. The idea was to optimize the way the work was done. • One of the chief architects of measuring human output was Frederick Taylor. Taylor felt that increasing efficiency and reducing costs were the primary objectives of management. Taylor’s theories centered on a formula that calculated the number of units produced in a specific time frame (DiFranceso and Berman, 2000). • Taylor conducted time studies to determine how many units could be produced by a worker in so many minutes. He used a stopwatch, weight measurement scale, and tape measure to compute how far materials moved and how many steps workers undertook in the completion of their tasks (Wren and Bedeian, 2009). • Beyond Taylor, other management theorists including Frank and Lilian Gilbreth, Harrington Emerson, and others expanded the concept of management reasoning with the goal of efficiency and consistency, all in the name of optimizing output. It made little difference whether the organization manufactured automobiles, mined coal, or made steel, the most efficient use of labor to maximize productivity was the goal. BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 6
  • 7. Cont.. • The necessity to manage not just worker output but to link the entire organization toward a common objective began to emerge. Management, out of necessity, had to organize multiple complex processes for increasingly large industries. • Henri Fayol, a Frenchman, is credited with developing the management concepts of planning, organizing, coordination, command, and control (Fayol, 1949), which were the precursors of today’s four basic management principles of planning, organizing, leading, and controlling. BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 7
  • 8. Employees and the Organization • With the increased demand for production brought about by scientific measurement, conflict between labor and management was inevitable. The personnel department, forerunner of today’s human resources department, emerged as a method to slow down the demand for unions, initiate training programs to reduce employee turnover, and to acknowledge workers’ needs beyond the factory floor. • The idea that to increase productivity, management should factor the needs of their employees by developing work that was interesting and rewarding burst on the scene (Nixon, 2003) and began to be part of management thinking. Numerous management theorists were starting to consider the human factor. • Two giants credited with moving management thought in the direction of understanding worker needs were Douglas McGregor and Frederick Herzberg. McGregor’s Theory X factor was management’s assumption that workers disliked work, were lazy, lacked self-motivation, and therefore had to be persuaded by threats, punishment, or intimidation to exert the appropriate effort. • His Theory Y factor was the opposite. McGregor felt that it was management’s job to develop work that gave the employees a feeling of self-actualization and worth. He argued that with more enlightened management practices, including providing clear goals to the employees and giving them the freedom to achieve those goals, the organization’s objectives and those of the employees could simultaneously be achieved (Koplelman, Prottas, & Davis, 2008). BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 8
  • 9. Cont.. • Frederick Herzberg added considerably to management thinking on employee behavior with his theory of worker motivation. Herzberg contended that most management driven motivational efforts, including increased wages, better benefits, and more vacation time, ultimately failed because while they may reduce certain factors of job dissatisfaction (the things workers disliked about their jobs), they did not increase job satisfaction. Herzberg felt that these were two distinctly different management problems. Job satisfaction flowed from a sense of achievement, the work itself, a feeling of accomplishment, a chance for growth, and additional responsibility (Herzberg, 1968). One enduring outcome of Herzberg’s work was the idea that management could have a positive influence on employee job satisfaction, which, in turn, helped to achieve the organization’s goals and objectives. • The concept behind McGregor, Herzberg, and a host of other management theorists was to achieve managerial effectiveness by utilizing people more effectively. Previous management theories regarding employee motivation (thought to be directly correlated to increased productivity) emphasized control, specialized jobs, and gave little thought to employees’ intrinsic needs. Insights that considered the human factor by utilizing theories from psychology now became part of management thinking. Organizational changes suggested by management thinkers who saw a direct connection between improved work design, self-actualization, and challenging work began to take hold in more enlightened management theory. BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 9
