Chapter 4: Planning in Islam

CHAPTER 4: PLANNING IN ISLAM
By: Dr. Mohd Adib Abd Muin, IFP, CQIF (Wealth Management)
Islamic Business School (IBS), UUM
mohdadib@uum.edu.my
BIMS1043 Principle of Management in Islam by Dr. Mohd Adib 1

How can you relate this movie with Planning?
Prison Break

Outline
4.1 Definition about planning.
4.2 How and Why planning?
4.3 Evidence from primary sources.
4.4 Types of Planning
4.5 The important and benefit of planning.
4.6 Conclusion

• Planning is the first function of management. Planning performs the
functions of decision-making and problem-solving. In other words,
planning involves the selection of business objectives and deciding
the future course of action for achieving organizational goals.
• Therefore, planning is a process of determining objectives,
discovering alternative courses of action, and choosing suitable
methods for achieving desired objectives. Planning provides a rational
approach to managerial activities. It brings orderliness, efficiency, and
stability in managerial actions and decisions.

“If you fail to plan, you are planning to fail”.
Planning is the process of deciding the objectives to be achieved and
selecting the ways and means of achieving the pre-decided objectives.
We can say that it is a process of decision-making regarding what to do,
how to do, when to do and who is to do. Even it precedes all managerial
functions, but it is closely related to controlling. Planning is required for
all organizations and also for every level of organisation. Therefore,
Planning is prerequisite of effective management.

4.1 PLANNING
General Definition: Blueprint for goal achievement. Determining the
organization's goals and defining the means/ways to achieving them.
Formal Planning: The objective are written down and available for
public
Informal Planning: Nothing is written down and less or no
communication about this matters with others.

Definition.
• Planning is the process of thinking about the activities required to
achieve a desired goal.
• It is the first and foremost activity to achieve desired results. It
involves the creation and maintenance of a plan, such as
psychological aspects that require conceptual skills.

Cont…
• Planning is the fundamental management function, which involves
deciding beforehand, what is to be done, when is it to be done, how
it is to be done and who is going to do it. It is an intellectual process
which lays down an organisation’s objectives and develops various
courses of action, by which the organisation can achieve those
objectives. It chalks out exactly, how to attain a specific goal.
• Planning is nothing but thinking before the action takes place. It
helps us to take a peep into the future and decide in advance the way
to deal with the situations, which we are going to encounter in future.
It involves logical thinking and rational decision making.

Islamic Planning
• Islam in Al-Qur’an had already had the concept of planning in
the social structure of the people. Planning is not a new thingin
the theologicalconception of Islam. The Qur'an stated explicitly
on Surah Al-Hashr 18 verse
• َّ‫د‬َ‫ق‬‫ا‬َ‫م‬ ُُ ُ‫س‬ّْ‫ف‬َ‫ن‬ ّْ‫ر‬ُ‫ظ‬‫ن‬َ‫ت‬ّْ‫ل‬ َ‫و‬ َ‫هللا‬ ‫ىا‬ُ‫ق‬َّ‫ت‬‫ا‬ ‫ىا‬ُ‫ن‬َ‫م‬‫ا‬َ‫ء‬ َ‫ين‬ِ‫ذ‬َّ‫ال‬ ‫ا‬َ‫ه‬ُ‫ي‬َ‫أ‬‫ا‬َ‫ي‬
ِ‫ب‬ ُُُ‫ير‬ِ‫ب‬َ‫خ‬ َ‫هللا‬ َّ‫ن‬ِ‫إ‬ َ‫هللا‬ ‫ىا‬ُ‫ق‬َّ‫ت‬‫ا‬ َ‫و‬ ٍّ‫َد‬‫غ‬ِ‫ل‬ ّْ‫ت‬َ‫م‬
َّ‫ىن‬ُ‫ل‬َ‫م‬ّْ‫ع‬َّ‫ت‬ ‫ا‬َ‫م‬
• {
18
} O you believer be carefulof (your duty to) Allah, and let every soul
consider what it has sent on for the tomorrow and be careful of (your duty
to) Allah; surely Allah is aware of what you do.

