Management from Islamic perspective

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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. (Sources of MIP) 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 Allah’s 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

Purpose of human existence is to obey and fulfill Allah’s commandments and act as the vice-regent of Allah on earth.

Conventional management

Purpose of human existence is to utilize natural resources to satisfy one’s needs, wants and desires and to remain happy

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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

Organizational objectives are both economic and non-economic and are subservient to larger purpose of human existence

Conventional management

Organizational objectives are both economic and non-economic in nature and are subservient to organizational interests

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Source of ethics and valuesgoverning management oforganizations

Islamic managementThe revealed knowledge and

the traditions of the Prophet (SAAS) constitute the ultimate source of business ethics and personal values

Conventional management

Ethics is relative and values are derived from multiple sources such as upbringing, society, and experiences. Ethics could be relative as in utilitarian theory.

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Organizational Control

Islamic management

Organizational control has to operate in a way designed to make the human being subservient to the will of Allah

Conventional management

Organizational control has to operate in a way designed to align human 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 responsibilityand accountability

Islamic management

Human being has choice, free will and freedom of action therefore is responsible and accountable for all actions

Conventional management

Responsibility and accountability vested in the chief executive who delegates it. Employees controlled through organizational systems to ensure responsibility and accountability

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LITERATURE ON ISLAMAIC MANAGEMENT

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LITERATURE ON MANAGEMENT AND THE LITERATURE ON MANAGEMENT AND THE

ISLAMIC PERSPECTIVEISLAMIC PERSPECTIVE

Areas of Islamic Economics and Areas of Islamic Economics and Finance have been Islamized a lot. Finance have been Islamized a lot. The success has been so great that The success has been so great that we have moved from Islamizing we have moved from Islamizing concepts to application of these concepts to application of these concepts in real life, e.g. Islamic concepts in real life, e.g. Islamic Banking and investments. But we Banking and investments. But we can’t speak in the same confidence can’t speak in the same confidence about management. The Islamizing about management. The Islamizing of management remains a challenge.of management remains a challenge.

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Books: Islamic ManagementBooks: Islamic Management In his book,” Islam and Management” In his book,” Islam and Management”

Naceur Jabnoun (1994) says that the Naceur Jabnoun (1994) says that the Islamic evolution has made Islamic evolution has made remarkable and highly essential remarkable and highly essential contributions in many areas of human contributions in many areas of human life.life.

In addition, in regards to management In addition, in regards to management and leadership, Jabnoun (1994) and leadership, Jabnoun (1994) presented several leadership traits, as presented several leadership traits, as to how a Muslim leader should behave to how a Muslim leader should behave in order to deserve good followers in order to deserve good followers

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Modules on Leadership from Islamic Modules on Leadership from Islamic PerspectivePerspective

Leadership is an essential aspect of management and this fact Leadership is an essential aspect of management and this fact motivated Omar Hasan Kasule, Sr.(1998) to develop and write motivated Omar Hasan Kasule, Sr.(1998) to develop and write modules for training in leadership skills. His module was to be modules for training in leadership skills. His module was to be introduced at the Muslim Leaders' Forum held in August 1998, a introduced at the Muslim Leaders' Forum held in August 1998, a forum especially catering for Muslim leaders. forum especially catering for Muslim leaders.

From a management point of view and with an objective to From a management point of view and with an objective to produce dynamic Muslim leaders, a book written by Hisham Al-produce dynamic Muslim leaders, a book written by Hisham Al-Talib(1981)Talib(1981): : "Training Guide For "Training Guide For Islamic Workers” Islamic Workers” would be very would be very useful. The book is addressing potential Muslim leaders willing useful. The book is addressing potential Muslim leaders willing to acquire knowledge and wisdom and practice Dawah with the to acquire knowledge and wisdom and practice Dawah with the perspective in view to come to pioneer in social change, and this perspective in view to come to pioneer in social change, and this through a convincing and effective communication. through a convincing and effective communication.

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Islamic Management for ExcellenceIslamic Management for Excellence

Islamic Management of Excellence: Islamic Management of Excellence: Revitalizing People for the Future” a book Revitalizing People for the Future” a book written by Alhabshi et al. (1994 ) explains written by Alhabshi et al. (1994 ) explains the importance of a stable family institution.the importance of a stable family institution.

According to authors education would be According to authors education would be the avenue for producing the right kind of the avenue for producing the right kind of individuals for a nation.individuals for a nation.

In regards to management for excellence In regards to management for excellence and its Islamic perspective, the authors of and its Islamic perspective, the authors of this book further introduced important this book further introduced important concepts such as concepts such as IhsanIhsan, justice and , justice and benevolence. benevolence.

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Islamic Ethics and Quality ManagementIslamic Ethics and Quality Management

““Ethics in Business and Management: Islamic and Mainstream Approaches” a Ethics in Business and Management: Islamic and Mainstream Approaches” a book dealing with management and edited by Khaliq Ahmad et. al. (2002) book dealing with management and edited by Khaliq Ahmad et. al. (2002) explains the importance of Islamic ethics in business and management.explains the importance of Islamic ethics in business and management.

The edited book deals with the Islamic ethical system in economic behavior, The edited book deals with the Islamic ethical system in economic behavior, and highlights the various issues confronting business today. Besides and highlights the various issues confronting business today. Besides discussing business ethics and the social responsibility of businessmen from discussing business ethics and the social responsibility of businessmen from both the conventional and Islamic viewpoints, a possible dimension of ethical both the conventional and Islamic viewpoints, a possible dimension of ethical behaviors in management is explored.behaviors in management is explored.

““Issues in Quality Management: ISO in Relation to Islamic Standard”, another Issues in Quality Management: ISO in Relation to Islamic Standard”, another publication by Khaliq Ahmad et, al .(2003) explains the importance of the publication by Khaliq Ahmad et, al .(2003) explains the importance of the concept of quality in business and management.concept of quality in business and management.

