Islamic Principles of Management: A straight path towards successful management

Transcription

1. Islamic Principles of Management : A straight path towards successful management Md Arshad Warsi PhD, Center for Management Studies Jamia Millia Islamia, New Delhi (mdarshadwarsi12@gmail.com); And Dr. Saiyed Wajid Ali Associate Professor, Center for Management Studies Jamia Millia Islamia, New Delhi (saiyed.wajid@gmail.com) Abstract This manuscript for the paper is an attempt to highlight the Islamic principles of management stated by our Prophet Hazrat Muhammad (SAW) and Al-Quran, collectively known as Al-Sharia (Islamic law). Existing literature has been used to get some evidence of Islamic management principles such as Taqwa, Ihsan, Adl, Trust etc. Islamic management principles are unique in its nature as it not only guide but shapes the behaviors of individuals spiritually and morally. It has a socio-economic and political effect besides the mutual relations of individuals. Further, the main emphasis of the paper is on the principles of management and to provide the understanding of basic difference between Conventional Western Concept of Management which is based upon materialism & wealth maximization and Islamic Management which is based upon Fear of Allah (Taqwa), Pleasure of Allah, Accountability before Allah on the Day of Judgment, Justice and Morality. Another attempt has been made to provide an overview of an Ideal Islamic organizational structure (Khilafah Structure), Shoora (Board of Consultation) which will help in deriving and implementing the same in business organizations. The emphasis is also on the various aspects of management mainly principles of Marketing Strategies and organizational behaviour as per the Quran and life of Prophet Muhammad P.B.U.H. The principles of the Islamic Management being proposed here can further be implemented in each and every sphere of an organization forming a near to ideal condition where the well-being of an individual life, skills, potential as well as the organization can be achieved. In Shaa Allah. Introduction Whenever the management principles are discussed upon Islamic perspectives, then people even many Muslims get shocked that how Islam and management principles are correlated! However, the reality is that Islam taught people to manage their day to day work in their lives at an individual level as well as organizational level in the best way. Rather, it would be better to say that It was the Deen (ideology) of Islam and Prophet Muhammad S.A.W who taught people that the individual’s life and organizational activities should be ideally guided by management principles and those principles are
2. guided as per the commandments of Allah (swt) i.e Quran and Sunnah of beloved Prophet Muhammad (Peace be upon him). Most of the people mainly in the Indian subcontinent are not aware of the fact that Islam is merely not a religion. Rather it is an ideology (Deen) which deals with every aspects of life. (Figure 1) Islam is just not about few traditions and few worships in personal lives. Rather It is a revolution through worship of one supreme Almighty Allah. It is a revolution to free humans from the slavery of other humans and come under the banner of one true God, one true ilaah i.e Allah. Islam guides whole mankind in each and every sphere of life either is social, economical or political at individual as well as an organizational level. Further, it must be noted that Quran is not a book only for Muslims but for the entire mankind because it shows the right path of life in all the spheres including managerial skills for people, employees, managers, entrepreneurs, etc. This can be proved from various verses of the holy Quran. Allah (swt) says in Quran:“O Mankind! Worship your Lord, who created you and those before you, happily ye may guard yourselves from evil” (Surah Baqarah, Verse 21) “Indeed this Quran guides to the path which is clearer and straighter than any other”. (Surah Bani Israel, Verse 9) “….. We have revealed to you the book which clarifies every matter” (Surah An-Nahl, Verse 89) “This is the Book. In it is guidance surely without any doubt, to those who fear God, who believe in the unseen, are steadfast in prayer, and spend out of what we have provided for them” (Surah Baqarah, Verse 2 & 3) “We sent down the Quran in truth, and in truth has it descended: And we sent thee but to give glad tidings and to warn (mankind)”. (Surah Bani Israel, Verse 105) “If the whole of mankind and Jinns were to gather together to produce the like of the Quran, they could not produce the like there of, even if they backed up each other with help and support”. (Surah Bani Israel, Verse 88) Various evidences from Quran and the life of Prophet Muhammad (Peace be upon him), will teach us that how Islamic Principles of management are ideal management principles. Each and every principle of Islam is mainly based upon two main things:Quran (Divine revelation from Allah to Prophet Muhammad P.B.U.H) Hadith (Sunnah of Prophet Muhammad Peace be upon him) Further, the understanding and interpretation of Quran and Hadith is based upon : Ijma of Sahaba (The way Companions of Prophet S.A.W understood and practiced Islam) Qayaas (Logical deduction based on Quran & Ahadith) Islam (Worship and submit all the wills to one true God i.e. Allah) The whole idea of Islamic ideology and the worship is based upon three main Aqeedah:Tauheed or Monotheism (Wholeheartedly believing that there is none worthy to be worshipped in all aspects of lives except Allah) Risaalat or Prophethood (believing that Allah sent prophets & messengers among people and nations to deliver the message of Tauheed and Prophet Muhammad P.b.u.h is the last messenger of Allah)
