Islamic Quality Management for Zakat Institution toward Strength
of National Welfare
Muhammad Zaki
High Institute of Islamic Studies (STAI) Yasni Muara Bungo, Jambi, Indonesia
Keywords: Quality, Management, Zakat, Welfare.
Abstract: Zakat which is one of Muslim’s obligations an important function in modern public finance for the welfare
of society. It’s an instrument of poverty alleviation, eliminating unemployment, and liberating injustice of
distribution, which will ultimately create prosperity of the society. Thus, a qualified zakat management is very
important for the welfare of Muslims and the welfare of Indonesian society as a whole. Management of zakat
is part of modern management, as it consists of planning, implementation, controlling, reporting and
accountability activities, and should be based on the Islamic Sharia. Therefore, to construct an Islamic quality
management model is very important, especially to be applied in the management of zakat in Indonesia as
well as in other parts of the world. This research uses qualitative method, through literature study approach
by using available data. The aim of research is to explain an ideal Islamic quality management which can be
implemented in zakat’s institution toward strength of national welfare. The research shows that Islamic values
should be integrated into the quality management of zakat institutions to optimize its management, and remain
based on Islamic sharia to realize the welfare of society.
1 INTRODUCTION
Zakat as a fundamental obligation has a specific use
which is according to rule that has been regulated by
the shariah. Besides has a worship purpose, zakat also
has aims to realize social functions, economic and
capital in Islamic societies (Sahhatih, 2007). The
fulfillment of zakat is a duty as a consequence of
obedience to the commands of Allah SWT, and its
utilization can solve the economic problems faced by
society, especially Muslim in Indonesia.
These realities make the institution of zakat has
two institutional functions at once, as an Islamic
financial institution, because it operates in the
activities of receiving, collecting and distributing
zakat funds for Muslims, and as a non-governmental
organization (Bariyah, 2010). Both functions must
run optimally and based on shariah principles. Dual
zakat institutional functions demand the optimization
of its functions and roles, as well as the revitalization
of zakat managerial institutions to be better and have
a good quality of management, in order to gain the
trust of public and can reach the achievement of the
objectives of the institution which will lead to the
realization of good governance institutions.
As an institution that has the dimension of
worship and manages the funds of the Muslims
derived from the zakat payer (muzakki), the zakat
institutions are not only required to have good
governance but also must be based on the values and
compiled to shariah principles (Wibisono, 2015).
Based on the description above, the construction
and development of Islamic quality management
which is applied to the zakat institution is a necessity.
This construction is necessary in order to build,
develop and establish the existence of Islamic
economics, especially in the field of management
through continuous research.
This research uses the qualitative method, through
literature study approach using available data, which
published by previous research’s. The study aims is
to explain the ideal Islamic quality management
pattern for strengthening the existence of zakat’s
institution, while still observing the values of shariah.
588
Zaki, M.
Islamic Quality Management for Zakat Institution toward Strength of National Welfare.
In Proceedings of the 1st International Conference on Islamic Economics, Business, and Philanthropy (ICIEBP 2017) - Transforming Islamic Economy and Societies, pages 588-594
ISBN: 978-989-758-315-5
Copyright © 2018 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved

2 MANAGEMENT AND QUALITY
IN ISLAMIC PERSPECTIVE
2.1 Management
The Islamic management thinking comes from the
Holy Quran texts and the Sunnah. In addition, this is
also based on the values of humanity that developed
in society at that time. It's contrary to conventional
management, this system which is only oriented
toward benefits achievement. Conventional
management tries to combine with others value, but
in its journey is incapable, because it is not derived
from syariah instruction, which is perfect,
comprehensive and full of truth (Sinn, 2012). The
term of management in Arabic is known by the term
al-idarah, and it’s not found in the Quran nor in the
Sunnah of the Messenger of Allah. This shows that
the use of the term al-idarah in Islam is something
new (al-Karmy, 2006).
In surah ash-Shaff verse 4 Allah informs that He
loves those who struggle in the way of neatly and in
synergy like a well-structured building. In his
commentary, al-Qurthubi explained that the meaning
of that verse is neat of obligation in struggling in the
way of Allah. In the interpretation of al-Munir,
Wahbah Al-Zuhaily defines the fighting in the way of
Allah as all works aimed at upholding the religion of
Allah. Thus, this verse shows that the necessity of
applying management in all works to produce
maximum performance (Abdullah, 2012). Here is an
overview of the shariah management model based on
the Holy Quran and Sunnah values (Abbasi, 2010).
Figure 1: Model of Islamic management.
Management in Islam has two important
elements, subject, and an object. The subject is the
actor or manager, while the object is a management
action consisting of the organization, human
resources, funds, operations and production,
marketing and so on, and has four main functions of
planning, organizing, and controlling.
The characteristics of shariah management are:
 Shariah management is a theory that is
concerned and related to the social philosophy
of Muslim societies and relates to morals or
values of social ethics held by Muslim society
(social ethical variables).
 Shariah management concentrates on economic
variables and material motives and works to
fulfill the physiological needs of individuals
(material-economic variables).
 Shariah management takes care of
humanitarian, spiritual values and glorifies
people to participate in management activities-
glorifying all the intellectual potential,
competence and spiritual dimension
(humanitarian variables).
 Shariah management concentrates on the system
and determines responsibility and authority,
respects official power and organization,
respects organizational structure, and demands
compliance with virtues (behavioral and
systemic variables) (Sinn, 2012).
The characteristics of shariah management are:
management based on noble character (akhlakul
karimah); open management; democratic
management; scientific management; Teamwork
management (ta'awun); and Justice Management.
While the objectives of shariah management are:
worshipping Allah Almighty; Implementing shariah
law; prospering the earth; upholding the caliphate;
and to realize a just society prosperous (Sinn, 2012).
Basically, the teachings of Islam which contained
in the Quran, Sunnah and Ijma have many values
about the life of all in directing and orderly. The
worship in Islam is a reflection of the implementation
of management. The theories and management
concepts used today are not new in Islam. The
management has existed at least when Allah creating
nature and its contents. Shariah values contained in
Islamic management will align the management
orientation that contains four components, namely:
target; growth; sustainability; and blessings (Zaenal,
2013).
2.2 Quality
The commitment to quality is rooted in the
experience, research and writing of several pioneers
and leaders of quality movements such as W.
Edwards Deming, Joseph M. Juran, Ahmad V,
Feigenbaum, Philip B Crosby, Kaoru Ishikawa
Shigeo Shingo and Taichi Ohno since the 1950s. The
Islamic Quality Management for Zakat Institution toward Strength of National Welfare
589

1960s, and 1970s. Thus, the concept of quality as the
development of management has been around for
quite some 50 years.
The term of quality was originally used by the
company as an effort to improve product quality in
order to provide satisfaction for consumers, but its use
now is extended to various institutions, such as
government agencies, educational institutions, even
non-profit organizations.
Islam as a perfect religion also has own rule on
quality in all things as Allah says in the Quran surah
an-Naml verse 88:
“Thou sees the mountains and thinkest them firmly
fixed: But they shall pass away as the clouds pass
away: (such is) the artistry of Allah, Who disposes of
all things in perfect order: for He is Well acquainted
with all that ye do” (Ali, 1938).
In addition to the Quran verse, the sunnah of the
Prophet Muhammad also many who emphasize the
importance to maintain the quality of a job, as his
words:
“From the Prophet said: Allah Almighty. Very loving
people who if doing something work, done in an itqan
(fast, directional, clear and complete)”.
In Islam perspective, everything must be done in
a neat, correct, meaningfull, direct, clear, complete
and in orderly. It is aimed at getting the best results
and quality in every charity and action in all activities,
both individuals, and activities run by an organization
or institution, especially if the agency works to
manage the mandate of the ummah, as the zakat’s
institution that functions as the collecting and
distributing institution of zakat. This word is closely
related to the meaning of management in a practical
sense.
In Arabic perspective, the term quality is
commensurate with the term jawdah, which means to
give the best or perfect result, both in words and
deeds, consumers (asy-Syamri, 2015). In addition to
the term jawdah, the words ihsan and itqan in Arabic
also have similar meanings to quality (Mus’ab, 2013).
Some of the principles in Islam that show the high
concern of Islam on quality are: system life cycle;
collaboration; supervision and accountability;
science; knowledge; return; compettition;
supervisory and leadership; integrity (Najm, 2014).
2.3 Islamic Quality Management
The quality of management is a philosophy of
continuous improvement, which can provide a set of
practical tools for each institution in fulfilling the
needs, desires, and expectations of its customers,
current and for the future, as well as a mindset as well
as practical activity (Sallis, 2010).
