“Islam” the religion of peace, which has over 1.6 billion followers or
about 23% of the world population, is not only a religion but also a complete
way of life, The Holy Quran; the most comprehensive divine book of the world
has the solution to every problem. Let
it be personal or issues related with economics, business or politics. It’s a
vast source of knowledge. It tells us about history, Geography, Astronomy, Biology, and Management etc. The Holy Quran,
has the most comprehensive collection of guiding principles, teaches us, guides
us and shows us light in every walk of life.
Islam
has already given the principles of management 1400 years ago. It shows that
the best book about management is Quran. Management that is considered to be
one of the most important subjects of modern times is also derived from
the knowledge that Quran has given us. Many of its principles and theories that
are made in 16th or 17th century are derived from the knowledge that The Holy
Quran has given us 14 centuries ago. There are 300 verses in the holy Quran on
management; these verses should be studied for explaining the managerial view
of the holy Quran.
Islamic Concept of Management:
·
The
basis for Islamic Management is the Al-Quran and the Al-Sunnah.
·
Islamic
Management is the right way of managing people and organization.
·
Practicing
the principles of Islamic Management enables leaders and managers to achieve
unity among the followers/members of the organization quickly and this will
enhances quality performance.
Principles of Islamic Management:
1. Honesty
2. Efficiency
3. Patriotism
4. Right man in the right place
5. Discipline
6. Division of labor
7. Unity of command and unity of direction
8. Centralization and decentralization
9. Preference to the organizational interest
10. Remuneration
11. Economy
12. Justice for all
13. United efforts
14. Dignity of labor
15. Exemption
16. Accountability
17. Tawakkul -The act of relying upon something or someone - to place faith or
confidence in Allah (usually).
Characteristics of Islamic Management
1. Basic foundation of Islamic Management is the Quran and Sunnah.
2. Original model of IM is Prophet Muhammad (SAW) and his companions.
3. Only economic development is not the final target of IM.
4. Activities aimed at welfare in the life hereafter.
5. Employees should maintain cordial relationship and team spirit.
6. Accountability is twofold: i) to immediate boss and ii) Almighty Allah
7. Manager considers himself as a vicegerent of Allah.
8. Property is thought to be trusted by Allah to the users and the managers.
9. Decisions are made through consultation ( Mashwara).
10. The manager does not have any greed to misuse the power of the post.
11. There must be prevailing peace, development and other benefits.
12. IM is applicable to personal, familial and social, economic and political
organizations.
13. Here hypocrisy, forgery, activities adverse to religion and morality are
not tolerated.
14. Management is thought to be a universal concept.
15. There is freedom of thinking and expression.
16. Competition is a common strategy in good deeds.
QURAN AND MODERN MANAGEMENT PRINCIPLES:
1.Management today is defined as “Getting things done through
others.”
Following this concept, a Manager is now understood as the person
who works through others. A good manager, therefore, is a person who not
only knows what is to be done but exactly how to get it done.
The Holy Quran confirm
·
[43:32]
“We raise some of them above others in ranks, so that some may command
work from others...”
This ayah from Surah Al-Zakahraf (43:32) encompasses the entire philosophy
and wisdom of modern management. It emphasizes, in essence, the creation of
appropriate hierarchies and the division of responsibilities subject to
individual capabilities.
2. Another most Important
Principle of Management is leadership. .
“Without leadership every
member of the group will go in his own direction instead of following the
decision of the group or participate in teamwork.”
This principle comes
from the Hadith of the Prophet (pbuh) which says:
·
“When
three men travel together, they should make one of them their leader.” (Abu
Dawood, no. 2608).This Hadith places an emphasis on the importance of leadership.
3. Another Important Principle of the Management is the Joint
Consultations.
The modern world realized the importance of joint consultation
(Shura) and team-work when the Japanese based its management style on it and
proved to the world of its effectiveness.
The Holy Quran
advocates for this concept:
·
[42:38]
“...and those who do their work through mutual consultation.
·
[3:159]
“…pass over (their faults), and ask for (God's) forgiveness for them; and
consult them in affairs (of moment). Then, when you have taken a decision put
your trust in God, for God loves those who put their trust (in Him).”
This principle comes from the social life of Islam. Muslims used
to gather before their battles and during the regular meetings held by the
Prophet (pbuh) to teach the Sahabah (the companions) Islamic principles.