In response to this, said the author, the Islamic Standard Institute (ISI) -2020 In response to this, said the author, the Islamic Standard Institute (ISI) -2020 was established in Malaysia to cater for the needs of the Malaysian society was established in Malaysia to cater for the needs of the Malaysian society and, eventually, the needs of the Muslim and, eventually, the needs of the Muslim UmmahUmmah worldwide. worldwide.

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Conventional and Islamic Conventional and Islamic Approaches to ManagementApproaches to Management

A work by Azhar Kazmi (2004), A work by Azhar Kazmi (2004), titled ‘A Preliminary Enquiry into titled ‘A Preliminary Enquiry into the Paradigmatic Differences the Paradigmatic Differences among the Conventional and among the Conventional and Islamic Approaches to Islamic Approaches to Management Studies’ was Management Studies’ was carried out.carried out.Approaches to Management.doc

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Other Studies…Other Studies…

There other studies undertaken There other studies undertaken by different author (s). by different author (s). Annexure A.doc

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MANAGEMENT ENVIRONMENT AND THE ISLAMIC PERSPECTIVE

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ENVIRONMENT AND ENVIRONMENT AND CORPORATE CULTURECORPORATE CULTURE

TTo the Muslims, to the Muslims, t he environment he environment is like man, is like man, part part ’ of God s ’ of God s CrCr . eation Its role is dual. eation Its role is dual in nature that is: in nature that is:

TT o worship its Creator and simultaneously o worship its Creator and simultaneouslyTo To be of service to manager be of service to manager,, so that he so that he/she/she maymay

smoothly and undeterred carry out smoothly and undeterred carry out his or herhis or her honourable task honourable task ofof the Vthe Vicegerencyicegerency on earth. on earth.

Among theAmong the matters matters that manager will be held that manager will be held accountable for accountable for uponupon his departure from this world his departure from this world

is the is the manner in which manner in which he he/she/she managedmanaged his hissurroundingssurroundings on earth, on earth, comprising both animate comprising both animate

.and inanimate beings .and inanimate beings

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THE EXTERNAL ENVIRONMENT THE EXTERNAL ENVIRONMENT OF AN ORGANIZATION OF AN ORGANIZATION

Effects by events taking place in the Effects by events taking place in the external environment of an organization external environment of an organization are highly influential on its behavior, as are highly influential on its behavior, as well as on the managerial performance well as on the managerial performance and at times these effects may go beyond and at times these effects may go beyond the control of the managers.the control of the managers.

The external environment comprises of The external environment comprises of two layers: the general environment and two layers: the general environment and the task environment.the task environment.

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The General Environment The General Environment for Managersfor Managers

In regards to the first layer of the external In regards to the first layer of the external environment of an organization, the general environment of an organization, the general environment represents the outer layer of environment represents the outer layer of its environment. This layer influence the its environment. This layer influence the organization over time, but may often not organization over time, but may often not be of much cause for impact on day-to-day be of much cause for impact on day-to-day transactions. The general environment in transactions. The general environment in turn comprises of various dimensions, turn comprises of various dimensions, elements,elements, such as technology, socio-culture, such as technology, socio-culture, economical and legal-political matters. economical and legal-political matters.

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Task Environment for Managers and Task Environment for Managers and Corporate CultureCorporate Culture

The second layer of the external environment of an organization The second layer of the external environment of an organization would be the task environment, which refers to inner layer of an would be the task environment, which refers to inner layer of an organization, such as elements related to the routine tasks of the organization, such as elements related to the routine tasks of the workers and the managers. Its influences on the organization are workers and the managers. Its influences on the organization are felt directly.felt directly.Islamic culture is derived from Islamic worldview that does not Islamic culture is derived from Islamic worldview that does not necessarily reflect contemporary Muslims’ societies. Ideal Islamic necessarily reflect contemporary Muslims’ societies. Ideal Islamic culture neither subscribes high power distance nor low. Prophet culture neither subscribes high power distance nor low. Prophet (saw) says,” someone who fails to be affectionate to young, (saw) says,” someone who fails to be affectionate to young, respect elderly and accords high honor to scholars, don’t belong respect elderly and accords high honor to scholars, don’t belong to me (being a Muslim). Therefore any power distance and to me (being a Muslim). Therefore any power distance and authority’s respect is due to the benevolence in mutual authority’s respect is due to the benevolence in mutual relationship. relationship.

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Continue…Continue…Islam emphasizes collectiveness not Islam emphasizes collectiveness not purely individualism. A concern of social purely individualism. A concern of social belongingness where a respect for belongingness where a respect for individual’s rights is guaranteed is part individual’s rights is guaranteed is part of an Islamic culture. There is higher of an Islamic culture. There is higher regard for aesthetical value than a pure regard for aesthetical value than a pure materialism and Islam views this world materialism and Islam views this world as not so lasting as compared to the as not so lasting as compared to the world hereafter. Masculine nature of the world hereafter. Masculine nature of the Muslim’s society is not its weakness Muslim’s society is not its weakness rather strength. rather strength.

