Alhamd Islamic University

(Islamabad Campus)

MBA-3rd
ASSIGNMENT 01

SUBJECT: ISLAMIC MANAGEMENT

SUBMITTED BY: MUHAMMAD TAYYAB QAYYUM

SUBMITTED TO: SYED ATEEQULLAH

ISLAMIC MANAGEMENT IN THE LIGHT OF ISLAM

Management and Islamic Worldview

Islamic Management Defined Islam is a comprehensive, integrated and holistic religion that
governs and interweaves all aspects of life (Ahmad, 2007). Besides, Islam not only concerns
about the worldly matters but also the hereafter since everything done by mankind in this world
has the ultimate end to seek Allah’s pleasure. Therefore, to achieve the ultimate ends, man
should follow the rules and guideline provided by the Almighty. The objective of man’s creation

is to worship Allah. It is clearly stated in the Holy Qur’an: “And I (Allah) created
not the jinn and mankind except that they should worship
Me (alone)” (Holy Qur’an, 51:56).

Al-Attas (2001) claimed that everything in Islam is ultimately focused on the akhirah-aspect (the
hereafter) without thereby implying an attitude of neglect or being unmindful of the duniya-
aspect (worldly). Since management is a daily process in the organization of various types, it is
important to have the right definition of management according to the Islamic worldview.
Basically, the Tawhidic approach is needed for the Islamization of the management concept so as
to impose justice and fairness in managing people as the aim of man’s creation (Jabnoun, 1994;
Abdul Hamid, 2007) is to worship no other gods but Allah the Al-Mighty with the objective of
managing people is to seek mardhatillah (Allah’s pleasure) (Nordin & Othman, 2011). Islamic
management means conducting activities depending upon the guidance of Allah (SWT) and
following His prophet (Peace Be Upon Him) with an accountable mentality, integrity and skills
to achieve a predetermined objective (Mohiuddin, 2012). Every human being shares the same
relationship with Allah and His universe, a definite relationship between man and man is also
prescribed as the relationship of brotherhood and equality Mohiuddin, 2012). It is supported by
Safiullah (2005) by giving an analogy of Tawhid as a coin with two faces: one implies that Allah
is the Creator and the other implies that men are equal partners or that each man is brother to
each other.
Defining Management from an Islamic Perspective

A definition by Mohiuddin (2009), who mentioned that management in the perspective of the
Al-Quran and Al-Hadith or Islamic management is the process of planning, organizing, leading
and controlling the efforts of organizational members and by using all other organizational
resources depending upon the guidance of Allah (SWT) and His Prophet (Peace Be Upon Him)
with accountable mentality, integrity and skills to achieve the predetermined objective.

Principles of Management in Islam

The principles of Islamic management can be traced back to the time of Prophet Muhammad
(PBUH) when he laid down the foundation of an Islamic Society. Those principles were
administered by the Shura – a group of his companions for consultation. Al-Hirrawi (1986) was
of the view that being a Prophet his companions were supposed to obey him without questioning,
however, Prophet Muhammad (PBUH) created a conducive environment of consultation and
participation. It is pertinent to mention that the Shura or council comprised of honest and pious
members. As Islam spread to other regions of the world the administration turned to be
complicated and other non-members also became part of the administration Al-Hirrawi (1986). It
is significant to note that the Holy Quran is a source of guidance for the principle of
management, work ethics and sayings of Prophet (PBUH). The Holy Quran clearly states on the
significance of justice, honesty and fairness in employee and employer’s relationship. Besides, it
encourages and stresses on the learning of skills and struggle for good work to benefit the
community as well. Islam firmly believes on consultation and cooperation in work Abuznaid
(2006).
The main principles of Islamic management are as follows:

Taqwa (Fear of Al-Mighty Allah)

When a person is filled with fear of Al-Mighty Allah he refrains from injustice and will do good
deeds. It is a self accountable characteristic which shapes the behavior of an individual, either
manager or subordinate, in a way so that he/she may honestly perform his duties and accomplish
the tasks assigned to him/her. Such principle is a kind of check and balance and on employee and
employer considers him/her self accountable to Al-Almighty Allah for his/her wrong actions.
Ihsan (Forgiveness)
The word Ihsan can be used in many contexts. Forgiveness, amelioration, completeness of faith
etc are some of the meanings of Ihsan, however, it is a way of attaining Al-Mighty Allah’s
Satisfaction to worship Allah as you see Him and He sees you (Branine, 2001). Ihsan is related
to Iman which mean Faith in Al-Mighty Allah so in this context undertaking the economic
activities wealth generation, ownership, equality and social justice and spending etc by keeping
in mind Allah’s guidance. Managers can perform their tasks, related to subordinates, aptly with
high level of Ihsan such as training and development, behavior with employee and their
involvement in job. Besides, encourage employees to participate in decision making.
Adl (Justice)
Wilson (2006) stated that justice is a quality everyone should develop irrespective of his gender
(he/she) and level of employment (manager/subordinate). The Holy Quran says about justice in
these words, “O you who believe stand out firmly for God as witnesses to fair dealing and let not
the hatred of others to you swerve to wrong and depart from justice…” (Chapter-5, verse-8)

Islam teaches the lesson of justice without personal interests and likeness. It should be free of
prejudice. There is no restriction of beliefs in Islam and everyone should practice his/her belief
freely. This can be proved from the Holy Quran in these words, “there is no compulsion in
religion” (Al-Quran, Chapter-2, Verse-256). Even the sayings of Prophet Muhammad (PBUH)
provide a documented proof regarding the equality of all human beings, “An Arab has no
preference over a non-Arab, nor a non-Arab over an Arab, nor is a white one to be preferred to a
black one, nor a black one to a white one, except in piety (righteousness)”. Equality can be
achieved through justice and for equality those at managerial positions should be mild. Managers
should create and maintain an environment of justice by providing a chance of participation to
employees.
Amana (Trust)
Trust is the core value of operating a social relationship and by this every one, he or she, is
accountable for his actions and deeds. The Holy Quran says, “O you that believe! Betray not the
Trust of God and the Apostle nor misappropriate knowingly things entrusted You”, (Chapter-8,
Verse27). Tayeb (1996) opines that by trust consultation and delegation of authority can be
accomplished. Trust can be an organization for its owner and its employees. Sidq (Truthfulness)
Sidq means saying sayings and actions what is right and at the best of someone’s knowledge. Lie
to cheat someone is strictly forbidden in Islam. The Holy Quran on many occasions abhors lying.
Managers, leaders, owners and subordinates should be truthful and not be guided by his/her
personal will or feelings. They should perform their duties with honesty and trustworthiness. The
center of effective management is honesty and trustworthiness. By trust resources cannot be
misused, hence, everyone would perform his/ her job with responsibility.

Ikhlas (Sincerity)
Sincerity and keeping promise are the important principles of Islamic management. One should
fulfill his or her moral obligations with sincerity and should keep the promises. The Holy Quran
states, “O you who believe! fulfill (all) obligations”. Hence, sincerity tries to infuse a culture of
trust, confidence truthfulness and cooperation among managers and subordinates.

Shura (Consultation)
An important principle of Islamic management is Shura. A Muslim leader should work by
seeking the suggestions of its subordinates through consultations. He or she should not adopt
autocratic style of management. The Holy Quran states, “Their matters are settled through shura
among them.” (Chapter-42, Verse-38). All matters of life including socio-economic and political
etc should be decided by consultation. The principle of Shura is an important concept of Islamic
management which guides managers to behave with their subordinates with equality and justice.