4. OBEDIENCE AND RESPECT FOR AUTHORITY
Obedience and respect for authority is the basic fundamental
requisite for taking work from others and getting it done. It is necessary for
those people who are given the job to complete a task to obey all legal and reasonable
orders and perform it responsibly.
·
Holy
Quran instructs: [4:59] “Obey Allah and His Messenger and those in position of
authority among you.”
5. PRINCIPLE OF EQUAL OPPORTUNITIES
The principle of equal opportunities postulate that all members of
an organization shall have equal and fair chances to grow, contribute, and be
rewarded accordingly.
·
The
Holy Quran emphasis this golden rule [49:13] “O people we created you from a
single male and female couple and then divided you in nations and tribes so
that you may recognize one another. “Verily the most honorable among you in the
sight of Allah is he who is most righteous of you.”
In the light of this Quranic v e r s e if there is any criterion of superiority and
respectability in the sight of Allah, it is T a q w a (righteousness).”
6. MOTIVATION & COMMITMENT
Commitment to do work can only be achieved through motivation. The
way a manager behaves or deals with the subordinates determines the level and
vitality of his motivation and commitment to a great extent.
The Holy Quran too
speaks about this golden rule:
·
[3:159]
“(telling the Prophet) if you had been stern and fierce of heart they (the companions
and followers) would have disappeared from around you. So pardon them and ask
forgiveness for them and consult them in the conduct of affairs”
This beautiful Ayat emphasizes upon two aspects: one, that
compassionate and sympathetic behavior towards companions and followers, and
second, the adoption of participatory approach when dealing with them i.e.
consulting them, is the most effective way of management.
If
this golden rule is not observed then “they will disappear from you” i.e. they
won’t pay attention nor any interest in you or what your work entails.
Both these golden rules play vital role in the motivation of
subordinates and inculcating in them the spirit of commitment and passion for
work.
7. Unity of Command
The Organization should have a single plan of action to guide
managers and workers.
This principle can be
found in the Holy Quran in these words;
·
(21:22)
“If there were in the heavens and the earth, other gods, besides Allah, there
would have been collision in both.”
This Ayat shows the
importance and necessity of unity of command and unity of direction.
8. Giving importance to Organizational Interests than Individual.
The interest of any employee or group of employees should not take
precedence over the interest of the organization as a whole.
·
Islam
means peace. Muslim means a person who submits his will to the god Allah. This
principle can be found in Hadees of Bukhari Shareef where Prophet Mohammad
(PBUH) said “I swear by the one who owns my life, nobody can be honest, unless
and until he like the things for his brother (other Muslims) that he likes for
himself.”
9.WASE OR REMUNERATION
In an Organization the workers must be paid reasonable and fair
wage for their services.
·
Prophet
Mohammad (PBUH) says that the worker must be paid before drying his sweat, this
helps to keep your workers and employees happy.
10. ELIMINATION OF WASTE
Wastage—either in terms of: material, human capital, energy,
machine utilization, or processing time, creates inefficiencies resulting in
the increase of costs and consequent decrease in profits.
Continuous and aggressive pursuit of wastage elimination led
Toyota to become one of the most efficient manufacturing organizations in the
world. Their success is thus based on two principles:
1. Complete Elimination
of Wastage; and
2. Equal Level of
Respect for all.
Their success-story has inspired many companies throughout the
globe, and adoption of these principles and methodologies in these companies
concerning continuous elimination of waste is already underway.
The holy Quran has
spoken against wastage and lavish expenditure in following words:
·
[17:26] “And
render to the kindred their due rights, as (also) to those in want, and to the
wayfarer. But waste not (your wealth, time, health, Talents, opportunities etc)
in the manner of a spendthrift.”
·
[17:27]
“For the wasteful are the brothers of Satan; and Satan is ungrateful to
his Lord.”
·
[7:31]
“O Children of Adam! Wear your beautiful apparel at every time and place of
prayer: eat and drink: But waste not by excess, for Allah loves not the
wasters.”
These are the Ayaats Islam has given Muslims the golden rule of
not wasting any thing. A Muslim must also strive to eliminate any wastage
around him, at home, workplace, or in society even when faced with resistance. Following
these principles an organization can be able to produce best quality products
at the least possible cost.
11. OPTIMUM CAPACITY UTILIZATION
The following Ayats
from the Holy Quran reveals another golden rule that a Muslim businessman
should learn from and practice in his daily life.
