Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)

Research Article: 2021 Vol: 27 Issue: 5S

A New Dimension of Islamics Contemporary Management (ICM) in the light Of Al-Quran and As-Sunnah

Mohd Shahril Ahmad Razimi, Islamic Business School, Universiti Utara Malaysia

Pengiran Hjh Norkhairiah Hashim, Universiti Islam Sultan Sharif Ali, Brunei Darussalam

Abstract

This paper attempts to discuss the concept of dimension in Islamic’s Contemporary management principles. Based on library research, a few Islamic’s Contemporary Management principles are proposed, such as taktit (planning), tanfiz (execution and delegating), taskhir (articulation and creativity), Qiyadah (leading) and tazkiyyah (Purification). In short, this paper is perhaps the first that discusses in detail about contemporary management from the Islamic perspective. Hence, the findings of this study could assist managers, administrators, or leaders on how to discover and understand new dimensions of contemporary management from Islamic.

Keywords

Contemporary Management, Islamic Principles, Dimension, Religious Studies

Introduction

Islam is a universal religion that is syu'mul, integrated, holistic, and does not repudiate duniawi and ukrawi life. The natural world and eternal life must be in accordance with His guidance. Mohd & Embong (2018) claimed that the holy Qur'an may not condemn globalisation or technological advancements, even if they are transient, which can also be used as a daily guideline. The holy Qur'an & Hadith (accounts of the Prophet Muhammad S.A.W.'s actions and speech) have been exposed as a manual for life's physical, spiritual, and mental components. The holy Qur'an uses a variety of approaches to communicate the facts and history of civilization from the period of the prophets' lives and experiences in order to guide human beings toward realising the excellence inherent in human nature (Ilyas, 2016). In addition to that, with regard to the issue of management from Islamic perspective, much emphasis is on basic issues, such as ethics, leadership and issues related to behavioral aspects of organizations. A Few sources recorded that focusing on the Islamic perspective to operational areas of management, such as quality management, marketing and selling or performance appraisal of employees, are available. With time, the body of literature pertaining in Islamic perspective of a variety of areas within the management of organization is likely to increase so do business transaction.

Classic Management in Contemporary World

Henri Fayol, the Father of Management, developed his own philosophy based on his understanding of management, which he called Fayolism. According to Western ideology, management lacks direction because it is constructed based on the subjective perceptions of his field of expertise's followers.

According to the Western perspective, there are four (4) primary functions: planning (ensuring that the plan is effective and efficient by considering who, what, and the appropriate time to carry out any activity), organising (ensuring that the plan facilitates delivering information and maintaining formalities in an organisation), and directing (managers a) (managers will monitor the performance, then followed by corrective measures so that outcome will deliver as expected). Poperwi (2018) demonstrates that, while management principles may require adaptation within an organisation, they remain the foundation of management theory and are being used today.

Scientific Management Approach

Scientific management was developed by Frederick Taylor in 'Taylorism'; in this case, he recognised that management concerns are not limited to conforming to a predetermined framework, but also include the quality of labourers' output. Taylor's scientific management theory remains critical for firms today, however his recommended scientific management theory's primary objective is limited to enhancing staff productivity (Su, 2017). The five (5) fundamental elements of this philosophy are as follows:

Incentives increase employee productivity.

Extrinsic rewards are perks that anyone can benefit from. Employees are more motivated and will continue to be motivated if they are rewarded. Individuals, according to Verdenburgh (2002), will be more motivated and will improve their behaviour if they are compensated.

Scientific method that is not based on the 'rule of thumb'

The failure of an organisation extends not only to the structure, but also to the vital plan of the organisation (profit making), as well as to effective methods and techniques for guaranteeing that all planning proceeds smoothly without jeopardising the organization's original aims. Additionally, the notion is reinforced by the existence and continued usage of the Gantt chart system.

