INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

MME 3113 Engineering Management

MANAGEMENT FROM ISLAMIC PERSPECTIVE

INTRODUCTION
The session aims to introduce Basic premises of the perspective of Management. Islamic

Development, attempts to contribute toward the discipline .

Suggestions to enthusiast to continually learn about and develop Islamic perspective of Management.

Terms Related to IM

Islam Management

Values, principles, concepts, practices

Organizations

M of IM
Management = getting things done through and with people Things done are related to accomplishment of mission and objectives

Management is explained in terms of the four functions (i.e. activities) of management

P-O-L-C (Planning, Organizing, Leading

Controlling)

I of IM
Islam = Divine system Management

A combination of I + M
A few inter-related terms Usage: Islam Iman Ihsan Sequence: Iman Islam Ihsan Noun-Person: Mumin/ah Muslim/ah

Muhsin/ah The Muslims are obligated to practice ImanIslam-Ihsan in all contexts to achieve Mardhatillah (Blessings of Allah)

Selected Definitions of IM
Way of performing activities or tasks in line

with the teachings of Islam, Islamic values and principles.

The

process of performing tasks by upholding the Islamic values and principles. and principles.

Carrying out tasks in line with Islamic values

Alternative Definition of IM
Assimilation, integration, reconciliation, and differentiation of Islamic values, principles, concepts and practices into the field of management in organizations to obtain the Blessings of Allah

Superimposing Islamic Connectors into Management

Iman ____ Fahm ___ Mardhatillah

Ihsan

POLC

Four Critical Connectors

Iman as the platform, criterion

Fahm as the requirement Ihsan as the speed Mardhatillah as the objective

IM and the Muslims

Achieving individual and organizational goals

with appropriate (best?) methods

Carrying

out POLC functions Islamic values and principles improvement

imbued

with

Moving toward perfection through Reflecting

continuous

perfection in all efforts to be commensurate with perfect ISLAM

State of Development of IM
Assessment

Criteria: conferences, journals, articles, titles of courses Comparison with Islamic Economics (IE) Comparison with Islamic Banking and Finance (IBF) Comparison with Islamic Marketing (IMK)

Relative Position of IM and Selected Disciplines

IE, IBF _____IM _______MKTG

Islamic Values as a System in Managing an Organization

.
System Values

Man Organization

 Imanic Sense
"Righteousness is good character, and

sin is that which wavers in your heart and which you do not want people to know about. [Muslim]

 Imanic Sense
According to Wabisah bin Ma'bad, radiyallahu 'anhu, who said: I came to the Messenger of Allah, sallallahu 'alayhi wasallam, and he said: "You have come to ask about righteousness ?" " Yes," I answered. He said: "Consult your heart. Righteousness is that about which the soul feels tranquil and the heart feels tranquil, and sin is what creates restlessness in the soul and moves to and fro in the breast, even though people give you their opinion (in your favour) and continue to do so. [A good hadith transmitted from the Musnads of the two Imams, Ahmad bin Hanbal and Al-Darimi]

Sciences of Islam
Al Quran/Tafsir

Al Hadith/Al Sunnah
Usul al Fiqh (legal maxims) Islamic history

Others

Usul al-Fiqh (Jurisprudence)

Sources of (Usul Fiqh)Legal Maxims

Al Quran + Al Hadith
Spirit of Shariah Encouraging all good deeds

Or/and Rejecting harm or injury

 WHAT IS MAQASID AL-SHARIAH?

CONCEPT The area of ultimate principles that highlight the spirit of the shari rules.

FUNCTION These objectives serve as values that regulate and govern discretionary justice in Islamic law.

THE OBJECTIVES OF SHARIAH

The Shariah aims at: a. Safeguarding people's interest b. Preventing harm from them in this world and the hereafter If the injunctions of al-Quran is not aimed at bringing benefit, than it will be a disastrous for all mankind and there is no benefit for the revelation

Therefore fiqh, with all different parts of it (Ibadah, Muamalah, jinayah etc) were revealed to benefit human beings and prevent harm from them, and it is also part of the mercy from Allah to mankind.

 AL-DARURIYYAT AL-KHAMSAH FIVE FUNDAMENTAL

VALUES

The matters on which the religion and worldly affairs of the people depend on them, their neglect will lead to total disruption and disorder and it could lead to bad ending. Category 1

The protection of religion 2

The protection of life The protection of dignity The protection of intellect

5 FUNDAMENTAL VALUES 5

3
4

The protection of property

General Principles of Ethics in Islam

Abdallah A Hanafy and Hamid Salam classified some major ethical principles in Islam into six (6) categories:

Truthfulness Trust Sincerity Brotherhood Science and Knowledge Justice

Specific Principles of Business Ethics in Islam 1. Hoarding and profiteering

Prophet (PBUH) reminded: The one who brings to the market, Allah will help him, provide well for his family; and the one who hoards is cursed by Allah. [ Ibnu Majah, Kitab Al-Baya]

2. Accuracy in measurement and weight

Defrauding in weights is a very old type of exploitation. The Holy Quran has emphasized the ethical responsibility of business regarding weight and measurement. Give full measure when ye measure and weight with balance that is straight ( Al Isra, 17:35)

Specific Principles of Business Ethics in Islam

3. Adherence to contracts

The Holy Quran reminds: O ye believers! Fulfill your contract. (Al Maidah, 5:1)
Whosoever is making such contracts let it be in a well defined measure and well defined price and well defined time table. (Muslim: Kitab al-Bayan) It is clear from the above quotations that a Muslim businessman has to fulfill his promises and commitments to his employees, customers, suppliers, governments, and general public in all respects. He should not indulge in cheating, violation of promises or arbitrary actions.