·
[2:233]
“ No soul shall have a burden laid on it greater than it can bear…”
·
[2:286]
“On no soul doth Allah place a burden greater than it can bear… (Pray) Our
Lord! Lay not on us a burden greater than we have strength to bear.”
·
These
Ayats 2:233, 2:286 are emphasizing on the fact that physical, emotional, and
intellectual capacity of an individual is limited and not exhaustive.
Additionally, since every person is unique in his talents and temperament, and
in his skills, it is important not to burden someone with a task that is beyond
his scope to deal with it. This is an important principle of modern business
management.
The principles mentioned in 2:233, 2:286, mean:
1. Do not over-burden
any resource, whether it is a machine or an employee;
2. Do not under-load
any machine or employee; and
3. Balance out the
workload onto different machines or on different employees so that none of them
is over-burdened or under-loaded with regards to their respective capacities.
For Toyota these three principles are called Muri, Mura and Muda
categorized under a single principle called Heijunka, which means to level out
the workload. Toyota
Company practices these principles almost religiously
If principle (1) is not implemented and the machines are
overloaded, then a lot of work-in-process inventory may pile up which will lead
to added expenses in terms of material handling and holding cost. If the
employees are overloaded, they may feel frustrated, de-motivated, and get tired
very quickly, making them inefficient and prone to mistakes which will lead to
wastage of time and money.
If principle (2) is not implemented and the machines or employees
are under-utilized, the company will face an obvious wastage in the form of
fixed overheads. Besides, idle employees are bored employees and highly
de-motivated to carry out even the work which is assigned to them.
If principle (3) is not implemented and some employees are
over-burdened while the others are sitting in idleness, it will not only create
a feeling of injustice in the minds of those employees working but a sense of
discrimination coupled with frustration and anger which can easily ignite into
a possible conflict.
These golden principles are not merely for business management but
for every person from every walk of life and profession. It is in fact a system
of life as a whole (Deen).
12. THE PRINCIPLE OF QUALITY MANAGEMENT SYSTEM
The Modern organizations finally realized that customer
satisfaction is vital for their survival and growth. This gave birth to the
concept known as Quality Management Systems. There are some organizations whose
main focus is to satisfy their customers about the quality of the product or
service, and they never compromise on it. Interestingly enough, such companies
are many times more profitable over other companies who do not have such
intentions.
This golden rule of the Modern Organizations was also mentioned in
the Holy Quran. .
The Holy Quran spoke about Quality Management
Systems, and is mentioned in, 7:85, 11:84-85, 17:35, 26:181-182, 55:7-9, 83:1-3
The Holy Quran
commands:
·
[7:85]
“...Give just measure and weight, nor withhold from the people the things that
are their due; and do no mischief on the earth after it has been set in order:
that will be best for you, if ye have Faith.”
·
[11:84-85]
“O my people! Worship Allah. Ye have no other god but Him. And give not short
measure or weight: I see you in prosperity, but I fear for you the penalty of a
day that will compass (you) all rounds. "And O my people! Give just
measure and weight, nor withhold from the people the things that are their due:
commit not evil in the land with intent to do mischief.”
·
[17:35]
“Give full measure when ye measure, and weigh with a balance that is straight:
do not withhold from people (including customers) the things that are their
due; …woe to those who deal in fraud…”
·
[26:181-182]
"Give just measure, and cause no loss (to others by fraud). And weigh with
scales true and upright.”
·
[55:7-9]
“And the Firmament has He raised high, and He has set up the Balance (of
Justice), in order that ye may not transgress (due) balance. So establish
weight with justice and fall not short in the balance.”
·
[83:1-3] “Woe to those that deal in fraud,- Those who,
when they have to receive by measure from men, exact full measure, But when
they have to give by measure or weight to men, give less than due. Do they not
think that they will be called to account?”
The author and researcher Jim Collins describes about two
companies Sony and Merck in his bestselling books titled “Built to last” and
“Good to Great.” The founder of the Merck believed that medicine is for the
sick (end) and not for making money out of it (means). The author states that
these beliefs are even openly evident in their everyday activities within their
companies. It is a natural law that when “means” are recognized as “means” and
“ends” of human life are recognized as “ends”, only then the real process of socioeconomic,
intellectual, and spiritual evolution takes places and takes us to the extremes
of our potential.
For a Muslim businessman, there is no alternative but to satisfy
his customer, for him, profit is only a “means” to keep his business alive and to
satisfy his customer i.e. the “end.” Rest will be taken care by the God.