Cont..
• Imam Al-Ghazali comprehended this verse as that human was ordered to improve
themselves in order to increase their faith and let to God Almighty. It should be a
continuous improvement process in the human life whereas the process should be
gradually improved and being better than the previous one or the past.
• In the grammatical meaning of the word “observe” according to Al-Ghazali's faith could be
postulated that human must take notice of any of the acts that they have been working on,
as well as to prepare ( to plan) to always do the best for the sake of the future.
• Shihab in his book of al-Misbah (2010) interpretation has written his interpretation of the
paragraph that talks about the planning. He said that the word "waltandzur ' nafsun ma
qaddamat lighad", has a meaning that human should think of themselves and made the
planning of all what the accompanying deeds during their life, so they will have more
pleasure in this life.
• According to the Hadith, the Prophet said, “a smart person is one who is capable to acts
of charity and tallying up the practice of preparing for tomorrow” (HR. At –Tirmidhi [h5]).
• In Islamic point of view, the comprehensive planning not only includes how to think
strategically (with various tools of thinking), but it is more important in placing the belief or
faith to God Almighty as the one of the most Wanted, Most Grant and Most Knowing the
best for human, while human is obligated to plan as one form of endeavor.

Cont..
• The Holy Qur’an teaches the Muslims to be strategists and planners in their affairs. It shows this in some ways:
through the stories of the prophets, the law of Allah (SWT) in nature, and in praising the people of vision and
foresight.
• An illustration of this can be seen in the story of Prophet Moses (PBUH) and his strategies in approaching the
Pharaoh of Egypt. When Allah commanded Moses to go to Egypt and call the Pharaoh to God, Moses accepted
the order and spelled out his plans as can be seen in Surah Taha, Verses 25-32. The Qur’an states that Moses said:
Oh my Lord! Expand my chest (with faith, knowledge, and affection); ease my task, and remove the impediment
from my speech, so they may understand what I say: and give me a minister of my family, Aaron, my brother; add to
my strength through him, and make him share my task. Qur’an, 20:25-32
• In this example, three major elements to build the plan stand out. In the first instance, Moses prepared himself
for da’wah, the call to God. Crucial to a productive and successful da’wah is the strength of the individual’s
knowledge, wisdom and sincere faith. These faculties together enable the da’ee to face difficulties and prevail
over them. Thus, Moses expressed his willingness to open his heart and mind to receive more profound faith and
wisdom to enable him to accomplish his task successfully.
• The second element in Prophet Moses’ planning was to deal with a problem of communication. The presentation
may have been a speech impediment that Moses (PBUH) had, or it may be the differences of languages and
customs of the tribes of Midianites and the Qubits of Egypt. One must bear in mind that each language has an
associated slang and figures of speech that can only be appreciated by the local people or those who learned
them. In fact, in a different verse, the Qur’an points out that Moses called for his brother Aaron, who never left
Egypt, to be the medium of communication in this mission of da’wah than himself.
• And my brother Aaron, he is more eloquent in speech than I… Qur’an 28:34

Cont…
• Although Moses was raised in Egypt and had spent a long time in Midian (Northwest of the
Arabian Peninsula), he had forgotten the proper and effective communication with its people.
According to A. W. Najjar in the Stories of the Prophets, Page 173, Biblical scholars stated that
Moses was 80 years old when he returned to Egypt. History points out more towards language
differences than a physical impediment to the question of communication. In either case, the
eloquence of speech, in the language of the listeners, is an essential tool of every da’ee, a caller to
God. Moses (PBUH) would not have been able to adequately convey his message without a plan
dealing with this situation.
• The last primary element to be considered in Moses’ plan was the matter of logistics and support:
human elements and tools required to support him in carrying out his mission. For this reason,
Moses’ plan included his brother Aaron as physical and moral support for facing the Pharaoh.
• The above three points in Moses’ plan to approach the Pharaoh of Egypt makes it very clear that
Moses did not approach the Pharaoh without plans or haphazardly. Furthermore, one can see
that Moses’ plan was centered around elements that were, at heart, relevant matters to the
process of da’wah. This example illustrates that the Sunnah of Planning is an integral part of the
Muslim’s mechanism of work and faith. We must not forget that the story of Moses with the
Pharaoh is an inspiration, not for entertainment.
• Similar to the story of Moses in the Qur’an are the plans drawn by Prophet Abraham (PBUH) in
building the Ka’bah; Prophet Jacob (PBUH) in sending his sons after their brothers Joseph and
Benjamin. Such stories are inspirations for Muslims to plan their tasks and affairs wisely.