Specific Principles of Business Ethics in Islam

4. False Advertising and Misrepresentation

And do not withhold from people the things that

are their due and commit not evil in land with intent to spread disorder... (Hud, 11:85) It is not lawful for a Muslim to sell such a commodity that has a defect, except that the defect is shown to buyer. (Bukhari)

Specific Principles of Business Ethics in Islam 5. Destruction of Surplus Produce

and when he turns, his back, his aim everywhere is to spread mischief through the earth and destroys crops and cattle. But Allah loveth-not disorder on earth. (AlBaqara, 2:205) Prophet PBUH said, I dislike three things for you: useless argumentation, wasting goods, and excessive questioning. (Bukhari, Kitab al-Zakah)

Specific Principles of Business Ethics in Islam 6. Interest (Riba) and Unlawful Trade
Islam declares that interest (riba) is the root cause of all economic evils. Instead of interest-based trade, Islam offers an interest-free trade based on the Islamic principles of mudharabah and shirkah. Those who devour interest will not stand, except as one has been driven mad by the touch of the evil one. This is because they say: Trade is like usury. But Allah has permitted trade and forbidden interest. (Al-Baqara, 2:275)

Specific Principles of Business Ethics in Islam

7. Fair Recruitment Practices According to Islam, an office or a post is a divine trust, and therefore, it should be offered to the deserving persons and responsibility should be given only to that person who is able to shoulder it and who has the capability to do justice to the trust placed in him. Allah commands you to render back your trust to those to whom they are due and when ye judge between man and man, that ye judge with justice. (Al-Nisa, 4:58)

Specific Principles of Business Ethics in Islam 8. Fair Treatment to Workers

It is the moral responsibility of business organizations to take care of the overall welfare and betterment of their employees. They should not treat workers as machines or tools, but as human beings. Fair wages, good working conditions, suitable work, and excellent brotherly treatment should be provided to the workers. Give the laborer wages before his perspiration be dry. (Ibne Maja) Whosoever engages a worker on work should mention the wages in advance. (Bukhari)

Specific Principles of Business Ethics in Islam

9. Protection of Environment

According to Islam, no individual or organization has the right to utilize its resources in such a way that damage or inconvenience is caused to his people or the society in general. The Prophet PBUH has said: There is no scope for causing damage in Islam neither in the case of an independent action nor as a reaction. (Kitab al Kharaj) The utilization of natural resources for business purposes should be socially responsible. Islam urges upon its followers to use. It is Allah who made your homes as places of rest and quiet, and made for you out of skin of animals (tents for ) dwellings.And out of their wool and their soft fiber and their hair, rich stuff and articles of convenienceout of the things He created, some things to give you shade, and of the hills He made some for your shelter. He made your garments to protect you from heat, and coats of mail to protect you from (your) mutual violence. Thus, does He complete His favours on you, that ye may bow to His will (Al Nahl, 16:80-81)

The Nature of Conflict

30

Organizational conflict can be functional or dysfunctional, and occasional or chronic.

Conflict is functional when it improves the group's

performance by forcing examination of basic issues and identifying new opportunities. Conflict is dysfunctional when it hinders and prevents the group's goals from being achieved. Conflict is occasional when it is the exception, not the rule in the individual's or the group's behavior. Conflict is chronic when individuals or groups routinely differ in their approaches.

Islamic Perspective of Resolving Conflict

31

Examples of Conflict

Conflict develops and grows in a certain way. We will examine one instance of conflict in early Muslim history to observe the underlying pattern of conflict. The incidence is the case of land distribution after the conquest of Iraq in the days of 'Umar (RA).

Distribution of Land
32

A crisis emerges

After Muslim armies had entered Iraq as victors, the responsibility to decide if and how to divide the conquered land fell on the khalifah, 'Umar ibn alKhattab (RA). Opinions were divided on the issue and Muslims were in conflict with one another.

Continue.
33

The disagreement escalates

On the one hand, the army commanders thought that the land should be divided and distributed. For example, a senior companion `Abdur Rahman ibn `Awf also favored distribution. `Uthman, `Ali and `Umar (RA) thought that the land should not be distributed but left with the original cultivators.

Continue.
34

Confrontation occupies the center of attention.

A general assembly was called. It included all Muhajireen, and five representatives each from Aws and Khazraj tribes. Crisis deepens. The general assembly discussed the matter for several days. The crisis became prolonged and complicated. Further crisis is resorted to.

Continue.
35

The conflict is resolved.

`Umar (RA) one day referred to the Qur'anic verse that concluded with the words "...those who come after them." The assembly was convinced when `Umar (RA) said: "How, then, can I distribute it amongst you and leave those who come afterwards without any share?" Thus, the conflict was resolved by resorting to an acceptable authority.

The S-A-L-A-M Model

36

S Stating the conflicting view

A Agreeing that a conflict exists

M Minimizing areas of disagreement that could lead to aggression or withdrawal

Listening Advising for and one another learning the difference

THANK YOU