Muslim Pioneers in Management

Muslim Pioneers in Management

Highlights on some of the Muslim

Scholars’ Contributions in the

Science of Management

By Yaser Zakariyya Alhindi

MGT 501 Project – 2012MBA Program – KFUPM

[email protected]

ContentsIntroduction• Objective• Reasons• The Importance of Management Sciences to Human Beings• Administration in Muslims Countries

Part one: Some Muslim Pioneers• Abu Yusuf (d.798)

• Al Shybani (749-805)

• Ibn Khaldun (732-808)

• Miskawayh (940-1030)

• Almawardi (972-1058)

• Nezam Almulek (1018 -1092)

• Al Ghazali (1058-1111)

• Al Dimashqi (c.1175)

• Ibn Taymiyya (1263-1328)

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Part Two: Some Major Contributions

• Waqf • Supply and Demand • Division of labor • Introduction of Cheque

Conclusion

Bibliography

Contents

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Introduction

• Objective

• Reasons

• The Importance of Management Sciences to Human Beings

• Administration in Muslims Countries

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Objective

Shedding light on some of the major Muslim contrition in the science of management.

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One of the benefits of studying the biographies of the people that went before us; is that our predecessors inspired us by their lives, thoughts and by their sacrifices. Among these inspirational people are, scholars, and even righteous political rulers.

To prompt future researches on the area of highlighting Islamic contribution.

Reasons

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Reasons

“seek, with that (wealth) which Allah has bestowed on you, the home of the Hereafter, and forget not your portion of legal enjoyment in this world, and do good as Allah has been good to you, and seek not mischief in the land. Verily, Allah likes not the Mufsidun (those who commit great crimes and sins, oppressors, tyrants, mischief-makers, corrupts).” Surah 28. Al-Qasas, Verse 77

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Importance of Management to Human Beings

The Latin word Administrare (to Care for).

Man is the purpose of development, development is meaningful only if it does succeed in creating conditions, both material and spiritual, which enable the individual and the species to become their best.

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Administration in Muslims Countries

Islam is the religion of Laws which has rules for nearly all human activities.

The main function of man in Islam is to worship God in all spheres of his life, therefore the developmental process in an Islamic state should be geared toward that grans objective.( Al Buraey, 1985:123)

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In the Islamic society the ethnic origins of scholars and scientists were diverse.

The population and wealth of the various regions, are sufficient to explain why most Islamic scholars and scientist came from Iraq and Iran and the eastern provinces.


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Islamic scholars has introduced important element into their scientific methods, namely that of experimentation and testing, thereby not being satisfied with theoretical studies.

Many of the scholars they attempted to to justify their criticism by theoretical proof, then would attempt to prove the correctness of the hypotheses by experimentation.

Convolution of Muslims scholars from 770 to 1377 AD.


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Part one: Some Muslim

Pioneers• Abu Yusuf (d.798)• Al Shybani (749-805)• Ibn Khaldun (732-808)• Miskawayh (940-1030)• Almawardi (972-1058)• Nezam Almulek (1018 -1092)• Al Ghazali (1058-1111)• Al Dimashqi (c.1175)• Ibn Taymiyya (1263-1328)

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Abu Yusuf (Ibn Ibrahim Al-Ansari)

His most famous work was Kitab al-Kharaj, a treatise on taxation and fiscal problems of the state.

He served as the chief judge (qadi al-qudat) during reign of Harun Al- Rashid. the first time such a title had been conferred upon someone in Islamic history.

was raised poor but with a ferocious appetite for knowledge.

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Abu Yusuf achieved incredible success and helped develop and spread the influence of the Hanafi school of Islamic thoughts, Under the guidance of Abu Hanifa.

Islamic empire was at the height of its power at the time of his writing and in his treatise, he sought to advise the caliph on how to appropriately conduct financial policies in accordance with religious law. the overall effect was to limit the ruler's discretion over the tax system.

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1- "Kitab al-Kharaj" (the book of taxation), upon Harun Al-Rashid's request, and is known as one of the earliest works on the Islamic taxation system. First printed in 1302/1885 in Cairo, its text has been translated into numerous languages.