Al-Sheikh in his book Total Quality in Islam, as
stated by Maqbouleh M. Hammoudeh, concludes that
there are at least five principles that must exist in the
quality of management in order to reach the
perfection of work:
 Integration among all aspects of work (the
objectives and techniques).
 Good work is not only doing good but avoiding
the bad and keeping self and others safe from
harm as well.
 Good work should be both ethical and
successful.
 The utility of work, which means that any work
should benefit the worker, such as welfare, a
good social life and health.
 Preparation and training to do good work, which
requires effort and knowledge (Hammoudeh,
2012).
While Amir Mohammad Nashrullah, revealed
four pillars of TQM-based on shariah: tawheed;
risalah; khilafah; and Hereafter (Nashrullah, 2007).
In the same paper, Nashrullah describes 10 principles
of TQM based on shariah as in the table below:
Table 1: Islamic attributes to TQM.
No
Islamic Attributes to TQM
1
Commitment to the cause and quality
performance
2
Knowledge of the basics of Islam and the
mundane affairs
3
Integrity of the management that includes honest
and sincerity
4
Contingency Planning in management of any
affairs of life
5
Coping with change with dynamism and
innovative abilities
6
Role model that is needed in managing a business
organization
7
Motivating the people to achieve organizational
goal
8
Mutual consultation in the decision making
process of any organization which is called
Shura in Islam
9
Justice to all considered in business and
organization
10
Brotherhood that includes relationship between
the management and the employees
The concept of quality of management in
Indonesia began to be introduced in the 1980s and
now it's quite popular, especially in the private sector,
among others, with the program ISO 9000.
ICIEBP 2017 - 1st International Conference on Islamic Economics, Business and Philanthropy
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3 CONSTRUCTION OF QUALITY
MANAGEMENT FOR ZAKAT
INSTITUTION IN INDONESIA
Along with the growing organization of zakat
institutions, it needs a common service standard
among the various activities, branches and managing
employees. On this basis, there arises the need for a
service standard that can be referred to as a reference.
In addition, the improvement of service quality is
closely related to the level of public trust to the zakat
institution. On the other hand, externally competition
between zakat management organizations in
attracting public sympathy is also high. Therefore, it
is necessary to improve the quality of organizational
management that is oriented to the improvement of
performance, as well as the improvement of service
to the society. Therefore, there is an impetus to
implement quality management in zakat’s institutions
to meet the perceived needs.
The Quality of management is the whole process
in the organization to meet the quality standards that
have been set as satisfying standards for all
stakeholders (Juwaini, 2015). Related to quality
management, experts have also explained that the
quality management integrated (total quality
management). In some literature, some authors
equated the notion of quality management with
integrated quality management.
The concept of quality in Islamic perspective is
comprehensive, as a process that provides positive
change toward the best performance or "excellent" for
all types of businesses, where the ultimate goal is to
improve the quality of human life (Hassan, 2005).
This is a long-term process through continuous
improvement throughout the process. The Quality
management in Islam does not mean producing only
quality products for consumers to be satisfied, but
moreover, it’s also covers the whole aspects of the
quality of individuals, organizations, and
communities, so that the results can be beneficial for
the welfare of all human beings. The purpose of a
syariah-based company or institution is to maximize
both profits while success in the world and in the
hereafter. In Islam, the ability to compete is not used
to exploit others, but rather to help each other in
improving the quality of life.
3.1 Basic Principles of Zakat
Management in Syariah
Perspective
The management of zakat in Islam has at least four
principles: five pillars of Islam; moral, institution;
and management (Sudewo, 2004).
3.3.1 Principle of Pillars of Islam
Functionally, the pillars of Islam can be distinguished
from two types of personal and community pillars.
The personal pillars include shahada, prayer, fasting,
and Hajj. While the pillars of society only one,
namely zakat. Rukun private can be said as
hablumminallah worship, while community pillars
referred to as hablummninannaas.
3.3.2 Moral Principles
In the management of zakat, morally the amil is
required to have several requirements. The properties
of such morality are: honest; amanah; sidiq;
responsible; fair; love; love to help; and patient.
3.3.3 Principle of Institution
Some of the institutional principles that should be
owned by zakat agencies to be trusted are: the right
figure; non-political; non-class; independent; and
neutral objective. There are some differences and
similarities between companies and institutions of
zakat. In terms of differences, corporations and zakat
institutions have very extreme differences. In terms
of products, the company produces goods or services,
while the product of zakat’s institutions is a value.
