• Islamic Perspective on planning,

organizing, leading and controlling

• Principles of Islamic Management

Islamic Management 1
 Management From The Islamic
Perspective
• Management is defined as the ability to
utilize resources both materials and human,
optimally in order to achieve goals, be it
short term goals or long term goals.
• Practiced since the ear of Prophet
Muhammad s.a.w.
• Based on the holy Al-Quran and the As-
Sunnah as a guidance in making decisions.

Islamic Management 2
 MANAGEMENT FUNCTIONS IN ISLAM

Planning Controlling

Organizing Assuring the

Organization Structure results to
actual plans
Utilization of resource
Power, Delegation
Leading
Authority
Syura
Centralization &
Decentralization Justice
A long Term objective Freedom of expression
A short term objective Masrui’ah
Islamic Management Qualification 3
Reward
 Management Functions in Islam
• The Islamic management practices the
following elements:
a. Planning
b. Organizing
c. Leading
d. Controlling

Islamic Management 4
 Management Functions in Islam
1. Planning
• The planning process of setting objective/goals is also
practiced in Islam
• According to Islam, human beings are created by Allah
s.w.t. to be Khalifah on earth.
• Thus our life's and activities must be focused on
fulfilling two purposes that are:
a. A long term objective/goal-to be worthy servants of
Allah, avoid sins
b. A short term objective/goal- work productivity in the
form of services or products, academic achievement,
financial profit.
Islamic Management 5
 Management Functions in Islam
2. Organizing
• In Islam, organizing comprises the structuring of an
organization structure (organization chart), utilization of
resources (human), authority, power, delegation,
decentralization and centralization.
3. Leading
• From Islamic point of view, leadership refers to the
process of moving people in a planned direction by
motivating them
• Good leader moves people in a direction that is in their
long term best interest.
Islamic Management 6
 Management Functions in Islam
3. Leading
• From Islamic point of view, leadership refers to the process of moving
people in a planned direction by motivating them
• Good leader moves people in a direction that is in their long term best
interest.
• The characteristics of an Islamic leader are:
1. Faithful to Allah
2. Has global perceived goals of organization not only in term of individual or
group interest but also from a wider Islamic perspective.
3. Adheres to the Syariah and the Islamic manner in doing things.
4. Delegates trust.

Islamic Management 7
 Management Functions in Islam
3. Leading
• To be effective, Islamic leaders should follow these principles:
a. Syura (Mutual Consultation)
-the way of managing through teamwork
-practice of syura enable members of an organization to participate
in the decision making process
-syura also monitors the leaders conduct of behavior.
b. Justice
- leader should treat people justly and fairly regardless of race,
color, national origin or religion.

Islamic Management 8
 Management Functions in Islam
3. Leading
c. Freedom of Expression
- Muslim leaders are encouraged to practice two way
communication.
-According to Islamic leadership, a leader should try to create an
atmosphere of free thinking, healthy exchange of ideas, critics and
advice.
d. Masrui’ah
- the concept of legality whereby the management have to ensure
that any action taken must be within the legal boundary of the
common/man made law and the syariah laws.

Islamic Management 9
 Management Functions in Islam
3. Leading
e. Qualification
-Looks at the importance of selecting the right management and
personnel.
-should be based on 2 factors that are: “quwwah” (strength) and
“amanah”(trustworthy)
- selection of new personnel should not be based on self interest or
favoritism. It should be based on person’s ability, expertise,
experience and other suitable criteria.
f. Reward
- manager must be fair in any action and reward people accordingly.

Islamic Management 10
 Management Functions in Islam
4. Controlling
• Defined as the application of the procedures
prescribed and organized according to plan
as well as the performance of the roles
defined and specified under the
organization.

Islamic Management 11
 Principles of Islamic Management
a. The ultimate goal of our life should be harmoniously linked with the
worldly aims.
- human as khalifah must be able to balance their short term and long term
goals such as serving Allah, worshipping him with seeking hid worthy
pleasure and rewards.
b. Moral/ religious work should be integrated in the work or activities we
do
- working is not merely for material gains, but also moral obligation and
measure of pleasing Allah and getting nearer to him
c. Time is to be fully utilized
d. Uphold and practice the Islamic ethical values
-in whatever we do, we should uphold the Islamic values of truthfulness,
honesty, dedication, self restraint, self discipline and fear of Allah.

Islamic Management 12
 Principles of Islamic Management
e. Self criticism
-should be exercised by individuals and workers at all levels.
-Each individual should review his/her work and analyze his action and
attitudes
f. No favoritism and discrimination
g. Human nature and needs should be both considered simultaneously
- both psychological and economical contracts of a person must be met.
E.g: working hours must be reasonable and fair.
h. Employee must be paid sufficiently, promptly and fairly
i. There should be conducive rewards for exceptional achievement and
adequate measures to detect and prevent violations
j. Practice the concept of al-shura

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