2- "Usul al-fiqh" - the earliest known work of principles of Islamic jurisprudence. A portion of his works were devoted to international law.

3- "Kitab al-Athar", a collection of traditions (ahadith) he narrated.


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4- "Kitab Ikhtilaf Abi Hanifa wa Ibn Abi Layla", one of the early works on comparative Fiqh.

5- "Kitab al-Radd ‘Ala Siyar al-Awza’i", a refutation of the famous Syrian jurist and tradition, al-Awza’i on the law of war.


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Al-Shaybani, Muhammad Ibn Alhasan

the father of Muslim international law

Al-Shaybani wrote advanced treatise on the subject, and other jurists soon followed with a number of other multi-volume treatises.

They dealt with both public international law as well as private international law.

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Including the law of treaties;

the treatment of diplomats, hostages, refugees and prisoners of war; the right of asylum;

conduct on the battlefield; protection of women, children and non-combatant civilians; contracts across the lines of battle; the use of poisonous weapons; and devastation of enemy territory.

Al-Shaybani, Muhammad Ibn Alhasan

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Ibn Khaldun (Abdulrahman Ibn Muhammad)

Significant contribution to the Foundation of social sciences.

The methods of organizational improvement can be developed through the study of the science of culture.

Book of the lessons and archive of early and subsequent history “Al Muqaddimah”.

His opinion on the History Documentation “It is not just a list of correct facts, but is dependent on who's interpreting them, what region they come from and their impartiality” 1

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He rejected partially unchecked facts.

Came up with the “Asabiyah” a famous sociology theory.

Labor is the source of prosperity “Adam Smith”

Later in the 19th century, Western scholars recognized him as one of the greatest philosophers to come out of the Muslim world.


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Ibn Khaldun's outlines an early example of political economy.

He describes the economy as being composed of value-adding processes; that is, labour and skill is added to techniques and crafts and the product is sold at a higher value.

He also made the distinction between "profit" and "sustenance", in modern political economy terms, surplus and that required for the reproduction of classes respectively. He also calls for the creation of a science to explain society.


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Miskawayh, Ahmad

• As a philosopher Miskawayh focused on the matter of ethics.

• In his ideas, Miskawayh always tries to fuse Aristotle's views and Islamic ethics.

• He made several contributions to economics (Islahi, 2004). He stated that the essence of money, is that it is able to gauge the value of various goods and services and create a sense of equality between them, in a way that is not possible through direct exchange without money as the medium. 2

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• “He regarded gold, in its monetary capacity, as the standard for all and everything. He considered it the best way to store value, because he who sells many things and picks up gold in exchange for the articles and as a substitute for all of them, has done the right thing; since he can get thereby whatever he wishes and whenever he wishes'' (Islahi, 2004).

Miskawayh, Ahmad

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• Other masters of philosophy like al-Ghazali, Nasir al-Din al-Tusi and Jalal al-Din al-Dawwani were influenced by Ibn Miskawayh.

• He wrote "Tajarib al-Umam" (Experiences of Nations) on history.

• "Tahdhib al-Akhlaq" (Ethical instruction) contains Greek, Persian and Islamic traditions.

Miskawayh, Ahmad

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Al Mawardi (Ali Abu Alhasan)

• Appointed as the chief judge over several Khorsani districts near Nishspur, and Baghdad itself. “A high-profile figure."

• Served as a diplomat for the Abbasid caliphs al-Qa’im and al-Qadir in negotiations with the Buyid emirs.

• He is well remembered for his treatise on "The Ordinances of Government."

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• Al-Ahkam al-Sultaniyya w'al-Wilayat al-Diniyya, (The Ordinances of Government) provides a detailed a definition of the functions of caliphate government which, under the Buyids appeared to be rather indefinite and ambiguous.


