SLIDE PRESENTATION ON

Strategic management from Islamic perspective

Prof. Dr. Azhar Kazmi Department of Business Administration International Islamic University Malaysia

THE ISLAMIC APPROACH TO MANAGEMENT

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.
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SOURCES OF KNOWLEDGE FOR DERIVING IDEAS REGARDING ISLAMIC PERSPECTIVES TO STRATEGIC MANAGEMENT
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 Islamic administration and management, studies in Islamic social sciences, studies in Islamic culture, writings of leading Islamic scholars, and the writings of leading and authentic non-Muslim scholars.

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Paradigm guiding management of organizations

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

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
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Purpose of human existence dictating management of organizations

Islamic Management Conventional management

Purpose of human Purpose of human existence is to utilize existence is to obey natural resources to and fulfill Allahs satisfy ones needs, commandments and wants and desires act as the viceand to remain happy regent of Allah on earth.
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Purpose of organization
Islamic management
Organizations are meant to be groups of people coming together for attaining the purpose of human existence.

Conventional management Organizations are meant to be groups of people coming together to attain the organizational goals

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Nature of organizational objectives

Islamic management Conventional management
Organizational objectives are both Organizational objectives are both economic and noneconomic and noneconomic and are economic in nature subservient to larger and are subservient purpose of human to organizational existence interests
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Source of ethics and values governing management of organizations

Conventional Islamic management management The revealed Ethics is relative and knowledge and the values are derived traditions of the from multiple Prophet (SAAS) sources such as constitute the upbringing, society, ultimate source of and experiences. Ethics could be business ethics and relative as in personal values utilitarian theory.
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Organizational Control
Islamic management Conventional management Organizational control has to operate in a Organizational control way designed to has to operate in a make the human way designed to being subservient to align human the will of Allah objectives with the organizational objectives
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Locus of control
Islamic management
The locus of control is internal. Each person is responsible and accountable for his actions

Conventional management The locus of control is external and lies in the realm of the organization

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Organizational responsibility and accountability

Conventional Islamic management management Human being has and choice, free will and Responsibility accountability freedom of action vested in the chief therefore is executive who deleresponsible and gates it. Employees accountable for all controlled through actions organizational systems to ensure responsibility and Islamic perspectives to SM/ Azhar accountability Kazmi/2004-5 11