TOPIC 3.
Islamic
Management
Concept
ISLAMIC MANAGEMENT
CONCEPT
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The concept of al-Istikhlaf
Islamic management model:
Management of Rasul PBUH.
Management during the Islamic
Caliphates.
Islam and modern management.
The concept of al-Istikhlaf
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It is stated in the Quran in more than one
place that ownership of everything belongs to
Allah, since He Almighty is the dominion.
However, he has put mankind in charge of
worldly property and provided them with it
and has given them the right to use it.
Istikhlaf is based on the Quranic notion that
Allah (SWT) created humankind and every
individual to be a vicegerent, a deputy in use
of property that belongs to the creator.
 To
us Muslims, when the concept that
“Allah is the owner” settles in a man’s
heart, be he a producer or a consumer,
he feels honored and grateful that some
of Allah wealth has been put in his trust.
 A man is then inclined to acknowledge
Allah’s right to define for him the proper
limits for the enjoyment and the
appropriate extent of use of wealth.
 He also acknowledges Allah’s right to
designate other individuals or the
community as the rightful claimants to
share that wealth.
It is stated in the Quran:
“Believe in God and His messenger and expend of
that unto which He has made you trustees. And
those of you who believes and expand shall have
a mighty wage” 57:7.
 ‫آمنوا با ورسولھ وأنفقوا مما جعلكم مستخلفین فیھ فالذین‬
‫آمنوا‬
٧ ‫ ( سورة الحدید آیة‬. ‫( منكم وأنفقوا لھم أجر كبیر‬
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Out of this concept of trustship follows unique
Islamic moral, political and economic principles
for social and individual life.
There is nothing in the concept of Istikhlaf that
goes against the desire for fulfillment of material
needs, nor that it is an appeal to shun worldly
pleasures.
 On
the contrary, those material needs has been
so explicitly recognized by Shari'ah. Suffice it to
say that a Muslim dying for defending his
material wealth is recognized in Shari'ah as
martyr.
 The concept of Istikhlaf is the foundation of the
principles of Islamic economic system, and the
ideal underpinning of the economic behavior
of individuals in an Islamic society.
For example:
Out of the concept of Istikhlaf emanates the
individual’s responsibility towards the rest of the
society, be it in the form of Zakat which is
compulsory, or Sadaqat which is voluntary, but may
become obligatory when rest of society is in need.
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These obligations stem from the fact that the wealth
at hand is actually owned by Allah and holder only
deputized to use it.
Another outcome of the Istikhlaf concept is apparent
in the Islamic laws of inheritance.
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In other legal system where ownership over assets
lack this concept of Istikhlaf, owner can dispose of
his wealth during his life time and even after his
death.
We frequently hear about a wealthy individual
leaving all his financial legacy to a museum at the
determinant of his immediate family and children.
In the Islamic system, because an individual is only
vicegerent, he has the right to enjoy wealth during
life time only. Once dead, the ownership goes back
to the original owner who is Allah. Hence must be
distributed in the way prescribed by the real owner.
These are the Shari'ah law of inheritance.
The deceased has no right to dispose of anything
outside the prescribed inheritors, except no more
than ⅓ and even that only to a benevolent purpose,
again defined to be so by the law giver who is Allah.
Concept of Khilafat
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Allah had promised to those among you who believe
and do good works that He will surely make them
Successors in the earth, as He made Successors from
among those who were before them; and that He will
surely establish for them their religion which He has
chosen for them; and that He will surely give them in
exchange security and peace after their fear: They will
worship Me, and they will not associate anything with
Me. Then who so is ungrateful after that, they will be the
rebellious. (Surah Al-Nur, Verse 56)
This is known as the istikhlaf verse. A promise has been
made to the believer of succession. Some
commentators have translated istikhlaf as ‘inheritance
of power’. While this is also part of the meaning, it is
more correctly translated as succession or vicegerency.