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• the caliphate symbolized an entire politico-religious system that regulates the lives of men in a Muslim community to the smallest detail. Index:1. On the Appointment of the Sovereign2. On Ministerial AppointmentIII. On the Appointment of Provincial GovernorsIV. On Appointing War CommandersV. On Appointing Commanders of Expeditions for the Public InterestVI. On the Appointment of JudgesVII. On the Redress of WrongsVIII. On Syndics of the NobilityIX. On the Appointment of Prayer LeadersX. The administration of AlmsXI. On Dividing the War SpoilsXII. On Tribute and Land TaxXIV. Of Distinctions Among CountriesXV. On Land Reclamation and Water SupplyXVI. On Enclosures and Public AmenitiesXVII. On Land Grants and ConcessionsXVIII. On the Status and Rules of the ChanceryXIX. On Crimes and PunishmentXX. On the Market Supervisors Office


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• Other Works:

• Laws regarding the Ministers (Qanun al-Wazarah).

• The Book of Sincere Advice to Rulers (Kitab Nasihat al-Mulk ).

• The Ethics of Religion and of this World. (Kitab Aadab al-Dunya w'al-Din ).


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• Mawardi's book has influenced a number of contemporary political groups and movements, in particular Hizb ut-Tahrir, who wish to reestablish the Caliphate and adopt much of the structure and processes from the classical period of Islam that was articulated by AlMawardi.


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Nizam Almulek, Abu Ali al-Hasan al-Tusi • He was the sole ruler of the Seljuq Empire.

• "Nizam al-Mulk" was an honorific which he assumed after achieving prominence. It translates into English as: "good order of the kingdom.”

• Aside from his extraordinary influence as vizier with full authority, he is also well known for systematically founding a number of schools of higher education in several cities, the famous Nizamiyyah schools, which were named after him. In many aspects, these schools turned out to be the predecessors and models of universities that were established in Europe. 3

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• He built other great schools as well, one in Nisapur and another one in Tus. He strongly encouraged people to study the Islamic sciences and arts, and he used to spend much money on the seekers of knowledge.

Nizam Almulek, Abu Ali al-Hasan al-Tusi

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• Nizam al-Mulk had a great ability in organizational matters and was also known for redressing the wrongs that occurred under his government. The right man in the right job

• also widely known for his voluminous treatise on kingship titled Siyasatnama (The Book of Government). He also wrote a book titled Dastur al-Wuzarā, written for his son Abolfath Fakhr-ol-Malek.


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• The most important administrative approaches used by the Minister Nezam Al-Mulk in managing the Seljuk State:

1. He stood strongly against the intervention of the Sultan closest family members and friends in the affairs of the state, so as not to cause disorder in the management.

2. He was also particularly concerned about post mail as postmen delivered all news and updates to the government from all across the Slguk State. In addition to sending defectives to inspect all disciplines and parties: trader, tourism and Sufis, dervishes, real estate. The undercover detectives kept the Sultan posted and well informed about everything going on his kingdom.


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3. He used to change governors and workers once every two or three years to ensure that no tampering in their work; and when Sultan Alp Arslan canceled the function «the Mail» and «the News» job titles, Nizam al-Mulk assigned an honest man in every city send all updates and to watch the governor, the judge, the injury and all officers.

.


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4. He was also very selective in recruiting employees. He chose the most knowledgeable, ascetic and the less greedy. He chose for the jobs of «the Mail» and «the news» man people the most honest due the sensitivity of these jobs, and are appointed by the Sultan himself. Nizam Almulk allocated generous salaries for state employees, as a precaution measure, so as not to force any employee to steal of public funds, or take advantage of his position.


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5. He made sure to make auditing by the end of every year to see income and expenses and balance between them.

6. Nizam Almulk consulted a number of senior civil servants loyal and competent, the to ensure that the administrative plan is carefully implemented. The mission of that Advisory Council- apparently - is to study any important decisions and the development of appropriate solutions to any problem, and then carefully monitor its implementation.


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• The economic thinking of Nizam Almulk played an important role in the reform and distribution of agricultural lands.

• The regular practice of the caliphs and princes was to gather all the of the states’ money in the capital, when the Suljuk State expanded, He noted that the income of the state of the agricultural income is little because of the lands need for reform, as well as lack of interest of governors in reforming those lands.