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Corporate Culture and Corporate Culture and the the Islamic Islamic PrinciplesPrinciples

For the cultivation of an Islamic corporate culture For the cultivation of an Islamic corporate culture Syed Othman et Syed Othman et, , alal. . ( Islamic Management for( Islamic Management for

) Excellence list) Excellence listeded a number of a number of valuesvalues to be applied in to be applied in any organization;any organization;

Every action should be based on Every action should be based on a stated a stated intentionintentionCC onscientiousness and onscientiousness and good good knowledgeknowledge to be applied to be applied in all in all

( ).endeavours itqan ( ).endeavours itqan ( )Proficiency & efficiency ihsan ( )Proficiency & efficiency ihsan to be practicedto be practiced

( )Sincerity ikhlas ( )Sincerity ikhlas Passion for excellence Passion for excellence

Continuous self Continuous self-- ( )evaluation similar to the Japanese Kaizen ( )evaluation similar to the Japanese KaizenBeing fBeing f orever mindful of Allah orever mindful of Allah ((SWTSWT))JusticeJusticeTruthfulnessTruthfulness

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Continue…Continue…Patience (Sabr)Patience (Sabr)ModerationModeration to be applied to be applied in all in all mattersmatters, ,

, including food , including food healthhealth, , work ibadat, , work ibadat.. Keeping promises Keeping promises

Prohibition of loving this world Prohibition of loving this world,, excessivelyexcessively

Prohibition of loving wealth Prohibition of loving wealth,, excessively excessively Being Miserly Being Miserly

Prohibition of lov Prohibition of love of power ande of power and influenceinfluence,, excessively excessivelyAvoidance of pAvoidance of prideride

ISLAMIC PERSPECTIVES TO PLANNING & COMPETITION IN MANAGEMENT

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Competitiveness as an Inevitable Behavior in Management• Competition and competitiveness are recurring themes

in day to day management• The purpose of management is to learn how

organizations can gain competitive advantage• Business planning/strategies are based on the

paradigm of industry competitiveness• There are alternative views on competition.

Cooperation is emerging as a viable option and there are also cooperative strategies

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Some disturbing questions……

• Does competition have to be ‘cut-throat’ as described in many Western texts (e.g. Michael Porter) on conventional strategic management?

• Is it really essential to describe competitive strategies (or tactics) in abominable terms such as “frontal assault’, ‘flanking maneuver’, ‘bypass attack’, ‘encirclement’ or ‘guerrilla warfare’?

• Is it right to erect entry barriers as a defensive tactics to prevent other companies entering an industry?

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….. And the probable answer• There are alternatives to the

paradigm of competition and competitiveness as perceived in conventional strategic management for the purpose of strategy formulation.

• Islamic revealed knowledge sources offer a solution out of this dilemma

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Please read this Hadith

Narrated by Sahl bin Sa'd, on the carnal nature of human beings:

.Heard Ibn Az-Zubair who was on the pulpit at Mecca,

delivering a sermon, saying, "O men! The Prophet used to say, "If the son of Adam were given a valley full of gold, he would love to have a second one; and if he were given the second one, he would love to have a third, for nothing fills the belly of Adam's son except dust. And Allah forgives he who repents to Him." Ubai said, "We considered this as a saying from the Qur'an till the Sura (beginning with) 'The mutual rivalry for piling up of worldly things diverts you..' (102.1) was revealed."

(Sahih Bukhari Volume 8, Book 76, Number 446)

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Two Quranic verses on rivalry[102.1] The mutual rivalry for piling up (the good things of

this world) diverts you (from the more serious things). [57.20] Know ye (all), that the life of this world is but play

and pastime, adornment and mutual boasting and multiplying, (in rivalry) among yourselves, riches and children. Here is a similitude: how rain and the growth that it brings forth, delight (the hearts of) the tillers; soon it withers; thou wilt see it grow yellow; then it becomes dry and crumbles away. But in the Hereafter is a Chastisement severe (for the devotees of wrong). And Forgiveness from Allah and (His) Good Pleasure (for the devotees of Allah). And what is the life of this world, but goods and chattels of deception?

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The right way in Islam

• The Islamic perspective to competition and competitiveness is that they are acceptable and desirable if the intention is to strive and achieve in the cause of Allah. But if the intention is dishonorable such as envy, jealousy, mutual rivalry, boasting, reveling in vanquishing opponents, and hoarding worldly assets for the sake of hoarding them and not letting others benefit from them then competition and competitiveness become evil.

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ORGANIZATIONAL ORGANIZATIONAL RELATIONSHIP MANAGEMENT RELATIONSHIP MANAGEMENT FROM ISLAMIC PERSPECTIVESFROM ISLAMIC PERSPECTIVES

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Stakeholders• Organizations have stakeholders who

hold interest directly or indirectly.• There are internal stakeholders such

as the managers and employees• There are external stakeholders such

as the customers, community, and government

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Stakeholders’ perspective to strategic

managementStrategic management based on an analysis of the

economic power, political influence, rights and demands of various stakeholders leads to strategy formulation.

The source of competitive advantage is based on superior linkages with stakeholders leading to trust, goodwill, reduced uncertainty, improved business dealings and ultimately higher firm performance

Overall, the organization that is able to manage its stakeholder relationship is likely to gain greater success

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Corporate governance• Companies are funded by

shareholders, managed by the top management, and overseen by the board of directors. The relationship of these three groups is called corporate governance.

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Problems in corporate governance

• Various problems have been experienced in the governance of corporations. The shareholders are often visualized as a group interested only in its narrow self-interest of earning money. The top management is often accused of unethical practices or mixing up corporate interest with personal interest. The board of directors is thought of as a group uninterested or ineffectual, or both, in overseeing the affairs of the corporation.

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Root cause is unfair and biased dealings with stakeholders

• Stakeholders management is difficult when there is unfair and biased dealings with the stakeholders

• Organizations do not necessarily have to deprive one stakeholder in order to benefit another stakeholder

• Stakeholder relationship need to be based on mutual trust and understanding

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Islamic teachings are clear

• Islamic revealed knowledge sources are clear on the nature of human behavior. The Holy Quran provides extensive references to what is the right and wrong behavior.

• Right behavior is the key to just stakeholder management

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LEADING FROM ISLAMIC PERSPECTIVE

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Leadership in Islam is a trust (amanah).

It is a psychological contract between a

leader and his followers that he will try his best to

guide them, to protect them and to treat them

fairly and with justice.

The focus of leadership in Islam is on doing good.

