Chapter-01

INTRODUCTION

Management from Islamic Perspective

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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.

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INTRODUCTION 2 /2

• The primary revealed knowledge source is theHoly 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.

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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)

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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 managementOrganizational 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)

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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)

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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)

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Islamic Worldview vis-à-vis Management Vision 1/2

The above discussion on Islamic worldview paves the way for anattempt to define a management vision relevant to contemporarysocieties 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.

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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.

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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.

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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 theword 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.

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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 bestowalof 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 oneearns, while in the terms former, the meaning refers to what one uses or spends. To the Muslimsthe concept of 'Rizq' should be inseparable from the concept of "Falah". The word 'Rizq' alwaysought to be perceived within 'Falah'. This can be understood from the following 'Ayaf in the Noble Qur 'an:

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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.

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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.

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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