SLIDE%20PRESENTATION%20ON%20Strategic%20management%20from%20%20Islamic%20perspective

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SLIDE PRESENTATION ONStrategic management from
Islamic perspective

• Prof. Dr. Azhar Kazmi
• Department of Business Administration
• International Islamic University Malaysia

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THE ISLAMIC APPROACH TO MANAGEMENT
The Islamic approach to management is an emerging
discipline, often referred to as Islamic
management, looks at the management of
organizations from the perspective of the
knowledge from the revealed sources and other
Islamic sources of knowledge and results in
applications compatible with the Islamic beliefs
and practices.
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SOURCES OF KNOWLEDGE FOR DERIVING IDEAS REGARDING
ISLAMIC PERSPECTIVES TO STRATEGIC MANAGEMENT
The primary revealed knowledge source is the Holy
Quran. This basic source is elaborated through
the Ahadith - the traditions and the Sunnah, the
actions of the Prophet (SAW) There are Islamic
scholars who treat Fiqh, the science of Islamic
jurisprudence, as a source of revealed knowledge
too.   Other sources are the reported sayings
and actions of the first four Caliphs (RAA)
instances from Islamic history, studies in
Islamic administration and management, studies in
Islamic social sciences, studies in Islamic
culture, writings of leading Islamic scholars,
and the writings of leading and authentic
non-Muslim scholars.
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Paradigm guiding management of organizations

• Islamic management
• No demarcation between the secular and the
  religioushuman life is an organic whole All
  human activity can be Ibadah provided they are
  guided by Allahs commandments

• Conventional management
• Clear demarcation between the secular and the
  religious human activities are separated
  spiritual or religious aspect is a private matter
  of individuals while work is in public domain

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Purpose of human existence dictating management
of organizations

• Islamic Management
• Purpose of human existence is to obey and fulfill
  Allahs commandments and act as the vice-regent
  of Allah on earth.

• Conventional management
• Purpose of human existence is to utilize natural
  resources to satisfy ones needs, wants and
  desires and to remain happy

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Purpose of organization

• Islamic management
• Organizations are meant to be groups of people
  coming together for attaining the purpose of
  human existence.

• Conventional management
• Organizations are meant to be groups of people
  coming together to attain the organizational
  goals

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Nature of organizational objectives

• Islamic management
• Organizational objectives are both economic and
  non-economic and are subservient to larger
  purpose of human existence

• Conventional management
• Organizational objectives are both economic and
  non-economic in nature and are subservient to
  organizational interests

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Source of ethics and valuesgoverning management
oforganizations

• Islamic management
• The revealed knowledge and the
• traditions of the Prophet (SAAS) constitute the
  ultimate source of business ethics and personal
  values

• Conventional management
• Ethics is relative and values are derived from
  multiple sources such as upbringing, society, and
  experiences. Ethics could be relative as in
  utilitarian theory.

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Organizational Control

• Islamic management
• Organizational control has to operate in a way
  designed to make the human being subservient to
  the will of Allah

• Conventional management
• Organizational control has to operate in a way
  designed to align human objectives with the
  organizational objectives

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Locus of control

• Islamic management
• The locus of control is internal. Each person is
  responsible and accountable for his actions

• Conventional management
• The locus of control is external and lies in the
  realm of the organization

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Organizational responsibilityand accountability

• Islamic management
• Human being has choice, free will and freedom of
  action therefore is responsible and accountable
  for all actions

• Conventional management
• Responsibility and accountability vested in the
  chief executive who dele-gates it. Employees
  controlled through organizational systems to
  ensure responsibility and accountability