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According to a famous lexicographer, Ibn-eManzoor Ifriqi, “al-khalfu didd al-qudaam,” khalf
(behind/ at the back) is opposite to qudaam (fore
part/front part); khalifah means, the one who
becomes successor to his prior. (Ibn Manzoor,
Lisaan al-‘Arab, (Qum: Nashru Adab al-Hawzah),
1405 AH, 9: 82-82)
Imam Razi also says that, “al-Khalifah, man
yakhlufu ghayarahu wa yaqumu muqaamahu”
(khalifah is the one who comes after another
person and takes his place) meaning he was
called khalifah because he is a vicegerent of Allah
in exercising His authority among the people
obligated to follow His Commands. (Imam Razi,
Tafsir-e-Kabir, 12:202). All words in the Qur’an using
the root word “kh-l-f have the same meaning. 9:83,
7:75, 6:166,10:74, 38:27; 35:40; 7:70; 27:63; 48:12, 16,
17).
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The four verses prior to verse 56 in Surah Al-Nur
deal with obedience. Obedience to ‘Allah and
His messenger’. Obedience to ‘what is right’. And
if you obey the Messenger you will be successful
and ‘rightly guided’. These verses explain that
you have to display obedience to receive
guidance. This guidance is through the
Messenger and then after him through his
Successor or Vicegerent in the earth. This is a
promise of spiritual and temporal leadership,
which will keep the believers united and lead to
peace. When a Messenger dies people naturally
get fearful as to what will happen next. A
leaderless people are without direction and this
situation will eventually lead to chaos. Allah
promises to exchange their fear with security and
peace. But the condition is the believers need to
worship Allah alone and do good works.
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next verse (24:57) describes three essential
conditions for the fulfillment of this promise
namely
1. Observe prayer.
2. Give Zakat (alms to the poor)
3. Be obedient to the Messenger.
Management of Rasulullah PBUH
 Allah
1-3:
says in the holy Quran surah Al Asr verse
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means:
By the token of time. Verily, man is in loss. Except
those who believe and do righteous good deeds
and recommend one another to the truth,
patience and constancy.
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lesson and message from this verse
highlighted the importance of time
management and that we should internalize it
as part of daily lives.
 Time is one of the gift or nikmat given by Allah
s.w.t. to us. Those who manage time well are
those who will reap success while those who
mismanage their time are those who will be the
losers and shall live to regret it. From here, we
can see how the importance of time
management in the eyes of Islam.
 Islam
requires us to manage our time wisely.
As an example, lets look at our fasting ritual.
Although fasting begins only when the time of
fajr sets in, we are encouraged to stop our
food consumption at least 10 minutes earlier.
This has been the practice of the sahabats
and the solafus soleh. It testify that those who
lived 1400 years ago had even started
practising time management during their life
time.
 Rasulullah
saw says in his hadith:
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means:
Grab five things before another five appear,
young age before old age, health before
sickness, wealth before poverty, leisure before
busy, life before death "
 We
usually do not value the gifts of good
health and the abundance of time until
those gifts were taken away from us. Often
whenever someone fall ill, only then would
he value the importance of good health
and the abundance of time. Those were
the words of Rasullullah saw in a hadith that
says:
 There
are two nikmat that man always
abuse….. it is the abundance of time and
good health.
Management during the
Islamic Caliphates.
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ISLAMIC LEGAL MAXIMS
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The general principle of fiqh in a concise legal
form, embodying the broad issues of the provision
of Islamic law that are incorporated within its
scope.
Methodologically speaking, legal maxims are the
sub-product of substantive law (fiqh). Legal theory
(usul fiqh) makes/discloses the law (fiqh) and legal
maxims synthesis these branches of law
Function: Mainly to facilitate jurists and
practitioners in their courses to find the law;
Diverse and scattered divisions can be unified
under one concept.