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• found that it is more favorable to the state to distribute the aspects in the form of Aqtaat the heads of the soldiers, to pay each section a sum of money to the State Treasury for investment of the land which Oqtat him, was this procedure cause in the development of agricultural resources.


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Al Ghazali (Abu Hāmed Mohammad)

• Contributed significantly to The qualifications and suits of rulers and to the development of a systematic view of Sufism and its integration and acceptance in mainstream Islam.

• Viewed as the key member of the influential Asharite school of early Muslims philosophy and the most important refuter of Mutazilites.

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• Al-Ghazālī’s greatest work The Revival of Religious Sciences. (Ihya' Ulum al-Din or Ihya'u Ulumiddin)

• In 40 books he explained the doctrines and practices of Islām and showed how these can be made the basis of a profound devotional life, leading to the higher stages of Ṣūfism

• It covers almost all fields of Islamic sciences: figh (Islamic jurisprudence), kalam (theology) and sufism.


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• It contains four major sections: Acts of worship (Rub' al-'ibadat), Norms of Daily Life (Rub' al-'adatat), The ways to Perdition (Rub' al-muhlikat) and The Ways to Salvation (Rub' al-munjiyat).

• Admirable comments were made regarding this book: "If all Islamic sciences were disappeared, they could be taken back from Ihya'u Ulumiddin."


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• Ghazali had an important influence on Christian medieval philosophers. The greatest of these Christian writers who was influenced by Al-Ghazali was St.Thomas Aquinas (1225–1274), who made a study of the Arabic writers and admitted his indebtedness to them.

• There are more than 400 books attributed to Al ghazali today. Many western scholars such as William Montgomery Watt (The works attributed to Al-Ghazali), Maurice Bouyges (Essai de chronologie des oeuvres d'Al-Ghazali) and others prepared a list of his works along with their comments on each book.


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• The most celebrated of Ghazali's works in Persian is The Counseling Kings (Nasīhatul Mulūk), written most probably for Sultan Ahmad Sanjar ibn Malekshah.

• Aims of Philosophers (Maqasid al falasifa) written in the beginning of his life, in favour of philosophy and presenting the basic theories in Philosophy, mostly influenced by Avicenna's works.


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• The Incoherence of the Philosophers (Tahafut al-Falasifa) in this book he refutes the Greek Philosophy aiming at Avicenna and Al-Farabi; and of which Ibn Rushd wrote his famous refutation Tahafut al-tahafut (The Incoherence of the Incoherence).

• Criterion of Knowledge in the Art of Logic (Miyar al-Ilm fi fan al-Mantiq).

• Touchstone of Reasoning in Logic (Mihak al-Nazar fi al-mantiq).

• The Correct Balance (al-Qistas al-mustaqim).


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Al Dimishqi, Abu Al Fadl Jaafar

• Jaafar Al-Dimishqi was an economist and an early Muslim entrepreneur who lived and flourished in 12th century Damascus and Syria.

• He is best known for being the author of Kitab al-Isharah ila Mahasin at-Tijarah wa Marifat Jayyid al-A’rad wa Kadiiha wa Ghush-ush al-Mudallisin fiha (A Guide to the Merits of Commerce and to Recognition of Both Fine and Defective Merchandise and the Swindles of Those Who Deal Dishonestly). 4

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• He advised his readers: "Everything that is being bought and sold shall be measured by the dry measure, or by time, or in numbers.

• Therefore a merchant should know the swindler and the methods which he applies when measuring, weighing and counting, so that he shall not be dependent upon unreliable people".


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• His work praises trade as an economic activity and demonstrates a thorough understanding of the roles of supply and demand and the uncertainty associated with them.

• According to Louis Baeck, professor of International Economics and Development at the Catholic University of Leuven (Belgium), al-Dimashqi "formulated what modern economists would call price theory".


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• In this theory, al-Dimashqi "makes a distinction between normal periods in which market prices are based on cost of production, as opposed to periods of scarcity or oversupply, in which speculators’ drive manifest itself".