The employee's adaptation to the task at hand

Porter and Lawler demonstrated in 1964 that the strength of a tendency to act in a specific way is contingent on the intensity of the anticipation that the action will result in a particular outcome and the attractiveness of that outcome to the individual. When a person believes his actions resulted in a favourable performance appraisal from upper management, he will be inspired.

Training can enhance both the quality of life and the quality of work.

Employees will be encouraged to be well-prepared for crises or increased workloads as a result of the training. Each employee needs specialised training for his or her position. To raise risk sensitivity and secure behaviour, real-world experience and advanced learning technologies are required.

The manager is completely responsible for his or her actions.

In comparison to the labour force, superiors have authority, but it is restricted to the position they have. When it comes to implementing a successful and efficient management system, an operational concept becomes ingrained in every manager's approach to people and organisations (Poperwi, 2018).

In Islamic management, applying the Maqasid Syariah system through equitable administration can ensure that each religion has an equal opportunity to achieve its own objectives. Each individual has specific obligations that must be achieved in order to accomplish the purposes for which they were created. These obligations include the following:

a) responsibility as a servant to Allah S.W.T.

b) responsibility to its own self

c) responsibilities to the family (as siblings or to the parents)

d) responsibility to the community

e) responsibility as a citizen

f) responsibility to nature (taking care of the environment)

According to Islamic management principles, everyone must conform in order to be honest in carrying out their responsibilities; Add'l conception. The persistence of Islamic law has been established in order to protect anyone from mob domination. In this instance, an individual must fulfil their responsibilities in accordance with the laws and regulations enshrined in the holy Qur'an or hadith.

Beware – every one of you is a shepherd and everyone is answerable in regard to his flock. The leader is a shepherd over the people and shall be questioned concerning his subjects. A man is a shepherd over the members of his family and shall be questioned concerning them. A woman is a shepherd over the household of her husband and his children and shall be questioned concerning them. A slave is a shepherd over the property of his master and shall be questioned concerning it. Beware, every one of you is a shepherd and every one of you shall be questioned with regard to his trust.

(Riwayat Muslim:1829)

Islam Does Not Legitimize the Means to Achieve Goals

Allah S.W.T. is the creator of everything, including the earth, which must be governed decently. Each individual is accountable for their responsibilities as a Khalifa and how they manage them. In this context, an individual possesses enormous potential for delivering it. In Islam, it is forbidden for everyone to harassing each other, exploiting the wealth and property owned by fellow Muslims or different religions. Because, regardless of religious, racial, or cultural distinctions, a sound management system can ensure the well-being of all humankind. Samsudin (2018); Jabnoun (2012) highlighted that all forms of exploitation, inequity, and violence of others' privileges must be reprimanded under Islamic management, regardless of whether they profit the individual or the people they mistreat.

Every advantage that humans possess can be tailored to their assigned obligations. Compromise among human beings will be ensured by allowing each member of society to contribute ideas, skills, and sound counsel toward the formation of a more ordered and effective administrative framework. It can help improve the interconnections between human beings (Muslims & non-Muslims), providing a positive image and morals to non-Muslims irrespective of religion. Surah Al-Ahzab ayat 21;

لَقَدْ كَانَ لَكُمْ فِيْ رَسُوْلِ ه اللِّٰ اُسْوَةٌ حَسَنَةٌ لِِّمَنْ كَانَ يَرْجُوا ه اللَّٰ وَالْيَوْمَ الْْٰخِرَ وَذَكَرَ ه اللّٰ كَرِيْ را

There has certainly been for you in the Messenger of Allāh SWT an excellent pattern for anyone whose hope is in Allāh SWT and the Last Day and [who] remembers Allāh SWT often. This argument also supported by Hadith narrated by Nu’man bin Bashir;

صلى الله عليه وسلم) saying, 'Both legal and illegal things are evident but in between them there are doubtful (suspicious) things and most of the people have no knowledge about them. So, whoever saves himself from these suspicious things saves his religion and his honor. And whoever indulges in these suspicious things is like a shepherd who grazes (his animals) near the Hima (private pasture) of someone else and at any moment he is liable to get in it. (O people!) Beware! Every king has a Hima and the Hima of Allah on the earth is His illegal (forbidden) things. Beware! There is a piece of flesh in the body if it becomes good (reformed) the whole body becomes good but if it gets spoilt the whole body gets spoilt and that is the heart.”