  • 10. Cont.. • Management theories continued to evolve with additional concepts being put forth by other innovative thinkers. Henry Mintzberg is remembered for blowing holes in the idea that managers were iconic individuals lounging in their offices, sitting back and contemplating big-picture ideas. Mintzberg observed that management was hard work. Managers were on the move attending meetings, managing crises, and interacting with internal and external contacts. Further, depending on the exact nature of their role, managers fulfilled multiple duties including that of spokesperson, leader, resource allocator, and negotiator (Mintzberg, 1973). In the 1970s, Tom Peters and Robert Waterman traveled the globe exploring the current best management practices of the time. Their book, In Search of Excellence, spelled out what worked in terms of managing organizations. Perhaps the most relevant finding was their assertion that culture counts. They found that the best managed companies had a culture that promoted transparency, openly shared information, and effectively managed communication up and down the organizational hierarchy (Allison, 2014). The well managed companies Peterson and Waterman found were built in large part on the earlier managerial ideas of McGregor and Herzberg. Top-notch organizations succeeded by providing meaningful work and positive affirmation of their employees’ worth. • Others made lasting contributions to modern management thinking. Steven Covey’s The Seven Habits of Highly Successful People, Peter Senge’s The Fifth Discipline, and Jim Collins and Jerry Porras’s Built to Last are among a pantheon of bestselling books on management principles. Among the iconic thinkers of this era was Michael Porter. Porter, a professor at the Harvard Business School, is widely credited with taking the concept of strategic reasoning to another level. Porter tackled the question of how organizations could effectively compete and achieve a long-term competitive advantage. • He contended that there were just three ways a firm could gain such advantage: 1) a cost-based leadership – become the lowest cost producer, 2) valued-added leadership – offer a differentiated product or service for which a customer is willing to pay a premium price, and 3) focus – compete in a niche market with laser-like fixation (Dess & Davis, 1984). Name a company that fits these profiles: How about Walmart for low-cost leadership. For value-added leadership, many think of Apple. Focus leadership is a bit more challenging. What about Whole Foods before being acquired by Amazon? Porter’s thinking on competition and competitive advantage has become timeless principles of strategic management still used today. Perhaps Porter’s most significant contribution to modern management thinking is the connection between a firm’s choice of strategy and its financial performance. Should an organization fail to select and properly execute one of the three basic strategies, it faces the grave danger of being stuck in the middle – its prices are too high to compete based on price or its products lack features unique enough to entice customers to pay a premium price. Consider the fate of Sears and Roebuck, J.C. Penny, K-Mart, and Radio Shack, organizations that failed to navigate the evolving nature of their businesses. BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 10
  • 11. 3.1.1: Management Movement  Scientific management - Improve productivity and focus individual General administrative management - Examines organizations as total entities and focuses on ways to make them more effective and efficient BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 11
  • 12. Cont.. 1. Scientific Management (improve productivity and focus individual) Watt and Boulton Robert Owen Charles Babbage Henry Varnum Poor Frederick W. Taylor Henry L. Gantt (wage incentive programme) Frank and Lillian Gilbreth BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 12
  • 13. Cont.. 2. General Administrative Management (Total Management Organization) Henri Fayol (introduce “systematic management theory) which is planning, organizing, commanding (leading), coordinating, and controlling. Max Weber Chester I. Barnard Luther Gulick James Mooney BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 13
  • 14. Overview and revolution of Islamic Management • Prophet Muhammad (pbuh) – History (The traditions and the sunnah, the actions of the Prophet (pbuh). • The first Four Caliphs (632-661) • Abu Bakar • Umar • Uthman • Ali • Umayyad Caliphate (661-750) • Abbasid Caliphate (750-1258) • Fathimid Caliphate (909-1171) • Ayyubi Caliphate (1171 – 1260) • Mamluk Sultanate (1261-1517) • Ottoman Caliphate (1517-1924) --- Abolition of the caliphate by Mustafa Kamal Ataturk in Turki. • https://en.wikipedia.org/wiki/Caliphate • https://en.wikipedia.org/wiki/List_of_caliphs BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 14
