‫الر ْح ٰم ِن‬

‫ِب ْس ِم هللاِ َّ‬

‫ِالر ِحيْم‬
‫ِ َّ‬

‫‪1‬‬
 IMPORTANCE OF USUL FIQH IN MANAGEMENT

MUHAMMAD ARIFFIN BIN MOHAMMAD HASROL AZMI

23B0825

MOHAMMED HAZIQ WAQIUDDIN BIN MOHAMMED SUHARDI

23B0909

FACULTY OF ISLAMIC ECONOMIC AND FINANCE

Sultan Sharif Ali Islamic University
Brunei Darussalam

Rabi’ ulawal 1445 / September 2023

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 Table of Contents
ABSTRACT ............................................................................................................................................... 4
INTRODUCTION ....................................................................................................................................... 5
THE NEED FOR ISLAMIC CONCEPT AND METHOD OF MANAGEMENT ................................................... 6
DECISION MAKING............................................................................................................................... 6
LEADERSHIP AND ORGANIZATION ....................................................................................................... 8
ISLAMIC WORK ETHICS ........................................................................................................................ 9
CONCLUSIONS ............................................................................................................................... 11
References ............................................................................................................................................ 12

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 ABSTRACT

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 humans’ interaction and activities in their daily lives. Usul al-Fiqh is regarded as one of
the most important subjects in the study of Islam. This is not only because of its dealing with
law, the core and kernel of Islam, but also because its help in studying the development of
religious thinking among the Muslims. This study attempts to determine the importance of Usul
Fiqh in Islamic Management.

Keywords: Usul Fiqh, Islam, Islamic management.

IMPORTANCE OF USUL FIQH IN MANAGEMENT

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 INTRODUCTION

The term Usul is plural of Asl which means source and Usul Fiqh is the philosophy and
science of Islamic law which is a fundamental aspect of religion that interprets Islamic law
without it, is not possible to understand Islamic law (M. R. A. Aziz & Noh, 2013). The
jurisprudence incorporates theology and philosophy in which morals and Islamic laws are
derived from religious sanctions (Etim E. Okon, 2013). Usul al Fiqh is the compilation of
principles related to the methodology for the extraction of Fiqh. The Usul al Fiqh is mandatory
to adhering to the methodology when conducting a scientific experiment or deriving Fiqh
(rulings). Scholars without good knowledge of Usul al-fiqh, interpret Sharia in the wrong way
and mislead references and wrong practices. So Usul al Fiqh gives a way for a person to derive
fiqh from the Islamic legislative sources. They are the methods in which the rules of Fiqh are
deduced from their sources (OMOTOSHO, 1989).

Islamic jurisprudence (Fiqh) which means understanding of the duties and obligation by
which Islam imposes on Muslims is the code of conduct that prescribes modes of worship,
moral standards and principles of interpersonal relationship. Islamic jurisprudence is based on
divine revelation (Etim E Okon, 2012). The Islamic jurisprudence is derived from four sources-
Qur’an, Sunnah, Ijma and Qiyas. In addition to, it is a branch and application of the Shariah in
the areas related to the human practices in this world (Jalil, Ramli, & I Shahwan, 2014). Fiqh
explains the rules and regulations that govern the relationship between man and his creator
(Allah), man and man and man and creatures. So it covers a wider range of matters and is not
restricted only to the ritual aspects of Islam (OMOTOSHO, 1989).

Management is widely used within today’s communities, which also includes religions
such as our beloved religion Islam. This is because management is very important in organizing
people’s life as well as religious matters, without management there might be a chance that a
person’s life could be in a mess. Hence, this is why Islam puts a high importance towards
managing all matters within the religion such as, managing businesses. Management can simply
be defined as controls made by leader to a group of people (organization) to make an efficient
outcome.

