This document discusses Islamic business management. It outlines the key principles, philosophy, and objectives of Islamic management, which include establishing clear values and ethics based on Islamic principles. Management aims to develop high moral character among employees and use systems and practices that are fair and aligned with Islamic law. The document also compares Islamic management to traditional Western management, noting Islamic management aims to achieve organizational goals while also considering spiritual well-being and broader societal benefits.

1. Chapter 8: Islamic Business in Management
IBS UUM
2013
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2. Outline
 What is Management?
 Is it related Management in Islamic Business? Why?
 Why we do need Islamic Management in business?
 Is there any different between Islamic Management and
Traditional Management?
 What is principle, philosophy, and objective Islamic
Management in business?
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3. Islamic Management Objective
 Philosophy and values ​that contain policy, principles,
motive, direction and ethics.
 Management and the workforce in terms of character
(attitude), the quality and skills.
 Systems and practices in terms of procedures, structure,
and work culture.
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4. How to achieve the objective ?
 Philosophy and clear values​​, a post is a trust from Allah SWT.
The duties and responsibilities of employees are as caliph of
Allah.
 Management and labor have a moral character, has the skills,
commitment to the organization, and have the spirit of
brotherhood among Muslims.
 Systems and practices in the framework of the Islamic Syariah
such as fair, effective, syura, and self-evaluation (Muhasabah)
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5. What is management ?
 Is a process of uniting and streamlining the organization's
limited resources optimally to achieve the goals.
 The importance of management is been state in Surah AlHasyr:18.
Allah said :“To who believe, fear Allah and let every person look to what he has done for
tomorrow (Hereafter)”.
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6. Content..
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Introduction
Philosophy of Islamic Management
Principle in Islamic Management
Definition of Management and Perspective Islamic
Function of Management
Organization Resources
Component and Psychological Level of Human
Maqasid syariah in Management
Characteristic of Organization Management from Perspective
Islamic
 Increasing Image of Organization
 Conclusion
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7. Introduction
 Theory Islam have been stress on putting effort to complete the task
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we are doing with an effective and efficient management.
Material and spiritual elements are taken into account simultaneously
not only in knowledge management but also in every aspect of life.
Base on “Tauhid ” concept which is need to be applied in daily life.
Tauhid is about relations.
Can be divided into 2 type of relations :
a. ) Hablumminallah
- Relation between mankind towards Allah.
b.) Hablumminanas
- Relation between human toward human.
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8. Philosophy of Islamic Management
 Human as a leader.
 Human as a holder of Allah message.
 Agreement between human and Allah.
 Fact of existence of human in the Earth.
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9. Principle in Islamic Management
 Aim of searching al-Falah.
 To carry out welfare and forbid sinful.
 Stay with truth and fair.
 Right and obligation to work.
 Right to obtain property.
 Basic human right.
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10. Definition of Management and
Perspective Islamic.
 Management is a process of planning, organizing, leading
and controlling organization resources with an effective
and efficient way to reach the goal of an organization.
 Management in perspective Islam is about process
planning, organizing, leading and controlling organization
resources with an effective and efficient way to reach the
goal of an organization and use Maqasid As-syariah as a
guide.
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11. Management Proses
 Planning
Set an objective and goal of an organization, construct plan
to run the activities of the organization, able to explain
strategic.
 Organizing
Assign jobs and define who are going to complete the task,
how it done, and whose to do the final decisions.
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12. Leading
Motivate the employees, give instruction, select the effective
communication way and able to solve the conflict.
Controlling
Look after the activities, compare all the performance and
make sure is comply to all the goals and objective that have
set by the organization.
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13. Function of Management
 Included activities planning, organizing, leading and
controlling organization resources.
 Included activities thinking and acting.
 Islamic law as guide.
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14. Organization Resources
There are Human resources, financial, physical, technology,
information, image, history and networking.
Component and Psychological Level
of Human
 Component
a) Physical
b) Spiritual
c)Intellectual
d) emotional
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15.  Psychological levels of human existence
a) Ammarah
- psychological, material, & physiological.
b) Lawwamah
- Psychological, material, physiological,
intellectual and some spiritual needs.
c) Mutmainnah
- All needs with considerable emphasis on
spiritual ones.
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16. Maqasid syariah in Management
Refer to every singe activities that we carry on are
completely base on the Islamic Law of Allah.
Characteristic of Organization
Management from Perspective Islamic
1)Maqasid syariah
3)collective decision
5)Responsibility
7)Empowerment
9)Leadership
11)quality consciousness
13)double loop learning
2)existence goal
4)authority,
6)accountability
8)continuous improvement
10)time consciousness
12) situational approach
14) Tawakal dan syukur.
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17. Increasing Image of Organization
 Building own image.
 Building working culture.
 Building organization image.
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18. Conclusion
Principal of management from western country can be apply
in the business as long as it comply with the syara’.
Although the principle of management from western country
are effectiveness, there are still lack of an aspect of spiritual
that are encourage by the perspective of Islamic.
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19. DISCUSSION
 Do you think that islamic business management should be
taken as an important part in Malaysia?
 What are the differences between western business and
islamic business?
 Do you think that the principle of islamic management
would affect the business law in our country?
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20. •Timelessness of Islamic business management
• Islamic business is the business of yesterday, today and tomorrow. a timeless
business management, which put
social responsibility beyond financial profit.
• In Islamic Business, the element of socioeconomic responsibility are built into
it, as they are obligated to all
business undertaking – for examples Islamic Hotels.
• A good example is CAPRICE THERMAL LALACE HOTEL,TURKEY
•The need of MAQASID AL-SHARIAH in management strategy
•Maqasid al-Shari`ah, is the meaning of goals and objectives of Islamic law. Generally the Shari`ah is
predicated on
the benefits of the individual and that of the community, and its laws are designed so as to protect these
benefits
and facilitate improvement and perfection of the conditions of human life on earth.
• For example, Islamic Bank of Malaysia is carrying out MAQASID AL-SHARIAH in management.
• Government of Malaysia enacted a separated banking legislation to lead the Muslims who want to
lives in accordance with Shariah which include the area of banking and finance.
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21. 
Leading from islamic perspective
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Muslims are waking up, they are standing for their right and politics.
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Muslims are becoming ummah aware.
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Education and knowledge management are key.
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Democracy is on the rise, providing the ability and investigate islam.
 Islamic perspective in stress management
 By putting the trust in God, a believer minimizes the stress on him by reducing
his responsibility and power to control his failures.
 Only God knows what our ultimate destiny is. We cannot peek into our future. We
do, however, have a limited free will; we are free to choose between good or bad,
to believe in God or not to believe in Him, but we have no control over future not
related to our ability to act in the present - whether my wife will have a son or
daughter, whether his / her eyes will be brown or black, or whether I will have an
accident tomorrow or not. Worrying over such things is of no use.
 Rejection of faith in the Qur'an is described as a disease, its cause being arrogance
and reluctance to accept truth.
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22. Q&A
 What is the function of Islamic management?
 What is Maqasid As-syariah ?
 Please list out three principles of islamic management.
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