3. Akhirah or Hereafter (Believing on the fact that Allah will give life after death and all will be raised before him on the Day of Judgment). The worship of Allah can be divided into two categories: Huqooqullah (Rights of Allah): Worships like Namaaz, Roza, Haj etc. Huqooqul Ibaad (Rights of People): All the social, economical, political aspects of lives at individual as well as organizational level. Like: Dealing with people, businesses, economic and financial transactions and systems, Zakaah(Charity), Political systems etc. The Islamic principle of Management comes under Huqooqul Ibaad. Huqooqul Ibaad i.e providing rights to other human beings is also a commandment from Allah(swt) and it is so important that Allah(swt) may forgive the sins regarding Huqooqullah except Polytheism but Allah will not forgive the sins regarding rights of human till the person or group of persons being wronged forgive that person. An Ideal Islamic organizational structure: Islam provides an ideal structure to any organization as per the structure of an Islamic state under Prophet Muhammad Peace be upon him and four rightly guided caliphs. An Ideal Organizational Structure Caliph (khaleefa) Head of the state Shoora Council Ameer (governors) of different provinces Judiciary (Adliya) External Affairs Finance (Baitul Maal) Figure 2 Shoora Council: The Shoora council is a group of people having most knowledge and are most pious among all and represents all the sections of the society/group/organization. Fear of Allah (Creates an ideal discipline among people/employees). We are aware of the fact that the current system in every sphere is full of corruptions and treasons. Same is the case with corporates and organizations, However even if we (just for the sake of understanding) imagine that a good system with good and strict laws is established which is not Islamic, even then will it be able to end the corruption knowing that people running that system or organization are corrupt?? The practical answer is No. Why so? Let us understand by taking an example. A person who is a thief steals something is caught by a police, gets punishment and then he is freed. Will he stop stealing from the next time? No, because He knows that he steals something of worth crores and even if get caught, he is damn sure that police will leave him after few days by taking few thousand rupees. Further, He has no fear of any law because all the current laws under which he is living is terminating and thus can’t lead people to fear all the time.
4. That ’s how the whole conventional systems of most of the current organizations run, where the main motive is wealth and profit maximization. However the basic root level question in such a case should be, why any person should be a thief? Why there is no fear of any law or authority among people so that he doesn’t get involved in any type of wrong activities? Islam solves any problem at the very root level. The fear of Allah is an important part of it. The same person who easily becomes a thief in current system becomes a very honest person with the belief and fear of Allah. The person who has faith of Islam in his heart does not involve in any immoral and forbidden activities even if he is alone just because of the belief and fear that Allah (The supreme, ever living & everlasting) is watching him. However, further the strict punishments of an Islamic System diminish the crimes and corruption. Best Motivation: - (Pleasure of Allah) For any organization/firm, motivation of employees is one among the most important factors of the profitability of the organization. The western and capitalistic thinkers of the management field have been researching for the better motivation of their employees for last many decades, but the reality is that the rate of stress and depression among employees have been increasing at a rapid rate. The reason of it is very much connected with the idea of motivation. Any idea or theory which is terminating and limited to a particular field and for a particular time cannot motivate and satisfy people/employees on the longer run. All the conventional ideas are limited and terminating and that too based completely upon materialistic pleasures which are for just a certain period of time. However, the one who has firm believe in Allah and Islam works and performs each and every activity for the pleasure of Allah which is non-terminating and non-limited with an eternal idea of Akhirah(hereafter) understanding that the rewards of his good works if not get in this world, will surely get in the life hereafter. Zero or least corruption on any level of the organization Fear of Allah Justice (An ideal Islamic System) Akhirah (Standing in front of Allah after death/the Day of Judgment & Justice)