Looking at the history of Islam during the times of the prophet management is also
practiced during that time. According to (Branine & Pollard, 2010), in the time of Prophet
Muhammad when he is in Madinah where the first Muslim state is formed, the prophet
organized Shura or consultation with his companions to discuss on matters that are not
specifically mentioned in the al-Quran. Moreover, this practice is carried over during the

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Caliphs ruling the religion spread beyond the Arabian countries, where Islamic management
and administration became more complicated and less centralized (Al-Hirrawi, 1986)1

THE NEED FOR ISLAMIC CONCEPT AND METHOD OF MANAGEMENT

The concept of management was established because of the existing philosophy on economy
that relies heavily on the faculty of reasoning, in addition to its emphasis on productivity,
quality and maximizing profitability. The various definitions of management by the scholars do
not differ much from one another. Generally, it is understood as an effort to achieve the
objectives of an organisation by utilising human and technical resources in the most effective
way (Boone and David, 2001). Its core definition refers to understanding the basics of economy,
namely managing resources that belong to the people, community and country, so as to
improve the welfare of humans living with finite resources.
There is a lack of Islamic management experts who are also experts in the field of Islamic
studies. For this reason, the field of Islamic management does not seem to differ much from the
existing field of management. If there are any differences, it is only by way of presenting
evidence derived from the Quran and Hadiths. Other than that, the philosophy and framework
are still based on the existing philosophical and management models.

Hence, there appears to be several studies that claim to be exploring an Islamic phenomenon
despite using the existing frameworks. Syed and Nazura explored the phenomenon of
purchasing halal goods using the Theory of Planned Behaviour (TPB) by Ajzen. While TPB and
the Theory of Reasoned Action (TRA) by Fishbein and Ajzen served as the frameworks for
research by Noresma Yahya and Yuserrie Zainuddin, Fauziah Md. Taib and Yuserrie Zainuddin.
Although, TPB and TRA are often served as frameworks in various research, they are not
suitable for Islamic-based studies. This is because one of the variables in the TPB and TRA
carries the meaning of intention that differs from the Islamic definition of intention in TRA, for
example, intention is assumed as the freedom to act without any restriction. This assumption
clearly rejects the Islamic notion of restriction on Muslim individuals. In such a study, it would
have failed to present accurate findings and conclusions from the Islamic context.

DECISION MAKING

Decision making in Islamic management must not be against the revelation of

Allah (Al-Quran) and the teaching of the Prophet. That is why according to (Ali,
2005), in traditional thinking, the primary intent in making decisions is to ensure

1
Ali, A. (2005). Islamic Perspectives on Management and Organization.

6
justice and social cohesiveness. Both of which are the foundations for stability,
public satisfaction, survival and continuity, and economic prosperity. According to
the Quranic teachings and Prophet’s instruction they reminded the believers that
justice is the basis for good governance.2

۟ ‫اس أَن تَحْ ُك ُم‬

﴾‫وا ِب ْٱل َع ْدل‬ ِ َّ‫ِو ِإذَا َح َك ْمتُم َبيْنَ ٱلن‬
َ ِ ۚ﴿
Meaning: “And when you judge between people, judge with fairness.” 3

Not only that, Prophet Muhammad ‫ ﷺ‬involved his companions in consultation as

a political choice that offers members of his community a wide participation in
the decision-making and governing affairs of Islam. Hence, that is why Islamic
teaching obliges leaders to consult and seek advice before making any decision
that effect people. Al-Masudi (vol 2, p 309) reported that the first Kalifah, Abu
Bakar ordered his new appointed governer to Syria to “be honest and clear when
seeking consultation. This guarantees you honest advice. And do not silence any
advisor as the decision will be solely yours.” Additionally, he also said that “the
second Kalifah, Umar considered consultation as an obligation for Muslims. He
stated “Muslims must consult in their affairs. People follow those leaders who
consult and seek consensus in making decisions.” This shows that decision making
needs to be made in groups which would result in better decision making that
would improve the quality of decisions in an organization.