• In the Guide to the Merits of Commerce, he expresses disapproval of the state becoming directly involved in the economy.

• Al-Dimashqi also emphasizes the necessity of division of labor for economic development.


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• "No individual can, because of the shortness of his life span, burden himself with all industries. If he does, he may not be able to master the skills of all of them from the first to the last. Industries are all interdependent. Construction needs the carpenter and the carpenter needs the ironsmith and the ironsmith needs the miner, and all these industries need premises. People are, therefore, necessitated by force of circumstances to be clustered in cities to help each other in fulfilling their mutual needs“.


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Ahmad Ibn Taymiyya

• Elaborated a circumstantial analysis of the market mechanism, with a theoretical insight unusual in his time. His discourses on the welfare advantages and disadvantages of market regulation and deregulation, have an almost contemporary ring to them.

• Ibn Taymiyyah commenting on the power of supply and demand:"If desire for goods increases while its availability decreases, its price rises. On the other hand, if availability of the good increases and the desire for it decreases, the price comes down."

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• Ibn Taymiyyah left a considerable body of work (350 works listed by his student Ibn Qayyim Al-Jawziyya and 500 by his student al-Dhahabi) that has been republished extensively in Syria, Egypt, Arabia, and India.

• One of them which is the study of the economic thoughts of an Islamic scholar on the role of the state in the economy, public finance, money, interest, prices, partnership, profit sharing and other economic issues, reported and analyzed in their historical context.

Ahmad Ibn Taymiyya

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• In addition to innumerable fatwās (legal opinions based on religious law) and several professions of faith, the most beautiful of which is the Wāsitīyah, two works merit particular attention.

• One is his As-Siyā-sat ash-sharʿīyah (Treatise on Juridical Politics), available in French and English translations. The other, Minhāj as-sunnah (The Way of Tradition), is the richest work of comparative theology surviving from medieval Islam.

Ahmad Ibn Taymiyya

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• In politics Ibn Taymiyyah recognized the legitimacy of the first four caliphs, but he rejected the necessity of having a single caliphate and allowed for the existence of many emirates.

• Within each emirate Ibn Taymiyyah demanded that the prince apply the religious law strictly and rely on it for his legal opinion, and demanded from those under the prince’s jurisdiction that they obey the established authority except where it required disobedience to God, every Muslim being required to “will the good and forbid the bad” for the benefit of the common welfare.

Ahmad Ibn Taymiyya

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Part two: Some Major

Contributions• Waqf

• Supply and Demand

• Division of labor

• Introduction of Cheque

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• Waqfs or trusts are charitable foundations in which its revenue acts as an ongoing source of funding to finance public and charity projects. Awaqf also means religious charitable institutions that manage various gifted and donated financial assets.

• In the Muslim world, waqfs were the main source of income in financing public facilities, such as schools, hospitals and mosques, while taxes were a minor source.

Waqf (Trusts)

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• Financing schools by waqfs used to cover maintenance, teachers' salaries, accomodation, food for students, and also bursaries for those in need.

• Hospitals were also funded by waqfs, though some money from the state coffers was also used for the maintenance of some hospitals. It was partly due to this funding they became strongholds of scientific medicine and an integral part of city life in less than two centuries.

Waqf (Trusts)

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• Influenced by the east, many western colleges and universities were founded on the basis of charitable trusts such as church inns and other foundations.

• However, the role of waqfs has been greatly undermined today, and lost its status as an important source of income for public facilities and social security.

• Waqf were introduced during the Prophet's time, and Muslims derived its legitimacy from Hadiths of the Prophet Muhammad.

Waqf (Trusts)

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Supply and Demand • Muslim scholars explained the market forces

of supply and demand, and their role in determining the prices of goods and services.

• Al-Jahiz contributed to economics with his work “Al-Tabassur bi'l-Tijarah" (Insight in Commerce) is without a doubt the first to deal exclusively with the trading of good and commercial activities. (Islahi, 2004)

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• In its text, Al-Jahiz mentions an early expression of the role of demand and supply: "Everything becomes cheaper if its amount increases, except knowledge; as its value is enhanced if it increases" - referring to it as an Indian wisdom.