The Holy Quran
authorizes this fact in 51:58
·
[51:58]
“Allah is He who is the provider of all Rizq (Livelihood), the Lord of all
Power.”
·
[2:212]
“And Allah provides Rizq' to whom he wishes without any account."
Islam contains all modern quality management principles: According
to Prof. AYKUT KIRBAS the verses of the Holy Qur’an and Ahadith of the
Prophet (peace be upon him) contain all the principles used in modern-day
quality management systems.
13. FULFILLING CONTRACTS, COMMITMENTS, & PROMISES
To run a business successfully, a businessman should keep his
promises that he has made. Dr. Stephan R. Covey writes in his book ‘The 8th
Habit’ nothing destroys trust faster than making and breaking a promise.” This
fact is applicable not only in the business environment but also in our
individual, social and political environments.
The Holy Quran has
instructed the Muslims about this golden rule at several places:
·
[17:34]
“Allah says, ‘Fulfill your contracts. Contracts will be asked about.’”
·
[16:91]
“And the Almighty says, ‘Be true to Allah's contract when you have agreed to
it.’
·
[5:1]
“The Almighty says, ‘O you who believe! Fulfill your contracts.’
·
[61:2-3]
“And the Almighty says, ‘O you who believe! Why do you say what you do not do?
It is deeply abhorrent to Allah that you say what you do not do.’”
14. Kaizen, JIT, and 5-S.
Jeffery K Liker in his book The Toyota Way has described that Toyota
production system today comprises of 14 principles and some of these principles
are technically known as Kaizen, JIT, and 5-S.
A)KAIZEN: THE MANAGEMENT JIHAD AGAINST INEFFICIENCY
Kaizen is a Japanese word meaning continuous improvement. To
implement Kaizen, the management of an organization should continuously seek to
identify areas where wastage is being done. Once identified, they then set out
to analyze the problem, suggest a solution, plan its implementation, implement
it, and finally reviews the change for success or failure (PDCA cycle).
B) JUST-IN-TIME (JIT) SYSTEM FOR INVENTORY MANAGEMENT
The concept of Just-in-Time invented by Toyota has revolutionized
the Inventory Management Systems in the manufacturing organizations throughout
the world. It is based on the golden principle of keeping only that much amount
of inventory that is needed and in order to avoid in-process buffer inventory
as much as possible until it is completely transformed into the finished good. JIT
is an important part of Toyota Production System (TPS).
A Muslim should be a born JIT expert. The Holy Quran spoke about
JIT in 2:219, 9:34. The Holy Quran instructs him in 2:219 that he should spend
on himself only as much as he needs and to give away the excess in the way of
Allah.
·
[2:219]
“… They ask thee how much they are to spend in the way of Allah; Say: ‘What is
beyond your needs.’” (i.e. do not hoard)”
A Muslim businessman will never accumulate large amount of
inventories (wealth) as it is discouraged by the Holy Quran in 9:34, and so
will refrain from going such a thing.
·
[9:34]
“O ye who believe! … Those who buy gold and silver and spend it not in the way
of Allah, announce unto them a most grievous penalty.”
GO & SEE FOR YOURSELF (VISUAL CONTROL)
Toyota calls it Genchi Gembitsu It works this way: in order
to solve any problem, the manager or supervisor at Toyota is obligated to go
and see for himself the issue, analyze it, and take corrective actions. Second
hand information is simply not accepted because it is considered to be unreliable,
or at least not 100% correct.
This fundamental principle of business management is also
mentioned in the Holy Quran.
·
[17:36]
“You shall not accept any information, unless you verify it for yourself. I
have given you the hearing, the eyesight, and the brain, and you are
responsible for using them.”
A Muslim should know that the Holy Quran commands him (not asks
him) to be very cautious about the information he receives and to verify it for
its accuracy before making any decision or judgment or opinion.
C) 5-S
is a set of 5 Japanese terminologies; each one of them states a
very practical and important golden principle. Almost all Japanese firms follow
these principles in order to achieve maximum amount of efficiency in their
work.
Japanese Term English
Equivalent
Seiri Tidiness
Seiton Orderliness
Seiso Cleanliness
Seiketsu Standardization
Shitsuki Discipline
A brief detail of each
follows:
1. SEIRI
The first step of the ‘5-S’ process, Seiri, refers to the act
of discarding all unwanted, unnecessary, and unrelated materials from any place
of concern. It could be the workplace or home or even a town.
