Economics and Business

Concept Paper for the Discipline of Management

Definition
Very simply, management is the process of getting the job done through others. Henri Fayol, known as the father of Modern Operational Management, defined management as ‘to manage is to forecast and plan, to organize, to command, to coordinate and to control’. But most of the people one not interested to be commanded.
In this situation, to define management, Heinz Weihrich & Harold Koontz said, ‘Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims’.

Two types of elements are identified which constitute the process of management. 
These are :
1. Internal Factors- planning, organizing, staffing, leading and motivating, coordinating, and controlling.
2. External Factors- economics, technological, social, ecological, political, and ethical.

Classification of Management
From the various studies it is found that the activities of a manager within an industry could be divided into some categories. These are:

  1. Technical (production) ________ Operation Management
    2. Commercial (buying, selling, and exchange) ___ Marketing Management
    3. Financial (search for, and optimum use of, capital) __Financial Management
    4. Security (protection of properties and persons) _____ Risk Management  ____Human Resource Management
    5. Accounting (including statistics) __Managerial Accounting
    6. Managerial (planning, organizing, coordination and control) ___Principles of Management

 

Historical Development

Management concepts and management techniques have always been used, either consciously or unconsciously and the practice of management is as old as recorded history. Professor Claude. S. Georges has provided an interesting survey of the management practices of Sumerian temple priests, Egyptian Pharaohs, and other functionaries of ancient civilization. He observed that management was quite widespread throughout those civilizations, and that the literature of the times referred to such managerial concepts as planning, staff assistance, and division of labor, control and leadership.


Relatively sophisticated management practices emerged during the eras of the Greek and Roman Empire. The feudal system introduced the usual problems associated with the management of a decentralized organization, including delegation of authority, decision-making and accountability.

Thus, even though the practice of management was present throughout history, the literature of management is nearly 250 years old, with the most significant writing appearing in the last 100 years.

Many different contributions of writers and practitioners have resulted in different approaches to management. The following table summarizes the major contributions of management writers and practitioners:


Name of the contributors        Year            Contribution
Frederick W. Taylor                1911            Scientific Management
Henri Fayol                            1916            Modern Operational Management Theory
Elton Mayo and F. J. Roethlisberger 1933     Behavioral Sciences
Chester Barnard                     1938            Systems Theory
W. Edwards Deming Immediate after World War II Quality Management
Thomas Peter and Robert Waterman 1982   Modern Management Thought

Methods

To Islamize the knowledge regarding management, the course instructor has to relate the Islamic concept to the conventional concepts of management. To do so, the person has to do some research works. For doing the research work they may follow both the library research as well as empirical research. For both the research, the researcher will have to study the Quran and the Sunnah, and the literatures of the early successful Muslim practitioner. For empirical research, the researcher may use some successful business and service organizations which are following the Islamic principles in their activities, as the sample. They can use both the primary and secondary data for study.

After completing the research, the researchers will have to incorporate the new findings with the existing conventional approaches to management. And the duty of the teachers will be to prepare the reading materials by incorporating the Islamic concepts and spread out the knowledge among the existing and future practitioners.


Islamic Epistemological Critique of Basic Concepts and Paradigms


Allah is the only one source of knowledge. Man cannot know any small part of His knowledge but whatever He wants. The last Devine book, Al-Quran and the earlier books that He sent are full of different types of knowledge whatever is needed for man. A lot of glorious histories of the Muslim are present. Considering knowledge, now they are very poor. They don’t have any literature of the managerial systems of early successful leaders and businessmen who were Muslim in practice. However, the literatures we have and the basic sources of knowledge, al-Quran and the Sunnah, are not being studied properly by us and not practiced the lessons as well.

To build up the awareness among the practitioners and to spread the knowledge of Islam regarding any discipline and arena, we will have to try our best from every sector where we are.


