Management from Islamic Perspective

INTRODUCTION
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. 11/18/2017 2
 Management from Islamic Perspective
The primary revealed knowledge source is the Holy 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.
11/18/2017 3
 Management from Islamic Perspective vs Conventional
Purpose : The purpose is to see whether management application is universal.
There are contrasts in management practices across the cultures. 1a. 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 Allahs commandments. (Islamic Belief System) Thus purpose of human
existence is to obey and fulfill Allahs commandments and act as the vice-regent
of Allah on earth. (Seeking Pleasure of Allah- Al-Deen)
1b. 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) Purpose of human existence is to utilize natural resources to
satisfy ones needs, wants and desires and to remain happy. (Seeking Sensual4
11/18/2017
Pleasure- Al-Dunya)
Management from Islamic Perspective vs Conventional
Purpose : 2a. Islamic management Organizational objectives are both economic
and non-economic and are subservient to larger purpose of human existence.
(Maqasid Shariah) Organizations are meant to be groups of people coming
together for attaining the purpose of human existence. (Human welfare as
motivational drive)
2b. Conventional management Organizational 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 to attain the organizational goals. (Profit maximization as source of
motivation)
11/18/2017 5
 Management from Islamic Perspective vs Conventional

Purpose: 3a. 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) Ethics is relative and values are derived
from multiple sources such as upbringing, society, and experiences 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)
3b. Conventional management. Ethics could be relative as in utilitarian theory. (End
Justifies the Means) Implication (s) 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)
11/18/2017 6
 Management from Islamic Perspective vs Conventional
Purpose: 4a. 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) The locus of control is
internal. Each person is responsible and accountable for his actions.
(Shariah compliance)
4b. 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 external
and lies in the realm of the organization. (Market Driven)

11/18/2017 7
 Management from Islamic Perspective vs Conventional
Islamic Worldview vis--vis Management Vision
5a 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, ravelling 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.
5b Setting a management vision plays a pivotal role for a practitioner in todays
corporate world. Mutual rivalries in competitive corporate world today make
more harm than good to the society.
11/18/2017 8
 Management from Islamic Perspective vs Conventional
Islamic Worldview vis--vis Management Vision
6a 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)". 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.
11/18/2017 9
 Management from Islamic Perspective vs Conventional
Maximizing Profit or Seeking Rizq Enlargement for Falah
7a 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.
11/18/2017 10

noun
success, hit, prosperity, god speed, go
victory, winning, success, gaining
is the Arabic word for success (especially from self
improvement), happiness and well-being. In Islamic context, actions such as
conforming to Allahs commands, not taking intoxicants, not gambling and
establishing the Zakat (charity tax) will all lead to falah. The word falah and fellah
(farmer) in arabic come from the same root word and it is said that the link between
the two is because you have to cultivate and labour for success dunyawi wal
akheerah

11/18/2017 11
 Surah al-Ala (15-17)

And glorify the name of their Guardian-Lord, and

(lift their hearts) in prayer.
Day (behold), ye prefer the life of this world;

But the Hereafter is better and more enduring.

11/18/2017 12
 The Concept of Falah in Islam
The Islamic concept of Falah is very comprehensive. It refers to spiritual, moral and
socio-economic well-being in this world and success in the Hereafter. At micro level,
falah refers to a situation where an individual is adequately provided for in respect of
his basic needs, and enjoys necessary freedom and leisure to work for his spiritual and
material advancement; whereas at macro level, it aims at establishment of an
egalitarian (democratic/classless) and happy society with clean environment, with
freedom from want and with opportunities to its members for progress in socio-
political and religious affairs. Although welfare of the individual and the society does
not necessarily lie only in economic prosperity because moral, cultural and socio-
political advancement is equally important, but still Islam does not discourage
achievement of material prosperity through fair means.
However, the ultimate goal should be that which is ever lasting and better, anything
you can get in this world, Allah can give you better and henceforth the ultimate way
of obtaining Falah would be to obey the path set out by Allah swt and11/18/2017
His Messenger
13

to Jannah.
 Management from Islamic Perspective vs Conventional
Maximizing Profit or Seeking Rizq Enlargement for Falah
8a Further, the root of the word, 'Falah' has another meaning, to cultivate land. And the
word 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 ones
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 Quran. '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.
11/18/2017 14
 Management from Islamic Perspective vs Conventional
Maximizing Profit or Seeking Rizq Enlargement for Falah
9a/ Rizq: The Arabic word ''Rizq' means whatever is of beneficial use. It also means
bestowal of 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!" (Quran Surah Luqman, 31:20).
11/18/2017 15
 Management from Islamic Perspective vs Conventional
Secondly, the word Rizq is not the same as Kasb . Rizq means subsistence,
livelihood, living daily, God-given material blessings. Kasb means acquisition,
attainment, acquirement
The meaning of the latter refers to what one earns, while in the terms former, the
meaning refers to what one uses or spends. To the Muslims the concept of 'Rizq'
should be inseparable from the concept of "Falah". The word 'Rizq' always
ought to be perceived within 'Falah'.
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.

11/18/2017 16
 Management from Islamic Perspective vs Conventional
CONCLUSION & SUGESSTIONS Muslims should abandon the term rationality, in its
secular sense, and instead adopt the notion of 'Hikmah, Hikmah or wisdom is the
application of the right knowledge at the right time to a particular issue.
which simply means seeking 'Falah. From this, a logical consequence would be that
merely profit maximization, the offspring of purely rationality, must be abandoned.
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 'Taqwaand 'Tawakkal while being mindful to seeking Allahs
pleasure, Mardhatillah.

11/18/2017 17
 Allah Says in the Holy Quran in Surah al-Jumuah verse 1: Whatever
is in the heavens and on earth doth declare the Praises and Glory of
Allah, The Sovereign, The Holy One, The Exalted in Might, The Al-
Hakeem (The Wise One).
Surah Luqman verses 1-5:
1 Alif Lam Mim.
2 These are Verses of the Wise (Hakeem) Book,
3 A Guide and a Mercy to the Doers of Good,
4 Those who establish regular Prayer and give regular Charity and
have (in their hearts) the assurance of the Hereafter.
5 These are on (true) guidance from their Lord; and these are the
ones who will prosper.
11/18/2017 18