5. Basic Difference between Islamic management and conventional western management principle : The main difference between Islamic Principle and conventional principle of management is that the conventional system of management is completely and fully based upon Capitalism and Materialism which brings isolation and separation among people/employees leading to stress and frustration. While Islamic principle of management is based upon Taqwa and morality which binds people together for a reason which is everlasting and thus leading to happiness, pleasure and satisfaction even at lower materialistic profitability. However, it never means that Profitability and economic factor is less. Rather, it is a well-known fact that the pleasure and satisfaction among people/employees gives the better output as well as the profitability. The thing which differentiates the two systems is the factor of motivation where one is based upon materialism while other is based upon Taqwa and morality. In order to achieve the ideal management, one must be concern with the development of individuals which later help develop the organisation and society. Tawhid, being the main principle in Islamic management help to shaped current practice by reflecting the idea of true submission and devotion to Allah in His commandments (Sulaiman, et. al., 2014). One must regard that every work is an ibadah to Allah by implying that the concept of worship is broad and applicable even in management (Ismaeel & Blaim, 2012). Aim, objectives and procedure must reflect submission and devotion towards pleasing Allah which simultaneously promote goodness and prevent evil (Sulaiman, et. al., 2014). The concept of khilafah (vicegerent) are further practice in Islamic management for developing individuals as human are considered as khalifah (trustee) to develop this world (Beekun & Badwi, 2005). Individuals have to work at his best to develop the skills and ability to achieve good performance in the company using the articulation of Islamic principles. Literature Review Existing literature of Islam i.e Quran and Hadith have been taken to explain the principles of Management based upon Islam. Allah(swt) says in Quran: “….. We have revealed to you the book which clarifies every matter” (Surah An-Nahl, Verse 89) Few researches have been done in this field which give a brief idea of Islamic Management. Abdus Sattar, Kashifur Rehman and Amna Bibi (African Journal of Business Management Vol.4, 2010) have tried to present a holistic approach towards management based upon Islamic Principles. Shekh Raunak Mondal, Lecturer in Deptt of Management, Harvard International Institute of Management (Islam & Muslim Societies: A Social Science Journal Vol.6, No.2, 2013) has tried to relate the Henry Foyl’s 14 principles of Management with the Islamic Principles based upon Quran and Hadith. Further he attempted to examine the relationship between Islamic notions of work and management and there relevance in the context of management studies. A special emphasis has been given to present an alternative discourse in management studies in the post-modern era which advocates for diversities in thoughts, behaviours and practices against the hegemonic and dominant discourse of western thoughts and ideologies in management studies. Muhammad Mushtaq et al (International Journal of Academic Research in Economics & Management Sciences, Vol.3, No.3, 2014) have presented an overview of Islamic Management and its application in 21st century. He presented the key models of Islamic Management as falah, aml saleh, sabr, adl, ikhlas, amanah and ihsan. These are the foundations on which Islamic management systems building is erected as a tower. These models are helpful for developing a human relationship within working environment, which does not allow anyone to exploit other as in other system usually is done. Kazmi, (2007) states that in contrast, conventional management is the compendium of the concepts,
6. theory , principles, and applications of management studies that we find in the literature in the discipline of management. Conventional management has developed mainly during the past about one century. Mainly the American and European scholars are credited with developing the conventional approach though contributions have been coming in lately from Australian and Asian sources too. On the nature of issues dealt with in the publications during the two decades, 1980-2000, the subjects of ethics and values, organizational behavior, and human resource management dominate the scene. The hard issues are dealt with; for instance, by Ali’s (2002) work on the foundation for communication in the Qur’an and Sunnah and Al-Junaid and Anwar’s (2009) exploration into the behavioral science foundations for Organization Development. Earlier, Rahman and Al-Buraey (1995) make a significant contribution by their work on organizational controls and performance evaluation. Later works show a movement towards the quantitative aspects of management an example of which could be the work of Abul Hasan Muhammad Sadeq and AlKhaliq (1996), which is in the area of contemporary interest of quality management. Dr. Naceur Jabnoun ( Islam & Management, Riyadh), has tried to enhance the field of management by weaving into the discipline, concepts and principles of Islam. He has linked the long term objectives and organizational actions in an excellent way explaining how planning is linked to the actual execution of strategies to accomplish desired ends. Leadership is presented as a service to those individuals being led. He has provided a model of the concepts being presented. An important point