TOPIC 3.Islamic Management Concept

ISLAMIC MANAGEMENT CONCEPT

The concept of al-Istikhlaf Islamic management model: Management of Rasul PBUH. Management during the Islamic

Caliphates. Islam and modern management.

The concept of al-Istikhlaf It is stated in the Quran in more than one

place that ownership of everything belongs to Allah, since He Almighty is the dominion.

However, he has put mankind in charge of worldly property and provided them with it and has given them the right to use it.

Istikhlaf is based on the Quranic notion that Allah (SWT) created humankind and every individual to be a vicegerent, a deputy in use of property that belongs to the creator.

To us Muslims, when the concept that “Allah is the owner” settles in a man’s heart, be he a producer or a consumer, he feels honored and grateful that some of Allah wealth has been put in his trust.

A man is then inclined to acknowledge Allah’s right to define for him the proper limits for the enjoyment and the appropriate extent of use of wealth.

He also acknowledges Allah’s right to designate other individuals or the community as the rightful claimants to share that wealth.

It is stated in the Quran:“Believe in God and His messenger and expend of that unto which He has made you trustees. And those of you who believes and expand shall have a mighty wage” 57:7. آمنوا فالذین فیھ مستخلفین جعلكم مما وأنفقوا ورسولھ با آمنواآیة . ) ) الحدید سورة كبیر أجر لھم وأنفقوا ٧منكم

Out of this concept of trustship follows unique Islamic moral, political and economic principles for social and individual life.

There is nothing in the concept of Istikhlaf that goes against the desire for fulfillment of material needs, nor that it is an appeal to shun worldly pleasures.

On the contrary, those material needs has been so explicitly recognized by Shari'ah. Suffice it to say that a Muslim dying for defending his material wealth is recognized in Shari'ah as martyr.

The concept of Istikhlaf is the foundation of the principles of Islamic economic system, and the ideal underpinning of the economic behavior of individuals in an Islamic society.

For example:Out of the concept of Istikhlaf emanates the individual’s responsibility towards the rest of the society, be it in the form of Zakat which is compulsory, or Sadaqat which is voluntary, but may become obligatory when rest of society is in need.

These obligations stem from the fact that the wealth at hand is actually owned by Allah and holder only deputized to use it.

Another outcome of the Istikhlaf concept is apparent in the Islamic laws of inheritance.

In other legal system where ownership over assets lack this concept of Istikhlaf, owner can dispose of his wealth during his life time and even after his death.

We frequently hear about a wealthy individual leaving all his financial legacy to a museum at the determinant of his immediate family and children.

In the Islamic system, because an individual is only vicegerent, he has the right to enjoy wealth during life time only. Once dead, the ownership goes back to the original owner who is Allah. Hence must be distributed in the way prescribed by the real owner. These are the Shari'ah law of inheritance.

The deceased has no right to dispose of anything outside the prescribed inheritors, except no more than ⅓ and even that only to a benevolent purpose, again defined to be so by the law giver who is Allah.

Concept of Khilafat Allah had promised to those among you who believe and

do good works that He will surely make them Successors in the earth, as He made Successors from among those who were before them; and that He will surely establish for them their religion which He has chosen for them; and that He will surely give them in exchange security and peace after their fear: They will worship Me, and they will not associate anything with Me. Then who so is ungrateful after that, they will be the rebellious. (Surah Al-Nur, Verse 56)

This is known as the istikhlaf verse. A promise has been made to the believer of succession. Some commentators have translated istikhlaf as ‘inheritance of power’. While this is also part of the meaning, it is more correctly translated as succession or vicegerency.

According to a famous lexicographer, Ibn-e-Manzoor Ifriqi, “al-khalfu didd al-qudaam,” khalf (behind/ at the back) is opposite to qudaam (fore part/front part); khalifah means, the one who becomes successor to his prior. (Ibn Manzoor, Lisaan al-‘Arab, (Qum: Nashru Adab al-Hawzah), 1405 AH, 9: 82-82)

Imam Razi also says that, “al-Khalifah, man yakhlufu ghayarahu wa yaqumu muqaamahu” (khalifah is the one who comes after another person and takes his place) meaning he was called khalifah because he is a vicegerent of Allah in exercising His authority among the people obligated to follow His Commands. (Imam Razi, Tafsir-e-Kabir, 12:202). All words in the Qur’an using the root word “kh-l-f have the same meaning. 9:83, 7:75, 6:166,10:74, 38:27; 35:40; 7:70; 27:63; 48:12, 16, 17).