Cont..
• Prophet Muhammad (PBUH) praised Sa’id ibn Mu’ath for his vision and plan, before the actual fight in the Battle of Badr. Sa’id’s layout centered
around the safety of the Prophet, rather than just the present circumstances of the battle. The following was the plan he presented:
Oh Prophet of Allah, let us build a shelter for you and stall your riding camels in readiness beside it. Then we will meet our enemy, and if God
strengthens us and makes us victorious over them, that is what we fervently desire. But if not, then you can mount and ride back to join those whom
we left behind us in Medina…they would not have stayed behind, if they had known that you would be faced with war. Through them, God will protect
you, and they will give you good counsel and fight at your side. -Ibn Hisham
• The Prophet (PBUH) praised Sa’id and invoked blessings upon him. The shelter fashioned with branches of palms. The Relevant to the present battle,
the future survival of Islam embodied in Prophet Muhammad. This fact was a driving factor in Sa’id’s map, not just the near situation, but beyond.
This fact stems from the no anticipation of the battle and that the Muslims were not ready. Their small number of 300, could be perished by the well
equipped 1000 strong army of Quraysh who forced them into this fight.
• Thus, Sa’id’s idea was not only about the survival of the Prophet Muhammad, but also the far more important than winning the battle. Sa’id’s plan of
building the shelter and of the Prophet’s escape if the Muslims were defeated, were of great vision and insight. Therefore, regardless of the present
circumstances, a Muslim must not lose sight of the overall goal or the mission he or she is working on. Our example shows vision and strategies, such
as these, were a key factor to the success of the early Muslims.
• Thanks to the Prophet and his companions for their insight, wisdom, and knowledge. Prophet Muhammad, himself, commended his companions
saying:
People of wisdom and knowledge, so much so, that their in-depth understanding and insight enable them almost to be prophets. May Allah’s blessings
be on the Prophet and his companions.
• Planning for short and long-term projects is undoubtedly a work based on foresight. If Allah (SWT) and His Prophet love and admire those with vision
and wisdom, Muslims ought to be racing one another to plan their activities so that they would be among those of insight and understanding.
Moreover, the Qur’an inspires the believers, in a yet different way to design plans for their actions through observation of Allah (SWT) in His
creation. Allah (SWT) said in Surah Al Qamar, Ayah, 49:
• Verily, all things have We created in (planned) proportion and measure.

Planning in the Sunnah of the Prophet (PBUH)
• Turning our attention to the life and example of Prophet Muhammad (PBUH), we learn
that his actions based on planning in both the religious and worldly domains. Bukhari
reported that Prophet Muhammad (PBH) said:
Even when the Day of Judgment is about to happen, and there is a little sprout
(seedling) in your hand, you should continue to plant it. -Bukhari and Ahmad.
• The companion of the Prophet and Second Caliph, Umar Ibn Al-Khattab also said:
For your worldly affairs, construct your plans based on the assumption that you are going
to live forever, and as for the work reserved for the Hereafter, create your programs based
on the assumption that you are going to die tomorrow.
• The above traditions are indeed another clear order for the Muslims to conduct their
affairs according to a plan. One wonders, how many Muslims have intentionally drawn a
plan of action based on the principles of these traditions? Furthermore, in the Prophet’s
life, there are many examples where he applied this precious Sunnah. For example, in the
story of his migration to Yathrib (Medina), we see many instances of his careful and well
thought-out planning at every step of the way. Once being inspired to migrate to Yathrib,
the Prophet (PBUH) devised a plan with his closest companion, Abu Bakr. This plan was
secret and known only to those who played a part in it.

