Chapter 8: Islamic Business in Management

BPMS1013 Theory & Practice of Islamic Business

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Chapter 8: Islamic Business in Management

IBS UUM

2013


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OutlineWhat is Management?Is it related Management in Islamic Business? Why?Why we do need Islamic Management in business?Is there any different between Islamic Management and

Traditional Management?What is principle, philosophy, and objective Islamic

Management in business?


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Islamic Management ObjectivePhilosophy and values that contain policy, principles,

motive, direction and ethics.

Management and the workforce in terms of character (attitude), the quality and skills.

Systems and practices in terms of procedures, structure, and work culture.


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How to achieve the objective ?Philosophy and clear values , a post is a trust from Allah SWT.

The duties and responsibilities of employees are as caliph of Allah.

Management and labor have a moral character, has the skills, commitment to the organization, and have the spirit of brotherhood among Muslims.

Systems and practices in the framework of the Islamic Syariah such as fair, effective, syura, and self-evaluation (Muhasabah)


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What is management ?Is a process of uniting and streamlining the organization's

limited resources optimally to achieve the goals.The importance of management is been state in Surah Al-

Hasyr:18.

Allah said :“To who believe, fear Allah and let every person look to what he has done for tomorrow (Hereafter)”.


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Content..IntroductionPhilosophy of Islamic ManagementPrinciple in Islamic ManagementDefinition of Management and Perspective IslamicFunction of ManagementOrganization ResourcesComponent and Psychological Level of HumanMaqasid syariah in Management Characteristic of Organization Management from Perspective IslamicIncreasing Image of Organization Conclusion


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IntroductionTheory Islam have been stress on putting effort to complete the task

we are doing with an effective and efficient management. Material and spiritual elements are taken into account simultaneously

not only in knowledge management but also in every aspect of life.Base on “Tauhid ” concept which is need to be applied in daily life.Tauhid is about relations.Can be divided into 2 type of relations :

a. ) Hablumminallah

- Relation between mankind towards Allah.

b.) Hablumminanas

- Relation between human toward human.


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Philosophy of Islamic ManagementHuman as a leader.Human as a holder of Allah message.Agreement between human and Allah.Fact of existence of human in the Earth.


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Principle in Islamic ManagementAim of searching al-Falah.To carry out welfare and forbid sinful.Stay with truth and fair.Right and obligation to work.Right to obtain property.Basic human right.


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Definition of Management and Perspective Islamic.Management is a process of planning, organizing, leading

and controlling organization resources with an effective and efficient way to reach the goal of an organization.

Management in perspective Islam is about process planning, organizing, leading and controlling organization resources with an effective and efficient way to reach the goal of an organization and use Maqasid As-syariah as a guide.


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Management ProsesPlanning

Set an objective and goal of an organization, construct plan to run the activities of the organization, able to explain strategic.Organizing

Assign jobs and define who are going to complete the task, how it done, and whose to do the final decisions.


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LeadingMotivate the employees, give instruction, select the effective communication way and able to solve the conflict.

ControllingLook after the activities, compare all the performance and make sure is comply to all the goals and objective that have set by the organization.


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Function of ManagementIncluded activities planning, organizing, leading and

controlling organization resources. Included activities thinking and acting.Islamic law as guide.


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Organization ResourcesThere are Human resources, financial, physical, technology, information, image, history and networking.

Component and Psychological Level of HumanComponent

a) Physical c)Intellectual

b) Spiritual d) emotional


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Psychological levels of human existence

a) Ammarah

- psychological, material, & physiological.

b) Lawwamah

- Psychological, material, physiological, intellectual and some spiritual needs.

c) Mutmainnah

- All needs with considerable emphasis on spiritual ones.


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Maqasid syariah in Management Refer to every singe activities that we carry on are completely base on the Islamic Law of Allah.

Characteristic of Organization Management from Perspective Islamic1)Maqasid syariah 2)existence goal

3)collective decision 4)authority,

5)Responsibility 6)accountability

7)Empowerment 8)continuous improvement

9)Leadership 10)time consciousness

11)quality consciousness 12) situational approach

13)double loop learning 14) Tawakal dan syukur.


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Increasing Image of Organization Building own image.Building working culture.Building organization image.


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ConclusionPrincipal of management from western country can be apply in the business as long as it comply with the syara’. Although the principle of management from western country are effectiveness, there are still lack of an aspect of spiritual that are encourage by the perspective of Islamic.


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DISCUSSIONDo you think that islamic business management should be

taken as an important part in Malaysia?What are the differences between western business and

islamic business?Do you think that the principle of islamic management

would affect the business law in our country?


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Current Issues•Timelessness of Islamic business management

• Islamic business is the business of yesterday, today and tomorrow. a timeless business management, which put

social responsibility beyond financial profit. • In Islamic Business, the element of socioeconomic responsibility are built into it, as they are obligated to all

business undertaking – for examples Islamic Hotels.• A good example is CAPRICE THERMAL LALACE HOTEL,TURKEY

•The need of MAQASID AL-SHARIAH in management strategy•Maqasid al-Shari`ah, is the meaning of goals and objectives of Islamic law. Generally the Shari`ah is predicated on

the benefits of the individual and that of the community, and its laws are designed so as to protect these benefits

and facilitate improvement and perfection of the conditions of human life on earth.• For example, Islamic Bank of Malaysia is carrying out MAQASID AL-SHARIAH in management.• Government of Malaysia enacted a separated banking legislation to lead the Muslims who want to lives in accordance with Shariah which include the area of banking and finance.


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Leading from islamic perspective

Muslims are waking up, they are standing for their right and politics.

Muslims are becoming ummah aware.

Education and knowledge management are key.

Democracy is on the rise, providing the ability and investigate islam.

Islamic perspective in stress management

By putting the trust in God, a believer minimizes the stress on him by reducing his

responsibility and power to control his failures.

Only God knows what our ultimate destiny is. We cannot peek into our future. We do,

however, have a limited free will; we are free to choose between good or bad, to believe in

God or not to believe in Him, but we have no control over future not related to our ability to

act in the present - whether my wife will have a son or daughter, whether his / her eyes will

be brown or black, or whether I will have an accident tomorrow or not. Worrying over such

things is of no use.

Rejection of faith in the Qur'an is described as a disease, its cause being arrogance and

reluctance to accept truth.


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Q&AWhat is the function of Islamic management?

What is Maqasid As-syariah ?

Please list out three principles of islamic management.

Chapter 8: Islamic Business in Management

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Transcript of Chapter 8: Islamic Business in Management