The four verses prior to verse 56 in Surah Al-Nur deal with obedience.

Obedience to ‘Allah and His messenger’. Obedience to ‘what is right’. And if you obey the Messenger you will be successful and ‘rightly guided’.

These verses explain that you have to display obedience to receive guidance. This guidance is through the Messenger and then after him through his Successor or Vicegerent in the earth.

This is a promise of spiritual and temporal leadership, which will keep the believers united and lead to peace. When a Messenger dies people naturally get fearful as to what will happen next.

A leaderless people are without direction and this situation will eventually lead to chaos. Allah promises to exchange their fear with security and peace. But the condition is the believers need to worship Allah alone and do good works.

The next verse (24:57) describes three essential conditions for the fulfillment of this promise namely

1. Observe prayer.2. Give Zakat (alms to the poor)3. Be obedient to the Messenger.

Management of Rasulullah PBUH The characteristics of nabawi management system are as follows:

1. Decentralize2. Realistic3. Participative-syura (musyawarah)

Rasullullah S.A.W also highlighted the important of time management.

Allah says in the holy Quran surah Al Asr verse 1-3:

Which means:By the token of time. Verily, man is in loss. Except those who believe and do righteous good deeds and recommend one another to the truth, patience and constancy.

The lesson and message from this verse highlighted the importance of time management and that we should internalize it as part of daily lives.

Time is one of the gift or nikmat given by Allah s.w.t. to us. Those who manage time well are those who will reap success while those who mismanage their time are those who will be the losers and shall live to regret it. From here, we can see how the importance of time management in the eyes of Islam.

Islam requires us to manage our time wisely. As an example, lets look at our fasting ritual. Although fasting begins only when the time of fajr sets in, we are encouraged to stop our food consumption at least 10 minutes earlier. This has been the practice of the sahabats and the solafus soleh. It testify that those who lived 1400 years ago had even started practising time management during their life time.

Rasulullah saw says in his hadith:

Which means: Grab five things before another five appear, young age before old age, health before sickness, wealth before poverty, leisure before busy, life before death "

We usually do not value the gifts of good health and the abundance of time until those gifts were taken away from us. Often whenever someone fall ill, only then would he value the importance of good health and the abundance of time. Those were the words of Rasullullah saw in a hadith that says:

There are two nikmat that man always abuse….. it is the abundance of time and good health.

Management during the Islamic Caliphates. Era of Khulafa’ Al-Rashidun (632-661M)

1. Saidina Abu Bakr Al-Siddiq r.a - Shura (Musyawarah)

2. Umar Ibn Al-Khattab r.a (Amir-al Mu’minin)- Management system is called as Management by Walking Around

(WO) and hands on.- Nature of management system – action oriented and customer focus.- Shura (musyawarah)- Modern Islamic management system such as form

departmentalization- diwan (dawawin)

3. Saidina Ali and Uthman - Shura (musyawarah) - Same as previous management system

MODERN MANAGEMENT Modern management theories started after 1950s.

Modern management theory focuses the development of each factor of workers and organization. Modern management theory refers to emphasizing the use of systematic mathematical techniques in the system with analyzing and understanding the inter-relationship of management and workers in all aspect.

It has following three Streams- Quantitative Approach System Approach Contingency Approach

Quantitative Approach:

Quantitative approach also called Operation Research.  Quantitative approach is a scientific method. It emphasizes the use of statistical model and systematic mathematical techniques to solving complex management problems. Its helps the management to making decisions in operations. It can only suggest the alternatives based on statistical data. It cannot take final decision.

It helps the management for improving their decision making by increasing the number of alternatives and giving faster decisions on any problem. Management can easily calculate the risk and benefit of various actions.

System approach: System approach was developed inlate1960s.

Herbert A. Simon is the father of system theory. A  System is defined as a set of regularly interacting or inter - dependent components that create as a whole unit. The system concept enables us to see the critical variables and constraints and their interactions with one another.