(Riwayat Bukhari dan Muslim)

Spiritual

Adherence to the five pillars of Islam, in particular, can influence a person's every deed and attitude. The spiritual aspect's hollowness may eventually kill an individual's self, as avarice and a sense of dependency on the Creator diminish. With the authority and reputation that someone possesses, he is likely to be biased and to engage in unethical behaviour such as corruption and bribery. In this sense, Islam teaches that the most important part of management is ibadah, which encompasses all aspects of management and administration in daily life. Which is supported by the evidence from Allah S.W.T in Surah Al-An’am verse 162;

قُلْ اِنَّ صَلََتِيْ وَنُسُكِيْ وَمَحْيَايَ وَمَمَاتِيْ هِ لِلِّ رَبِِّ الْعٰلَمِيْن

Say, "Indeed, my prayer, my rites of sacrifice, my living and my dying are for Allah, Lord of the worlds..(Surah Al-An’am: 6:162)

Economic Sector

With sound Islamic management, it demonstrates an individual's, family, society, countryside, and human civilization's trustworthiness and accountability. Additionally, when resources are managed effectively, the economic sector grows. With the effectiveness of Islamic management in coping with economic crises (with Allah S.W.T' blessings), the crime rate, corruption, robbery, and theft can be managed. Every physiological requirement of a human being has been considered, and each advantage is shared equally. To begin, less input contributes to considerable output; second, quantity improves; and third, morals, ethics, and admirable manners contribute to the development of the mu'min identity and personality. Combination of traits via al-quwwah; physical ability, including knowledge and experiences, as well as al-amanah; committing trust, transparency, and affection when executing tasks.

اِنَّ ه اللَّٰ يُحِبُّ الَّذِيْنَ يُقَاتِلُوْنَ فِيْ سَبِيْلِهٖ صَفًّا كَانََّهُمْ بُنْيَانٌ مَّرْصُوْص .

Contemporary Islamic management requires an understanding of fiqh, in regard to ibadat and muamalat. Through different changes and modernism, the era has remained true to Islamic management ideals. Contemporary Islamic management began with the goal of assisting society's requirements from a religious law perspective. For instance, contemporary Islamic management programmes have been done on nutrition; halal hubs, financial systems; Islamic online banking systems, social issues; Jariah charity programmes (zakat) and tax deduction. It is because the issue places a premium on Islamic rules and principles in the development of management that is responsive to contemporary needs and requirements. Mustafa al-Zarqa, Abd al-Karim Zaydan, Muhammad Al-Ghazali, Said Ramadan al-Buti, Wahbah al-Zuhayli, and Yusuf al-Qaradawi are among the contemporary scholars to whom Islamic countries will refer, as well as the individuals who initiated the idea of reforming and conveying the concept of in managing contemporary fiqh issues.

Contemporary fiqh is inextricably linked to time, circumstance, culture, contemporary features like modernity and technological growth, and social and moral norms. The Islamic financial and banking systems of today, in particular, require the ijtihad of contemporary scholars to express the law of muamalat transactions in a virtual medium, as well as the existence of the takaful industry, sukuk, and currency commodities (Rahim, Mohamad, Ismail & Dahlal, 2010; Man, 2021). According to Man (2021), the Islamic state is now being constructed with the pattern and reins of leadership instilled with foreign idealism and applied by Islamic presidents. Likewise, each management division must be harmonized with the elements of tauhid, fiqh, and tasawwur in order to shape contemporary Islamic management from a variety of perspectives; this is a must for every Muslim (fardhu kifayah) Muslim. Human behaviour is a backbone of the company, not merely structural and process aspects, because employees who practise Islam has develop their personalities, which ultimately results in the production of quality administrative structures and processes (Wahid, Dan, & Nor, nd).

