TOPIC:

ISLAMIC MANAGEMENT OPERATION: PRINCIPLES

AND PRACTICES (G3)

PREPARED FOR:
SIR ABU DZARR MUHAMMAD RUS

PREPARED BY
NO NAME MATRIC NUMBER

1. NURUL FARAHIDA BINTI ABDUL 4232013691D

RAHMAN
2. NOR AMIRAH BINTI MOHD SIN 4231003141
3. NAVITHA A/P THILAKANNU 4231000421
4. VISWANAANTHAN A/L 4232003321
DHARMALIGAM
5. TUSANTINI A/P SELVARAJU 4231000451

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 TABLE OF CONTENT

1. INTRODUCTION……………………………………………3
2. WHAT IS PRINCIPLES OF ISLAMIC MANAGEMENT…4-5
3. LEADER…………………………………………………….6-8
4. AUTHORITY………………………………………………9-11
5. RESPONSIBILITY……………………………………….12-17
6. DELEGATION OF POWER……………………………18-23
7. CHAIN OF COMAND……………………………………24-27
8. CONCLUSION……………………………………………….28
9. REFERENCE…………………………………………………29

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INTRODUCTION

Islam is a comprehensive religion which covers every single aspect of human

activity. Islam is not a religion that only focuses on the private life of
individuals, but also covers and guides human’s interaction and activities in
their daily lives. Despite the comprehensiveness of the
Islamic teachings, limited studies have been conducted to examine the practice
of Islam in the management of business processes in Muslim organizations.
Muslims have for a long time believed in the truth of their religion which is
Islam and the highness of this way of life. They
have a great and convincing historical backup. Indeed, the birth and presence of
Islam in the world is to overcome and improve the situation because the Prophet
was sent to spread Islam to improve the character of mankind. Starting after the
Hijrah of the Prophet SAW to
Madinah, Islam began to grow rapidly until it managed to explore almost all
continents.

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ISLAMIC MANAGEMENT
Define as the ability to utilize human capital and material resources optimally to
achieve desired goals, both short-term and long erm goals.

The principle of Islamic Management can be define as:

1) Tawhid /Unity
 Human ultimate accountability is to God alone. It also defines the unique
relationship between God and man and his environment. He is required to
only serve God through all his actions.

 And I (Allah) created not the jinn and mankind except that they should
worship Me (Surah Az-Zariyat:56

2) Tauhid Rububiyyah
 Believed that everything in the earth and sky is belonging to him Allah,
Only Allah can classify the human whether good or bad, and no one can
challenge his power.

3) Tauhid Illahiyya
 Believed that Allah is the only God by doing His direction and did not
have any god other than Him.
 The Effects of Tauhid on Human Are: It gives clearly mission on all life
aspects especially individual, family, community and country in
economics, politics and socials. We will have the component of amanah
and good attitude because we know
that Allah S.W.T can see what we are doing and thinking.

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4) Amar Makruf Nahi Munkar
 Can be defined as exclaiming people to do kindliness and to leave out
all the bad behaviour. To measure of what we are doing either it a fair
or cruel (haq or batil), we should refer back to Al-Quran and As-
Sunnah. Anything that is right in syara' will always right although it is
opposite to our passions and wants. Similarly if everything is stated in
syara' as illegal or wrong to be done by Muslim, it can’t never change
until the end of the day.

5) Maslahah Mursalah
 Literally, marsalah means benefit of interest, it refers to unrestricted
public interest in the sense of not having been regulated by the
Lawgiver and no textual to authority can be found on its validity or
otherwise.

 It describes the purpose of legislation in Islam is secure the welfare of

people by promotion their Benefits of by protecting them against
harm.

6) Masru'iyyah
 This is the concept of legality whereby the management has to ensure
that any action taken must be within the legal boundary of the
common or manmade laws and the syariah laws.

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LEADER

In the Cambridge Dictionary Leader means a person who is in charge of

controlling other people and also someone who has the ability and power to
manage people for something important, someone who is in charge of a group,
country, and situation. In Islam way, leader means imam in a general sense who
leads Muslim worshippers in prayer. In a global sense, imam is used to refer to
the head of the Muslim community or ummah. The title is found in the Al-
Quran several times to refer leader. The chief leader in Islam is called a caliph
(Khalifah), A caliph is a person who has succeeded Muhammad SAW in
administrative and political but not religious functions. He was appointed by
men, and he maintained the ordinances of Islam. In Caliph, Arabic Khalifah
(successor) in Islamic history the ruler of the Muslim community. That occurs
several times in the Quran referring to humans as God's stewards or vice-regents
on earth, the term did not denote a distinct political or religious institution
during the lifetime of the Prophet Muhammad SAW. It began to acquire its later
meaning and to take shape as an institution after Muhammad’s death.

History of leader that is highlighted in Islamic history is Khalifah, Khalifah or

caliph in English started after the death of Muhammad, Abu Bakr was chosen to
be the leader of Muhammad with the title “Khalifah Rasullulah”. Originally, the
caliph was chosen through the council of Shura that is, deliberation discussion,
and chosen by that council. After Abu Bakr's death, the replacement of the next
Caliph was Ummar Bin Al-Khattab, after Ummar death they chose Uthman Bin
Affan. Lastly, is Ali Bin Abi Talib. After a few generations, the named caliph
changed to the sultan as the leader of the Islamic country, according to
Wikipedia Contributors (2023, September 1). Sultan. Wikipedia; Wikimedia
Foundation. the first used sultan in the history of Islam was Sultan Mahmud of
Ghazni who ruled the Ghaznavid Empire. Sultan Mahmud granted himself this

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title and controlled an empire over present-day Afghanistan and the surrounding
region. The word sultan refers to Arabic and the Semitic root salata means “to
be hard, strong”. In Arabic abstract noun meaning “strength, authority and
rulership”. Brunei, Malaysia, and Oman continue to use the word sultan for
their monarchs

The characteristics that must have in Islam by Dzulfida A. Razak, Hussain, M.

N., & A. Abdul Ghani. (2020, September). In Islam, the leader must have the
characteristic of the Islamic construct of a principal because it has a relationship
with organizational commitment. There is a characteristic that must be in
leadership Islamic used to the basis of strengthening the principles with Allah
SWT and relationship with human beings. As a result of the finding, the
leadership of Islam can maintain the authority of the principal. Otherwise, the
responsibility of the leader is Dr. Hanudin Amin. (2018, March 10). Islamic
approach in leadership. NST Online; New Straits Times. the great leader of
Islam must be accountable for what he does and should be able to give an
agreeable reason for it. A leader in Islam gives priority to the legitimate needs
of followers over his own needs, without compromising his career
advancement. Also, he upholds Tawheed (oneness of Allah) as the root of his
leadership belief. In general, the leader must have the 10 Characteristics of a
Good Leader. (2023, July A good leader should have integrity, self-awareness,
courage, respect, empathy, and gratitude. They should be learning agile and
flexing their influence while communicating and delegating effectively, seeing
and learning how to improve at all levels of your organization.

In conclusion, a leader or leadership is a gift, a gift that requires one to set a

direction, motivate, inspire, and develop others. Being a leader is also a journey
to know about yourself and how strong your belief is. The leader is about
experience and the influence you have on others. A leader can motivate the

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team, the people, the country, and others to foster a positive work environment
and contribute to the overall growth of the team and the organization. In Islam,
leaders should be forgiving and patient toward their followers when they make
mistakes. This be seen in Al-Quran 3:159-160, which states that leaders should
pardon their followers, ask Allah to forgive them, and consult with them. After
all this, they should encourage their followers to trust in God.

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AUTHORITY
Defined as the power which is legitimized within a specific social context.
Power that allows certain people to exert influence by their position in the
hierarchy of an organization. Quran teaches that legitimate human power and
authority exist for one and only one function to "establish regular prayers and
practice regular charity and enjoin the right and forbid the wrong..."(22:41)
(ma'ruf and munkar) refer in the first place to what is universally approved or
disapproved by human nature when it has not been perverted.

A person knows that there is no one else qualified to do a particular job except
himself. and that if he does not come forward to take it. public interests will be
damaged, he should come forward.

Authority has the right to make a decision and to get someone to perform a job
to achieve goals and objectives (Robbins & Coulter. 2016). This term has not
been widely used in Islam. Abu
Sin describes that Islam wants to disconnect this concept from the concept of
tranny. In its place, Islam uses the term in charge and emphasizes obedience and
discipline (Mohiuddin, 2012). Allah (SWT) said in the Holy Quran: "Oh people
if you have faith! Obey Allah (SWT) and His Prophets and those in the position
of Authority among you' (Al-Quran, 4:59).

If the order openly contradicts the organizational objectives. then the Authority
has the right to make decisions and to get someone to perform a job to achieve
goals and objectives (Robbins & Coulter, 2016). This term has not been widely
used in Islam. Abu Sin describes that Islam wants to disconnect this concept
from the concept of tranny. In its place. Islam uses the term in charge and
emphasizes obedience and discipline (Mohiuddin, 2012). Allah (SWT) said in

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the Holy Quran: "Oh people if you have faith! Obey Allah (SWT) and His
Prophets and those in positions of authority among you" (Al-Quran, 4:59).

If the order openly contradicts with the organizational objectives, then the
employees shall instantly discuss this matter with their immediate boss or
manager. In case the manager insists on the order, then it is a duty of the
employees to disobey him (Mohiuddin, 2012). The Prophet Hazrat Muhammad
(SAW) said: "Let not be a blind follower who says if people do good or bad, I
will do the same. But you should stick to paths of righteousness"

Managers must ensure that the tasks they allocate to their subordinates are
technically and behaviorally reasonable or not. There is a well-known Arabic
Idiom which means that; if you want to be obeyed give feasible order
(Mohiuddin, 2012). Employees shall instantly discuss this matter with their
immediate boss or manager. In case the manager insists on the order, then it is
the duty of the employees to disobey him (Mohiuddin, 2012). The Prophet
Hazrat Muhammad (SAW) said: "Let not be a blind follower who says if people
do good or bad, I will do the same. But you should stick to Paths of
righteousness"

The manager must ensure that the tasks he is allocating to his subordinates are
technically and behaviourally reasonable or not. 'There is a well-known Arabic
Idiom which
means that; if you want to be obeyed give feasible orders (Mohiuddin, 2012).

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AUTHORITY IN ISLAM

Authority in Islam is limited within the framework of Muslims and the interest
of the organization. Limited by the culture of participative decision-making,
includes better quality and better
productivity. It is balanced by the process of enjoining what is right and
forbidding what is wrong.

Also, seek guidance from the hadith which are writings about the life of the
Prophet Muhammad. They were remembered by close followers of the Prophet
and were later written down. They teach us how to live their lives, and to
understand and follow the teachings of the Quran.

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RESPONSIBILITIES

Is an obligation to do something with the expectation of a certain result.

Everyone is responsible for what is under his authority. Manager responsible for
accomplishing certain result and must have power to use resources to achieve
the results. Responsibility means the duty and commitment owed by employees
to their managers for exercising authority delegated to them to achieve
organizational objectives. All managers need to realize that they are responsible
for whatever is under his control. Responsibility leads to answerability in this
temporal worldly life and the life hereafter. Once Hazrat Umar (RA) said: “He
was frightened that if a mule falls in Iraq during crossing the mountain roads
and breaks its legs, and Allah (SWT) has asked him why he did not pave those
roads”. It revealed that to what extent Hazrat Umar (RA) felt his duty and
responsibility as a Caliph. In fact, responsibility is not limited to any specific
person, every person is responsible in his own ground. A manager is custodian
over his subordinates; a man is custodian over his family members; and a
woman is custodian over her family members including husband and children
and all of them will be asked about their matters.

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Why responsibility is important?

Responsibility fosters a positive attitude, reduces external oversight, and

promotes loyalty, honesty, and commitment among employees within an
organization.

(i) Concept

The concept of responsibility, which aligns with principles from various

management and leadership philosophies, including Islamic Management
Operation.

Responsibility is the obligation to take actions or make decisions with the

expectation of achieving specific results, implying individuals or managers have
a duty to fulfil specific tasks or objectives. Managers are expected to have the
necessary authority and access to resources to achieve results, implying that
responsibility and authority should be intertwined. Responsibility is linked to
duty and commitment, with employees obligated to exercise their authority to
achieve organizational objectives, highlighting the reciprocal relationship
between managers and employees.

Responsibility leads to accountability, where individuals accountable for their

actions and decisions, extending to both worldly life and the afterlife, reflecting
the moral and ethical dimension of responsibility.

Responsibility is a universal concept that applies to all individuals within their

roles and areas of influence, fostering a sense of collective responsibility within
an organization. Custodianship is the passage mentions that individuals,
including managers, are custodians over various aspects of their lives and
responsibilities. This emphasizes the idea that individuals are entrusted with

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certain responsibilities, and they will be held accountable for how they fulfil
those responsibilities.

Hazrat Umar's example exemplifies the profound sense of duty and

responsibility that individuals in authority hold, demonstrating that responsible
leaders take their roles seriously and prioritize the well-being and outcomes of
their responsibilities.

Prophet Muhammad's guidance emphasizes the importance of being a custodian

and being asked about one's matters, emphasizing the moral and ethical
dimensions of responsibility in personal and professional life.

In summary, the passage emphasizes the significance of responsibility, duty, and

accountability in various aspects of life, including management and leadership,
aligning with ethical and responsible leadership principles found in Islamic
Management Operation and other management philosophies.

(ii) Application/Practicality

Responsibility in Islamic Management Operation finds practicality in various

ways that align with Islamic principles and values. Here are some practical
aspects of responsibility within Islamic Management Operation:

 Consultation and Decision-Making: Practical responsibility is

demonstrated through the consultation process (Shura) in decision-
making. Leaders and managers seek input from employees and
stakeholders, making decisions collectively to ensure that diverse
perspectives are considered.
 Transparency and Reporting: Practical responsibility includes
transparent reporting practices. Organizations provide stakeholders with

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 clear and accurate information about their financial and ethical
performance, fostering trust and accountability.
 Adherence to Sharia Compliance: In practical terms, responsibility
means ensuring strict adherence to Sharia compliance in all aspects of the
organization's operations. This includes structuring financial transactions
and contracts in a manner that complies with Islamic principles.
 Risk Management: Practical responsibility encompasses responsible risk
management. Organizations assess and mitigate risks in a manner that
aligns with ethical principles, ensuring that the interests of stakeholders
are protected.

(iii) Issues

Islamic Management Operation (IMO) principles emphasize responsibility and

accountability in management and leadership, but they can face challenges and
issues in practice, including common issues faced by organizations.

Islamic Management (IMO) principles pose several challenges to modern

organizations. These include the interpretation of Islamic principles, balancing
ethical and financial goals, cultural and regional variations, resource constraints,
compliance with legal frameworks, lack of awareness and training, resistance to
change, monitoring and enforcement, measuring ethical performance, conflict
resolution, sustainability, social responsibility prioritization, and global supply
chain issues.

The interpretation of Islamic principles can vary among scholars and

practitioners, leading to uncertainty in their application. Balancing financial
goals with ethical considerations can be challenging, as avoiding interest-based
transactions can limit financial opportunities. Cultural and regional variations

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can also impact the application of IMO principles, leading to cross-cultural
management issues.

Resource constraints can also pose challenges for organizations in allocating

resources for social responsibility initiatives and community engagement. Legal
and regulatory compliance issues may arise, as some Islamic principles may
conflict with secular legal systems.

Inadequate understanding of IMO principles among employees and leadership

can hinder their effective implementation. Resistance to change from employees
or existing management practices can pose a significant issue. Effective
monitoring and enforcement mechanisms are necessary to ensure compliance
with IMO principles.

Ethical performance measurement and conflict resolution are complex, and

organizations must establish mechanisms for fair and just resolution. Balancing
economic development with environmental sustainability is a delicate issue, and
prioritizing social responsibility initiatives can be challenging.

(iv) Advantages and Examples

The practice of responsibility in Islamic Management Operation (IMO) offers

numerous benefits, as illustrated by various examples.

IMO's responsibility ensures organizations maintain high ethical standards,

fostering trust and integrity, which can enhance long-term credibility and
goodwill with stakeholders. Responsible management practices enhance trust
among stakeholders, including employees, customers, and investors. This trust
can lead to increased loyalty and support.

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IMO promotes community engagement, fostering positive societal contributions
and improved relationships with local communities, thereby fostering broader
social impact. Organizations that prioritize responsibility create a more ethical
and supportive work environment. This can lead to increased employee
satisfaction, loyalty, and productivity. Avoiding unethical practices such as
interest-based transactions (riba) can contribute to financial stability, reducing
the risk of financial crises and regulatory challenges.

In Islamic finance (IMO), responsibility includes allocating profits for

charitable giving, promoting fair labour practices, and promoting environmental
responsibility. Organizations can use zakat funds to support impoverished
communities. They should provide fair wages, safe working conditions, and
skill development opportunities. They should also minimize waste, reduce
energy consumption, and adopt sustainable technologies. Transparent reporting
is essential for stakeholders to understand their financial and ethical
performance.

(v) Conclusion of responsibilities in Islamic Management Operation –

Principles & Practices

In conclusion, responsibilities in Islamic Management Operation (IMO)

encompass a set of ethical, moral, and practical obligations that individuals,
leaders, and organizations must uphold in accordance with Islamic principles
and values. These responsibilities are integral to IMO principles and practices
and play a significant role in shaping ethical and socially responsible
management. Responsibilities in Islamic Management Operation are not only a
moral and ethical duty but also a practical framework for building ethical and
sustainable organizations. By adhering to these principles and practices,
organizations can contribute positively to society, maintain the trust of

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stakeholders, and achieve long-term success while remaining faithful to Islamic
values.

DELEGATION OF POWER

i) Definition
Delegation of power in Islamic management refers to the practice of entrusting
authority, responsibilities, and decision-making capabilities to capable
individuals within an organization or community. This delegation is based on
the principles of trust, accountability, and the Islamic concept of "amanah"
(trustworthiness). It allows leaders to distribute tasks and functions while
maintaining oversight and ensuring that actions are conducted in accordance
with Islamic ethics and values. Delegation in Islamic management empowers
individuals to exercise their judgment and creativity within the framework of
Islamic principles, fostering a sense of ownership and accountability in their
roles.

ii) Concept
The concept of delegation of power in Islamic management is rooted in
principles derived from Islamic teachings and jurisprudence.

Amanah (Trustworthiness)
- Central to the concept is the Islamic principle of amanah. It emphasizes
the importance of trust and reliability in individuals who are entrusted
with authority. Leaders are encouraged to delegate power to those who
are deemed trustworthy, competent, and capable of upholding Islamic
values in their decision-making.

Avoidance of Micromanagement
- Islamic management encourages leaders to refrain from excessive
interference in the tasks and decisions of subordinates. Instead, they are
advised to entrust authority to capable individuals, allowing them to
exercise their judgment and creativity within the bounds of Islamic ethics.

Balancing Authority with Accountability

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 - While leaders have the authority to delegate tasks, they remain
accountable for the decisions made and actions taken under their purview.
This ensures that authority is exercised responsibly and ethically, and
leaders are answerable for the outcomes of the delegated tasks.

Consultation (Shura)
- The Islamic concept of "shura" emphasizes the importance of
consultation and seeking counsel from relevant stakeholders in decision-
making processes. This means that even when leaders delegate authority,
they should actively involve others in important decisions to benefit from
collective wisdom and ensure inclusivity.

Empowerment and Development

- Delegation of power is seen as a means of nurturing talent and developing
leadership skills within an organization or community. It provides
individuals with opportunities for growth, learning, and the acquisition of
valuable competencies.

Adherence to Islamic Values

- Delegation of power in Islamic management is conducted within the
framework of Islamic ethics and values. This ensures that actions and
decisions align with principles such as justice, fairness, honesty, and
compassion.

Overall, the concept of delegation of power in Islamic management reflects a

balanced approach to leadership, where authority is entrusted to capable
individuals while maintaining accountability and adherence to Islamic values. It
promotes trust, responsibility, accountability, consultation, and empowerment
within the organizational or community context.

iii) Application/ Practices

Delegation of power in Islamic management finds practical applications in
various aspects of organizational and community life.

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Leadership in Religious Institutions
- Islamic scholars and leaders delegate responsibilities for tasks like
leading prayers, teaching religious studies, and organizing community
events. This ensures the smooth functioning of religious activities while
adhering to Islamic teachings.

Charitable Activities and Zakat Distribution

- Islamic charities often employ delegation to manage and distribute funds
for charitable activities. Leaders may delegate responsibilities for tasks
like assessing needs, identifying beneficiaries, and overseeing projects,
ensuring resources are allocated appropriately.

Business and Trade

- In Islamic finance, leaders may delegate authority to manage investments,
trade transactions, and business operations. This ensures compliance with
Islamic finance principles, such as avoiding interest (riba) and engaging
in permissible trade.

Legal and Judicial Systems

- Islamic legal systems may use delegation in the appointment of judges
and legal experts to handle cases and make legal decisions. This ensures
that legal proceedings are conducted by qualified individuals in
accordance with Islamic jurisprudence.

Community Development Projects

- Delegation is commonly used in community development initiatives.
Leaders may assign tasks related to infrastructure projects, educational
programs, and social services to individuals or committees within the
community, ensuring that resources are utilized effectively and in line
with Islamic values.

Family and Personal Matters

- Within a family unit, delegation of authority is practiced when parents
assign responsibilities to children, spouses collaborate in decision-

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 making, and guardians appoint caregivers for dependents. This
encourages a balanced distribution of responsibilities and promotes a
sense of shared ownership.

Educational Institutions
- In Islamic educational settings, leaders may delegate responsibilities to
teachers, administrators, and scholars to oversee various aspects of the
institution, including curriculum development, student guidance, and
administrative tasks.

Community Welfare and Governance

- Within a Muslim community, leaders may delegate authority to manage
local affairs, resolve disputes, and implement policies that align with
Islamic principles. This fosters a sense of community ownership and
collective responsibility.

Philanthropic Foundations
- Islamic philanthropic organizations may delegate authority to trustees or
boards to manage endowments and make decisions regarding the
allocation of funds for charitable projects, scholarships, and community
development.

These applications demonstrate how delegation of power is integrated into

various spheres of Islamic management, enabling effective governance,
resource allocation, and decision-making while upholding Islamic values and
principles. It emphasizes trust, accountability, and collective participation in the
pursuit of common goals.

iv) Issues
Islamic management ensures that organizational decisions and practices in
Islamic finance adhere to Islamic ethical principles. This includes avoiding
interest (riba), engaging in ethical investments, and adhering to profit-and-loss
sharing arrangements, among other principles.
1. Consistency with Islamic Finance Principles

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 -Islamic finance is a critical aspect of economic activities in Malaysia.
Leaders must ensure that financial decisions and transactions, which may
be delegated, conform to Islamic finance principles such as avoiding
interest (riba) and adhering to profit-and-loss sharing arrangements.
Example:-

● Avoidance of Riba (Usury or Interest): Islamic finance strictly prohibits

the payment or receipt of interest. Leaders must ensure that financial
transactions, investments, and lending practices adhere to this principle.
This may involve alternative financial instruments like profit-and-loss
sharing arrangements or Islamic bonds (sukuk).

● Profit-and-Loss Sharing (Mudarabah and Musharakah): Islamic finance

encourages partnerships where profits and losses are shared between
parties. Leaders must be knowledgeable about these structures and ensure
that delegated financial decisions align with these principles.

● Islamic Contracts (Ijarah, Murabaha, Salam, Istisna): Leaders must be

familiar with various Islamic financial contracts and ensure that delegated
transactions are structured in accordance with these contracts. For
instance, Murabaha involves the sale of goods at a marked-up price,
which is compliant with Islamic finance.

v) Advantages

- Fulfillment of Amanah (Trust): Delegation allows leaders to entrust tasks

to individuals who are deemed trustworthy and competent. This upholds
the Islamic principle of amanah, emphasizing the importance of trust and
reliability in those given authority. When tasks are delegated based on
trust, both leaders and individuals accepting the tasks become mutually
accountable. This strengthens the sense of responsibility and
commitment.The Prophet Muhammad delegated tasks to individuals he
deemed trustworthy and capable, demonstrating the importance of this
principle in Islamic leadership.

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 - Reduction of Micromanagement: Islamic management advises against
excessive interference in the tasks of subordinates. Delegation allows
leaders to avoid micromanaging, which can stifle creativity and hinder
the autonomy of individuals. Delegation empowers individuals to take
initiative and make decisions within their delegated authority. This fosters
a culture of proactivity and self-driven action. When individuals are
entrusted with delegated tasks, they feel a greater sense of ownership and
accountability for their responsibilities. This leads to a higher level of
dedication and commitment.

- Empowerment and Skill Development: Individuals who are delegated

tasks have the opportunity to develop their skills, gain new knowledge,
and acquire valuable experiences. This leads to personal and professional
growth, contributing to a more capable and competent workforce. When
individuals are entrusted with tasks, they gain confidence in their abilities
to take on new challenges. This increased self-assurance can have a
positive impact on their overall performance. Delegation exposes
individuals to a wider range of responsibilities and tasks. This diverse
experience helps them develop a broader skill set and become more
versatile in their roles.

Conclusion for delegation of power

Overall, delegation of power in Islamic management promotes trust,

responsibility, accountability, consultation, and empowerment. It enables leaders
to effectively leverage the talents and capabilities of their team members while
upholding Islamic values and principles in organizational decision-making and
operations.

For example, in a charitable organization, the leader might delegate the

responsibility of organizing a fundraising event to a capable team member. This
not only empowers the team member to take ownership of the task but also
allows them to apply their skills and creativity in a way that aligns with Islamic
principles of charity and community service.

CHAIN OF COMMAND
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According to https://www.indeed.com/career-advice/career-development/chain-
of- command, a chain of command is a military or civil organization system by
which instructions are passed from one person to another. It is a system of
organization that spells out how one employee in a company reports to the
others. Any organization must have a clear grasp of its chain of command for
each employee to know exactly who to report to and who makes up their team.
Although the term "chain of command" is not used specifically in an Islamic
context, the concept can be understood within the context of Islamic leadership
and governance. Principles from the Quran, Hadith (the sayings and deeds of
the Prophet Muhammad, peace be upon him), and academic interpretations
serve as the foundation for Islamic leadership and authority.
Referring to https://maritimereview.ph/revisiting-the-chain-of-command-
concept/ and https://www.organimi.com/the-chain-of-command-why-its-
important/, The concept of Shura is commonly used as an alternative to the
traditional chain of command from an Islamic management perspective. The
primary notion of shura, which means "consultation" in Arabic, is that leaders
and followers should counsel one another. Because it is a democratic process,
all organization members are urged to take part, regardless of their position or
status. Islamic management requires the leader to take on the role of a servant-
leader who caters to his followers' needs and requests their feedback before
making any choices. The group leader's job is to promote participation from all
participants and ensure that each person's voice is heard during decision-
making.
Based on http://irep.iium.edu.my/2296/ The basis for the chain of command in
Islamic management theory is tawheed, which stands for the oneness of God.
This key Islamic management belief emphasizes that everyone is accountable to
God for their actions and that all authority comes from Him. The concept of
amanah, or trust, also serves as the foundation for Islamic management's chain

24
of command. Leaders are held accountable to God for their actions and given
the responsibility of managing the group's affairs. This means that CEOs must
act honestly and morally and that decisions must be made with the best interests
of the organization in mind.
The chain of command may or may not be applicable in Islamic management,
depending on the organization and setting. Islamic management methods can
incorporate the idea of a chain of command, often known as a hierarchy or
organizational structure, but the success of such an approach will depend on
several different circumstances. Organizational culture comes first. Depending
on the prevailing organizational culture, Islamic management's use of the chain
of command varies. The chain of command can function well if the
organizational culture represents Islamic principles like consultation (Shura),
fairness, accountability, and ethical behaviour. Second on the list is leadership
style. People in positions of authority must take a leadership approach. Leaders
who are modest, open to guidance, and follow Islamic rules are more likely to
construct a practical and effective chain of command.

Additionally crucial are communication and transparency. Practicality is

enhanced when there is honest and open communication inside the company.
Leaders must effectively communicate decisions, and employees must have
access to channels for feedback and clarification.
Based on https://wise-answer.com/what-are-the-disadvantages-of-chain-of-
command/ The chain of command in Islamic management may have several
issues, just like in any other management style. These issues might be brought
on by miscommunication, ineffective management, or a disdain for Islamic
principles. Here are a few common issues with Islamic management's chain of
command. The first is a lack of Shaura (consultation). Islamic administration is
based on the shura principle, which emphasizes discussion and getting other
people's perspectives before making choices. However, there are circumstances

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in which leaders may decide to disregard or work around this concept, resulting
in choices that might not be the most inclusive and might not yield the best
results.

Autocratic leadership is the following style. The spirit of Islamic management is

opposed to authoritarian leadership, in which leaders exercise total authority
without considering other people's opinions. This may limit the company's
ability to innovate and be creative. Lack of efficient communication comes in
third. Lack of clarity on organizational goals and strategies can result from poor
communication within the chain of command, which can also cause
misunderstandings and a lack of understanding of duties and responsibilities.
Referring to https://smallbusinessjournals.com/chain-of-command/,
accountability, command unity, and authority delegation are all facilitated by a
well-defined chain of command. One advantage of a good chain of command is
responsibility. It ensures that everyone is aware of their position and power
inside the organization and makes it easier for employees to divide up tasks.
after that, productivity. An efficient command structure promotes efficient
workflow and management, which increases productivity.
It also enhances employee morale. Employee morale is boosted by allowing
personnel to communicate concerns with supervisors within a clearly defined
organizational structure.
These advantages support a business's ability to maintain order, focus, and
effective operations. The concept of a chain of command cannot be applied to
all organizational forms; Islamic management is but one example.
In conclusion, Islamic management offers an alternative strategy through the
concept of Shura, despite the traditional chain of command structure being
widely used in many enterprises. With this strategy, everyone in the company is
encouraged to participate and mutual consultation between leaders and
followers is prioritized.

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CONCLUSION

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Overall, the subject of Islamic management is broad and covers a variety of
management-related topics, such as chain of command, delegation, leadership,
and authority. In Islamic management, a leader is in charge of supervising a
group of workers or a company. The leader is expected to continually advance
justice, according to the Holy Qur'an. Authority with well-defined
responsibilities and accountability is provided to subordinates. Since duty
includes the possibility of being held accountable for one's actions and results, it
is a responsibility to act. Delegation of power is a legitimate power transfer that
makes future responsibility necessary. The chain of command is crucial for the
distribution of authority since it is clear to employees who they should be giving
instructions to and who they should be receiving them

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