Islamic Epistemological Introduction to the Discipline of Management


It is evident that traditional authors of management have not mentioned any contribution of Islam in management. The contributions of Islam in different aspects of management can never be over emphasized. According to the Holy Quran, Holy Prophet (SAW) and companions (RA) faced lot of problems in managing the Islamic state and they solved those problems by introducing divine principles and guidance given by Allah (SWT). Prophet Muhammad’s (SAW) contributions and the contributions of four caliphs were great to the development of management.
As a small part of the Muslim Ummah, we, the teachers, can reform the course curriculum of management by adding Islamic inputs with the existing outlines. For example, the reformed curriculum of Fundamentals of Management is mentioned bellow:

Curriculum Reformation
Course Title: Fundamentals of Management

Contents
Chapter-1

Introduction of Management: Definition of management; Historical development of management; Nature, purpose, functions and principles of management; Schools of management; Needs for organizations and managers; Managerial responsibility; Managerial skills; Basic managerial roles; Concept of productivity, effectiveness and efficiency; Managerial and organizational performance; Definition and principles of Islamic Management.

Chapter-2
Environment: Meaning; Internal and external environment of organizations; Components of external environment; Elements of direct action environment; Elements of indirect action environment; International environment; Managing environment; Components of environment from Islamic perspective; Islamic approach to managing environment.

Chapter-3
Planning:  Concept of planning; Nature of planning; Types of planning; Steps in planning process; Tools and techniques for planning; Concept of planning in Islam; Islamic principles of planning.

Chapter-4
Objectives: Meaning of objectives; Nature of objectives; Setting objectives; Management by Objectives (MBO); Process of MBO; Benefits and weaknesses of MBO; Islamic guidelines for setting objectives.

Chapter-5
Decision Making: Definition; Decision making condition; Decision making process; Guidelines of Islam for decision making; Benefits of management by Shura; Problem and opportunity finding; Nature of managerial decision making; Other factors in decision making; Decision support system.

Chapter-6
Organizing: Definition; Principles of organizing; Organization structure; Departmentation; Line and staff organization; Span of management; Delegation of authority; Centralization and decentralization; Organizing in an Islamic perspective; Coordination; Committee and group decision making.

Chapter-7
Leading and Motivation: Concept of leading and leadership; Qualities of a good leader; Human factors in managing; Relevant theories and styles of leading; Leadership in Islam; Creativity and innovation; Concept of motivation; Motivators; Theories of motivation; Motivation in Islam.

Chapter-8
Controlling: Meaning and importance of control; Types of control methods; Control process; Requirements of effective control; Information systems and control; Controlling in Islam.

Books Recommended
1. Harold Koontz and Heinz Weihrich, “Management”, McGraw-Hill Book Company, New York (USA)
2. James A F Stonner and R Edward Freeman, “Management”, Prentice Hall of India Private Limited, New Delhi.
3. R.W. Griffin.”Management”, A.I.T.B.S. Publishers and distributor, New Delhi.
4. John M. Ivancevich, James H. Donnelly, Jr. and James L. Gibson, “Management, Principles and Functions”, Richard D. Irwin Inc. Illinois (USA).
5. Terry and Franklin, “Principles of Management”
6. Randal, B.D. and Pierce, J. L., “Management”
7. E. Dale, “Management Theories and Practice”
8. Nacir Jabnoun, “Islam and Management”
9. Dr. Golam Mohiuddin, “Islamic Management”, University Grand Commission, Dhaka.
10. Dr. Khaliq Ahmad, “Management: From an Islamic Perspective”, International Islamic University Malaysia. 

This curriculum is prepared by adding the Islamic inputs with the existing course curriculum of Fundamentals of Management, Department of Management under Dhaka University. The Italic words are the new Islamic inputs.
Role of Fiqh al muamalaat al maaliyyat

Without fund nothing good can be done. For research and other related works there is a lot of needs of money. The persons or the institutions that have funds, their moral responsibility is to support the persons to make some contributions in the discipline of management for helping the practitioners to be practical in life.

Conclusion

Since, there is no single problem or discipline of which better solution is not present in the guidance of Islam, a better approach to management is also present here. And our duty is to find out the Islamic approaches to management and spread out the knowledge among the practitioners, both existing and potential.

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