According to Islam, every person is the “shepherd”

of a flock, and occupies a position of leadership.

Leading a Workforce: Islamic Perspective

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Muslims must

appoint a leader during a trip select a leader to lead the prayer choose a leader for other group activities

What Muslim Followers Are Required to Do

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Is it they who would portion out the Mercy of your Lord? It is We Who portion out between them their livelihood in the life of this world: and We raise some of them above others in ranks so that some may command work from others. But the Mercy of your Lord is better than the (wealth) whichthey amass (Qur’an, Zukhruuf, 43: 32).

Reflect on this

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“Behold! Each of you is a guardian, andeach of you will be asked about his subjects.”“When three are on a journey, they should appoint

one of them as their commander.”

“Muslims must appoint a leader during a trip, select a leader

(imam) to lead the prayer, and choose a leader for other

group activities.”

Reflect on these Ahadith

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According to Islam, the two primary roles of a leader are those of servant-leader and guardian-leader. A leader is the servant of his followers (sayyid al qawn khadimuhum). He is to seek their welfare and guide them towards good.

As the guardian-leader the Muslim leader protects his community against tyranny and oppression, encourages God-consciousness and taqwa, and promotes justice.

Leadership roles from an Islamic perspective“A commander (of the Muslims) is a shield for them.”

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Leadership in Islam is rooted in belief and willing submissionto the Creator, God. It centers on serving Him.

To serve God, a Muslim leader is to act in accordance with the injunctions of God and His Prophet (saw), and must develop a strong Islamic moral character.

This moral character will be reflected by his increasingly strong belief in God as he progresses through four stages of spiritual development: islam, iman, taqwa and ihsan.

Moral Bases of Islamic Leadership

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Islam means the achievement of peace with God, within oneself and with the creation of God, through willing submission to Him.

Because of his or her iman, a leader who practices Islam will never see himself as supreme. Ali Ibn Abu Talib’s (ra) letter to Malik al-Ashtar an-Nukai, the new Governor of Egypt, stresses this point in the following manner:Malik, you must never forget that if you are a ruler over them, then the Caliph is a ruler over you, and God is the supreme Lord over the Caliph.

Moral Bases of Islamic Leadership:Islam

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Iman is faith in God. Iman implies belief in the Onenessof God and the prophethood of Muhammad (saw).

A leader with a strong iman will consider himself and all his possessions as belonging to God. He will bow his ego, his ideas, his passions and his thinking to God.

Iman also implies belief in the life hereafter and in one’s ultimate accountability for one’s deeds. A leader with a firm iman will not dodge responsibility for his actions,and will continuously emphasize good deeds.

Moral Bases of Islamic Leadership:Iman

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Taqwa is the all-encompassing, inner consciousness ofduty towards God and awareness of one’s accountability towards Him.

When imbued with taqwa, a person’s frame of mind—histhoughts, emotions and inclinations—will reflect Islam. Taqwa will restrain a Muslim leader or follower from behaving unjustly—whether to community members, to customers, to suppliers or to anybody else.

Moral Bases of Islamic Leadership:Taqwa

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Ihsan is the love of God. This love of God motivates the individual Muslim to work towards attaining God’sPleasure.

The Prophet Muhammad (saw) describes ihsan as follows:“To worship God as if you see Him, and if you cannot achieve this state of devotion then you must consider that He is looking at you.”

The constant feeling that God is watching is likely to prompt any leader or follower with Ihsan to behave at his best.

Moral Bases of Islamic Leadership:Ihsan

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THE LEADERSHIP PROCESS IN ISLAM

Rafik Beekun, Ph.D.Chair and Associate Professor of Management and StrategyUniversity of NevadaandJamal Badawi, Ph.D.Associate Professor of ManagementSt Mary’s University

ALL THESE SLIDES ON LEADERSHIP PREPARED ARE BASED ON:

Motivation from Islamic Motivation from Islamic PerspectivePerspective

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THE ISLAMIC APPROACH TO THE ISLAMIC APPROACH TO MOTIVATION & MANAGEMENTMOTIVATION & MANAGEMENT

The Islamic approach to management is an The Islamic approach to management is an emerging discipline, often referred to as emerging discipline, often referred to as Islamic management, looks at the Islamic management, looks at the management of organizations from the management of organizations from the perspective of the knowledge from the perspective of the knowledge from the revealed sources and other Islamic sources revealed sources and other Islamic sources of knowledge and results in applications of knowledge and results in applications compatible with the Islamic beliefs and compatible with the Islamic beliefs and practices. Similarly, many…practices. Similarly, many…

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Continue…Continue…

……of the theories on motivation in the literature of the theories on motivation in the literature reflect the European world-view and would not reflect the European world-view and would not be applicable to Muslims. The workers who are be applicable to Muslims. The workers who are Muslims find their motivation in their religion and Muslims find their motivation in their religion and their cultural heritage. Any approach to their cultural heritage. Any approach to motivation that ignores this will not succeed. The motivation that ignores this will not succeed. The Prophet (PBUH) taught that every human Prophet (PBUH) taught that every human endeavor is an act of worship and charity. Thus a endeavor is an act of worship and charity. Thus a working Muslim knows he is worshipping his working Muslim knows he is worshipping his Lord and this is a powerful motivator in itself Lord and this is a powerful motivator in itself irrespective of any material gain. irrespective of any material gain.