Furthermore, sometime decision making can be affected by situations such as

in cases of emergency that could lead to harm to the whole organization or
even the country. Such as when during Covid-19 where most of countries
undergoes a lockdown, businesses closes down when cases of Covid-19 were
found on their vicinity to ensure the safety of people and to prevent the spread

2
Ali, A. (2005). Islamic Perspectives on Management and Organization.

3
Al-Quran 4:58

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of the virus. These decisions were made using Maqasid al-Syariah based on
Usul Fiqh, where there are 5 purposes of Maqasid al-Syariah:
● Protection of Faith or religion (din)
● Protection of Life (nafs)
● Protection of Lineage (nasl)
● Protection of Intellect (‘aql)
● Protection of Property (mal)

Maqasid al-Syariah could overlook other decisions because the purpose of the teachings of
Allah is to guide his servants and for their own importance. Where, in the case of such
danger, to protect lives such decisions could be made.

LEADERSHIP AND ORGANIZATION

Every organization in the world needs the head and the brain of the whole group
where they control most of the action that is made by the body (employee), like
every organization Islam also works with this concept except that we took
importance in adhering to Al-Quran and teachings of the Prophet. This can be
shown in the era of the Prophet, where the Prophet is seen as the leader of Islam
and most decision are made by the Prophet. However, there is always an
exception such as the situation of the Mu’az bin Jabal, where he is appointed to
go to Yaman, where Rasulullah asked: “If you faced problems that are not
mentioned in Quran and Hadis how are you going to solve them? Mu’az answer: I
will use Ijtihad according to my common sense.” He is given the authority to make
his own decision because he would be far away from the prophet and would take
days to reach him.

In the Era of the Four Khalifah they reaffirmed that leadership is based on shared
influence as stated by Khalifah Umar “If you see me doing wrongs, then straighten
me.” Leaders are also expected to be fair and just to their subordinates in dividing
tasks, resources and more. Hawi (1982) also described the qualities that are
needed by Islamic leaders as having the ability to reason or act rationally, to be

8
knowledgeable mentally stable, courageous, in control of desires, generous, wise,
in control of his temper, forgiving, caring, flexible, relying on evidence, abiding by
promises, honest, able to keep secrets, acting decisively, being cunning, humble,
free from hatred and envy, patient, thankful, diplomatic, not listening to
slanderers and backbiters, not appointing the non-faithful as deputies, following
up and processing work, receptive and willing to give advice, attentive, a good
organizer, rewarding and recognizing achievers and respectable in their images.

Since both the Quran and the Prophet's teachings place emphasis on social
cooperation and idealism, there is a need for a leadership structure that is not
against the Quran and teachings of the Prophet. Hence, leaders in Islamic
management must be leaded fairly by following the revelation of Allah Ta’ala and
teaching of Prophet by observing the Quran and Hadith and also other sources of
hukum. Not only that in one of the Hadith of the Prophet Abu Dharr al-Ghifāri
reported that the Prophet said that Allah, the Almighty, said: "O My servant, I
have made oppression forbidden for Myself, and I have made it forbidden
amongst you, so do not oppress one another. (Riwayat Muslim).4

ISLAMIC WORK ETHICS

Islam values moral and ethics in works such as business, management,

government and much more. This view contrasted with the beliefs that had
existed among other civilizations before the appearance of Islamic empire. For
example, according to Dessler (1986, p.15) he points out that in ancient Greece
“business in general, and money lending in particular, were carried out by slaves
and less than respected citizens; manual workers and merchants, in fact, were not
permitted citizenship in the Greek democracy.” However according to Ali. A
(2005), when Islam emerged in Arabia the community was thriving commercially,
socially, and intellectually. Trade was the means that enabled members of the
Quraisyi tribe to achieve prestige and influence. Since there was no central leader

4
Ali, A. (2005). Islamic Perspectives on Management and Organization.

9
in Arabia, the Quraisyi merchants assumed the role of leadership in accordance
with their wealth and economic fortune.

