Management from islamic perspective

1. Chapter-01
INTRODUCTION

2. Management from Islamic
Perspective

3. 3
INTRODUCTION 1/2
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.
Khaliq Ahmad, IIUM

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INTRODUCTION 2 /2
• The primary revealed knowledge source is the
Holy Quran.
• This basic source is elaborated through the Ahadith - the
traditions and the Sunnah, the actions of the Prophet (SAW).
• There are Islamic scholars who treat Fiqh, the science of
Islamic jurisprudence, as a source of revealed knowledge
too.
• Other sources are the reported sayings and actions of the
first four Caliphs (RAA); instances from Islamic history,
studies in public administration and Islamic management,
studies in Islamic social sciences, studies in Islamic culture,
writings of leading Muslim scholars, and the writings of
leading but authentic non-Muslim scholars.
Khaliq Ahmad, IIUM

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Purpose 1/4
The purpose is to see whether management application is universal. The thesis of
this paper
is that there are contrasts in management practices across the cultures.
1. Islamic management
– No demarcation between the secular and the religious; human life is an
organic whole; All human activity can be Ibadah provided they are
guided by Allah’s commandments. (Islamic Belief System)
2. Conventional management
• Clear demarcation between the secular and the religious; human activities
are separated; spiritual or religious aspect is a private matter of individuals
while work is in public domain. (Non-Islamic in Approach)
Implication (s)
• Thus purpose of human existence is to obey and fulfill Allah’s
commandments and act as the vice-regent of Allah on earth. (Seeking
Pleasure of Allah- Al-Deen)
• Purpose of human existence is to utilize natural resources to satisfy one’s
needs, wants and desires and to remain happy.
(Seeking Sensual Pleasure- Al-Dunya)
Khaliq Ahmad, IIUM

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Purpose 2/4
2. Islamic management
• Organizational objectives are both economic and non-economic and
are subservient to larger purpose of human existence. (Maqasid
Shariah)
2. Conventional management
Organizational objectives are both economic and non-economic in
nature and are subservient to organizational interests.
(Loyalty to Boss)
Implication (s)
• Organizations are meant to be groups of people coming together for
attaining the purpose of human existence. (Human welfare as
motivational drive)
• Organizations are meant to be groups of people coming together to
attain the organizational goals. (Profit maximization as source of
motivation)
Khaliq Ahmad, IIUM

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Purpose 3/4
3. Islamic management
• The revealed knowledge and the traditions of the Prophet (SAW)
constitute the ultimate source of business ethics and personal values.
(Prophet: The Source of Hidayah)
3. Conventional management
• Ethics is relative and values are derived from multiple sources such as
upbringing, society, and experiences. Ethics could be relative as in
utilitarian theory. (End Justifies the Means)
Implication (s)
• Human being has choice, free will and freedom of action therefore is
responsible and accountable for all actions.
(No Compulsion in Deen/Accountability in Life-hereafter)
• Responsibility and accountability vested in the chief executive who
delegates it. Employees controlled through organizational systems to
ensure responsibility and accountability.
(Accountable only to Boss)
Khaliq Ahmad, IIUM

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Purpose 4/4
4. Islamic management
• Organizational control has to operate in a way designed to make the human
being subservient to the will of Allah.
(Comprehensiveness of Islam and the Shariah)
4. Conventional management
• Organizational control has to operate in a way designed to align human
objectives with the organizational objectives.
(Cascading of Objectives)
Implication (s)
• The locus of control is internal. Each person is responsible and accountable
for his actions. (Shariah compliance)
• The locus of control is external and lies in the realm of the organization.
(Market Driven)
Khaliq Ahmad, IIUM

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Islamic Worldview vis-à-vis Management Vision
1/2
The above discussion on Islamic worldview paves the way for an
attempt to define a management vision relevant to contemporary
societies of organizations.
• Setting a management vision plays a pivotal role for a practitioner in
today’s corporate world.
• Mutual rivalries in competitive corporate world today make more harm
than good to the society.
• 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 (vision) 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 competition and competitiveness
become evil.
Khaliq Ahmad, IIUM

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Islamic Worldview vis-à-vis Management Vision
2/2
• A Quranic verse on rivalry [102.1] says, "The mutual rivalry for
piling up (the things of this world) diverts you (from the more serious
things)".
• Heard Ibn Az-Zubair who was on the pulpit at Mecca, delivering a
sermon, saying, "O men! The Prophet used to say, "If the son of Adam
were given a valley full of gold, he would love to have a second one;
and if he was given the second one, he would love to have a third, for
nothing fills the belly of Adam's son except dust. And Allah forgives he
who repents to Him.“(Sahih Bukhari Volume 8, Book 76, Number
446).
Islam offers an alternative to all these unhealthy management practices
to achieve a management vision as follows.
Khaliq Ahmad, IIUM