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SOURCES OF MOTIVATIONSOURCES OF MOTIVATION

The Muslim worker’s motivation for work and The Muslim worker’s motivation for work and excellent service is derived not only from excellent service is derived not only from notion of self-fulfillment, upward mobility, uplift notion of self-fulfillment, upward mobility, uplift of the material standards of living or service to of the material standards of living or service to the nation, but also more fundamentally, from the nation, but also more fundamentally, from the belief that, as a holder of the belief that, as a holder of amanah amanah on earth,on earth,

(a). he must search industrially for the bounty (a). he must search industrially for the bounty AllahAllah has provided for his sustenance, either in has provided for his sustenance, either in the form of natural resources to be explored or the form of natural resources to be explored or new processes to utilise available resources;new processes to utilise available resources;

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SOURCES OF MOTIVATION SOURCES OF MOTIVATION (Continue…)(Continue…)

(b). his work is a form of virtuous deed ((b). his work is a form of virtuous deed (ccamal salihamal salih) ) which is the key to the attainment of (which is the key to the attainment of (falahfalah) true ) true success in this world and well-being in the success in this world and well-being in the Hereafter;Hereafter;

©. his work is also a form of (©. his work is also a form of (ccibadahibadah) servitude to ) servitude to God in the broader sense of the word, insofar as it is God in the broader sense of the word, insofar as it is in conformity with the Divine norms and values; andin conformity with the Divine norms and values; and

(d). the reward for his good deeds is not confined to (d). the reward for his good deeds is not confined to this world, but extends to the Hereafter, and this world, but extends to the Hereafter, and similarly punishment for bad deeds is not restricted similarly punishment for bad deeds is not restricted to worldly life, but also takes place after death.to worldly life, but also takes place after death.

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SOURCES OF MOTIVATION SOURCES OF MOTIVATION (Continue…)(Continue…)

Thus, in striving to gain the pleasure of Thus, in striving to gain the pleasure of AllahAllah and avoid and avoid His wrath, the worker’s performance is not entirely His wrath, the worker’s performance is not entirely dependent upon the reward system of the organisation dependent upon the reward system of the organisation he is in or the society in which he works. When he works he is in or the society in which he works. When he works with a loftier objective, namely, the well-being in this world with a loftier objective, namely, the well-being in this world as well as in the Hereafter (as well as in the Hereafter (al-falahal-falah and and hasanah fi’d-hasanah fi’d-dunyadunya, , hasanah fi’l-akhirahhasanah fi’l-akhirah), any reduction in the value of ), any reduction in the value of worldly and materialistic reward does not necessarily worldly and materialistic reward does not necessarily affect his performance adversely. He will be more ready affect his performance adversely. He will be more ready to defer self-gratification or make some personal to defer self-gratification or make some personal sacrifices in terms of time, effort or money, should the sacrifices in terms of time, effort or money, should the organisation pass through difficult or turbulent times due organisation pass through difficult or turbulent times due to extra-organisational factors beyond his control.to extra-organisational factors beyond his control.

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Factors in MotivationFactors in Motivation

The four components of motivation are as The four components of motivation are as drive (an aroused state due to physiological drive (an aroused state due to physiological need), instincts and innate biological need), instincts and innate biological determinants of behavior, commitment determinants of behavior, commitment ((ikhlaasikhlaas); and incentives (external stimuli). ); and incentives (external stimuli).

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Need TheoryNeed Theory

A Muslim looks at the wages, salary and A Muslim looks at the wages, salary and other material benefits as a means to enable other material benefits as a means to enable him feed, clothe, and house himself and his him feed, clothe, and house himself and his family so that he can devote his energy to family so that he can devote his energy to the work. He does not look at them as a just the work. He does not look at them as a just return for his labor. His labor is worship and return for his labor. His labor is worship and only Allah can recompense for it. only Allah can recompense for it.

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Instincts and innate biological Instincts and innate biological determinants of behavior /Behavioral determinants of behavior /Behavioral

theories-Itheories-I1. Humans have freedom to 1. Humans have freedom to

choice in the behavior/ choice in the behavior/ work that they do (Al-work that they do (Al-Quran 4:66). The Quran Quran 4:66). The Quran emphasizes the emphasizes the importance of work (6:135 importance of work (6:135 & 67:15). There is reward & 67:15). There is reward for any behavior (Al-for any behavior (Al-Quran 2:85). They can be Quran 2:85). They can be good, good, amal hasanamal hasan or bad, or bad, amal sayyiamal sayyi. .

2. Some people try to 2. Some people try to deceive to make behavior deceive to make behavior appear good (Al-Quran appear good (Al-Quran 6:108 & 47:14). Bad 6:108 & 47:14). Bad behavior is condemned and behavior is condemned and has a bad reward. Good has a bad reward. Good one reflects underlying faith one reflects underlying faith (Al-Quran 38:24 & 103:2-3). (Al-Quran 38:24 & 103:2-3). It is rewarded in the It is rewarded in the hereafter (Al-Quran 2:25 & hereafter (Al-Quran 2:25 & 99:7) and on earth (Al-99:7) and on earth (Al-Quran 16:97 & 24:55). Quran 16:97 & 24:55).

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Incentives (external stimuli) Incentives (external stimuli)

1.1. JannatJannat is a positive is a positive motivator. motivator. JahannamJahannam is a negative one. is a negative one. Reward for good Reward for good work behavior is work behavior is JannatJannat otherwise it is otherwise it is rewarded in the form rewarded in the form of of Jahannam.Jahannam.

Every work is Every work is rewarded according to rewarded according to the intention behind it. the intention behind it. Every person is Every person is rewarded according to rewarded according to his/her his/her niyyatniyyat. The . The amount of reward is amount of reward is commensurate with commensurate with the intention the intention

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Commitment (Commitment (ikhlaasikhlaas)-I)-I

1.1. Motivation can be intrinsic (self Motivation can be intrinsic (self motivation), extrinsic (rewards), motivation), extrinsic (rewards), or reactionary (not real and or reactionary (not real and temporary).temporary).

