After completing this chapter, students

should be able to:

Discuss the philosophy and principles of
Islamic management
Provide examples on practice of Islamic
organizations
4.9.1 Philosophy and Principles Islamic
Management

4.9.2 Examples on Practice of Islamic

Management
• Islamic way of managing as practiced by our
Prophet Muhammad S.A.W.

• Research on Islamic had begun centuries ago.

•Now becoming popular due to the fact that

modern management practice is unable to handle
and solve problems that are happening in our
world.
Ability to utilize resources both
material and human, optimally
in order to achieve goals, be it
short term or long term.
•It was based on the teachings generated
from the Holy Quran and the As-Sunah.

•It provide guidance in making decision.

•The Islamic leadership under Prophet

Muhammad through the Islamic way of
managing things had created a strong
(Muslim) society.
1. Team spirit that practiced teamwork
2. A strong and clear vision and mission
3. Values for loving and caring
4. Emphasis for trust and relationship,
cooperation and teamwork
5. The practice of consensus (harmony)
decision making
Practices the following elements:-
1. Planning/Objectives/Goal
2. Organizing
3. Leading (Motivation)
4. Controlling (Execution)
1. He has allegiance (loyal) to Allah.

2. He has global perceive goals of organization

not only in term of individual or group interest,
but also from a wider perspective.

3. He adheres (stick on) to Syariah and Islamic

manner of doing things.

4. He can be trusted.
1. Syura ( Mutual Consultation)

2. Justice

3. Freedom of Expression

4. Masruiah

5. Qualification

6. Reward
1. Syura ( Mutual Consultation)

• Emphasizes on the importance of managing through

teamwork.

• Muslim leader are obligated to consult those with knowledge

and those who would provide good advice

• Enable members in organization participate in decision

making process.

• Monitors leader’s conduct of behaviour so that it will not

deviate from collective goals of his followers.

• Allows group members to express opinion and grievances

freely without feeling of embarassment.
2. Justice

• Leader should deal with people justly and

fairly regardless of race, colour, national
origin or religion.

• Al-Quran commands Muslims to be fair

even when dealing with people who
oppose
3. Freedom of Expression

• Leaders are encouraged to provide

for and even invite constructive
criticism – Two-way communication
is practices here
4. Masrui’ah

• The concept of Legality whereby the

management has to ensure that any
action taken must be within the legal
boundary of common / man made
law and the Syariah law.
5. Qualification

• Importance of selecting the right management

personnel.

• Based on two elements – Quwwah (Strength)

and Amanah (Trustworthy)

• Selection of new personnel should not be

based on self-interest or favouritism.

• It should be based on the person ability,

expertise, experience and other suitable criteria
that fits the
6. Reward

• Managers must be fair in any action and

reward people accordingly.

• Employee who performed their tasks and

responsibilities well should be given reward.

• Islamic management views reward as the

compensation / benefit earned not only today
but till one dies (Pembalasan Dunia dan
Akhirat)
1. The ultimate goal of our life should be harmoniously linked with
worldly aim. Human – “Khalifah” must be balance- short term and
long term goal.

2. The moral / religious value of work should be integrated in the work

or activities we do. Working not only material gain-a moral obligation
a measure of pleasing ALLAH.

3. Time is to be well invested- not wasted.- Time to be treated as

commodity- punctual, doing diligent work, newer play around

4. Uphold and Internalized the Islamic ethical values - truthfulness,

honesty, dedication, self-restrain, self-discipline and fear Allah.

5. Self criticism- exercise periodically –individually and collectively at all

levels
6. No favouritism and discrimination- Head of department and
leaders must be fair to employees.

7. Human nature and needs to be considered simultaneously-

psychological and economic must be met.

8. Employee must be paid sufficiently promptly and fairly.

9. Conducive reward for exceptional achievement and adequate

measures to detect and prevent violation.

10. Concepts of Syura- Consultation based on mutual discussion and

inculcate cooperation among member of organization
WALLAHUA’LAM