Table of Contents

1.0 Executive Summary...............................................................................2

2.0 Introduction........................................................................................... 3
2.1 Definition of management..................................................................3
2.2 Overview of management process.....................................................3
2.3 Background of Islamic management style.........................................3
2.4 Background of Japanese traditional management style.....................4
2.5 Objective of the study........................................................................4
2.6 Methodology....................................................................................... 4
3.0 Discussions............................................................................................ 5
3.1 Differences between Islamic management style and Japanese
management style...................................................................................... 5
3.1.1 Islamic management style.................................................................5
3.1.1.1 Planning................................................................................ 5
3.1.1.2 Organizing.............................................................................5
3.1.1.3 Leading.................................................................................5
3.1.1.4 Motivation.............................................................................7
3.1.1.5 Controlling.............................................................................7
3.1.2 Japanese traditional management style.............................................8
3.1.2.1 Organizing.............................................................................8
3.1.2.2 Corporate Structure..............................................................8
3.1.2.3 Human Resource Management Practice................................9
3.1.2.3.1 Lifetime Employment:..............................................9
3.1.2.3.2 Groupism:..............................................................10
3.1.2.4 Operation Management Practices.......................................10
3.1.2.4.1 Just-In-Time (The Production) System:...................10
3.1.2.4.2 Subcontracting:.....................................................10
3.1.2.4.3 Quality Control:......................................................10
4.0 Conclusion........................................................................................... 11
5.0 References........................................................................................... 12

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1.0 Executive Summary

Management principles of the organization along with its capability primarily in accordance
to yet the different styles are seen in diverse culture, might be they are actually useful
currently but may not be someday, due to the reason that the practices are not exclusive or not
conventional or otherwise with virtually no critics .We have now observed previously the
introduction of assorted management possibilities, practices, alternatives as well as
management styles. The managerial tools along with their origins in the tradition of
contemporary Islamic societies have been included concentrating on their significance and
preference for our systems. This paper presents key features of personnel management
routines in Japanese and Islamic companies. Japanese and Islamic management is primarily
mentioned from a historical and cultural ideology. The primary qualities of traditional
personnel management practices are subsequently evaluated. Additionally, latest trends and
transformations during these personnel administration routines are investigated. It was
discovered that Japanese and Islamic companies adapted their personnel habits in alternating
measures to handle the shifting economic climate while maintaining aspects of the traditional
management structure. Moreover, Muslims are attempting to make some distinctions in the
conventional management approach in accordance with Islamic values. Islamic Banks along
with other institutes are the burning example about the same. The majority of the concerns,
like standards, features and alternatives are basically like the Islamic approach and in few
instances there are a few divergences within both of these alternatives to management.

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2.0 Introduction
2.1 Definition of management
Management can be considered an activity of transforming disorganized human and physical
assets into valuable and effectively outcomes. It relates to setting, seeking and getting objects.
The success of an individual, group, or organization primarily is determined by the
effectiveness of management. Regardless its significance to every person, management is
probably the vaguest while at the same time among the most common features in all
companies being available in the homes, churches, governments and financial executing of all
individuals. In an unrecognized positioning in 1900, management has grown presently as
being principal workings of our age and economy an innovative strength relating to which
our society is determined by resource support as well as national wellbeing. Eventually
management turns into an organization attempt delivering its own dynamic throughout the
activities of management for instance distinctions of opinion, selective assessment, and
struggle for power and interactions challenges. These strengths along with goals and
objectives of the organization, the operating framework, and key preferences during the past
lead towards the distinctive management cultural often known as management style.
Management styles are exceptionally encouraged by the social tradition where in
organizations control.

2.2 Overview of management process

Management would be the act of managing a situation. Management is innovative problem
solving. This creative problem solving is attained throughout the features of management.
This is the strategy of developing and preserving a situation through which persons,
collaborating in groups, proficiently attain designated strives. Planning would be the
continuing means of establishing the business' objective and plans as well as identifying the
manner they will be fulfilled. Planning consists of both the broadest view of the organization,
e.g., its mission, and the narrowest, e.g., a tactic for conducting a particular intent. Organizing
is initiating the inside organizational arrangement of the organization. Focusing is on division,
management, and control over tasks and of course the movement of resources and info inside
the organization. Motivating is filling and maintaining loaded with skilled people all
placements in the industry. Selecting, contracting, training programs, assessing and
compensating would be the specific situations covered in the function. Within the family
business, staffing consists of all paid and unpaid opportunities carried out by family members
which include owner/operators. Leading is impacting people's behaviour by means of
inspiration, connection, group strengths, leadership and discipline. The aim of moving would
be to access the practice of all team members to achieve the organization's duty and objectives
whereas concurrently helping them realize their particular occupation objectives. Controlling
is a four-step technique of initiating overall performance and guidelines according to the
firm's targets, measuring and stating overall performance, evaluating each, as well as having
remedy or preventive performance as necessary. All of these features require creative problem
solving.

2.3 Background of Islamic management style

Islam possesses a distinctive management style. Islam purposes that Allah has developed the
cosmos and power and governs it. He established human beings and offered him with all that
he wants regarding the advancement as well as development of life. To satisfy his material
standards, He has gifted our world with all sorts of resources and substances which men can
exploit to utilise. To serve spiritual, society and interpersonal necessities, He conveys exposed
assistance by means of his Prophets upon them be harmony as well as blessings. In view of
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Islam, leader is a part of a team who is considered certain rank and it is expected to participate
within a way according to it. A leader prospects an organization that is ideally positioned to
workout influence in forming and accomplishing the moral objectives and targets. The
success of a leader relies on team developing which results in team spirit.

2.4 Background of Japanese traditional management

style
Japan is deemed as one of the super-economic capabilities around the world. The process of
progress started 130 years backs with the revitalization of Imperial (Meiji) rule I 1868.
Preceding to that period, in Tokugawa era, Japan was shut down from outside world for 230
years. It is well known that the Tokugawa ruler shut down the nation and order to continue an
economic system dependent on total self-sufficiency. At that time, Japan was a remarkably
poor nation plus the people stayed an extremely impoverished existence. Throughout the
period 1868 to 1941(the year pacific war broke out) Japan had progressively began to develop
a foundation for industrialization as well as economic formation.
Enduring lost the battle in 1945, Japan had to continue the development procedure beginning
with the fragment. Infrastructures were removed, the economic environment was under
control and monopolized by other nations. As well as having the individuals were
tremendously poor did not have resources of any economic value. Yet, the energy and socialcultural value solution along the Japanese individuals were not influenced by the war,
somewhat they sped up the forces in the direction of the national formation. Japan as it rises
now, can be attributed to the endeavours of Japanese individuals who were intelligent well
enough to undertake the foreign solutions and management ideology and grow appropriate
technological as well as management platforms which could be successfully and competently
carried out for the creation of the nation.

2.5 Objective of the study

The fundamental objective of the study will be to determine the principles of the Islamic
management style comparing with the Japanese traditional management styles. The particular
objectives of the study are:
i. To concentrate on the understanding of managerial leadership;
ii. To differentiate between Japanese and Islamic Leadership;
iii. To distinguish the essential characteristics, standards and qualities of Islamic leadership;
iv. To indicate the benefits and issues of traditional management in moderating towards the
Islamic management

2.6 Methodology
The analysis is principally dependent on secondary data only. The main resources of data
were the various management guides, Holy Quran, Traditions of Prophet as well as Islamic
management literature, Journals and diverse associated research study. No statistical utilities
have been utilized within the examination of the research.

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3.0 Discussions
3.1 Differences between Islamic management style and Japanese
management style
3.1.1 Islamic management style
3.1.1.1 Planning
Planning: All activities along the Prophet (SAW) within his life have been designed by using
adequate planning. He applied all of the designs of his life as stated by the holy Quran. Islam
educates Muslims that they should devise all of their plans in light of Quran and Sunnah.
Islamic planning adheres to several standards for instance, deciding on legal targets, planning
within a participative and consultative process, creating blueprints within composed thoughts,
and understanding of the research of circumstances and based on Allah. Planning implies
setting up organisation objectives as well as evaluating how wise to accomplish them.
Decision- making is included in the planning process relating to making a selection of a
strategy given by a range of selections. With a Islamic ideology, Islam wishes man to prepare
a appropriate enterprise. The value of planning will then adopt by vast result. Dealing with
preparation in fact assures successful operations and positive outcomes. In an Islamic
perspective, complete and comprehensive planning not exclusively incorporates strategic
thinking yet equally vital offering trust in Allah (SWT) despite the fact that wishing for
pleasure as well as success in the consequence of the enterprise undertakings.
3.1.1.2 Organizing
Organizing: When the aims as well as objectives of the business organisation have already
been determined, thus with the tight assets, monetary resource, environmental circumstances
and human resources ought to be created towards a workable strategy. Clearly, organising can
be described as identifying how actions and assets are going to be categorized. Organising
from the Islamic perspective consists of the features of controlling well-balanced relationship
within a structure of authority, accountability as well as obligation. The appropriate planning
of these features may enable in performing judgements that could subsequently allow
executives to obtain Allahs satisfaction. Islam recognizes the boundary of authority,
responsibility, delegation as well as obligation to achieve the targets of an organization.
Working together with decision-making as well as having the objective of a Muslim limit
expert in Islam. In Islam all people is accountable to his own responsibility. Islam provides
importance to designated subordinates who would be dependable to their supervisor in ethical
as well as legal actions. There are two types of obligation noted earlier in Islam. Initially, a
worker is dependable to his immediate superior. Additionally, the worker is accountable to
follow the orders of Allah.
3.1.1.3 Leading
Leading: Leadership within organization is vital within the planning, organizing and
implementation of the organizational objectives as well as targets. Valuable leadership
inspires an organization or firm to obtain efficiently as well as satisfy its desire and targets.
The leadership definitely is an additional element towards the total of efforts of many
individuals and assist the organisation to achieve or attain greater than the conventional
attainment. From the Islamic perspective, the Muslim leader needs to take into account the
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instructions in the Quran and Sunnah. Leadership here implies to indicate the process, lead
and affect other individuals. Leaders need to surrender their authority towards the directions
consecrated in Quran and Sunnah. Authority would be the power to control, give orders, help
make judgements and precise obedience. In Islamic management, leaders comply with
abandon these types of advantages to the recommendations of Quran and Sunnah. In Islamic
management leadership implies resolving the all issues by group for seeking Allahs
satisfaction. Assessment with related people is critical within this leadership. Within this
structure, leaders cannot look for leadership as well as democratic patterns seems to be
observed in most cases. Followers possess a dynamic responsibility and involvement to
adequately work authority and both the leader as well as having the followers is dependable to
Allah and their company.
Comparative Analysis of Islamic Management Style:
Objectives

Participants
Nature

Methodology
Traits

Decision making

Limitations of leaders

Limitation of followers

Leadership style
Followers style

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Searching for Allahs satisfaction in solving

an issue by association and in guiding
endeavors from this viewpoint.
Allah, Quran, Rasul, leaders and
the followers.
Management is connected to trusts which
are to be rendered back into those referenced
in item no in that order.
Assessment with followers primarily by
people who have applicable information
Knowledge (ilm) of Islamic law (shariah) as
also understanding of the shariah
overriding the corporation, as needed with
the leader implementing:
(a) ljtihad, (individual judgement),
(b) adala (justice), and
(c) Kifaya (competence).
Soon after consulting, the leader must
determine but put faith in Allah.
Leaders should never obtain leadership; it
must come to them.
Followers possess an active position to
counsel and warn leadership of results of
policy/action.
Followers have an active role to advise and
warn leadership of consequences of
policy/action.
A mixture of authoritarian and democratic
patterns.
Responding to the leaders
demand guidance, teamwork with the leader,
and accepting partial accountability for
action. Both the leader plus the followers are
dependable to Allah and organization.

3.1.1.4 Motivation
Motivation: Islam focuses the importance as well as task of motivation in individual actions.
It shows that the human behaviours are managed by inner motives, force and incentives. The
Prophet (SAW) attempted to motivate his followers to adhere to the teaching of holy Quran
by motivational utilities to resolve issues by participation, to encourage by gorgeous and
attractive saying, accuracy of objectives and targets as well as motivating people to acquire a
long-term objective. The essential practices of Islam are, Taqwbah, reward as well as
punishment for work, justice, power along with other ethical alternatives. The aim of
motivation, the performed Muslim could analyse what he is performing in his life when using
the reward of Allah in the hereafter. The reward said in this verse is greater-the beautiful life
soon after death. A manager are required to make use of this fact and lead his team or
employees to a better knowledge of their religion and alter them from being comparatively
less performed Muslim to more committed Muslim in order to work excessively as well as
perform better which should obliquely accomplish organizational objectives quicker and
certainly more rapidly. Beginning with the prior clarification there are moderately performed
Muslim looks at various recourses to be gifts of Allah which were handed to him for being
confidence in his hand in order to employ them in the most effective means by order to
achieve Allahs will to obtain welfare for those mankind both on the earth as well as in the
hereafter as a target to be accomplished by all relatively committed Muslims and all other
people. Allah says: Wealth and sons are allurements of the existence for this world; however
the things which endure, superb performance, are finest in the vision of the Lord, as
incentives, and greatest as (foundation) for hopes (Quran,18:46)
3.1.1.5 Controlling
Controlling: Controlling is measuring performance, evaluating capability using the standard,
determining the distinction in case, as well as fixing unbearable transformation by way of
remedial strategies. During Islam there is always regulating instructions like above. Allah
arrange standard for measuring overall performance of the human. He explained, This is the
book (Quran) is the guidance sure, without doubt (Al Quran-17:105). Once again Allah
stated prophet as and you stand an exalted standard of character. Hence the holy Quran and
the routines of Prophet (upon him be peace and blessings) are the guidelines of controlling in
Islam. The Islam measures up the actions using these two. Allah said, Read your records:
sufficient is thy soul this day make out an account against thee (Al Quran-17:105). Islam
takes action soon after assembling the operation with the specifications. Surah Al Qasas stated
that Allah is merciful and just. He does not destroy or degrade people until they have
deliberately rejected His law and continued in practice of inequity. Neither was thy Lord the
one, To destroy a population until, He had sent to its centre ,An apostle, rehearsing to them
,Our Signs; nor are We Going to destroy a population except when its members practice
iniquity. (Al Quran-17:105) In other words, the principles developed by Islam as discussed
above mentioned quotations illustrate that Allah will not penalize anyone until particular
explained conditions are met in the subsequent order.
(a) A messenger is distributed onto the centre of the cities (group of people) or to the head of
the people.
(b) The messenger communicated the message and its specifications.
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(c) People received and determined the message, which came down from Allah to the people.
(d) People continued in their old routines, which are against the delivered message.

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3.1.2 Japanese traditional management style

3.1.2.1 Organizing
The aspects of Japanese management principles can be precisely categorized into two areas:
People-oriented
Work-oriented
The Japanese style of People-oriented management practices primarily concentrate and focus
on personnel as well as human resources management features such as the life-time
employment, the seniority structure as well as having the groupism while the work specified
management practices mainly concentrate on Production and engineering features that
include, the Just-In-Time production system, the subcontracting and the Quality control.
These specific components of Japanese style of management have been formed as a result of
the socio-cultural capabilities of Japanese nation, that features mostly contributed to the builtup competitiveness of the Japanese companies resulting in make Japan a super-economic
strength on the globe.

People-oriented

Work-oriented

3.1.2.3 Corporate Structure

The top-management in Japanese companies has an extremely closed structure. Although two
or three directors may be invited to join the company from outside, in most cases, directors
are appointed from within the company's former management level-staff. Moreover,
employees are not considered to be consumable physical resources, but as important corporate
members in the corporate structure.
Corporate Structure
A Japanese company is fully participatory and not authoritative

Top

Middle
Lower Middle
Shop Floor Workers

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Keiei
Directors
Kanri
Administration

Ippan Shain
Rank & File

Roles at different levels

Keiei
Determination of corporate plan
Extensive support for managers and workers
External connections for useful for actions
Kanri
General planning and pleasant supervision
Sharing enjoyable work atmosphere
Support for non-supervisory employees
Production of self and subordinates
Constructive analysis of employee capability
Teamwork with other departments
Advertisement of god human kin
Ippan Shain
Immediately planning and reporting
Assisting workplace conferences
Management by good example
Ongoing improvement-technical and individual
Cooperation for capacity, quality, human relations
Sharing detail and skills.

3.1.2.4 Human Resource Management Practice

The personnel and human resources management routines of Japanese companies are
primarily targeted in the direction of people and also their development. There are a few
specific qualities, which are not present in the traditional western management system. These
distinct qualities are the life time employment, seniority based promotion and wage system
as well as groupism.
3.1.2.4.1 Lifetime Employment:
The lifetime career system includes recruiting individuals that have just enhanced a high rate
of strength among employees as well as delivering work till the mandatory retirement period.
Their system is specified in the direction of human connections, human development and
training assured occupation, equality, participation and welfare.
And hence, within a Japanese company, company workers are "born", and grow in relation to
work as shown in Figure 2.0 Seniority based promotion as well as wage system:
Importance of Workplace
Workplace = Industrial Family
[Ballons Model]
1. Birthplace
All regular employees and managers (even a majority of the directors) were born in the company; most joined the
company soon after the graduation True born
2. Working Community
All work, live, and develop together (and share corporate fate)
3. Growth and development
Human growth (maturity) and technical development are burtured by learning from and helping one another, and
by the companys career development programs.
Employees identify themselves by where they work(company), and not by what they do (job, occupation)