Before the Prophet was appointed as the Prophet at the age of 40, he engaged in
trade, where he works under Quraisyi woman called Khadija who he later
married. The Prophet was given the title Al-Amin due to his trustworthiness in his
trading activities, he would be Amanah and truthful in his dealings that every
Arabian people at that time would trust him so much. The practice of the Prophet
can be implemented in today’s management especially in businesses, showing the
best example of practice a Muslim trader should have.

﴾ ‫يب ِم َّما‬ ٌۭ ‫َص‬ ِ ‫ض ۚ ِل ِلر َجا ِل ن‬ ٍۢ ‫علَ ٰى بَ ْع‬ َ ‫ض ُك ْم‬

َ ‫ٱَّللُ بِِۦه بَ ْع‬ َّ ‫َو ََل تَت َ َمنَّ ْو ۟ا َما َف‬
َّ ‫ض َل‬
‫ض ِلِۦٓه ۗ ِإ َّن ٱ ََّّللَ َكانَ ِب ُك ِل‬
ْ َ‫ٱَّللَ ِمن ف‬ ۟ ُ‫سبْنَ ۚ َوسْـل‬
َّ ‫وا‬ َ َ ‫يب ِم َّما ٱ ْكت‬ٌۭ ‫َص‬ِ ‫سا ٓ ِء ن‬
َ ِ‫وا ۖ َو ِللن‬۟ ُ‫سب‬ َ َ ‫ٱ ْكت‬
َٔ
‫ع ِل ٌۭيما‬
َ ‫ش ْىء‬ َ ٣٢﴿
Means: “And do not crave what Allah has given some of you over others.
Men will be rewarded according to their deeds and women ˹equally˺
according to theirs. Rather, ask Allah for His bounties. Surely Allah has
˹perfect˺ knowledge of all things.”5

The Prophet also instructed Muslim to be fair and just in giving wages and prompt
in compensating workers. The prophet declared “One must give a worker his
wage before his sweat dries up (should be given in time).” (Riwayat Ibn Majah).
Furthermore, monopoly is prohibited because it produces pain, unlawful profit,
and ensures inequality. “Whoever withheld commodities, is a sinner.” (Riwayat
Mu’ammar al-‘Adwiy). Moreover, the bribery is prohibited as mentioned the Hadith,
Abu Hurairah reported that Prophet Muhammad said: “God cursed those who gives
and the one who receives bribery.” (Riwayat at-Tirmizi). Hence, that is why in Islamic

5
Al-Quran 4:32

10
management we must first consider the ethics especially not to do things that were
clearly or unclearly prohibited through the Quran, Hadith or even Ijma’ from Ulama.

CONCLUSIONS

From the result of the study above, it can be concluded that Usul Fiqh is
very important in Islamic Management. In Islam, management as a function is a
process of coordinating activities according to a set of principles derived from the
Holy Quran and the Sunnah. Therefore, management is a moral, spiritual and
physical function which is not only driven by earthly objectives but also by
rewards in the afterlife.

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 References

Al-Quran 4:32

Al-Quran 4:58

Ali, A. (2005). Islamic Perspectives on Management and Organization. Edward. E, Cheltenham, UK.
Abdullah, A. H., Baru, R., & Adnan, A. A. (2016). Principles of Islamic Management Based on Surah Al-
Fatihah.
Branine, M., & Pollard, D. (2010). Human resource management with Islamic management principles: A
dialectic for a reverse diffusion in management. Personnel Review, 39. P.9
https://doi.org/10.1108/00483481011075576
Dahir, A. M. (2015). Importance of Principles of Islamic Jurisprudence (Usul fiqh) in Islamic Banking
Product Structuring. 1-2.
Sulaiman, M., Abdul Sabian, N. A., & Othman, A. K. (2013). The Understanding of Islamic Management
Practices among Muslim Managers in Malaysia.

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