Cont.
• Planning can interpret into three aspect:
a) Commitment: A serious commitment to take a action to move from
current position to a further position (goals).
Quran: “That man can have nothing but what he strives for” (Dan
bahawa sesungguhnya tidak ada (balasan) bagi seseorang melainkan
(balasan) apa yang diusahakannya) ( An-Najm 53:39)
b) Implementing Decision: Good plan should be realistic and consist of
actions. Not with unrealistic promise that cannot be kept.
Quran: “Then when you have taken decision, put your trust in
Allah”(kemudian apabila engkau telah berazam (sesudah
bermesyuarat, untuk membuat sesuatu) maka bertawakalah kepada
Allah) (Ali-Imran 3:159)

Cont..
Quran: “O you who believe! Why say you that which you do not?” (Wahai orang-
orang yang beriman! Mengapa kamu memperkatakan apa yang kamu tidak
melakukannya! ) (As-Saff 61:2)
c) Delegation to others: Important to delegate the task to accomplish the goal
Quran: “We raise some of them above others in ranks, so that some may
command work from others”(Kami membahagi-bahagikan antara mereka segala
keperluan hidup mereka dalam kehidupan dunia ini, (setengahnya Kami jadikan
kaya raya dan setengahnya miskin menderita); dan juga Kami telah menjadikan
darjat setengah mereka tertinggi dari darjat setengahnya yang lain; (semuanya itu)
supaya sebahagian dari mereka senang mendapat kemudahan menjalankan
kehidupannya dari (bantuan) setengahnya yang lain) (Az-Zukhruf 43:32)

Some definitions of planning are given as under:
• “Planning is deciding in advance what is to be done. When a manager plans, he projects a course of action
for the future, attempting to achieve a consistent, coordinated structure of operations aimed at the desired
results.” – Theo Haimann.
• “Planning is selecting information and making assumptions regarding the future to formulated activities
necessary to achieve organizational objectives.” – Terry and Franklin.
• “The plan of action is, at one and the same time the result envisaged, the line of action to be followed the
stages to go through and the methods to use.” – Henri Fayol.
• “Planning is fundamentally a mental predisposition to do things in an overly way, to think before and to act in
the light of the fact rather than of guesses.” – L. F. Urwick.
• “Planning is deciding in advance what to do, how to do it, where to do it and who is to do it. Planning bridges
the gap from where we want to go. It makes possible for things to occur while would not otherwise happen.”
– Koontz and o’ Donnell.
• “Planning is a process whereby managers select goals choose actions to attain those goals, allocate
responsibility for implementing actions to specific individuals or units, measure the success of actions by
comparing actual results against the goals, and revised plans accordingly.” – Charles WL Hill Steven
Meshane.
• Planning is the determination of a future course of action to achieve any desired result. It is the process of
thinking before doing. It depicts a framework within which other management functions will operate. It is a
continuous process that takes place at all levels of management. Today, planning is considered as a strategic
area of management in the context of globalization of business operations. It is a process of identifying the
strengths and weaknesses of an organization and correlating them with opportunities available in the
business world.

For proper planning, the following points
should be decided in advance:
i. What is to be done in future?
ii. How it is to be done;
iii. Where it is to be done;
iv. When it is to be done;
v. By whom it is to be done.

In a way planning seeks to answer to the
following questions:
• What should be done?
• Why is action necessary?
• Where shall it he done?
• Who will do it?
• How will it be done?
• What physical resources will he required?

In other words, it can be said, Planning is an
analytical thought process which covers:
i. Assessment of future,
ii. Determination of objectives and goals in the light of the future,
iii. Development of alternative courses of actions to achieve such
objectives, and
iv. Selection of the best course of action and its alternatives

A careful analysis of the above definitions of
planning reveals that:
i. Planning is concerned with future and its essence is looking ahead;
ii. It involves thinking and analysis of information;
iii. It involves a predetermined course of action;
iv. It is concerned with the establishment of objectives to be attained in the
future;
v. It is fundamentally a problem of choosing after a careful study of
alternative courses;
vi. It involves decision-making;
vii. Its objectives is to achieve better results;
viii. It is a continuous and integrated process.

