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Business Management

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CHAPTER 10: MANAGEMENT FROM ISLAMIC PERSPECTIVE DEFINITION ♛ Management from Islamic perspective defined as, the ability to utilize resources both material and human, optimally in order to achieve goals, be it short term or long-term goals. ♛ It has been practiced since the era of our prophet, Muhammad s.a.w. It based on the teachings generated from the holy Al’-Quran and the As’-Sunnah. It sources that provided guidance in making decisions. ♛ The leadership under our prophet Muhammad s.a.w through the Islamic way of managing things had created a strong Islamic Muslim society with prominent characteristic such as: ✿ Team spirit that practice teamwork ✿ Strong and clear vision and mission ✿ Values for loving and caring ✿ Emphasis for trust and relationship, cooperation and teamwork ✿ The practice of consensus decision-making

FUNCTIONS OF MANAGEMENT (ISLAMIC POINT OF VIEW) The Islamic way of doing or managing things can be seen to practice the elements or functions of management, that is: ☃ Planning / objectives / goals ☃ Organizing ☃ Leading (motivation) ☃ Controlling (execution)

PLANNING (SETTING OBJECTIVES)  According to Tan Sri Dr Mohammed Abdul Rauf in his book, management and administration (An Islamic Perspective), planning is needed to manage, especially in the fast moving, ever changing and complex environment we are living in to ensure success.

 Our prophet Mohammmed s.a.w in many incidents that he had gone through practiced planning. One of the prominent ones is seen in his carefully planned actions and moves to preach the faith of Islamic to the world.  He had two choices whether to do it publicly or to do it cautiously. He choose to do it secretly at first since the people of Mecca at that time especially the Quraisysh tribe did not hold the same values the Islamic faith was bringing that human equality, justice, and sympathy for the weak.  Therefore our prophet Mohammed s.a.w chose to preach Islamic secretly and quietly at first to his closest and trusted friends and families.  So, human beings according to Islam are created by ALLAH s.w.t to be the khalifah on the earth. This means our life and activities must be focused to fulfill to purpose. They are:  A long-term objective/ goal  A short-term objective/ goal A long-term objective  Is to be worthy servants of ALLAH s.w.t, avoiding sins and preparing us to be rewarded in paradise by performing good deeds and obeying the teaching demanded by the Al-Quran and As-Sunnah. A short-term objective  It is related to productivity, whether it is in services or products, academic achievement, financial profit or improvement in performance. Muslim is thought to balance both these objectives. One cannot be too obsessed to achieve the long-term goal and forget about the shortterm goal and the opposite holds true too.

ORGANIZING  It is the structure of projects as well undertaken by human efforts.  Means in Islam, organizing comprises structure (organization chart), utilization power and the practice of delegation centralization. as the structure of roles to be the structuring an organization of resources (human), authority, as well as decentralization and

LEADING/ MOTIVATION  Leadership refers to the process of moving people in a planned direction by motivating them.  Good leadership moves people in a direction that is in a direction that is in their long-term best interest.  Islam says that a leader should serve and help others get ahead. THE CHARACTERISTICS OF AN ISLAMIC LEADER: 1. He has allegiance to Allah (faithful) 2. He has global perceived goals of organization not only in term of individual or group interest but also from a wider Islamic perspective. 3. He adheres to the Syariah and the Islamic manner of doing things 4. He delegates trust. THE PRINCIPLES TO BE EFFECTIVE ISLAMIC LEADER:

1. SYURA (Mutual Consultant)
 This is the first principle. The Al-Quran has made clear that Muslim leaders are obligated to consult those with knowledge and those who would provide good advice.  This practice is seen in our prophet Mohammed s.a.w leadership The practice of Syura will enables members of an organization to participate in the decision making process.  Monitors the leader conduct of behavior so that he will not deviate from the collective goals of his followers.  Allow group members to express opinion and grievances freely without the feeling of embarrassment.

2. FREEDOM
 Muslim leaders are encouraged to provide for and even invite constructive criticism. Two-way communication is practice here. Members may freely voice their view or objections and have their questions answered. An example was during the leadership of Khulafa-al Rashidin ,Sayyidin Umar Ibn al-Khattab(ra) , while addressing members of the mosque, was intercepted by a woman correcting him. He readily acknowledged his error and thanked Allah s.w.t.

 According to Islamic leadership style, a leader should strive to create an atmosphere of free thinking, healthy exchange of ideas, criticism and advice so that the followers feel very comfortable in discussing matters of interest to the group.

3. MASRUI’YAH
 This is the concept legality whereby the management has to ensure that any action taken must be within the legal boundary of the common/manmade laws and the Syariah laws.

4. QUALIFICATION
 This principle looks at the importance of selecting the right management personnel. It should be based on two main elements ‘uwwah (strength) and amanah (trustworthy). The selection of new personnel should not be based on self-interest or favoritism. It should be based on the person ability, expertise, experience and other suitable criteria that fit the job.

5. REWARD
 Managers must be fair in any action and reward people accordingly.  Employees who performed their tasks or responsibilities well should be given reward. However, the Islamic Management views reward as the compensation /benefits earned not only today but till one dies. This is known as “Pembalasan Dunia dan Akhirat”.

6. JUSTICE
 Leader should deal with people justly and fairly regardless of race, color, national origin or religion.  Al-Quran commands Muslims to be fair even when dealing with people who oppose.

CONTROLLING (EXECUTION)  Controlling from the Islamic perspective is defined as the application of the procedures prescribed and organized according to plan as well as the performance of the roles defined and specified under the organization. In simple terms this means carrying out the plans and assuring that the results will conform to the actual plans.

THE PRINCIPLES OF ISLAMIC MANAGEMENT 1. The ultimate goal of our life should be harmoniously linked with the worldly aims. Humans as khalifah must be able to balance their short term and long term goals such as serving Allah, worshipping HIM and seeking his worthy pleasure and reward. 2. The moral/religious value of work should be integrated in the work or activities we do. Working is not merely means for material gains, but also moral obligation and a measure of pleasing Allah and getting nearer to him. 3. Time to be well invested, not to be wasted. Time should be treated as a commodity. This statement requires us to use our time efficiently by being punctual, doing diligent work, never play around, not to procrastinate and engage ourselves in meaningless conversation. 4. We should uphold and internalize the Islamic ethical values. In whatever we do, we should internalize Islamic values of truthfulness, honesty, dedication, self-restraint, self-discipline and fear of Allah. 5. Self criticism should be exercised periodically both individually and collectively and should be practiced by all workers at all levels. Each individual should review his/her work and analyze his actions and attitudes. 6. There shall be no favoritism and discrimination. Heads of departments, managers and leaders must be fair to employees. There should not be discrimination and favoritism because of mutual interests of family ties etc. 7. Human nature and needs should be both considered simultaneously. Both psychological and economical contracts of a person must be met. For example, working hours must be reasonable and fair. The pay system should be fair (equity). 8. It is the responsibility of the management to provide conductive and healthy working conditions in the work-place. Management should employ people as a whole considering both their emotional and psychological needs. 9. Employees must be paid sufficiently promptly and fairly. 10.There should be conductive rewards for exceptional achievement and adequate measures to detect and prevent violations. 11.Lastly and the most important is the concept of al-Syura, it is a consultation based on mutual discussion and inculcating cooperation among members of organization.…...

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