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After completing this chapter,

students should be able to:

Discuss the philosophy and
principles of Islamic management
Provide examples on practice of
Islamic organizations

4.9.1 Philosophy and Principles Islamic

Management
4.9.2 Examples on Practice of Islamic
Management

 Islamic way of managing as practiced by our

Prophet Muhammad S.A.W.
Research on Islamic had begun centuries ago.
Now becoming popular due to the fact that
modern management practice is unable to handle
and solve problems that are happening in our
world.

Ability to utilize resources both

material and human, optimally
in order to achieve goals, be it
short term or long term.

It was based on the teachings generated

from the Holy Quran and the As-Sunah.
It provide guidance in making decision.
The Islamic leadership under Prophet
Muhammad through the Islamic way of
managing things had created a strong
(Muslim) society.

1. Team spirit that practiced teamwork

2. A strong and clear vision and mission
3. Values for loving and caring
4. Emphasis for trust and relationship,
cooperation and teamwork
5. The practice of consensus (harmony)
decision making

Practices the following elements:1. Planning/Objectives/Goal

2. Organizing
3. Leading (Motivation)
4. Controlling (Execution)

1. He has allegiance (loyal) to Allah.

2. He has global perceive goals of organization
not only in term of individual or group interest,
but also from a wider perspective.
3. He adheres (stick on) to Syariah and Islamic
manner of doing things.
4. He can be trusted.

1. Syura ( Mutual Consultation)

2. Justice
3. Freedom of Expression
4. Masruiah
5. Qualification
6. Reward

1. Syura ( Mutual Consultation)

Emphasizes on the importance of managing through

teamwork.

Muslim leader are obligated to consult those with knowledge

and those who would provide good advice

Enable members in organization participate in decision

making process.

Monitors leaders conduct of behaviour so that it will not

deviate from collective goals of his followers.

Allows group members to express opinion and grievances

freely without feeling of embarassment.

2.

Justice

Leader should deal with people justly and

fairly regardless of race, colour, national
origin or religion.
Al-Quran commands Muslims to be fair
even when dealing with people who
oppose

3.

Freedom of Expression

Leaders are encouraged to provide

for and even invite constructive
criticism Two-way communication
is practices here

4.

Masruiah

The concept of Legality whereby the

management has to ensure that any
action taken must be within the legal
boundary of common / man made
law and the Syariah law.

5. Qualification
Importance of selecting the right management
personnel.
Based on two elements Quwwah (Strength)
and Amanah (Trustworthy)
Selection of new personnel should not be
based on self-interest or favouritism.
It should be based on the person ability,
expertise, experience and other suitable criteria
that fits the

6. Reward
Managers must be fair in any action and
reward people accordingly.
Employee who performed their tasks and
responsibilities well should be given reward.
Islamic management views reward as the
compensation / benefit earned not only today
but till one dies (Pembalasan Dunia dan
Akhirat)

1. The ultimate goal of our life should be harmoniously linked with

worldly aim. Human Khalifah must be balance- short term and
long term goal.
2. The moral / religious value of work should be integrated in the work
or activities we do. Working not only material gain-a moral obligation
a measure of pleasing ALLAH.
3. Time is to be well invested- not wasted.- Time to be treated as
commodity- punctual, doing diligent work, newer play around
4. Uphold and Internalized the Islamic ethical values - truthfulness,
honesty, dedication, self-restrain, self-discipline and fear Allah.
5. Self criticism- exercise periodically individually and collectively at all
levels

6. No favouritism and discrimination- Head of department and

leaders must be fair to employees.
7. Human nature and needs to be considered simultaneouslypsychological and economic must be met.
8. Employee must be paid sufficiently promptly and fairly.
9. Conducive reward for exceptional achievement and adequate
measures to detect and prevent violation.
10. Concepts of Syura- Consultation based on mutual discussion and
inculcate cooperation among member of organization

THE END..........