On the basis of these definitions, the key elements
of planning are:
(i) Process of forecasting,
(ii) Logical thinking involves decision-making,
(iii) Identifying strengths and weaknesses,
(iv) Evaluation of past and assessing the present,
(v) A sense of futurity,
(vi) Process of determination of objectives, and
(vii) Laying down pattern for the achievement of organizational
objectives.

4.1 How and Why Planning Required?
Planning from Islamic perspective required 4 basic principle:
1. Forward thinking based on past experiences-should build on what
has been carried out in the past.
2. Rational use of resources-Identifying potential resource
3. Consultation before decision making-information seeking, advice, &
mutual consultation
4. Apply fairness to others-Balance in assigning the task

Characteristics of Planning
1. Managerial function: Planning is a first and foremost managerial function provides the base for other
functions of the management, i.e. organising, staffing, directing and controlling, as they are performed
within the periphery of the plans made.
2. Goal oriented: It focuses on defining the goals of the organisation, identifying alternative courses of
action and deciding the appropriate action plan, which is to be undertaken for reaching the goals.
3. Pervasive: It is pervasive in the sense that it is present in all the segments and is required at all the levels
of the organisation. Although the scope of planning varies at different levels and departments.
4. Continuous Process: Plans are made for a specific term, say for a month, quarter, year and so on. Once
that period is over, new plans are drawn, considering the organisation’s present and future requirements
and conditions. Therefore, it is an ongoing process, as the plans are framed, executed and followed by
another plan.
5. Intellectual Process: It is a mental exercise at it involves the application of mind, to think, forecast,
imagine intelligently and innovate etc.
6. Futuristic: In the process of planning we take a sneak peek of the future. It encompasses looking into the
future, to analyse and predict it so that the organisation can face future challenges effectively.
7. Decision making: Decisions are made regarding the choice of alternative courses of action that can be
undertaken to reach the goal. The alternative chosen should be best among all, with the least number of
the negative and highest number of positive outcomes.

Cont..
Planning is concerned with setting objectives, targets, and
formulating plan to accomplish them. The activity helps
managers analyse the present condition to identify the ways
of attaining the desired position in future. It is both, the need
of the organisation and the responsibility of managers.

4.2 Evidence from Primary Sources
1. Do they not travel through the earth, and see what was the end of those
before them (who did evil)-Maka tidakkah mereka telah mengembara di
muka bumi, serta mereka memerhatikan bagaimana akibat orang-orang
kafir yang terdahulu dari mereka? (Muhammad 47:10)
2. Do ye not see that Allah 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?- (Tidakkah kamu
memperhatikan bahawa Allah telah memudahkan untuk kegunaan kamu
apa yang ada di langit dan yang ada di bumi, dan telah melimpahkan
kepada kami nikmat-nimatNya yang zahir dan yang batin?)(Luqman
31:20)

Cont..
3. “Who (conduct) their affairs by mutual Consultation”( urusan mereka
dijalankan secara bermesyuarat sesama mereka) (As-Syura 42:38)
4. "And O my people! give just measure and weight, nor withhold from
the people the things that are their due” (Dan wahai kaumku!
Sempurnakanlah sukatan dan timbangan dengan adil dan janganlah
kamu kurangkan manusia akan benda-benda yang menjadi haknya) –
(Hud 11:85)

PLANNING PROCESS
Vision, Mission, Goals &
Objective
Environmental Scanning
Strategy Formulation
Strategy Implementation
Evaluation & Control
The
Planning
Process

Cont..
1. Vision, Mission, Goals, & Objective
What an organization or individual intent to aim
2. Environmental Scanning
Identify the strength and weakness (PEST analysis, Scenario planning,
Porter Five forces analysis, SWOT analysis, Growth-share matrix and
Balanced Scorecard)
3. Strategy Formulation
Identify the strategy to implement
4. Strategy Implementation
 Implement a strategy that has been formed.
5.Evaluation & Control
 Monitored and make some necessary adjustment