Figure 1: Proposed Islamic Contemporary Management Principles (Shahril Et Al., 2020)

Dimension of Islamic’s Contemporary Management Principles

Five dimensions of contemporary Islamic management principles are;

• Takhtit (Planning)

Takhtit's planning concepts include the following: individual objectives, group decision-making, flexibility, and Allah S.W.T.’s determination of decisions taken. Planning must be thorough and comprehensive, taking into account the budget or available resources as well as the organisational environment and external environment. For instance, mantiq (logic-based) is essential in the management system since it serves as the foundation for all knowledge by incorporating the elements of Tasawwur (definition), Tasdiq (optimistic or believing), and Qias (argument).

Each Islamic institution complies with the strategic planning to focus on their priorities as this may help them in ensuring the goal that they want to achieve. based on the vision of the company it will show how they may conduct organization. All decisions and actions are based on the Qur'an, Sunnah, Hadith & Shari'ah, according to Islamic practises. The entire Qur'an can be viewed as a strategic planning book. The prophetic existence can be compared to a strategic planner's life. The goal of Islamic law is to protect and preserve society's religion, self, intellect, progeny, riches, and resources.

For instance, the takaful system (with the philosophy of tawa'un, which means to assist) exists to safeguard the interests of individuals through life and medical insurance that are devoid of gharar (uncertainty), maisir (extortion), and riba'. (interest), identifying (peril or cause of loss), measuring (costs and frequency), and controlling (risk techniques) in risk management that can be utilised to mitigate future losses through the application of wakalah (representative) and mudharabah aspects (share advantage between the two parties). As a result, this planning process not only operates effectively in designing the work movement, but it also contributes in the process of discovering potential difficulties. Without strategic planning, a firm lacks direction and fails to demonstrate the competitive nature of its business.

• Taskhir (Articulation and Creativity)

Taskhir comes from the word "sakhkhara," which means bringing anything into service, compelling something else to serve, making something submissive. The word of al-taskhir is used in the Qur'an to refer to the thought that facilitates man's creation of this universe. Allah S.W.T. bestows this right on man as his caliph to manage, profit, and prosper this nature in order for each of these aspects of nature to continue performing their responsibilities appropriately. For instance, Allah S.W.T. endowed this universe with the capacity for people to appreciate and study it. Each of Allah S.W.T creations, such as the universe's, and nature, can be acquired and invented in order to enjoy the benefits without harming nature itself. Both urbanisation and uncontrolled deforestation can have a detrimental effect on animal habitats in instances where it violates this taskhir's principle.

The intellectual mind that Allah S.W.T has bestowed upon us is a gift that should be embraced to its full potential. Al Farabi, for example, invented physics by associating the system of natural law with what is communicated in the Quran. Endowed creativity enables a person to think more critically, which contributes to the long-term process of human development and evolution. Islam teaches people to prove, and everything is supported by Allah S.W.T's argument in the Qur'an in order to avoid contradicting the actual system and programme. Of course, when compared to the western management system, it will not incorporate Islamic ideals. In Islam, it is thought that every human advantage can be transformed into value via creativity and invention in the performance of one's duties. Exemplifying one's work is a religious value, and the effort required to accomplish this lofty goal becomes a form of worship in Islam.

