Essay on Islamic Management : The Holy Quran And Hadith

Essay on Islamic Management : The Holy Quran And Hadith

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Although the Holy Quran and Hadith contain no exact description about what is Islamic Management, a guidance on what and how is management according to Islam exists. The words such as justice, guide, direction, control, have been written in the Holy Quran. Islamic management means the aptitude to be effectively and efficiently use the material sources and human resources to meet welfare; materially and socially according to the principles in the Holy Quran and Hadith.
According to Rice (1999), A growing realisation occurs that economics is not value-free, but instead it is a value-loaded. Every business must have moral elements. How to embed it into the company is something that managers should address (Al-Khatib et al., cited in Rice, 1999).
Muslims acquire their moral principles from the lessons of the Quran and the Sunnah. The goals of Islam are not simply a money-oriented, but instead the socio-economic justice, which demands a just fulfilment of both the tangible and inner needs of all human beings (Chapra, cited in Rice, 1999).
To implant ethical values in business, Islamic Management as a newly advanced discipline has 10 main principles which derive from the Holy Quran and the Sunnah as the main sources of knowledge which will affect the work ethics (Branine and Pollard, 2010).
• Intention (Nya)
In Islam, everything that we do should base on a clear reason. The Prophet Muhammad SAW said: “Actions are recorded according to intention and a person will be rewarded or punished accordingly”. It means that the labours cannot be punished because of unintentional mistakes; unpredictable loss because of external parties, and should be rewarded or punished for their intended actions (Branine and Pollard, 2010).
• Forever mindful of ...


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...ghest level of Eman (belief in the oneness of God and Mohamed as his prophet and messenger). At the organisational level, patience and humility go hand in hand. Being patient in making decisions reduces the possibility of making mistakes and increasing the chances of success in negotiations (Branine and Pollard, 2010).

Islamic management is a tool to develop Islamic values and norms into the company, including its employees, while Islamic Work Ethics is the way the employees and the company perform their duties according to those principles. Implementing Islamic Management in a company may result in the realisation of Islamic Work Ethics. Consequently, this will make the company be socially responsible not only to the stakeholder, but also the society. Because in Islam, it is ethics that dominates economics and not the other way around (Naqvi, cited in Rice, 1999).

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