According to Cleland and King; “ A system is composed of related and dependent elements which  when in interaction from a unity whole”.

CONT… Characteristics of system approach: A system must have some specific components, units or sub

units. A Change in one system affects the other subsystems. Every system is influenced by super system. All systems along their subsystem must have some common

objectives. A system is a goal-oriented. A system cannot survive in isolation.

Major contributors in system theories are- Daniel Katz, Robert L. Khan, Richard A. Johnson.

Contingency Approach:

Contingency Approach also knows as situational approach. In 1980s, it is recognized as a key to effective management. This approach accepts the dynamics and complexities of the organization structure. An organization is affected by its environment and environment is composed by physical resources, climate, persons, culture, economic and market conditions and their laws.

 This approach argues that there is no one universally applicable set of rules by which to manage organization.  

Major contributors in the contingency theories are- G.M. Stalker, Joan Woodward, Tom Burns, Paul R. Lawrence, L.W. Lorsch.

ISLAM AND MODERN MANAGEMENT Islamic management approach that far

outperformed more than its contemporaries.

Follow Islamic management system by Rasulullah S.A.W and his companions.

Shura (musyawarah) – participative decision making

Time management

Managing your time and using it wisely is a journey, and not something that can be easily mastered overnight. Implementing a plan will help, but it is not going to be a sure cure. Time management requires a significant amount of self-discipline.

Here are some tips to assist you with time management:

1. Set Goals Set both short-term and long-term goals for your work day, work week, and work year. Take the time to make a written list of your goals, which will allow you to refer back to the list when you need some guidance. Keep in mind that it is okay to adjust the goals as your business needs or your role changes. Use them as a tool to guide you.

2. Mini-RewardsAll work an no play is a difficult concept to sustain for very long. Build rewards into your schedule. If there is a task you really dislike, follow it with a task that you greatly enjoy. Build "mini-rewards" into your schedule to increase your productivity.

3. Keep Lists Keep a running "To Do" list. The To Do list should contain both daily tasks as well as longer-term tasks. Having a To Do list will help keep your attention on the projects that require attention, and prevent some items from slipping through the cracks and being forgotten.

4. Be Realistic Keep your expectations realistic. No one can do everything, and with that it mind, try to set realistic expectations of what you can hope to accomplish.

5. Prioritize Prioritize the list of things to do. Some items might require immediate attention, while others may be necessary but not as urgent. And after prioritizing, try not to become a "firefighter" and only react to the urgent items. Be sure to still give proper attention to non-urgent items as well, as they are important too.

6. Use Time Wisely If there are blocks of time that you spend waiting or commuting, figure out ways to use that time being productive! Reading, writing, proof-reading, reviewing your schedule, planning for your next activity, etc, are all things that can usually be done remotely to fill in some of the unavoidable "dead" time in your schedule. Try to find interesting and unusual productive things to do during those periods of downtime.

7. Set LimitsSet reasonable time limits for tasks. When working on those tasks, monitor the time that each item is taking.

8. Organize Work SpaceOrganize your work space, and remove any excessive clutter. Spending time looking for something is a waste of time... and time is a precious commodity. Both your computer files and your physical working area should be organized so that you can easily locate anything you need in a moments notice.

9. Minimize Distractions If you find yourself consumed by social media, facebook, instant messaging, or other social mediums, set aside a specific and timed period of the day for participating in the online social community. Other than those specific periods of time, set your status to "unavailable" so that you are not interrupted throughout the work day. Minimize interruptions and distractions as much as possible.

10. Reflect At the end of the day, reflect on what you accomplished.

If you were unable to account for a specific period of time, or you found a given day to be particularly unproductive, take an inventory and try to determine where your time management system broke down.

Keep in mind that not every day is going to be as productive as you would hope. Unexpected things always come up, and no matter how hard you try, your expectations just might not be realistic. Do not become discouraged. Instead, simply stay focused and make an effort to increase your productivity the next day.

Reference:Ahmad Sanusi HusainCEO & Principal Consultant - Alfalah Consulting

Conclusion In fact Allah s.w.t is the greatest time

manager and whenever death appear to a man, it would never be delayed nor it will be advanced even for one second. Allah says in surah Yunus verse 49: