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Organizational Culture – In Sharia’a Perspective (Presentation Brief)
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What is an organizational Culture and a probable Sharia’a Compliant Model?
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Comparison of Strong & Weak Cultures
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Three Case Studies
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Four Important Constituents that Capture Essence of an Organization Culture
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Work Place Spirituality – An Inevitable Corporate Demand
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A Checklist for Comparison of an Islamic Business Culture with To-day Corporate Culture
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What is an Organization Culture and a Sharia’a Compliant Model? 1.1 The work ethics and dealings of managers and workers of an organization portray the portrait of an organizational culture depicting values, traditions and behavior of an organization. An image that becomes identity of the organization. 1.2 How do the workers and managers interact with each other and with the stakeholders? What does the first impression gather? How does it look like? What does the dressing, conversation and mannerism of the staff and supervisors communicate? What kinds of principles of management are followed how do they formulate policies and make procedures? Answers to all of these questions paints a picture transmitted at mass level, setting a price of goodwill brought by an organizational culture. 3
1.3 Possible Sharia’a Compliant Organization Culture : Organization undertaking Sharia’a permitted business activity will carry name logo, sign boards stationary media campaign in compliance with Sharia’a Values. The management and workers through their dress code, work dealing, body language will be according to Islamic teaching. Their potential resources will be invested for Kasb-e-Halaal and not for monetary gains. Their interpersonal relationship with customers and other stakeholders will be focused on self-respect and common good for all. The mutual rights and obligations defined by Islamic teachings will form the basic code of good governance. Their facilities will be aesthetically furnished for convenience only, not for pompous show and balanced spending will be made to fulfill the needs of workplace, reception, meeting rooms. Sharia’a prohibited decor will not be made at all. 4
Similarly, their contracts will be Sharia’a compliant duly vetted by a Sharia’a Scholar. Their media campaign will be according to the Islamic teachings. Their message will be clear, transparent and unambiguous. They will say what they mean? No false claims or deceptive messages will be given for publicity. All these factors will imprint a mental note. Yes! They look good and are good. Their dealing is fair. Dependable, reliable. They honor their commitment come-what-may. This is the culture that stands first among equals and second to none.
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2. Comparison of Strong & Weak Cultures 2.1 Strong Culture v/s Weak Culture: Strong Culture
Weak Culture
Values widely shared
Values limited to few people usually top management
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Culture conveys constant message: average –what is important?
Sends contradictory message about what is important?
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Most people can tell stories about organization history and heroes.
Employees have history/heroes.
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Employees strongly identify with culture.
Employees have little identification with culture.
Loyalty and teamwork is evident.
Individual game plays Ego-centric attitude prevails.
Supports high ethical standards that influence employee behavior positively.
Personal ambition, youth wisdom earnings growth at any cost are valued.
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2.5
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3. Three Case Studies: 3.1 Case Study-1 An optical store selling contact lenses hired a doctor for professional advice to the customer for selecting contact lenses from the store. First customer was attended by the doctor. The doctor examined customer thorough by and advised him that he should not use contact lenses because of the structure of his eyes. He may endanger his sight develop serious problems. The customer left the store happily thanked doctor for his honest professional advice. The proprietor was curiously watching the scene. He came to doctor and protested angrily. “Look doctor I have hired you not to loose but to increase my sales”. I have lost the first customer. The doctor very softly responded, “Sir, we have not lost any customer rather we have won many customers through this customer”. “How come” asked the offended proprietor. 7
The doctor explained: “Sir, if I had sold lenses to him he would had been returning to us next day yelling and complaining and telling many people that we are incompetent people and try to earn by hook or crook. We do not care for customers. On the other hand, I saved the customer from the trouble and assured him that we are honest people we take care of customers irrespective of our sales and profits. Now this customer would tell everyone around him, at his home, office and everywhere whenever the question of contact lenses comes, he would definitely recommend us. The attitude of the doctor showed the value of professionally honesty a build a strong goodwill.
