Chapter 1 :

INTRODUCTION TO
BUSINESS
MANAGEMENT
Content:
1.1 Introduction and definitions
1.2 Entrepreneurs and business
1.3 The aspects of management in business

Dr. Saimi bin Bujang

Academy Of Contemporary Islamic Studies (ACIS)
UiTM Samarahan, Sarawak

IMU301: Islamic Business Management

 Chapter Outcomes

Students should be able to:

1.1 Explain the definitions of Islam, business
and management;
1.2 Explain the entrepreneurs and business
1.3 Explain the aspects of management in
business

Dr. Saimi bin Bujang

Academy Of Contemporary Islamic Studies (ACIS)
UiTM Samarahan, Sarawak

IMU301: Islamic Business Management

 1.1 Introduction and Definitions

• Islamic Business Management

• Islam
• The word Islam which originates from the Arabic word “salaam”,
means submission or peace.
• The person who believes in and consciously follows Islam is
called a Muslim.
• Islam is a system of religious beliefs and an all encompassing
way of life.
• Islam is religion of laws – it is legal code, not a theology, which
establishes the criteria for right and wrong, proper and improper
behaviour.

IMU301: Islamic Business Management

 1.1 Introduction and Definitions

• Business - many different meanings here:-

• a person's regular occupation, profession, or trade.
• an activity that someone is engaged in.
• the practice of making one's living by engaging in commerce
• the purchase and sale of goods in an attempt to make a profit.
• a person, partnership, or corporation engaged in commerce,
manufacturing, or a service; profit-seeking enterprise or concern

IMU301: Islamic Business Management

 1.1 Introduction and Definitions
• Management:-
• the process of dealing with or controlling things or people.
 the people in charge of running a company or organization, regarded
collectively.
• the person or persons controlling and directing the affairs of a
business, institution.
 the store is under new management.

• F.W. Taylor: “Art of knowing what you want to do and then seeing
that it is done the best and cheepest way”.

• Henry Fayol: “To Manage is to forecast, to plan, to organise, to

command, to co-ordinate and to control”.

• Peter F.Drucker: “Management is work and as such it has its own

skills, its own tools and its own techniques”.

IMU301: Islamic Business Management

 1.1 Introduction and Definitions

• Management is the organizational process that includes

strategic planning, setting objectives, managing
resources, deploying the human and financial assets
needed to achieve objectives, and measuring results.

• Management also includes recording and storing facts

and information for later use or for others within the
organization.

• Management functions are not limited to managers and

supervisors. Every member of the organization has some
management and reporting functions as part of their job."

IMU301: Islamic Business Management

 1.1 Introduction and Definitions

• In Islam, trade has always been recognized as an important

aspect of human life.

• Before revelation came to Prophet Muhammad PBUH, himself

earned his living as a trader:
– to Syria with his uncle Abu Talib
– conducting the business for his wife Khadija

• Saidina Abu Bakr, Saidina Umar and Saidina Uthman was a

businessman.

IMU301: Islamic Business Management

 1.1 Introduction and Definitions

• Prophet Muhammad SAW said;

“Take to trade, because out of ten divisions of livehoods, nine
are in trade”.

• Prophet Muhammad SAW said;

“Allah will show compassion to those who show kindness while
buying, selling and recovering debts”.
Source: Imam Bukhari
• Prophet Muhammad SAW said;
“The seller and buyer have the right to keep or return goods as
long as they have not parted; and if both the parties spoke the
truth and described the defects and qualities (of the goods),
then they would be blesses in their transaction, and if they told
lies or hid something, then the blessing of their transaction
would be lost”.
Source: Imam Bukhari
IMU301: Islamic Business Management
 1.1 Introduction and Definitions
• Accordingly to Abu Dhar (R.A), the Prophet SAW said;
“There are three to whom Allah will not speak on the Day of
Resurrection, at whom He will not look and whom He will not
purify, and they will have a punishment." Abu Dhar (R.A) said,
“They are the losers and disappointed.... who are they,
Messenger of Allah?” He replied that one of them would be “he
who produces a ready sale of a commodity by false swearing
of Allah's name”.
Source: Imam Muslim

• Prophet Muhammad SAW forbade a seller from telling a buyer

thar he had been offered a price for goods that he had not
been offered (in order to raise the price or encourage the
sale).”
Source: Imam Bukhari

IMU301: Islamic Business Management

 1.2 Entrepreneurs and Business

IMU301: Islamic Business Management

 1.2 Entrepreneurs and Business

• A businessman is a businessman, but an entrepreneur is an

entrepreneur, an organizer, a risk taker, a manager at the same time.

• A businessman walks on the defined path, but an entrepreneur

believe in making his own path, which becomes a guideline for other
businessmen.

• This means that a business man main focus is not on innovation, but
more on making sure a company is making profit. Entrepreneurship
on the contrary focus on generating value, and this value could be
social, emotional, aesthetic and/or financial.

• Also, whilst business people focus more on small improvements of

an existing situation, entrepreneurs try to imagine how things may be
in the future and work toward making that idea a reality (this attitude,
by pushing the boundaries of what we know, entail higher risks but
also higher rewards when successful).

IMU301: Islamic Business Management

 1.2.1 Differences Between Entrepreneurs
and Business

BASIS FOR
BUSINESSMAN ENTREPRENEUR
COMPARISON

Meaning A businessman is someone who An entrepreneur is a person who

sets up a business with an existing starts an enterprise with a new
idea offering products and idea or concept, undertaking
services to the customers. commercial activities.

The Originally of A businessman can make a An entrepreneur is an inventor

Idea business out of an unoriginal
business or product idea. He
enters into existing businesses,
such as franchising and retailing.
and the first creator of a product.
He invests time, energy and
money on his own idea. He
doesn’t start a business from an
unoriginal idea.

IMU301: Islamic Business Management

 1.2.1 Differences Between Entrepreneurs
and Business
BASIS FOR
BUSINESSMAN
COMPARISON
The Purpose of doing business for profit,
Doing livelihood, for reaching their
financial goals, and for becoming
their own boss.
There are some business people
who are not profit-oriented but
people-oriented, that is, they are
more concerned on the welfare of
their workers and the satisfaction
of their customers.
IMU301: Islamic Business Management
ENTREPRENEUR
Entrepreneurs are more
concerned on changing the
world. They want to pursue their
passion and achieve an ultimate
goal. They are not keen on
financial returns, rather they are
focused on what they can offer
to the world. Their purpose for
entrepreneurship is simply to
make a difference in this world.
 1.2.1 Differences Between Entrepreneurs
and Business
BASIS FOR
BUSINESSMAN ENTREPRENEUR
COMPARISON

The Degree of Businessmen take calculated and
Risks Taken managed risks. They cannot
afford to lose money and suffer
from bankruptcy. That is why
they always do the Math when it
comes to business.
Entrepreneurs are like sky
divers. They take crazy risks.
They often don’t care of losing
time and money just to pursue
their passion. But since they do
it with love, joy and passion,
they often gain extraordinary
rewards.

How He Treats A business owner is an employer An entrepreneur is a friend and a

Employees and a manager. He hires leader. He finds peers and
employees and workers to help PEOPLE, whom he will never
his business grow. treat as machines. He invites
them to help them grow.

IMU301: Islamic Business Management

 1.2.1 Differences Between Entrepreneurs
and Business
BASIS FOR
BUSINESSMAN ENTREPRENEUR
COMPARISON

How He Treats A business owner usually sees An entrepreneur sees customers

Customers customers as his source of sales as his source of duty and
and revenues. For him, customers fulfillment. For him, customers
are the lifeblood of his business. are his own life blood.

How He Sees The A business owner tries hard to An entrepreneur tries hard to
Competition beat his competitors and win the beat his worst competitor –
competition. He also considers himself.
cooperation rather than
competition to achieve certain
goals.

IMU301: Islamic Business Management

 1.2.1 Differences Between Entrepreneurs
and Business
BASIS FOR
BUSINESSMAN
COMPARISON
What He Thinks of Losing money is one of the biggest
Money worries of businessmen. Most
business owners rely on a good
economy to start, operate and
attain success in business,
especially in the retail, franchising
and financing industry.
How He Deals A businessman doesn’t waste time.
With Time He always check the clock and
doesn’t want any work or output to
be delayed out of schedule. He is
fast and always on the go.
IMU301: Islamic Business Management
ENTREPRENEUR
Entrepreneurs do not worry a lot
about money since they can
always start from a scratch. Some
entrepreneurs don’t really care
about money at all.
An entrepreneur works like an
artist or a scientist in a lab. His
product is his masterpiece. That is
why he can be slow and could
spend a longer period of time to
finish and perfect his product.
 1.2.1 Differences Between Entrepreneurs
and Business
BASIS FOR
BUSINESSMAN ENTREPRENEUR
COMPARISON

How He Sees The A businessman sees the world as An entrepreneur sees the world
World an opportunity. He sees it as an as a duty rather than an
opportunity to make a living. He opportunity.
also sees it as an opportunity help
the people living on it.

How He Defines A businessman defines success as An entrepreneur doesn’t define

Success the success of his business and its
stakeholders. Its stakeholders
include himself, co-owners,
employees, customers, investors,
and even his community.
success. He simply do his job
and let history defines the
success that he accomplished.

IMU301: Islamic Business Management

 1.2.1 Differences Between Entrepreneurs
and Business

BASIS FOR
BUSINESSMAN ENTREPRENEUR
COMPARISON

Market Position Market Player Market Leader

Nature Calculative Intuitive

Risk factor Less Comparatively high

Methods applied Conventional Unconventional

for doing things

Approach Holistic Atomistic

Competition Very high Low

IMU301: Islamic Business Management

 1.3 The Aspects of Management in
Business
• The aspects of management in business are; planning, organizing,
leading and controling.

Planning
Setting objectives Organizing
(Vision, mission and
objectives) Setting organization Leading
structure
Form strategic
planning Staffing the Being leader Controling
organization Motivating employees
Controlling and
Communicating skills building commitment
Managing group and Implementation
teams progress reports
Managing Analyze
organizational and situation/create
cultural change planning premises
Determine alternative
courses of action

IMU301: Islamic Business Management

 Thank You….
Syukran…
Wassalam…

IMU301: Islamic Business Management