4.4 Types of Planning:
i. Financial or Non-Financial Planning:
• Every plan has a monetary side. In fact, planning has no significance if proper attention is not given to the monetary resources of the concern. Financial plans relate to the
monetary side of a concern. They help a lot in bringing to light not only the financial position of a concern, but also the resources where from money can be borrowed. Plans
relating to the physical resources of a concern may be termed as non-financial or non-cash plans. These are equally important for the smooth running of an enterprise.
ii. Formal and Informal Planning:
• Mere thinking is informal planning. But when the plans are reduced to black and white, they become formal. Formal plans are more than just talk put on paper. For the success
of an enterprise, it is advisable that the planning should be formal and not informal. Formal planning facilitates adequate control and pinpoints the weaknesses, if any.
iii. Specific or Routine Planning:
• Any plan for a particular purpose is known as ‘specific planning’, but that which is mechanical may be termed as ‘routine planning.’ In routine planning, the methods adopted
for accomplishing a particular object, and during a particular period, are the same without any major change. Methods are merely repeated under a planned programmed.
Routing does not require any ingenuity or creativity on the part of the planners.
iv. Profit Planning:
• The principal object of every business is to earn profit. Thus, specific efforts in this regard may relate to ‘profit planning’. Profit planning is generally based on forecast, and
therefore, to get profit, certain steps must be taken, duties must be assigned and the future forecasted in such a way as to get the object fulfilled. Profit planning helps the
management in attaining higher level of profit. Under this plan, different activities are integrated and hence people do not feel that they are serving merely for earning profit.
Like other plans, profit plans provide intermediate check points enabling the management to appraise the progress made towards pre-determined goals.
v. Short and Long-Range Planning:
• The definition of long-range and short- range planning depends on the manager’s level in the organisational hierarchy, on the type of business, the kind of industry in which
the firm is engaged, the production cycle, the quality of managerial practices and many other factors. Ordinarily, short- range planning can be defined as planning which covers
a period from six to twelve months. Long-range planning usually involves time interval of three to five years.
• In recent years, however, there has been an increasing trend for many firms to plan for five, ten or even twenty years ahead. Thus, planning anywhere from one to five years is
often considered planning for an intermediate period, whereas anything from five years upward is properly considered as long-range planning. It is necessary that long-range
planning and short-range planning be integrated and co-ordinated.

4.5 The Importance and Benefit of Planning
Importance:
i. Planning Helps in Achieving Objectives:
• Good and effective management is management by objectives. By focusing attention on organisational goals, planning assists the management to coordinate the resources of organisation more efficiently. It also
enables the manager to chalk out in advance a “blueprint” of sequence of action to be pursued for realization organisational goals and to avoid needless overlapping of activities.
ii. Planning Minimises Risk & Uncertainty:
• By providing a rational procedure for making decisions and accurate forecasting, planning assists the management, and organisations in minimising risk and uncertainty arising out of future events. Systematic planning
helps to predict and deal with future contingencies, thus enabling the management to cope the challenges of a dynamic and ever changing environment. Constructive planning minimises the dangers and risks of future
losses to be suffered on account of insufficient information and lack of direction and foresightedness.
iii. Planning Facilitates Control:
• Planning involves setting of goals which become standard against which actual performance can be measured and evaluated. The function of controlling is to ensure that the activities conform to the plans. Thus,
effective controlling is not possible without meaningful planning which serves as the basis to monitor, measure, evaluate and control achievement of organisational objectives.
iv. Planning Helps in Securing Effective Coordination:
• Planning determines the course of activities of different units of organisation in such a way that minimum co-ordination between physical and human resources is achieved. When various departments in an organisation
work in accordance with an overall plan, harmony and co-ordination is achieved. It can be said that if co-ordination is essence for management, planning is the base for it.
v. Planning Leads to Economy in Operation:
• Planning is a mental exercise which involves selection of best possible course of action. On one hand it ensures optimum utilisation of scarce resources at minimum cost and on the other hand eliminates duplication and
overlapping of efforts. By replacing confusion and disorder with co-operation and co-ordination planning helps in channelising the energies towards efficiency in operations.
vi Planning Facilitates Decision-Making:
• A plan cannot be said to exist unless a decision relating to utilisation of resources, direction of future course of events and choosing the best alternative has not been made. Decision-making which can be defined as the
selection of a course of action from different available alternatives can be identified as core of planning. Planning facilitates the process of decision-making by allowing the managers the freedom to make choice in
evaluation and selection of the best alternatives in relation to the set targets.
vii. Planning Promotes Creativity:
• Management being an art, provides the managers the opportunity to suggest ways and means in achieving higher targets. Sound planning induces creative thinking and action amongst the employees to avail the
available opportunities in such a way that novel ideas, methods and techniques emerge leading to growth and prosperity of the organisation.
viii. Planning Improves Morale and Motivation:
• Planning makes a systematic arrangement for disposal of financial and non- financial benefits to the workers of employees. Thus, meeting their emotional and psychological needs. It also enhances their morale by
creating a consistent work environment aimed at achievement of organisational goals.