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Maximizing Profit or Seeking
Rizq Enlargement for Falah 1/3
Successful management is measured in terms of realizing corporate vision. The term
success
can be found in the Arabic language in the form of the three words:
'Fawz', 'Najah', and 'Falah.
Fawz/Najah:
The word 'Najah' is however never mentioned in the Qur 'an. Instead, the words 'Fawz‘
and 'Falah' can be found. The difference between 'Najah' and the two other words is vast.
The word 'Najah' means success and with the interpretation of getting what one desires.
The word is not given any ethical dimension. It is simply a neutral description of a state
of affairs, but the verb, 'Najaha', on the other hand does not imply continuity.
Falah:
The word 'Falah', in contrast, is a very complex and rich word and its meaning stretches
beyond what one may understand, as success. It has been given the meaning of
everlasting prosperity and blessing.
Khaliq Ahmad, IIUM

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Maximizing Profit or Seeking
Rizq Enlargement for Falah 2/3
Further, the root of the word, 'Falah' has another meaning, to cultivate land. And the
word according to Khalifa (2001), exist in four dimensions:
1. a dynamic dimension (strive to thrive),
2. a universal dimension (to attain 'Falah', implying that the endeavors of one’s
entire life is considered), further,
3. an ethical dimension (to be righteous, in intentions and deeds, to be blessed); and
lastly
4. a continuity dimension (the fruits of 'Falah' is enjoyed both in the worldly life and
most importantly, in the Hereafter).
A difference between the two words 'Fawz' and 'Falah', as follows:
‘Falah' is that the term has been given a more dynamic connotation associated with
action in the Qur’an.
'Fawz', on the other hand, is mostly associated with reward, describing ('Jannah'), as the
supreme triumph. Following this, 'Falah' is more linked to endeavor and striving,
while 'Fawz' is linked to reward.
Khaliq Ahmad, IIUM

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Maximizing Profit or Seeking
Rizq Enlargement for Falah 3/3
Rizq:
The Arabic word ''Rizq' means whatever is of beneficial use. It also means bestowal
of something by Allah.. Kahf (1978, p. 23) states that: "In Yusuf'Ali's translation of
the Qur 'an, 'Rizq' is used to denote the following meanings: "Godly sustenance,"
"Divine bestowal," "Godly provision," and "Heavenly gifts". All these meanings
convey the connection to Allah as the true Sustainer of and Provider for all His
creatures.“
• "Do ye not see that God has subjected to your (use) all things in the heavens and on earth, and has
made His bounties flow to you in exceeding measure, (both) seen and unseen? Yet there are among
men those who dispute about God, without knowledge and without guidance, and without a Book
to enlighten them!" (Qur’an 31:20).
Secondly, the word 'Rizq' is not the same as 'Kasb The meaning of the latter refers to what one
earns, while in the terms former, the meaning refers to what one uses or spends. To the Muslims
the concept of 'Rizq' should be inseparable from the concept of "Falah". The word 'Rizq' always
ought to be perceived within 'Falah'. This can be understood from the following 'Ayaf in the
Noble Qur 'an:
Khaliq Ahmad, IIUM

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CONCLUSION & SUGESSTIONS
• The above 'Ayats' and 'Hadiths' reveal all what is essential
to say in regards to the Arabic words 'Rizq' and 'Falah' and
their relation to each other. Therefore Muslim managers,
unlike their counterparts, who advocate conventional
management loaded with secular and western value
system, must avoid it. Rather they must strive for Falah
through Rizq procurement as their vision of management
from an Islamic perspective.
Khaliq Ahmad, IIUM

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CONCLUSION & SUGESSTIONS
• Muslims should abandon the term
rationality, in its secular sense, and instead
adopt the notion of
'Hikmah’, which simply means seeking
'Falah?.
• From this, a logical consequence would be
that merely profit maximization, the
offspring of purely rationality, must be
abandoned.
Khaliq Ahmad, IIUM

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To address the above issues….
A better alternative to profit maximization, would be
'Rizq Enlargement' and ‘Falah’, which implies more
than mere materialistic gain, as to enlarge 'Rizq' is not
only through merely hard work, knowledge of seeking
exploitative skills as well as competence, and the like
but also through 'Taqwa’and 'Twakkul while being
mindful to seeking Allah’s pleasure.
Khaliq Ahmad, IIUM