  • 15. Abu Bakr (Abu Bakar as-Siddiq) – 1st Caliph • Abu Bakr Abdullah ibn Uthman was a companion and, through his daughter Aisha, a father-in-law of the Islamic prophet Muhammad, as well as the first of the Rashidun Caliphs. • Born: October 27, 573 AD, Mecca, Saudi Arabia • Died: August 23, 634 AD, Medina, Saudi Arabia (Aged 61) • Full name: Abū Bakr aṣ-Ṣiddīq ‘Abdallāh bin Abī Quḥāfah • Caliphate: 8 June 632 – 23 August 634 (2 years) BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 15
  • 16. Omar (Umar Al-Khattab)- 2nd Caliph • Omar, was one of the most powerful and influential Muslim caliphs in history. He was a senior companion of the Islamic prophet Muhammad. He succeeded Abu Bakr as the second caliph of the Rashidun Caliphate on 23 August 634. • Born: 584 AD, Mecca, Saudi Arabia • Full name: Umar ibn Al-Khattāb • Died: 644 AD, Medina, Saudi Arabia (Aged 60) • Caliphate: 23 August 634 - 3 November 644 (10 year) BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 16
  • 17. Uthman ibn Affan – 3rd Caliph • Uthman ibn Affan, also spelled by the Turkish and Persian rendering Osman, was a son-in-law and notable companion of the Islamic prophet Muhammad, as well as the third of the Rāshidun, or "Rightly Guided Caliphs". • Born: 583, Taif, Saudi Arabia • Full name: Uthman ibn Affan • Assassinated: June 17, 656 AD, Medina, Saudi Arabia (aged 73) • Caliphate: 11 November 644 - 17 July 656 (12 years) BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 17
  • 18. Ali ibn Abi Talib – 4th Caliph • Ali ibn Abi Talib was a cousin and son-in-law of the Islamic prophet Muhammad, who ruled as the fourth caliph from 656 to 661. He is one of the central figures in Shia Islam and is regarded as the rightful immediate • Born: September 13, 601 AD, Kaaba, Mecca, Saudi Arabia • Assassinated: January 29, 661 AD, Grand Mosque of Kufa, Kufa, Iraq (Aged 60) • Caliphate: 17 July 656 - January 28, 661 (5 years) BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 18
  • 19. 3.2:Islamic Management Scholars Islamic Great Scholars: • Abu Yusuf, • Al-Farabi, • Al-Mawardi, • Al-Ghazali, • Ibn Taimiyah and • Ibn Khaldun BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 19
  • 20. 3.3 : Fundamental of Islamic Management Islamic management means conducting activities depending upon the guidance of Allah (SWT) and following His prophet. (Mohiuddin, 2012). Everything in Islam is ultimately focused on the akhirah-aspect (the hereafter) without being unmindful of the duniya-aspect (worldly). The ultimate aim of Islamic management system is to gain the pleasure of Allah by executing all of the duties prescribed by Him. BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 20
  • 21. Cont.. The main basic of Islamic management according to Aqidah, Syariah, and Akhlak Tawhidic (Aqidah/Iman) approach as the “mother” of Islamic management. BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 21
  • 22. 3.4: Philosophy, Operation,and Implementation of al-Hisbah Philosophy of al-Hisbah HISBAH is one of the main components in the implementation of Islamic management. Hisbah was first practiced during the time of the Prophet SAW and his companions until the end of the Ottoman Empire around 680- 1342 Hijrah or 1281-1924 BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 22
  • 23. Cont.. Hisbah was created to uphold the process of monitoring, which includes monitoring of individuals, organizations and society. Monitoring body aimed at achieving the objectives of al-amr bi al-ma`ruf wa al-nahy `an al-munkar. Aim is to care for the welfare of the society Example of hisbah during the time of Prophet Muhamamd SAW: Maksud: Bahawa Rasulullah SAW pada suatu ketika telah berjalan melalui satu longgokan makanan (di pasar), lalu baginda Rasulullah SAW telah memasukkan tangannya ke dalam longgokan tersebut, jari Baginda SAW tersentuh sesuatu yang basah lantas Rasulullah SAW bertanya kepada penjual itu: “Apakah semua ini?” Jawab penjual tersebut: Makanan ini terkena hujan. Nabi Muhammad SAW bersabda: “Kenapa engkau tidak meletakkannya di atas supaya dapat dilihat oleh orang ramai, baginda SAW menyambung lagi: Sesiapa yang menipu maka dia bukan dari kalangan kami.”  Hisbah to monitor malpractice like above BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 23