2.2. Motivation is internal whereas Motivation is internal whereas manipulation is external. manipulation is external.

3.3. Commitment, Commitment, ikhlaasikhlaas, was , was described in the Quran in described in the Quran in several verses (2:139 & 98:5). several verses (2:139 & 98:5). It is expressed in the intention, It is expressed in the intention, Ikhlaas al niyyatIkhlaas al niyyat. Work is the . Work is the consequence of the intention. consequence of the intention. (Al-Bukhari)(Al-Bukhari)

4.4. Highly motivated individuals Highly motivated individuals have clarity of vision and have clarity of vision and objectives, strategic and objectives, strategic and tactical plans for achieving tactical plans for achieving objectives, high expectancy, objectives, high expectancy, energy, drive and self energy, drive and self confidence, need for confidence, need for responsibility and control, responsibility and control, strong communication skills, strong communication skills, taking risks, accepting taking risks, accepting correction or criticism, want for correction or criticism, want for recognition, doing interesting recognition, doing interesting work, and having authority.work, and having authority.

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Commitment (Commitment (ikhlaasikhlaas)-II)-II

5.5. These characteristics These characteristics are not in-born; they are not in-born; they can be cultivated and can be cultivated and nurtured in any nurtured in any individual.individual.

6.6.There are aspects of There are aspects of Muslim character that Muslim character that affect motivation: affect motivation: sharafsharaf (fear of losing (fear of losing face, shame for self face, shame for self and family), and family), thawabthawab (reward in the (reward in the hereafter), hereafter), karamkaram (generosity), and (generosity), and wafawafa (fulfilment). (Al-Hadith)(fulfilment). (Al-Hadith)

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Motivated PersonalityMotivated Personality

1.1. Motivated leaders clarify goals, set objectives, consult Motivated leaders clarify goals, set objectives, consult and respect followers, deal with followers kindly, and respect followers, deal with followers kindly, humanely, and with fairness.humanely, and with fairness.

2.2. It is also due to the level of moral development and It is also due to the level of moral development and spiritual maturity of the person.spiritual maturity of the person.

3.3. Spiritually people are classified as those who have: Spiritually people are classified as those who have: Nafs Nafs Ammarah, Nafs Lawwamah and Nafs Mutmainnah.Ammarah, Nafs Lawwamah and Nafs Mutmainnah.

4.4. FirstlyFirstly, , Nafs Ammarah,Nafs Ammarah, those who have negative those who have negative motivation is due to worries, lack of self-confidence, low motivation is due to worries, lack of self-confidence, low self-esteem, low self-worth, and never respect other’s self-esteem, low self-worth, and never respect other’s right and make followers not to feel secure. right and make followers not to feel secure.

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Satisfied PersonalitySatisfied Personality

5.5. SecondlySecondly, , Nafs Lawwamah,Nafs Lawwamah, who are motivating who are motivating ones and belive work is challenging, meaningful; ones and belive work is challenging, meaningful; has opportunities for advancement, learning and has opportunities for advancement, learning and personal growth.personal growth.

6.6. ThirdlyThirdly, , Nafs Mutmainnah,Nafs Mutmainnah, that provides a high that provides a high level of the sense of responsibility towards Allah level of the sense of responsibility towards Allah and independence from any kind of fear and and independence from any kind of fear and anxiety; and gives job satisfaction. They subscribe anxiety; and gives job satisfaction. They subscribe the idea of the idea of sharafsharaf (fear of losing face, shame for (fear of losing face, shame for self and family), self and family), thawabthawab (reward in the hereafter), (reward in the hereafter), karamkaram (generosity), and (generosity), and wafawafa (fulfilment). (fulfilment).

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ConclusionConclusion

The essence of personal development is The essence of personal development is purification of the soul. If the soul is good purification of the soul. If the soul is good the rest of the body becomes good. the rest of the body becomes good. Professionals may be so engrossed in their Professionals may be so engrossed in their work that they forget themselves until they work that they forget themselves until they find themselves in spiritual crises that in turn find themselves in spiritual crises that in turn have adverse effects on their professional have adverse effects on their professional work. work.

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COMMUNICATINGCOMMUNICATING IntroductionIntroduction Communication ProcessCommunication Process Factors Affecting CommunicationFactors Affecting Communication Principles of Communication in IslamPrinciples of Communication in Islam Communication from Islamic PerspectiveCommunication from Islamic Perspective Effective CommunicationEffective Communication Corporate Communication Scenario in a Muslim Corporate Communication Scenario in a Muslim

SocietySociety SummarySummary QuestionsQuestions ReferencesReferences

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IntroductionIntroduction Communication is the transfer and exchange of Communication is the transfer and exchange of

information as well as the understanding from information as well as the understanding from one person to another through meaningful one person to another through meaningful symbols. It is an approach to exchanging and symbols. It is an approach to exchanging and sharing of ideas, attitudes, values, opinions, sharing of ideas, attitudes, values, opinions, and facts. and facts.

Communication may be verbal (oral or Communication may be verbal (oral or written) or nonverbal (body language & written) or nonverbal (body language & appearance). appearance).

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Organizational Charts Indicating Organizational Charts Indicating Channels of CommunicationChannels of Communication

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Figure 8.1Figure 8.1 AA Keys:Keys: BB C C B and C are B and C are

communicating horizontally among communicating horizontally among themselves and vertically with ‘A’, while themselves and vertically with ‘A’, while AA is giving instruction to c. is giving instruction to c. CC

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The Communication ProcessThe Communication Process

Communication is the process of passing Communication is the process of passing information as well as its understanding from information as well as its understanding from one person to another. The communication one person to another. The communication process consists of six basic elements: the process consists of six basic elements: the sender (encoder), the message, the channel sender (encoder), the message, the channel (medium), the receiver (decoder), noise, and (medium), the receiver (decoder), noise, and the feedback. the feedback.

