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organizations management.
1/ Introduction
In recent decades there has been widespread attention to business ethics due
to highly visible cases of corporate malfeasance, such as the WorldCom, Enron, and
Tyco scandals. To protect their reputations, companies have begun to form more
comprehensive corporate policies concerning ethics. These policies generally offer
guidance to employees and state the expectations of the company. Some companies
require that employees sign a contract stating that they will follow the procedures.
To be viewed by the public as having high moral standards, many companies
have created a position called the corporate ethics officer or the corporate
compliance officer. This person ensures their organization has statements of ethical
principles, clear guideline about acceptable and unacceptable practices, and means
of reporting ethical breaches. These executives also have the specific responsibility
of monitoring ethical behavior and addressing breaches.
Value can be seen as those underlying convictions that are held by individuals
or groups. It is a broad, encompassing concept containing a moral flavor of what is
right or desirable. Values usually relate to an ideal or standard which guides our
conduct and a reference point against which we judge ourselves and which we use
to judge others argues that there is widespread agreement in the literature regarding
five features of the conceptual definition of value: a value is a belief, pertaining
desirable end states or modes of conduct, that transcends specific situations, guides
selection or evaluation of behavior, people, and events and is ordered by importance
relative to other values to form a system of value priorities. Values help evaluate the
relative importance of alternatives and influence the reasons for choosing a
particular route. They make our life meaningful and instigate us to think about what
we appraise most. Values act as our conscience and generate a sense of right and
wrong in our minds.Values are derived from the basic assumptions and affect the
attitudes and individual behavior and organizational performance.
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An important task for many managers is how to integrate the moral dimension
into business conducted across borders. Managers need an appreciation of the ethical
norms of different groups and cultures in order to gain complete understanding of
the cultural environment in which the firm must operate.
Muslims derive their ethical system from the teachings of the Quran and the
recorded sayings and behavior of Prophet Muhammad (PBUH). The goals of Islam
are not primarily materialist. They are based on Islamic concepts of human
wellbeing and good life which stress brotherhood/sisterhood and socioeconomic
justice and require a balanced satisfaction of both the material and spiritual needs of
all humans.
It should be emphasized that in Islam, business activity is considered to be a
socially useful function.
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2.3 Islamic values in production
Definition of Production: Production refers to the practices and means that
are used to convert tangible and intangible input into goods or services.
Production in Islam: Creation of utilities and adding value to utilities
The product or service will be lawful
The method of production will not cause an undue and excessive harm to
Allah-given resources
Any act of misuse of resources or mismanagement is seen as a violation of
trust.
Productive resources will not to be left idle
The production process will not cause harm to others
Natural resources must be used in the right way It is forbidden to damage the
natural resources
. Production that does not follow the principles set by Islam will affect the entire
business operation.
2.4 Islamic values in marketing
Achieve material and spiritual needs of consumers
Never compromise with unethical practices
Satisfy to customers based on the human values, marketing cultures, and
Islamic rules and regulations.
Focus on religious rules and ethics
enhancing the dignity and upholding the rights of human beings within the
society
Combine a value-maximization concept with the principle of justice for the
wider welfare of the society
Prices tend to be personal and human in nature. Prices may be positive,
negative or zero. There is no scope for a price system based on the market
mechanism, a market mechanism supplemented by conscious control,
supervision and cooperation. For the determination of prices, there is a need
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for institutional reforms and structural change. Some economists suggest that
prices will be according to the average cost. Muslim economists have the
consensus that there should be guided cooperative prices; administered prices
of goods and services are limited to the basic human needs. There should be
direct supervision and control on the prices.
An Islamic firm may well advertise to inform potential buyers of their
existence. Since buyers and sellers change over time, since information is
forgotten, since new producers appear, the existence of sellers must be
advertised. However, advertising should be informative and educational,
excessive advertising is not allowed because this will be a cause of wastage
and misallocation of the resources.
In the conventional system the consumers are forced to pay the cost of
advertising without their consent, as it is not necessary that every piece of
information is provided to them. However, advertising also has a positive
impact on economic activities. It is believed in conventional economics, that
the good reputation of the firm has a negative impact on its cost of advertising.
The cost of advertising in the Islamic economy is less than in the conventional
system.
2.5 Islamic values in leadership
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Once justice is ensured, every member of organization will feel comfort
and confidence, because he is aware that the leadership of the organization
will look after his interest without any bias. This will eventually bring
motivation across organization and every member will work with more
dedication and commitment towards set objectives.
Another important quality of leadership is the ability to articulate and
communicate ideas and views with clarity and eloquence, because
communication is one of the important dimensions of effective leadership.