The promotion extracted from lower level to immediate higher level is generally dependent
on seniority. Yet, the tempo of promotion is extremely slow though. It will not represent to
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imply that promotion fails to consider performance analysis as well as certification of the
employee. Superior weight age is exposed to senior person, or on the number of years they
collaborated with the organization. Wage arrangement may also in accordance to seniority.
3.1.2.4.2 Groupism:
The important cultural quality of Japanese individuals has significant amounts of influence on
the Japanese management principles. The conventional Japanese ways of thinking "Uchi"
(insider) and "Soto" (outsider) is basically performed in Japanese management system. The
special nature of "WE" is extremely solid in Japanese organisations.

3.1.2.5 Operation Management Practices

The operation management routines of Japans firms have some certain qualities quite
different from western management system. The Japanese production management structure
tries to seek productiveness in linking to work and in addition, exhibits due issues for human
factors in the company. A number of the major variations arrive from the just in Time
production system, subcontracting and quality control.
3.1.2.5.1 Just-In-Time (The Production) System:
Producing and dispatching the products just in time is the leading objective of employing JIT.
This consists of several other fields of development like cost-reasonable of production, low
inventory cost, low funding for warehouses, immediate evaluating of disorders, high valueadded per person, superior quality and enhanced efficiencies.
3.1.2.5.2 Subcontracting:
Large companies, especially in manufacturing area, depend upon on a regular subcontracting
system. To ensure timely and standard supply of quality assemblies and semi-finished
products by using subcontractors at various stages, large companies supply smaller ones with
technical, managerial as well as financial assistance in numerous forms. In this manner, the
big and small organisations shouldn't compete and contract for each supply and purchase.
Balanced trust would be the basis of their permanent trades.

3.1.2.5.3 Quality Control:

The Japanese production management currently are unable to function without taking into
consideration the understanding of quality or potential customers within a wider awareness.
Presently, the Japanese style of management can be known as Management by Quality. It
does not represent controlling the quality but instead administrating the organization with the
"Quality First" theory. Qualities as well as productivity are stated in a wider viewpoint
covering customer's interest. The productivity (quality) is:

Production or service degree of the corporation

Quality specification of the product or service
Expense of Production products or service
Delivery time of products or service.

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4.0 Conclusion
The censorship in Islam is keen to accomplish the legitimacy of the motive and possibilities,
structures and efficiency according to Islamic religion, and strives to make certain that the
principles and directions to the managing procedures ordered by the Islamic Sharia, therefore
must all the organizations that lead the way to the effectiveness of power and follow up the
implementation of managing guidelines enhance and boost their productiveness, and
accomplish administrative as well as monetary reform, and enhancing capability, preserving
the work-flow, with a purpose to activate the goal of monetary management of all techniques
and aspects of personnel processionals, equipment and tools by way and the necessary stage
to produce its plans and lead to its potency, making sure that the exploitation of this work,
which influence us to adhere to our Islamic obligations.

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5.0 References
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http://mgseb.umk.edu.my/journals/download/JTE042013009.pdf
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http://www.internationalconference.com.my/proceeding/icmef2013_proceeding/2ndicmef_pr
oceeding/028_120_2ndICMEF2013_Proceeding_p335.pdf
(n.d.). Retrieved January 26, 2015, from
http://www.insead.edu/facultyresearch/research/doc.cfm?did=2472
Reference for Business. (n.d.). Retrieved January 26, 2015, from
http://www.referenceforbusiness.com/encyclopedia/Int-Jun/Japanese-ManagementTechniques.html
Japanese management culture. (n.d.). Retrieved January 26, 2015, from
http://en.wikipedia.org/wiki/Japanese_management_culture
(n.d.). Retrieved January 26, 2015, from
http://www.dineshchapagain.com.np/admin/files/Japanese Style Management.pdf
Japan management styles and comparision to world. (n.d.). Retrieved January 26, 2015, from
http://www.slideshare.net/AsadAmin3/japan-management-styles-and-comparision-to-world
Cultural Insights: Japan. (n.d.). Retrieved January 26, 2015, from
http://www.iorworld.com/japan-pages-491.php

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