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SOME MAJOR MAXIMS
APPLIED EXTENSIVELY IN ICL
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Matters are determined by the intention
-Duties and liabilities of a finder
The origin rule in contract is permissibility
- Hybrid contracts (takaful, ijarah thumma al-bay’)
Where text is clear, there is no room for interpretation
- -verses regarding original form of riba’
Hardship justifies giving of facility (rules regarding
necessities and needs)
-salam, isitisna’ etc
Rules of law vary with the change in time and place
-viewing subject matter of the sale
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RULE MAKING PROCESS IN
ISLAMIC COMMERCIAL LAW
 Reference
is made to the primary sources,
i.e., the Quran and Sunnah
 The primary sources provide general
guidelines / principles for Islamic commercial
dealings, e.g.:
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the need to fulfill contractual obligation; al maidah
(5:1)
the basis of wealth transfer is contract by mutual
consent; al nisa’ (4:29)
the prohibition of riba in loan transactions; al
baqarah (2:275)
the rule regarding riba in exchange transactions;
saying of the Prophet on the six commodities
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Cont’d…
 the
prohibition of sale involving gharar,
such as sale of birds in the air, fishes
in the sea, etc.; saying of the Prophet
 the need for full consent and
satisfaction by the parties in a contract,
by giving examples of situations where
consent may be defective (e.g.
mistake, defective product, lack of
understanding due to infancy or
insanity, under duress, etc.); saying of
the Prophet
 etc.
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Cont’d…
 From
the general principles laid down in the
Quran and Sunnah, the Muslim jurists
exercise further reasoning and deduction in a
process known as ijtihad according to the
rules and methodology as laid down in the
science of Islamic jurisprudence (usul al fiqh)
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Cont’d…
 From
this exercise of ijtihad, they are able to
formulate more complete and detailed rules
and principles on Islamic commercial
transactions, e.g.:
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Theory of contract
Elements and conditions of each contract
Factors for validity / invalidity of contracts
Etc.
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Cont’d…
 The
compilation of these rules is generally
known as fiqh al mu`amalat or Islamic
commercial law
 The scope and application of this branch
of law is extendable to new cases and
situations which ensures the dynamic
development of Islamic law and fiqh al
mu`amalat itself.
 This dynamism contributes to further
development of Islamic instruments in the
financial system as evidenced today
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DIVERGENCE OF OPINIONS IN
LEGAL RULINGS
 The
differences in legal opinions is an old
phenomenon in Islamic legal history, known in
Islamic jurisprudence as ikhtilaf al fuqaha’.
 Muslim scholars generally view the
divergence of opinions as positive and
natural, as an outcome from the practice of
judicial interpretation (ijtihad) among the
jurists or scholars.
 Since the judicial interpretations are being
implemented by humans, they are subject to
differences, changes and modifications.
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Cont’d…
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discussing the degree of tolerance to
divergence, Al Shafi`ie considered it
permissible as long as:
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there is no clear-cut texts (nas qat`i) on the matter
the opinion is arrived at by using acceptable
methodology, such as, by way of analogy (qiyas).
the divergence occurs in the existence of
clear-cut texts, Al Shafi`ie considered it
forbidden and blameworthy
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REASONS FOR DIVERGENCE
(ASBAB AL IKHTILAF)
 Differences
of interpretation of the meaning of
words or intent of any particular injunction in
the primary text, either in the Quran or
Sunnah
 Different level of access or acceptance to the
reports of the sunnah
 Differences as to the existence of consensus
(ijma`) on any given issue
 Differences in the methodology undertaken in
deriving the rules, e.g., whether to use qiyas,
or istihsan, or maslahah
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EFFECT OF DIVERGENCE OF
OPINIONS
 The
formation of various legal schools
(madhahib fiqhiyyah)
 The prevailing sunni schools until today
are:
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Hanafi madhhab
Maliki madhhab
Shafi`i madhhab
Hanbali madhhab
 Other
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relevant schools:
Zahiri madhhab
Zaydiyyah, or other shi`i madhahib
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EXAMPLE OF DIVERGENCE OF
OPINIONS
 The
need for the subject matter / goods too
exist at the time of contract
 The definition and validity of bay` al `inah
transaction
 The definition of bay` al dayn and rules
pertaining to bay` al dayn
 Etc.