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The Communication ProcessThe Communication Process

SenderSender Noise

Medium

Receiver

Feedback

Message

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FactorsFactors Affecting Effective CommunicationAffecting Effective Communication

The Power of WordsThe Power of Words The Application of Appropriate Language in CommunicationThe Application of Appropriate Language in Communication Precise CommunicationPrecise Communication Pleasant CommunicationPleasant Communication Humor in CommunicationHumor in Communication Personality and Social IntercoursePersonality and Social Intercourse Degradation of Information QualityDegradation of Information Quality Difference in Understanding, Perceptions and BehaviorsDifference in Understanding, Perceptions and Behaviors Communication TechnologyCommunication Technology Barriers to Effective CommunicationsBarriers to Effective Communications

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Communication from Communication from Islamic PerspectiveIslamic Perspective

The Quran states: The Quran states: The most Gracious (Allah)! It is He Who taught The most Gracious (Allah)! It is He Who taught

the Quran: He has created man: He has taught the Quran: He has created man: He has taught him speech him speech (55:1-4)(55:1-4)

Islam emphasizes the importance of effective Islam emphasizes the importance of effective communication in human life. communication in human life.

The following is a systematic account (Do’s and The following is a systematic account (Do’s and Dont’s) of these principles in the light of the Dont’s) of these principles in the light of the Quran and Sunnah.Quran and Sunnah.

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Do’s and Don’ts of CommunicationDo’s and Don’ts of Communication in Islam in Islam

Islamic Aspects to be practiced Islamic Aspects to be practiced in Communicationin Communication

Kindliness and Affection Kindliness and Affection towards Otherstowards Others

Politeness in CommunicationPoliteness in Communication Speak Truth and be Straight Speak Truth and be Straight

forwardforward Clarity and BrevityClarity and Brevity Repeat Important PointsRepeat Important Points Two-way CommunicationTwo-way Communication Investigate RumorsInvestigate Rumors Mutual Trust and ConfidenceMutual Trust and Confidence Be Wise in CommunicationBe Wise in Communication Greet and Thank PeopleGreet and Thank People

Aspects to be avoided in CommunicationAspects to be avoided in Communication

Abstaining from BackbitingAbstaining from Backbiting Avoid Suspicious and SpyingAvoid Suspicious and Spying Being Two-facedBeing Two-faced Actions Speak Louder than WordsActions Speak Louder than Words Do not Abuse or RidiculeDo not Abuse or Ridicule Avoid vain DiscussionAvoid vain Discussion Restrain your Anger and EmotionsRestrain your Anger and Emotions Do not Server RelationsDo not Server Relations No Secret talks in small GroupsNo Secret talks in small Groups Avoid fast Talking and frequent Avoid fast Talking and frequent

InterruptionInterruption Do not attempt to ManipulateDo not attempt to Manipulate

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CONTROLLING The word “control”, originates from a French root; and the

word “contre”, which means ‘against’, and the word “role” which means ‘a function assumed by someone’ (Webster dictionary). Koontz and Donnell (1972: 6) defined control, as ‘the measuring and connecting of activities of subordinates to assure that events conform to plans’. Thus, the term measures performance against set goals and plans. The act of controlling reveals deviations and assists in assuring the accomplishment of plans.

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STANDARDS SETTING

The concept of standards in this regard is divided into two broad categories, such as:

1. Quantity standards; and

2. Quality standards.

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Continue…

Standards for Quantitative Control

In the first group, one would find matters, which can be quantified, and thus in these group specific measures of standards can be set

and should be met accordingly. Among such standards would be

those for sales, production, machine utilization; output per worker and many others.

Standards for Qualitative Control

‘Quality Control' is a term used to cover scope of this type of control of all aspects of organizational activities that

cannot be quantified. Thus, the standards set in these types of

activities will to a certain extent be

‘elastic’ in nature.

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Approaches to Controlling Activity

There are basically three approaches to the activity of controlling and they are as follows: (1) Legal approach, (2) Social & Clan approach; and (3) Market approach.

Legal approach: The law of the land and company rules provides a basis for check on the activities and performance.

Social and Clan approach: Social pressure and a check on human behavior is considered as a basis for exercising a control on activities of the individuals in an organization.

Market approach: This is quite common now days. The market forces (demand and supply) and their manipulation is used for exerting pressure on the business behavior.

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CONTROLING FROM ISLAMIC PERSPECTIVE The basis for controlling in Islam is not necessarily the same, as that of the

above approaches of controlling. The mechanism of internal or external control, business or personal and social or legal controls must not violate basic principles of the Shariah.

Islamic approach to control emerges from its worldview. Social and clan control may be preferable over the legal and market control mechanisms. It is rather human oriented in its outlook. The present mode of thinking gives great emphasis on Western outlook. And since most of the contemporary management gurus and practitioners are trained in that culture, thus prescribe the same control policies and practices. However our culture differs and we need to re-look at those prescriptions critically.

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Continue…..

The main concept remains true; and a prerequisite for any type of control is of three fold as follows:

Pre-establish a standard of performance Keep the performers informed in this regard prior to

their actions. Take remedial measures, if required.

Source: Abo-Hebeish, A. M. (1995)

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Islamic approach is based on a scenario emerges from the sources of revealed knowledge stated as follows:

1. A Messenger used to be sent by the King of all the kingdoms (Allah) to the cities (group of people) or to the head of the community.

2. The Messenger communicated the message from Almighty and its requirements (standard setting).

3. People received and some of them understood the message, which came down from Allah to the people.

4. Many of them continued their old practices (shirk and denial), which were going against the delivered message (a perceived deviation from set standard).

5. As remedial measure, Allah provided opportunity in this world for making taubat (asking forgiveness)

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CHANGE & CONFLICT MANAGEMENT

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INTRODUCTION

In our age of dynamic change it is imperative that the manager understands the source of; and various strategies for dealing with, conflict which inevitably occurs in any organizations.

By conflict we mean a perceived difference between two or more parties resulting in mutual opposition and which may occur at three levels: between the individual (interpersonal), between the individual and the organization, and between organizational groups.