being made is that Islam commends conflicts as a means of checks and balances along with discussions of the causes, consequences and management of conflict. Gauhar Zaman Et. (Journal of Managerial Science,Volume II) have presented the Islamic principles through Taqwa, Ihsan, Ikhlas, Brakah, Accountability, Sidq (Trust) etc and further also attempted to explain the incompatibilities between the conventional and Islamic principles of management. According to him, Unlike modern western thinkers’ philosophies and concepts where technical and material objectives are important, Islamic management system comprise of principles derived from the Holy Qur'an and the Sunnah. Its principles and management approach is based on metaphysico-moral dimensions which are not stimulated by material objectives. Employer-employee relationship is purely based on religion. Both are accountable and answerable to Almighty Allah for their deeds and are Almighty Allah’s trustees on earth. Spiritual and moral facets are deemed important in Islamic Management system in decision process. By knowing and understanding such principles a combination of Islamic and western management system can be formulated which can be flawlessly implemented in other non-Islamic countries as well. A window of future research has been opened in their result of the discussion that what possible outcomes would be in case of combination of Islamic spiritual principles and western principles of management. Mohamed Branine(University of Abertay, Scotland UK) and David Pollard (Leeds Business School, UK) give a basic principle of management in Islam and further compare the management in Arab and Western countries and conclude with suggestions from their findings. According to them, In Islam management as a function is a process of coordinating activities according to a set of principles derived from the Holy Quran and the Sunnah. Management is, therefore, a moral, spiritual and physical function which is not driven only by earthly objectives but also by rewards in the after-life. Employment relationships go beyond the written and the psychological contracts between an individual and an employer by having a religious dimension. Both parties are responsible before God for their actions and are God’s covenanters or trustees on earth. In an Islamic organizational context, the moral and spiritual dimension is always the most important in making decisions and carrying them out. In Western management thinking, however, the technical and material objectives are very often, though not always, the most important. By understanding such principles and the distinctive characteristics of each system, it is possible to develop a blend of Western and Islamic management, which could be implemented in Islamic and non-Islamic countries, where morally- and spiritually-based decisions override the materially guided ones. This paper is expected
7. to contribute to the comparatively sparse literature on Islamic management and its applications by identifying key issues for HRM implementation and also by helping to develop Western understanding of Islamic management systems . Further research is needed on the issue of morality versus instrumentality in management and on creating a balance between forward diffusion of western management to Arab and Islamic countries and reverse diffusion of Islamic management principles to the west, especially to the managers of multinational and transnational companies. Conclusion 1. Islam is merely not a religion of few rituals, rather It is a complete revolution, a way of life based upon the commandments of Allah i.e Quran and Sunnah of beloved Prophet Muhammad Peace be upon him which guides mankind in all the spheres of life either is social, economical or political at individual as well as organizational level. 2. Quran and the life of Prophet Muhammad PBUH show the way to practice business and management in an ideal way. 3. There is complete contradiction between the principles of Conventional and Islamic Management. Conventional Western Management is purely based upon materialism and wealth maximization, While Islamic Management is based upon Taqwa(the fear of Allah), Seeking pleasure of Allah, Accountability to Allah on the day of judgment, Justice (Adl), Ihsaan, Shoora (consultation) and Morality. However, there may be certain commonness between the two on few aspects but not on the principles. 4. In present, No much practical work has been done as per the Islamic principles of Management, not even in Muslim and Arab countries. The organizations at every level in Middle-Eastern Countries are also being operated according to the western principles of management and thus there is no any Islamic based model to be presented before the organizations. 5. The Islamic principles provide best ways to every part of the Management either is Organizational behavior, Human Resource Management, Financial Management, Economy, Marketing or Business Ethics. A lot of work at research as well as practical level needs to be done in all the fields of management to establish an ideal management principle in the business. 6. An organizational model needs to be implemented purely based upon the Islamic principles of management so as to achieve and run a highly effective and adaptive form of business organization.
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9. Figure 1