  • 24. Cont. Besides that, there are academicians that give a definition of Hisbah in the current context by looking at Hisbah as an institution. For example, Muhamad Abdul Qadir al-Mubarak stated that Hisbah is a monitoring body formed by the government to monitor the activities of individuals related to morality, religion and economy (the general social life) with the intention to maintain justice and honor as mentioned by the Islamic syariat and in accordance with the current situation and time BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 24
  • 25. Cont.. What is HISBAH? Linguistic : Hisbah originated from the word ‘ihtisab’, which means retribution from Allah SWT or seeking wages AND ‘Hisbah’ originated from the word ‘husban’, which means calculation. Syarak perspective: Hisbah is a comprehensive expression that invites one to do good and abstain from misdeeds(al-Ghazali, Ibn Taimiyyah, al-Shihawi, al-Mawardi, Ibn Khaldun BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 25
  • 26. Operation and Implementation of al-Hisbah A more specific aim of the Hisbah institution would be to form a society that is of high morals and capable of abstaining from misdeeds. Every act of carelessness in carrying out the task of monitoring matters pertaining to misdeeds is not welcomed and is completely disliked in the teachings of Islam Hisbah is an institution that is complete from the implementation of justice and legislation aspect, considering the role of the institution is to monitor all forms of malpractices that exist. BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 26
  • 27. The Position of Hisbah in the Islamic Management system Islamic Management System MANAGEMEENT PROCESS Planning Organizing Leading Controlling al-Hisbah BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 27
  • 28. 3.5: Tawhidi Management Method The term “tawhid‟ in Arabic defined as unity of God, „Oneness of God .  Kalima shahada Tawhid increased the spirit of relationship between Allah and human beings, human beings and human beings, and human beings with other creatures, based on two core values - trust (amanah) and justice (adl). BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 28
  • 29. Cont.. • The main reason for worship (‘ibadat) to be performed with trust and justice is to be consistent with the job description of vicegerent (khalifa) as stated in Sura al Baqarah 2: “Note the occasion, when our Rabb [Lord] said to the angels: I am going to place a vicegerent on earth. They said: “Will You place there one who will make mischief and shed blood while we sing Your praises and glorify Your name? Allah said: “I know what you know not.” (Sura al Baqarah 2:30) BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 29
  • 30. Tawhidi Paradigm and Management Transformation of Islamic management systems by integrated the managerial function (POLC) with both the hereafter (al-Akhirah) and the world (Al-Duniya) requirements. Promotion of goodness (‘amr bil ma’aruf) and the prevention of evil (nahi ‘Anil munkar). BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 30
  • 31. Tawhidic paradigm reflects true submission to Allah and absolute devotion to His commandments. As a consequence of the recognition of kalimah shahaada, man has to recommence two: which are the servant and vicegerent of Allah. The roles must be executed trust, justice, promoting goodness, and preventing evil . which mean: The concept of Tawhid guides a manager to be able to perform his obligations along with his subordinates and to be a good leader so that the subordinates may strive to serve their best together in their works BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 31
  • 32. Tawhidi Paradigm and Managerial Function (POLC) Managerial Function (POLC) Islamic Management PLANNING P applies Tawhidi values of setting goals, strategies and decision ORGANIZING O applies Tawhidi value via iman, ‘amal and fahm in assigning tasks and arranging resources LEADING L applies iman and ‘ibadah in influencing and motivating people CONTROLLING C applies thrust (al-amanah) and justice (al-‘adl) Servant and Vicegerent of Allah : 1) Trust 2) Justice, 3)Promoting goodness and preventing evil BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 32
  • 33. Cont.. 1) Planning and Tawhid Tawhidi paradigm (TP)= purpose of doing things that is solely for Allah; to secure His Pleasure  Planning = the process to formulate goals for future performance together with the resources required. HOW TO ADOPT TAWHIDI IN PLANNING PROCESS? BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 33
  • 34. Cont.. With Tawhidi approach, -at the beginning of the managerial task, the managers should be conscious that the top priority is to worship Allah at all times. The managers need to translate awareness into plans and action as below: How to relate planning with the task to worship Allah? To worship Allah means to execute all the Commandments of Allah through planning activities. The core task of servant and vicegerent of Allah is to obey and disseminate Allah‟s Commandments in the tasks at hand. BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 34