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MANAGING CONFLICTSand CHANGE We must expect conflict to occur in our

organizations. We should be disappointed if it does not occur, because conflict exists only within the context of interdependence.

However, in the environment of interdependence and interpersonal relationship there will always be difference, and conflict will be the norm not the exception.

We need to manage CAHANGE and CONFLICT in order to obtain profitable return from it.

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Continue…. Avoid being judgmental. Keep an open mind on situations. Don’t allow

personal prejudices to cloud our vision. Don’t rush to judgment. Listen so that we can be influenced by rather than cloud our mind with rebuttals. Give other opinions the benefit of the doubt. Ask ourselves if our doubt is based on fact or on a personal bias.

Keep on learning. One is never too old to learn. Don’t wait for the classroom, either. Learn from our past mistakes. Maintain an attitude of inquisitiveness. Find out everything there is to know from those willing to share. Read voraciously – books, magazines, the Internet. Jot down key points of interest, and keep them in a file to review regularly.

Look for the next trend. Trends and fads are not the same. Nor are they necessarily good or bad. The fact is that organizations, like people, follow trends. By observing and learning about it, one can position himself as an "expert" and take a leadership role in making changes. This will give us greater control of the changes.

Foster a large resource network. Continuously expand our sources of help and information. Keep in touch with people whose careers are taking off. Find out what they know and are doing that perhaps we are not. Subscribe to key magazines that stay on the leading edge. Look for key articles each month.

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Continue…. Be a problem solver, not a problem creator. Anyone can spend their life

identifying problems. There are more than enough to go around. Pointing these out can become tiresome to the people around us particularly if they respond with "it’s not my job." Be willing to identify solutions if there is a problem, and consider making time to solve it. This will earn Muslims the reputation as a "fixer" – the kind of person chosen for high ends.

Enjoy yourself. People work better when they are enjoying themselves. Plus, humour enables everyone to relax and open themselves to change.

Keep a positive attitude. Every new situation can be looked at in one of two ways; as a problem or an opportunity. Make each challenge an opportunity to test our intellect and resilience.

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The Nature of Conflict

Organizational conflict can be functional ordysfunctional, 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.

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Islamic Perspective of Resolving Conflict

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).

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Distribution of Land 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 al-Khattab (RA). Opinions were divided on the issue and Muslims were in conflict with one another.

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Continue…. 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.

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Continue…. 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.

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Continue…. 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.

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The S-A-L-A-M Model

S A L A M

Stating the conflicting view

Agreeing that a conflict exists

Listening for and learning the difference

Advising one another

Minimizing areas of disagreement that could lead to aggression or withdrawal

Ethics from Islamic Perspectives

.

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Ethics and values are the basisfor social responsibility

Islamic perspectives to the issue of ethics, values, and morality have finality to them as they are based on Allah’s message sent through the last messenger, the Prophet (SAW). Islam, as a religion, offers a complete and universal and eternal code of ethics for humanity.

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Proposed definitions The definition of morality from the

Islamic perspective should be: “the personal behavior based on Islamic revealed knowledge”. Ethics should be defined as “the accepted norms of social behavior; such norms being based on the Islamic revealed knowledge”. Business ethics should be “the accepted norms of behavior in managing a business; such norms being based on Islamic revealed knowledge”.

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Five axioms of Islamic ethical philosophy

1. Unity: Concept of “tawhid” which means the totality of integrated existence in and outside of the Universe

2. Equilibrium: Concept of “adl” which means a sense of balance among the various facets of human life

3. Free will: The ability of human beings to act without external coercion but within the limits set by Allah and as the vice regent of Allah on Earth.

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4. Benevolence: Concept of “Ihsan” meaning an action carried out by a human being without the expectation of return or reward benefiting others

5. Responsibility: The accountability of human beings for all their actions

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REFERENCE FOR THESE SLIDE ON ETHICS ARE BASED ON THE FOLLOWING SOURCE

Rafik Essa Beekun, Islamic Business Ethics, Herndon, Virginia, USA: The International Institute of Islamic Thought, 1997

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QUALITY MANAGEMENTQUALITY MANAGEMENT

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TOTAL QUALITY MANAGEMENT (TQM)TOTAL QUALITY MANAGEMENT (TQM)

• Quality management can be defined as the “degree of excellence” and with regards to organizations, it refers to the quality of services rendered or products offered. It clearly spells the concept and requirement of a quality management system as being depicted below.

• The pursuit of quality management (TQM) and customer satisfaction is admirable. But to achieve greater consonance with spiritual development, the pursuit must be accompanied by social and ecological concerns under guidance by Islamic Shariah.

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QUALITY MANAGEMENT QUALITY MANAGEMENT FROM ISLAMIC FROM ISLAMIC PERSPECTIVEPERSPECTIVE

• Islam always encourage for some extra miles – the best possible achievement. This is evident in a tradition, which brings to the effect, “Allah loves those workers who perform their works to the best of their abilities.” (narrated by al-Baihaqi).

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Continuous Improvement for Continuous Improvement for ExcellenceExcellence

• Continuous improvement is a basic requirement in Islam, which is evident in a hadith narrated by Bukhari and Muslim to the effects, “A successful man is whose today is better than yesterday, an unlucky one is whose today is worse than yesterday, and a deceived man is whose today is the same as yesterday.”

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Certification of Quality Certification of Quality ManagementManagement

• Islam recognises the importance of documentation in all activities of an organisation. In the Holy Quran Allah S.W.T says “Nay, verily the record of the Righteous is (preserved) in ‘Illiyun. And what will explain to thee what ‘Illiyun is? (There is) a Register (fully) inscribed, To which bear witness those Nearest (to God).” (Al-Quran, 83: 18-21).

• The above verse is evident that every deed (right and wrong) of man is recorded for the purpose of judgment in the hereafter.