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  • 1. 1 Chapter Managing the Digital Firm

2. OBJECTIVES Management Information Systems Chapter 1 Managing the Digital Firm

  • Islamic Principles in Managing Organization
  • Explain why information systems are so important today for business and management
  • Evaluate the role of information systems in todays competitive business environment
  • Assess the impact of the Internet and Internet technology on business and government


  • Define an information system from both a technical and business perspective and distinguish between computer literacy and information systems literacy
  • Identify the major management challenges to building and using information systems

OBJECTIVES (Continued) Management Information Systems Chapter 1 Managing the Digital Firm 4.

  • Introduction
  • According toIslamicfundamentals, an individual will be ultimately accountable to Allah.
  • Given this dictum (saying), the individual needs to implement the defined codes of ethics and style, inmanagingoneself and others.
  • Implementing the imperatives of total quality management will follow automatically because these are inherent in theIslamicway of life.


  • Successful managers perform five basic managerial functions to achieve corporate goals:
  • Planning Leading Organizing Staffing Controlling

Management Principles and Islam 6. Management Principles and Islam

  • In addition, Henri Fayol has developed fourteen management principles:
  • Division of work
  • Authority
  • Discipline
  • Unity of command
  • Unity of direction
  • Subordination of individual interests to the general interest
  • Remuneration
  • Centralization
  • Scalar chain
  • Order, equity and stability
  • Tenure of personnel
  • Initiative
  • Esprit de corps


  • In the current presentation, I would tackle the function of leading from theIslamicperspective.
  • My reasons for selecting the same are :
    • The importance of the concept in management and politics; leadership is an important aspect ofmanaging.
    • The leadership crisis the Muslim World is going through for many years.
    • The abundant literature in Islam regarding leadership that needs people to put it in use and practice it faithfully.

Management Principles and Islam 8. TQM and Islam

  • Shura
  • Participative Management and Employee Involvement
  • Proficiency and Efficiency (Ihsan)
  • Sincerity (Ikhlas)
  • Total Quality Management
    • TQMis a management concept
    • to reduce the errors produced during the manufacturing or service process, increase customer satisfaction, streamlinesupply chain management


  • Distinguishing between fact and belief
  • Defining issues in moral terms
  • Applying moral principles to a situation
  • Establishment of justice
  • Practice of beneficence
  • Promoting good and forbidding evil

Management Ethics 10.

  • Defining Leadership
  • Western Models of Leadership
  • Current Trends in Leadership
  • Power and the Leadership

Leadership: An Overview 11.

  • Posner and Kouzes five-stage model for leadership
    • Challenging the Process
    • Inspiring a Shared Vision
    • Enabling Others to Act
    • Modeling the Way
    • Encouraging the Heart

Effective Leadership in Islam 12. Effective Leadership in Islam

  • Abul-Ainain proposes ten characteristics of an effective leader fromIslamicperspective as:
  • Strength of character
  • Role model
  • Equity and impartiality
  • Kindness and magnanimity
  • Integrity
  • Guidance
  • Consultation
  • Unselfishness
  • Competence
  • Intelligence and wisdom


  • Islamicapproach is goal-oriented with comprehensive, moderate, practical, evolving, spiritual, behavioral, ethical, social, and economic objectives
  • Theorganizationshould be one in which learning and tazkiyyah are an integral part of its culture.
  • Within the parameters of Islam, the employees are encouraged to engage in planned and self-initiated activities.
  • A combination of both will give them a sense of direction and challenge as they try their best fi sabil lillah (for Allah's sake).

IslamicPerspective of Leadership 14.

  • The verses of Surat An-Naml are just one example of the many functions, roles, processes, and procedures of management mentioned in the Quran.
  • Also, the Sunnah of the Prophet Muhammad (saw) has a lot of lessons in the field of management.
  • In brief, the verses 15-44 of Surat An-Naml demonstrate a detailed analysis of the leaders action and behavior with his followers.

Surat An-Naml and Principles of Leadership 15.

  • Looking after and observing the absences of a follower (27:20)
  • Theory and practice of gradual punishment (27:21)
    • hard punishment
    • severe punishment
    • plain excuse

Surat An-Naml and Principles of Leadership 16.

  • Communication (oral) (27:22-26)
  • Verification of communication (truth or lie) (27:27)
  • Written communication (letter to Balqis) (27:28-31)

Surat An-Naml and Principles of Leadership 17.

  • Observation by the messenger (27:28)
  • Shura and consultation (the Queen and her chieftains) (27:32-34)
  • Advise of the chieftains to the leader (27:33)

Surat An-Naml and Principles of Leadership 18.

  • Gifts and their use in management and administration (27:35)
  • Refusal of gifts if it looks like a bribe (27:36-37)
  • Employing super talented individuals (27:38-41)

Surat An-Naml and Principles of Leadership 19.

  • Pre-qualification and Testing (27:41)
  • Perception, Wisdom and Analysis (27:42-43)
  • Recognition of Facts and Acting upon them (27:44)

Surat An-Naml and Principles of Leadership 20.

  • We examined theIslamicperspective as related to the principles of management and leadership in modern theory and practice
  • Illustrations from the Quranic verses and sayings and practices of the Prophet Muhammad (saw) and his true followers, what constitutes leading

Conclusion 21. Managing the Digital Firm 22.

  • Ask managers to describe their most important resources and they'll list money, equipment, materials, and people not necessarily in that order.
  • It's very unusual for managers to consider information an important resource, and yet it is.
  • As electronic business and electronic commerce grow in popularity and more firms digitize their operations, having useful information is becoming even more important to the global business community.

Why Information Systems Matter 23. WHY INFORMATION SYSTEMS? Management Information Systems Chapter 1 Managing the Digital Firm

  • Capital management
  • Foundation of doing business
  • Productivity
  • Strategic opportunity and advantage

Why Information Systems MatterThere are four reasons why IT makes a difference to the success of a business: 24. Management Information Systems Chapter 1 Managing the Digital Firm

  • IT is the largest single component of capital investment in the United States.
  • About $1.8 trillion is spent each year by American businesses.
  • Managers and business students need to know how to invest this capital wisely.
  • The success of your business in the future may well depend on how you make IT investment decisions.

Capital Management:WHY INFORMATION SYSTEMS? 25. Management Information Systems Chapter 1 Managing the Digital Firm Information Technology Capital InvestmentWHY INFORMATION SYSTEMS? Source:Based on the data in U.S. Department of Commerce, Bureau of Economic Analysis,National Income and Product Accounts , Tables 5.2 and 5.8, 2004. Figure 1-1 26. Management Information Systems Chapter 1 Managing the Digital Firm

  • Most businesses today could not operate without extensive use of information systems and technologies.
  • there are very few businesses and organizations that do not currently use some form of information technology
  • IT can increase market share.
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