Nowadays, the management of technological growth develops as a person's self-hold to create contradicts the Islamic system of processes, in which the process of modernization of concepts resulted in concepts for the life or beliefs that can benefit human life. This concept endows human beings with the ability to exploit everything found in Allah SWT's domain. Humans have the right to discover and explore the secrets of nature. Man has served the universe in all its manifestations. All of this is permitted by Allah SWT. Man's dominion and conquest of the true cosmos that lies underlying this order must be lived and realised in every human deed when challenged by nature. This Divine gift is one to be cherished, not misunderstood. This highlights the critical nature of respecting taskhir as a guide for human beings when Allah S.W.T entrusts them with the responsibility of managing all the wealth in this universe. The taskhir principle is strongly intertwined with the istikhlaf principle, as both seek to express the Divine appointment of human individuals as caliphs on this globe. The Istikhlaf principle is larger and more significant since it stresses the purpose and reality of human beings, who have been entrusted by nature with the responsibility of expanding the caliphate to include all beings, including human beings. The taskhir principle is more specific in nature since it enables the human caliphate's specific task in respect to other beings in man. In management, the Taskhir principle enables humans to use discretion in a spirit of creativity and innovation in order to enrich all human resources. As a manager, you are given the choice of choosing between two alternatives, namely good or evil. This is critical to grasp in order to prevent losing the cause and guidance; otherwise, they will engage in exploitation, extortion, and tyranny, seizing all wealth in an unjust and deceptive manner. As such, this principle should be communicated in order to preserve Allah S.W.T's degree of honour and trust.

Qiyadah (Leadership)

To integrate social relations between human beings, it is sceptical for a leader who truly understands the meaning of leadership to accept responsibility as a mentor and a facilitator of capabilities in order for the leader to accomplish something entrusted to him toward the desired goal. Educational leadership is one of the forms of al-qiyadah (al-qiyadah at-tarbawiyah). This is because the success of educating the generation, developing, and carrying out the ummah's resurrection programme is inextricably linked to the development of authentic al-qiyadah at-tarbawiyah. This will help the management in assisting the social relation based on human resource itself.

As can be observed, the leadership of Brunei Darussalam (Zikr country) under Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah utilised the essence and method of Islamic management based on the Quran and Sunnah of Rasulullah S.A.W. This state of Zikr honours Allah by amal ma'ruf nahi mungkar, by being grateful for His benefits and not disbelieving in Him, by being intelligent and confident, and by being motivated by faith for the hereafter's prosperity and the security of the country. Taqwa, ukhuwah, rahmah, itsar, forgiving, and courage are the six attributes of leadership that distinguish good leaders (Ulwan, 1990). Not only does effective leadership exercise its authority as a leader, but it also exploits the congregation's experience and abilities as a detr against the organisation.

Leaders as administrators and rulers on His's universe must be capable of prospering, improving, enforcing justice, pacifying, and elevating human values and dignity. This is so they can attain the perfection provided by Allah SWT for His creatures. As a result, leaders bear the following responsibilities:

A. Through Proper Employment, Reform (Improve) Society

The process of separating society by leadership is how the government assigns all types of leadership and administrative responsibilities to individuals who are more qualified, competent, and capable of executing tasks in any organisation.

"Whoever is in charge of the Muslims' affairs, if he appoints someone while recognising that there are others more deserving and qualified to serve the Muslims, he has certainly violated Allah SWT and His Messenger."

Concerning the appointment, it should be recorded and recalled from the Prophet SAW's hadith, particularly Allah SWT's words in surah al-Anfal verse 27, which reads: O you who believe! Insofar as you are aware, do not be deceitful to Allah and His Messenger, nor be deceptive in fulfilling your trusts.

As a result, it has become the leader's job to delegate responsibility for the Muslims' affairs to the appropriate individuals.

B. Upholding Islam's Truth

Leaders have a responsibility to protect Islam's truth. In this scenario, even if the truth jeopardises one's status, height, rank, and self or entails grief, bitterness, or difficulty in implementation.

A hadith's meaning is: "Tell the truth even if it is painful."

C. Human Dignity Preservation

Preserving human values in the context of leadership requires a leader to act according to morality, ethics, and values of human personal perfection, while retaining self-respect and abstaining from actions that contradict sharia and human civilization's ideals. The other way to protect these human qualities is to prioritise the country's and people's interests over personal interests.