  • 35. Cont.. 2) Organizing and Tawhid Organizing = the arrangement of tasks, responsibilities, accountability, and resources allocation to enable the organization to execute activities that attaining the goals. HOW TO ADOPT TAWHIDIC IN ORGANIZING PROCESS? BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 35
  • 36. Cont… With Tawhidi approach, = In organizing tasks for fellow men and women, the managers in particular must be consistent with total submission to the Will of Allah. Faith or iman is very vital in engaging in any activity under the Tawhidi paradigm. The spirit of worship integrates into all of these activities. BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 36
  • 37. Cont.. 3) Leading and Tawhid Leading = about the use of influence on employees so that they are motivated, willing and ready to perform the tasks assigned to them. HOW TO ADOPT TAWHIDIC IN LEADING PROCESS? BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 37
  • 38. Cont… With Tawhidi approach, = Work is ‘ibadah (an act of worship). Drawing motivation from one’s faith, and maintaining its connection with work and the work place are inseparable. The basic principles of faith, and man’s mission and nature suggest what constitutes his motivation anywhere. Man’s vicegerency is a serious task that requires them to work with fellow mankind as vicegerent without forgetting the vital duty also as servant of Allah BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 38
  • 39. Cont.. 4) Controlling and Tawhid Controlling= monitoring employees and resources so that they are on the right track to achieve the goals of the organization. HOW TO ADOPT TAWHIDIC IN LEADING PROCESS? BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 39
  • 40. Cont.. With Tawhidi approach, =In Islam, controlling function of management is related to the execution of trust (al amanah), in comparing the goals (expected outcomes) with the actual outcomes for the sake of doing necessary corrective actions. Trust (al amanah) is very essential value in Islam. The duty of servant of Allah task is not separate from the duty as vicegerent of Allah, and that every deed, decision and action must be executed within the conditions of the trust as servant and vicegerent of Allah, as the ultimate aim is to worship Allah. The entire life system of man must be in accordance with the aim to worship Allah („ibadah). BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 40
  • 41. 3.6: Management Method with Syura Shura is an Arabic word which exactly means „consultation‟.  Al-Mawardi has written that members of the majlis should satisfy three conditions: 1. they must be just; 2. have enough knowledge to distinguish a good caliph from a bad one and 3. have sufficient wisdom and judgement to select the best caliph. Al-Mawardi also said that in emergencies when there is no caliphate and no majlis, the people themselves should create a majlis and select a list of candidates for caliph; then the majlis should select a caliph from the list of candidates. BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 41
  • 42. Cont.. • Some Islamist interpretations of the role of the Majlis al-Shura are the following: In an analysis of the shura chapter of the Qur'an, Islamist author Sayyid Qutb argues that Islam only requires the ruler to consult with some of the representatives of the ruled and govern within the context of the Sharia. • Taqiuddin al-Nabhani, the founder of a transnational political movement devoted to the revival of the Caliphate, writes that although the Shura is an important part of "the ruling structure" of the Islamic caliphate, "(it is) not one of its pillars", meaning that its neglect would not make a Caliph's rule un-Islamic such as to justify a rebellion. • However, the Muslim Brotherhood, the largest Islamic movement in Egypt, has toned down these Islamist views by accepting in principle that in the modern age the Majlis al-Shura is democracy but during its governance of Egypt in 2013, the Muslim Brotherhood did not put that principle into practice. BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 42
  • 43. Conclusion The concept of management has been around for thousands of years. Theory and development based on the western perspective is acceptable if there is no against of Syarak. We as a Muslim need to follow the Islamic Management based on sirah nabawiyah (refer to Prophet Muhammad SAW) and khulafa Ar- rasyidin (Abu Bakar, Umar, Uthman and Ali) System. BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 43
  • 44. BIMS1043 Principle of Management in Islam-Dr Mohd Adib Abd Muin 44