Supply and Demand

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Division of Labor • Division of labor is the

specialization of cooperative labor in specific, defined tasks and roles, intended to increase the productivity of labor.

• Muslim scholars such as Al-Ghazali contributed in economic theories on the division of labor.

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Introduction of the Cheque • Like today, coins weren't the only

way of paying, Cheques were around centuries ago as well. Cheque comes from the Arabic saqq, a written vow to honor payment for merchandise when its destination is reached.

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• In the time of Harun al-Rashid, under a highly developed ‘banking system’, a Muslim businessman could cash a cheque in Canton, China drawn on his bank account in Baghdad. The use of saqq was born out of the need to avoid having to transport coin as legal tender due to the dangers and difficulties this represented.

• Bankers took to the use of bills of exchange, letters of credit and promissory notes, often drawn up to be, in effect, Cheques. In promoting the concept of the bill of exchange, saqq or check, Muslims made the financing of commerce and intercontinental trade possible.

Introduction of the Cheque

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Conclusion

• In this research project, one hopes that the younger generations get inspired by the achievements of the predecessors, in particular in the science of management.

• Not only to follow them in footsteps but also to follow them in minds set that prompt the critical thinking, innovation and creativity for the best of all mankind.

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Bibliography• Al-Buraey, Muhammad (1985), Administrative

Development: An Islamic Perspective, London, KPI.

• Choudhury, Masudul Alam (1989), Studies in Islamic Social Sciences, London, Macmillan Press LTD.

• Al-Buraey, Muhammad (1994), Mabady’a Al-Idara wa Al-Qyada fi Al-Islam: Dirasa Muqarana (Leadership and Administrative Principles in Islam: A Comparative Study), 1st ed. Nadi Al-Mantiqa Al-Shargyya Al-adabi.

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Bibliography• Shafritz, Jay M. and J. Steven Ott (1991),

Classics of Organization Theory, 3rd ed. Pacific, Books Cole Publishing Company.

• Dhaouadi, Mahmoud (1997), New Explorations Into the Making of Ibn Khaldun’s Umran Mind, Kuala Lumpur, A.S. Noordeen.

• Al-Hassan, A.Y. ed, Maqboul Ahmed and A. Z. Iskandar co-ed (2001), The Different Aspects of Islamic Culture, vol.4, part1, Beirut, UNESCO.

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Bibliography• Al Hassani, Salim T S., Elizabeth Woodcock

and Rabah Saud (2007), Muslim Heritage In Our World. 1001 Inventions, 2nd ed. London, International Islamic Publishing House .

• Alrefai Ahmed, and Michael Brun. Ibn Khaldun: Dynastic Change and Its Economic Consequences. Journal article, Arab Studies Quarterly (ASQ), Vol. 16, 1994.

• Islahi, Abdulazim. M contribution of muslim scholars to economic thought and analysis. (11-905 A.H./632-1500 A.D.)

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Bibliography• Biography of Nizam al-Mulk

By Imam Shams ad-Deen Muhammad az-Zahabi Translated by Hamza Yusuf. The Biographies of Our Noble Scholars. Vol. 19.

• Coşgel, Metin, Rasha Ahmed and Thomas Miceli. "Law, State Power, and Taxation in Islamic History." Journal of Economic Behavior & Organization 71.3 (2009): 704-717.

• Shemesh, Aharon Ben. Taxation in Islam (Including Translation of Kitab al-Kharaj). 2nd Edition, revised. Brill Archive, 1967.

• Schacht, J. "Abū YūsufYa'kūb b. Ibrāhīm al-Ansārī al-Kūfī" Encyclopaedia of Islam, Second Edition. Edited by: P. Bearman; , Th. Bianquis; , C.E. Bosworth; , E. van Donzel; and W.P. Heinrichs. Brill, 2011. Brill Online. Yale University. 11 February 2011.

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