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CONTEMPORARY RULE
MAKING PROCESS
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Currently, the exercise of individual original ijtihad
in the rule making process is very rare
The common exercise is to evaluate the existing
rulings (precedents) in the madhhab and apply
them to the new case/situation (taqlid), by way of
direct application or analogy
Sometimes, if there are differences of opinions
among the madhahib, preference of certain views
over the others are made (tarjih madhhabi)
Even when there are no precedents in the
madhahib, the jurists have been generally hesitant
to exercise aggressive original ijtihad
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Cont’d…
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However, since the 1980s onwards, some forms of
group ijtihad are organised in order to issue opinions
and fatwas, utilising all the applicable methodologies
discussed earlier
As a result of these group ijtihads, some decisions
have been achieved in solving the questions raised on
the permissibility of various financial and banking
practices, such as, the issue of shareholding in
companies, legal personality, intellectual property
rights, etc
Various new financial and banking products have also
been developed and structured via this process
A number of other issues remain unsolved as yet, but
the rule making process is an on-going and dynamic
process, which will eventually provide solution or
alternatives to the problems/issues
Islam and modern
management.
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Managing your time and using it wisely is a journey,
and not something that can be easily mastered
overnight. Implementing a plan will help, but it is not
going to be a sure cure. Time management requires
a significant amount of self-discipline.
Here are some tips to assist you with time
management:
1. Set Goals
Set both short-term and long-term goals for your work
day, work week, and work year. Take the time to make
a written list of your goals, which will allow you to refer
back to the list when you need some guidance. Keep
in mind that it is okay to adjust the goals as your
business needs or your role changes. Use them as a tool
to guide you.
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2. Mini-Rewards
All work an no play is a difficult concept to sustain for very long.
Build rewards into your schedule. If there is a task you really dislike,
follow it with a task that you greatly enjoy. Build "mini-rewards" into
your schedule to increase your productivity.
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3. Keep Lists
Keep a running "To Do" list. The To Do list should contain both daily
tasks as well as longer-term tasks. Having a To Do list will help keep
your attention on the projects that require attention, and prevent
some items from slipping through the cracks and being forgotten.
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4. Be Realistic
Keep your expectations realistic. No one can do everything, and
with that it mind, try to set realistic expectations of what you can
hope to accomplish.
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5. Prioritize
Prioritize the list of things to do. Some items might require immediate
attention, while others may be necessary but not as urgent. And
after prioritizing, try not to become a "firefighter" and only react to
the urgent items. Be sure to still give proper attention to non-urgent
items as well, as they are important too.
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6. Use Time Wisely
If there are blocks of time that you spend waiting or commuting, figure out ways to use
that time being productive! Reading, writing, proof-reading, reviewing your schedule,
planning for your next activity, etc, are all things that can usually be done remotely to
fill in some of the unavoidable "dead" time in your schedule. Try to find interesting and
unusual productive things to do during those periods of downtime.
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7. Set Limits
Set reasonable time limits for tasks. When working on those tasks, monitor the time that
each item is taking.
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8. Organize Work Space
Organize your work space, and remove any excessive clutter. Spending time looking for
something is a waste of time... and time is a precious commodity. Both your computer
files and your physical working area should be organized so that you can easily locate
anything you need in a moments notice.
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9. Minimize Distractions
If you find yourself consumed by social media, facebook, instant messaging, or other
social mediums, set aside a specific and timed period of the day for participating in the
online social community. Other than those specific periods of time, set your status to
"unavailable" so that you are not interrupted throughout the work day. Minimize
interruptions and distractions as much as possible.
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10. Reflect
At the end of the day, reflect on what you accomplished.
If you were unable to account for a specific period of
time, or you found a given day to be particularly
unproductive, take an inventory and try to determine
where your time management system broke down.
Keep in mind that not every day is going to be as
productive as you would hope. Unexpected things always
come up, and no matter how hard you try, your
expectations just might not be realistic. Do not become
discouraged. Instead, simply stay focused and make an
effort to increase your productivity the next day.
Reference:
Ahmad Sanusi Husain
CEO & Principal Consultant - Alfalah Consulting
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Conclusion
 In
fact Allah s.w.t is the greatest time
manager and whenever death appear to
a man, it would never be delayed nor it
will be advanced even for one second.
Allah says in surah Yunus verse 49: