ISSUES ON MANAGERIAL ETHICS IN ISLAMIC MANAGEMENT AND ADMINISTRATION

The most essential issue faced by business organization in the 21st century is Managerial Ethics of Autocratic leadership style conducted by managerial level in particular business environment. Autocratic leadership is negative in principle of Islam, based on the threats and punishment practice by a leader who authoritatively led a business organization. The subordinates act as the direct of authority leader. Autocratic Leadership is tremendous form of transactional leadership where a leader applies high levels of power over the subordinates. The subordinates are given only few opportunities in aspects of making suggestions, even if these would be in the team’s or organization’s concern which decline in one of principle of Islam which is Al-Hurriyah, where individual have its rights, opportunities and choices in religion, think, speak, education and others within the limits of law.

The autocratic leadership style practices jeopardize the general order of society within business organization. The unsentimental autocrat who relies principally on negative influences uses the force of fear and punishment in directing his subordinates. An autocratic leader centralizes power and decision-making through giving orders and assigns duties without consulting the employees. The leader takes full authority and assumes full responsibility which absolutely decline from the principle of Islam as the leader fail in following the appropriate guidelines in leading an organization by conducting an employment that is not Islamically permissible way of making a productive living on the subordinates. Autocratic leadership style tends to be worst when a business organization implements a high degree level of delegation which too much authority that result in possibilities of strikes and industrial disputes. It is liable lead to a great frustration and retard the growth capacity of employees. Most individuals tend to feel bitter being treated with terrible leadership style as autocratic. As result, it will definitely leads to high levels of absenteeism and staff turnover which lessen productivity of business organization in current competitive industry.

SOLUTION IN ISLAMIC PERSPECTIVE

The leader of a business organization is the manager. Regarding the above issue, manager within an organization has definite authorities and responsibilities to get particular tasks and duties done through the internal sources of business organization who are the subordinates, within the limit of law. Quran explain this standing as, “We raise some of them above others in ranks, so that some may command work from others”. [Surat Al-Zakahraf, verse 32]. Therefore, from principle of Islam in management and administration approach, a leader need be a positive role model for his follower since the strength of a leader is his characteristics and the source of inspiration for others within the business organization. This verse also highlights on the formation of appropriate hierarchies within the business organization as well as the division of responsibilities according to an individual capabilities (Abbas et al., 2012).

Abbas et al., (2012) have assured that Islam has agreed on three dimensional ethical systems, based on the Quranic verse, “You are the best of peoples, evolved for mankind, enjoining what is right, Forbidding what is wrong, And believing in Allah”. [Surat Al Imran, verse 110]. Additionally, the above verse include three basic dimensions for Muslims as the Right (Khair), the Wrong (Shar) and the Faith (Tawheed). The Right (Khair) explains that the top managerial position should carry out the right things that positively effect both business organization and the society where the advantage of business organization or one party should not be at the expenditure of other party. The Qur'an says, "As to those who believe and work righteousness, verily We shall not suffer to perish the reward of any who do a (single) righteous deed". [Surat Al-Kahaf, verse 30]. The Wrong (Shar) point out the top managerial position should not only avoid the unethical practices itself but also prohibit its subordinates and encourage by conducting training and development program to guide them in performing duties within the framework of ethics prescribed in Islam. Moreover, there is a necessitate of Faith (Tawheed) or a strong believe in Allah that Allah is observing all of the actions and will reward or punish them on right or wrong deeds in the world hereafter.



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