The concept of trust is a core value governing social relationships, as
every person is held accountable for his/her doings in the community. The
leader is a trustee, who should respect the trust bestowed on him/her by their
superiors and subordinates.
2.6 Islamic values in human resources management
Personal values in Islam can be seen from the personal value per person
and personal value in community. Personal values include individual
characteristic of a person in attitudes and behavior, as well as its intellectual
capabilities. Because there is an element of personal values held, then individual
will display their respective mark.
Islamic HRM suggests that employees are not just a servant, they are
valuable assets, and they should be considered as a source of powerful and
dynamic workforce assets. Indeed, Islamic HRM practices emphases on the
development of employees individual skills, abilities, attitudes and job
knowledge to contribute for accomplishing organizational objectives. Islamic
HRM believes that individual to identify his or her strengths and make full use of
them. The concept of Islamic HRM aims at understanding the needs and hopes of
employees in a better way. Islamic HRM practices in the organization is one of
the vital factors that associated with job satisfaction, high performance, and low
turnover in workplace. In fact, trust in organization is most likely mutual
exchange behavior among the employees in work place. Moreover, when trust
levels are low, individuals tend to be less creative, less forthcoming with ideas
and exert less effort towards organizational goals. Furthermore, without trust in
organization, management may erroneously assume that employees need more
rigid supervision and tighter controls. It seems that the significant of Islamic
HRM might have an influence on the development of employee trust in
organization by practicing Islamic guiding. It is now very noticeable, the success
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of Islamic organizations make people to realized that the application of Islamic
core values, and ethics and moral values have long been sustainability, and
provide high productivity, good customer service, smooth management employee
relationships over the competitive and challenging business environment.
Moreover, to keep peace with this rapid growth it is require ensuring that Islamic
HRM must be well tuned, properly implemented, and continuously monitored to
accomplish desired organizational.
HR functions are vital for both Islamic and non-Islamic HRM practices.
Principally, it is obligatory for Muslims and Islamic institutions to accept and
obey Islamic rules, regulation and guidelines as a way of life rather than a separate
activity particularly, to run the organization under Islamic law. Additionally, for
non-Islamic institutions they can practices Islamic values to accomplish the
advantages of Islamic code.
In Islam every act should be accompanied by intentions. The implications
of this principle in human resource management is that employees should not, for
example, be punished for making unintentional mistakes and should be rewarded
or punished for their intended objectives, ideas, plans and strategies rather than
just for the outcomes of their actions which may be affected by external factors
beyond their control. This also accentuates in Islamic management the importance
of human resource planning and strategic decision-making.
2.7 Islamic values in quality management
There are several principles and standards, which Islam lays down, in
order to achieve quality management.
Trustworthiness and Honest
Strong Will and Self-Determination.
Efficiency.
Supervision.
Accountability.
Division of Labor.
Collective Efforts.
Planning.
Preference to the Organizational Interest.
Right person in the right place.
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Conscientious of self-improvement value implies the continuous
struggle within oneself for self-betterment in order to do better work. Hence,
striving to do better all the time requires humans to work harder and improve the
quality of their products and services through the learning of new knowledge and
skills. This value is related to a state of passion for excellence and perfection.
Creativity therefore becomes an indispensable value in ones life because of the
desire to perfect and excel in doing what is good for oneself and good for the
community. In an organizational context, striving to do better all the time requires
managers and employees to work harder and improve the quality of their products
and services through the promotion of learning, training, innovation and
creativity.
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Employees will be open, honest and respectful in both internal and
external communications
Employees actions will contribute to creating a positive work
environment
The employee agreed with the manager and stopped the negative behavior.
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Gods satisfaction and to worship God as if you see Him and He sees you. This
feeling makes the person behave at his/her best without the need for any human
supervision.
In this context, such economic and social activities assume a moral and
spiritual dimension as a means for doing well to oneself by self-preservation and to
society by following Gods guidance on wealth generation, ownership, spending,
equality and social justice. Production and consumption are therefore guided by
consideration of what is produced, how it is produced and the human and social costs
of both production and consumption.
Every activity should be a pursuance of good deeds and remembrance of
Gods presence. Managers with a high level of kindness and care while feeling the
presence of God promote the training and development of their employees and
encourage employment involvement and participation in decision-making.
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Communicate the values and stories with employees to inform and educate:
Identify and establish a core group of trusted employees that exemplify those
newly established core values. Define the communications strategy and plan to begin
rolling those values out to the organization.
Determine what needs to be done, by whom and when.
Identify the leadership team member accountable for making sure that the core
values are rolled out to the organization as well as what responsibilities the other
readership take to ensuring the success.
Decide how the newly established team will begin working and interacting with
the employees to reinforce the core values for all.
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