Cont…
Benefit:
1. Obeying Allah’s commands and trusting in Allah’s wisdom could bring about peace for a Muslim
2. Teaches us to be responsible and be trustworthy people to every people and also to every works or
positions that given to us.
3. Make the organization live in a long period in the market
4. Enhance Muslim wellbeing, economic, social, education, technology and etc.
5. It helps managers to improve future performance, by establishing objectives and selecting a course of
action, for the benefit of the organisation.
6. It minimises risk and uncertainty, by looking ahead into the future.
7. It facilitates the coordination of activities. Thus, reduces overlapping among activities and eliminates
unproductive work.
8. It states in advance, what should be done in future, so it provides direction for action.
9. It uncovers and identifies future opportunities and threats.
10. It sets out standards for controlling. It compares actual performance with the standard performance and
efforts are made to correct the same.

Cont..
• Planning is present in all types of organisations, households, sectors,
economies, etc. We need to plan because the future is highly
uncertain and no one can predict the future with 100% accuracy, as
the conditions can change anytime. Hence, planning is the basic
requirement of any organization for the survival, growth and success.

4.6 Conclusion
• Planning is essential in every walk of life. Effective planning facilitates early
achievement of objectives.
• It is a process of coping with uncertainty by formulating a future course of
action.
• It attempts to anticipate the future in order to achieve better performance.
• It discovers the best alternative out of many available alternatives. Growth
and prosperity of an organization depends upon its successful planning.
• Planning helps the manager to shape the organization’s future. It brings
rationality into the organization and ensures the most efficient use of
scarce resources.

Cont..
• Planning in business is an ongoing process because changes in business
environment are continuous. A business enterprise is not living in a vacuum. It is
an open, adaptive social sub system living in a dynamic world, always trying to
adapt itself to the ever changing conditions of demand, supply, prices,
competition, technology, government policies etc. A plan is based on reliable
information and not on emotions and feelings. It reflects vision, foresight and
wisdom. It is a blueprint of action.
• In every human activity, there is an element of planning. For instance, we find
that the head of the family plans his expenditure, the housewife plans her daily
chores, the teacher plans his teaching work, the student plans his studies and the
farmer plans his agricultural activities.
• In the business field, the need for planning is all the more because of various
factors such as fluctuations in demand, growing competition, introduction of new
products, scarcity of resources, changing technology, change in prices,
government policy, etc. Organisational activity without a plan is likely to be
ineffective and will drift without achieving success. Hence, planning is a must for
business organisations.

Activity 4
1. Find one successful company/individual
2. Share a few of successful story about the company/individual
3. Explain how they practice Planning in their life/business
4. Complete this activity through Flipgrid

References
• https://www.businessmanagementideas.com/management/planning
-management/planning-in-management-2/12196
• https://www.businessmanagementideas.com/management/planning
-management/planning-definition/20529
• https://businessjargons.com/planning.html
• https://www.researchgate.net/publication/307636023_Strategic_Pla
nning_from_Islamic_Perspective
• http://www.ipedr.com/vol73/014-ICWIS2014_A10033.pdf
• https://islamic-study.org/planning-in-islam/

Chapter 4: Planning in Islam

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Chapter 4: Planning in Islam