D. Prospering the Universe

Prospering Allah S.W.T's earth is a significant matter that must be treated seriously in terms of growth, economic development, and national development. All economic and developmental issues must be considered against the country's overall needs and benefits. The nation's wealth must be distributed in such a way that it is swiftly felt collectively by the entire ummah of the Prophet Muhammad S.A.W.

In Islam, leadership should not be limited to those in positions of authority. This is because an all-encompassing Islamic management system leads a person throughout his life. For example, a person who is the head or leader of his family will undoubtedly exhibit leadership skills in terms of prospering his family. Effective leadership can result in an efficient system of governance, since the leader does not only order his subordinates to work, but rather collaborates with them to assist in the operation.

• Tazkiyah (Reflection)

The conception of regulating and upholding the natural laws in order to ensure the long-term viability of global Islam. This is not only to safeguard human relationships, but also to safeguard our relationship with nature in order to preserve our common interests. This is capable of removing mazmumah (bad attitude) in an individual, such as violation of privacy or avarice. Muraqabbah, or abstaining from lust. Individuals will feel as if Allah S.W.T is watching over them at all the time and never sleep. It depicts a Muslim's identity, in which he is reluctant to do something extravagant, either alone or publicly, to seize something that is not his. This forces every human being to re-evaluate their errors. The reflection will assist in determining which elements should be prioritised and which should not. This spiritual dimension aids in the comprehension of religion. For instance, if we are fearful of anything, we will avoid it; yet, if we are fearful of Allah S.W.T., we will embrace it. Everyone in the company must reflect on themselves in order to discover the primary causes of difficulties, such as taking it easy spiritually by not adhering to Islamic law. Someone who possesses a strong capacity for introspection is capable of self-control. It is an individual who requires and obtains a satisfying social conscience. And others who believe that life is a continual learning process in which we must embrace everything that happens around us.

This type of person can develop a healthy and productive inner conflict in order to identify flaws, failings, insecurities, and anxieties, as well as to heal and grow as a person day by day. When your thoughts improve, your life improves immediately. Reflection programmes seek to improve participants' performance at the system level.

Tanfiz (Execution and Delegation)

It is defined as the process of organising and administering the management using one's expertise, abilities, and characteristics. It can help the administrative system advance since their mentality and preparedness for any uncertainty may change according to their level of openness to their experiences, including their conscientiousness about the undesirable occurrence. There is always power and right in authority, but not all authority is good. Delegation is the act of appointing someone to act against us in a situation that contains what we have. In other terms, delegation can be described as the act of transferring formal authority to another party (legitimate authority). This balance promotes a positive work environment and encourages subordinates to be more confident, productive, and creative, as well as taking full responsibility for their actions, as they are given the capacity to influence their work environment. Since the era of Rasulullah PBUH, deliberation known as Musyawarah, with the goal of reaching a mutual agreement has been used, and where each congregation member's point of view is considered during the decision-making process.

It is demonstrated by Islamic scholars such as Ibn Khaldun & Imam Al Ghazali who pioneered knowledge that is consistent with religion. Regarding the mazhab, current contemporary leaders such as Yusuf Al Qardawi & Ahmad Al-Raysuni apply knowledge to address contemporary concerns. Tanzim is a management term that refers to the process of organising anything according to hierarchy and areas of expertise. For instance, an organization's hierarchy is composed of a chief executive officer, a secretary, and other departments such as finance, human resources, and operations, each of which is engaged with achieving the organization's objectives.

Conclusion

Religious influences on ICMP are important but are rarely highlighted in literature; the current study seeks to fill this gap. Since the center of attention in both Islam an contemporary management are process, functions and principles, This study would help Muslim administrator and employer and those employing Muslim to create better organization governance. Islamic’s contemporary management functions were analysed in the light of Islamic sources such as Al-Quran & As-sunnah. It is suggested that most of the modern and contemporary Islamic management functions are in line with Islamic teachings. The study analysed tahtit, tazkiyyah, taskhir, tanfiz & qiyadah. A detailed questionnaire to evaluate the level of Islamic Contemporary management principles and functions followed by organization has been also developed.

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