This principle should be ingrained in the mindset of a true
Muslim. The Holy Quran mentions this in 17:27 and 7:31
·
The
Holy Quran Instructs: [2:219] “They ask thee how much they are to spend in the
way of Allah; Say: ‘What is beyond your needs.’
2. SEITON
‘Seiton,’
means orderliness, which is all about efficiency. This golden principle
relates with putting everything in an assigned place so that it can be accessed
or retrieved quickly, as well as returned to that same place without delays.
3. SEISO
Seiso consists of cleaning up the workplace and giving it a ‘shine.’ Cleaning must be done by everyone in the organization, from
operators to managers. Seiso cannot be achieved without having mutual respect
for everyone and an atmosphere of brotherhood. Furthermore, it also requires an
intrinsic desire and motivation for cleanliness.
The Holy Quran understands the importance of cleanliness and
instructs its believers to keep themselves clean at all times.
·
The
entire system of Salat (Prayer) is a perfect example and an exercise to ensure
that Muslims obey and follow this golden rule at least five times a day, every
day, throughout their lives. A Muslim offers his Salat in a Masjid behind an
Imam. He first performs ablution which not only purifies him physically but
also spiritually. He then stands shoulder-to- shoulder with his brothers
irrespective of any social and economic status behind an Imam, and follows his
instructions.
·
Similar
should be the scenario in a workplace as well where everyone should feel
responsible to work passionately (worship in Salat), respect each other (stand
shoulder-to-shoulder), keep his surroundings clean (ablution and cleanliness of
Masjid), and follow the instructions of their superiors (Imam) without any
resistance or laziness. Needless to say, it is a perfect system.
4. SEIKETSU
The fourth step of 5-S is Seiketsu which more or less translates
into ‘standardized cleanup.’ Seiketsu encompasses both personal and environmental
cleanliness. People must practice Seiketsu starting with their personal
tidiness to keep themselves motivated and mentally fresh. Visual management is
an important ingredient of Seiketsu.
·
The
Holy Quran also provides us with a standardized yet very comprehensive set of
rules to obtain and maintain cleanliness at all physical, emotional,
intellectual, and spiritual levels. One such standard is the five-time
obligatory Salat which is also considered as the Pillar of Islam. Another is ablution,
the standards of which are clearly stated in Islamic Fiqh.
5. SHITSUKU
The last step of 5-S is Shitsuke which literally means ‘Discipline.’
This golden rule denotes commitment to maintain orderliness and to
practice the first 4 S’s as a way of life. The emphasis of Shitsuku is on
the elimination of bad habits and constant practice of good ones. Once a
person achieves the state of Shitsuke, cleanliness and orderliness is then
voluntarily and at times subconsciously observed at all time, without the need
of reminders or motivation. Shitsuke is the most evolved state of mind that incorporates
all the previous golden rules. It is too obvious for any rational mind to
conclude how natural it should be for a true Muslim to have this state of mind.
CONCLUSION:
Success and prosperity of an Organization or a Man is the outcome
of commitment to certain golden principles of life that are readily available
to us in the Holy Quran. These principles are independent, universal of and
primarily aim at building a “whole” man capable of achieving his true potential
in the purpose of his life. The Holy Quran; the most comprehensive divine book
of the world has the solution to every problem and what remains is the
practical implementation of these principles in our socio-economic and
political lives.
Islam offers sound management principles that are timeless. Taken
from the Noble Quran and the practical example of Prophet Muhammad (peace be
upon him), these principles have been applied for over a thousand years.
In the era of globalization where managers often find themselves
managing a diverse blend of people across continents, there is a need for
universal principles for management. Islam offers such principles and best
practices that any manager can adopt for successful management. For every practitioner
of management, from aspiring team leader to the seasoned CEO, these principles
will prove to be invaluable as they are suitable for people of all faiths and
cultures.
FOOTNOTES:
·
The
Toyota Way by Jeffrey K.
·
Built
to Last by Jim Collins.
·
The
8th Habit by Dr. Stephan R. Covey
·
Henri
Fayal’s 14 Principles of Management by Mohammad Saad -.
·
Management
in Islam by Javed Omar.
·
Wikipedia.
·
Modern
Quality Management by Saudi Gazette
·
Principles
of Islamic Management by M A C S N O T E.
.