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3.2 Case Study-2 A poster displayed in a restaurant read following message: Choose any two out of these three and leave one for us: 1. Quality 2. Service 3. Price In case, you are concerned about quality and service, let us fix the price. If you want service and cost as you wish leave quality to us. If you choose cost and quality then let us offer the service the way we think is feasible. This depicts the commitment of a strong culture. They assure commitment of the management offering quality and service against money they receive. 9
3.3 Case Study-3 Pickle manufacturers exchanged back the supply of tons of the defective product distributed through distributes network countrywide. Sales & Marketing officials suggested bonus scheme “Buy one get two” to clear the stock, but the top management refused to do so. Despite heavy expenses on retrieving the sold goods and replacement thereof, the management stood by their values and culture and dumped the rejected stuff in deep-sea waters, by incurring additional expense of hiring a steamer launch. The Sharia’a value of honoring the commitment was their basic motive and their organization carried a very effective message to the distributors, retailers and consumers. The management sought pleasure of Allah (Subhanuh Taala) coupled with earning reputation of high value amongst the stake-holders. 10
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Four Important Constituents That Capture the essence of the organization culture:There are many factors that configure an organization culture but we shall confine ourselves to the following four in this presentation. 4.1 Vision & Mission: Four important constituents that capture essence of an organization culture are: 1. Vision and mission 2. Visual Identity 3. Two principles of management 4. Employer-employee Relationship Vision & Mission of an organization lays the foundation of the culture. Islam being complete code of life gives guiding principles for every walk of life. Principles of conducting business and hiring people 11
to work for the employers have been clearly enunciated which creates a win-win situation with equal concern for people and productivity both. The vision of an entity is always created to achieve a purpose. A meaningful purpose for meaningful work that takes place in the context of success. Islam defines the prime objective of human success .That is to seek the pleasure of Allah (Subhanuh Taala), for achieving the rewards here in this world as well as hereafter. “Kasb-e-Halaal” coupled with “Kasb-e-Kamal” – meaning the rightful earning with achieving excellence in performance--- becomes, the prime objective of a Muslim business man, trader or entrepreneur. The mission statement would create a commitment of employer and employees to translate the vision into reality. The values based on Sharia’a standards set for professional excellence forms the sound basis of an organization culture. 12
4.2 Organizational Identity: In marketing, organization identity is the “persona” of an organization which is designed to accord with and facilitate the attainment of business objectives. It is visibly manifested by way of Branding and use of trademarks. It helps organization to answer questions like “Who we are?” “Where are we going?” and give assurance “We are for you and you own us.” The identity includes title, logo (Logo type/ Logogram) approved color schemes, fonts, page layouts, and slogans for maintaining visual continuity and brand recognition. Creating identity which is distinguishable and appealing to the respective target audience has become inevitable. For Sharia’a, compliant “entities” the identity so created should be innovative enough to generate an Islamic touch, communication Islamic values and heritage. 13
4.3 Two Principles of Management: The managerial functions of planning, organizing, leading and controlling in a Sharia’a compliant model following two principles of management should be followed meticulously: 1. Amaarat Styled Leadership. 2. Participative Management through “Shura-yat” (Counseling) Under Amaarat style of leadership, the organization is led by Ameer, who treats himself as a head of family enshoulduring responsibility of the all of the team members. Amir delegates powers to managers and leaders of their team and assigns responsibilities. The team undertakes their functions under Shura system as per commandment of Allah (Subhanuh Taala)“Muslims settle their affairs (Decisions) (consultation and counseling)”. (Al-Quran) 14
through
Mashwara
4.4 Employer-Employee Relationship: Sharia’a clearly spells out mutual rights and obligations of the employer and employee. It determines the criteria for eligibility to become an employer or an employee, employees’ responsibilities, compensation and benefits, leave rules and retirement benefits. For resolution of conflicts procedure prescribed by Sharia’a gives a simple , straight and low-cost justice seeking system instead of prevailing long expensive and encumber-some litigation process. The beauty of Sharia’a compliant system is that everyone feels himself accountable for his actions and deeds to Almighty Allah. The accountability system refrains the individuals to cross the limits and behave to qualify for rewards from Allah (Subhanuh Taala). Sharia’a offers the most practical solution to employer employee disputes and conflicts.
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Workplace Spirituality:Stephen.P.Robbins and Marry Coutler along with other western management gurus are vocalizing the needs of workplace spiritually. “What do South Airlines, Bend Jerrys’, Tumbland, Home Banc Mortgage, Hewlett-Packard and Toms of Main have in common? They are among growing number of organizations that have embraced workplace spiritually “…..workplace seems to be important now for a number of reasons. Employees are looking for ways to counterbalance the stresses and pressures of a turbulent pace of life. Contemporary life styles single parent families, geographic mobility” (Extract from Management Textbook by Stephen.P.Robbins and Marry Coutler)
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The message is clear. Humanity is suffering at large and is looking for solutions beyond materialism. Our Deen Islam offers the only practical solution available on this earth. Yes! Allah (Subhanuh Taala) the Creator suggests that Islam is the complete code of life. Lead your life according to the teachings of Islam and be at peace. Sharia’a guides you in each step you need to take to accomplish success”. Sharia’a compliant business entity provide for a complete satisfaction level for employers and employees equally in search of excellence through Kasb-e-Halaal with Kasb-e-Kamal.
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A Checklist for Comparison an Islamic business culture with To-day Corporate Culture: Islamic
Present Corporate Culture
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Purpose: aims at welfare and common good for human and earn living seeking pleasure of Allah SubhanuhTa’ala
Purpose: Profit gains through business and increase wealth
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Objective: To listen beneficial for masses.) (خری الناس من ینفع الناس
Selfishness: Personal gains Fulfilling individual wishes.
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Management: Amarat and Shuraiyat. The best decisions Protected from adversities.
Administrative decisions made by individuals and implementation under egocentric authority.
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Organizing: Through participation of all members Achieving synergy.
Organizing through divide and rule. Keep members under stress. Look for their weakness. 18
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Performance: Motivation through encouragement Honoring selfrespect caring and sharing.
Insulting and humiliating through bossing attitude.
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Competition: Sympathy and helping attitude for competitors. Strong belief: There is enough for every one in this world. They are all for one and one for all.
Big fish eats small Might is Right survival of the fittest.
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Human being is the best of all creatures on this earth. They deserve respect without and discrimination of cost, creed, color language or religion.
Human beings are developed shape of markets. They are merely means of production.
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