In terms of goals, companies seek profit, while
zakat’s institutions do not seek profit because the
purpose is established in order to overcome the
problem of poverty. The product of this company is
value-free, while the zakat institution program is
heavily loaded with value. The owner of the company
is a shareholder, while the zakah institution is owned
by stakeholders.
3.3.4 Principle of Management
Two management styles in the management of a
company are the style of management by the result
and the style of management by the process.
Management style orientation by result is very
stressed on the results. This style does not care about
the process and the impact it brings. This
management orientation to win the competition.
Islamic Quality Management for Zakat Institution toward Strength of National Welfare
591

Management by result suitable for the company
which oriented at profit only.
Management by process emphasizes the
importance of structuring the process. If the process
is good, then the entire infrastructure has been
implanted on the right track, and vice versa.
Basically, the management by the process is long-
term oriented and the greatest benefit will come back
to the company. With management by a process is
actually teaching to work in accordance with the
principles and the right process. The Management by
the process is appropriately used by zakat institutions.
The Value as the main foundation for zakat
institutions, because zakat’s institutions aim is to
empower the community. With management by a
process, the quality of zakat manager (‘amil) and
zakat receivers (mustahik) are enhanced and placed
on the proportion. With management by the process,
none of the parties are harmed and all rights are
upheld and guaranteed.
3.2 Basic Principles of Islamic Quality
Management in Zakat’s Institution
The Institutional management from an Islamic
perspective is a relatively new discourse, until now,
there has been no institutional management model
accepted by universal. In Islam, the concept of agency
management refers to a set of organizational
arrangements concerning the way an institution is
directed, organized, controlled, and supervised.
In Islam, the institutional governance model
design has its own unique features which distinctive
characteristics, when compared to Western concepts
such as Anglo-Saxon models and European models.
Overall, in Islam, the institutional management model
base refers to the epistemology of tawhid as well as
related syariah principles as well as shura processes
that indicate elements of a stakeholder-oriented
approach (Dusuki, 2015).
Tawhid refers to the recognition of God's unique
rights and the responsibilities of all stakeholders
before God. Shariah rules and principles involves the
adoption of a value-oriented system of interests. In
addition, the basic axioms in Islamic economics
formulated on the basis of the Quran and Sunnah, also
provide the philosophical foundations of governance
of Islamic model institutions. In the context of
management, shura provides the widest possible
participation of institutional stakeholders. Shariah
management adds value to the institutional
management framework by instilling transparency,
trust and credibility based on fundamental faith
(aqidah), Shariah (law), and ethics (morals). The
following are the basic principles of Islamic quality
management:
Figure 2: Quality management of zakat institution based
shariah.
Above figure shows that Islamic Quality
Management derived from the values of Islamic
management and quality. The implementation of this
values will create a good governance of institution for
achieving its goal as well as determined.
4 ZAKAT, QUALITY
MANAGEMENT AND
WELFARE
Zakat is one of the pillars of Islam demonstrates the
spirit of supporting a just economy, with emphasis on
redistribution mechanisms in overcoming various
economic and social disparities. Zakat is believed to
have an influence on the economy, either micro or
macroeconomics. The impact of this zakat can be
either positive, negative, or not having a significant
impact, and is influenced by many factors, especially
related to economic behavior of zakat receiver
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592

(mustahik) and relative to the zakat payer (muzakki)
(Bank Indonesia, 2016).
Zakat has undergone a full transformation of the
realm of charity into the realm of empowerment and
development of the people and the state. By collective
management, through Islamic quality management,
zakat has become an independent socio-economic
movement and allows for improved welfare. Zakat is
managed through good quality management, being
strategic in the context of increasing the utilization of
zakat as a socio-economic order. With a trustful and
efficient management, and based on shariah values,
zakat is transformed from individual piety to socio-
economic movement. Thus, zakat is getting closer
and effective with its main goal as an instrument of
poverty alleviation.
An effective zakat management system
accompanied by integrated community
empowerment management can lead to higher
welfare to the zakat reciever (mustahik), so that in
time will be able to move to reach the level of self-
giving as zakat payer (muzakki).
Figure 3: Circle of zakat obligation.
5 CONCLUSIONS
Islamic quality management is a set of the quality
control system of institutions based on Islamic values.
Zakat management as well as other public property
management has the same character and risks. Zakat
will have a positive impact on the economy if
managed with good organizational management.
Good management requires the role of effective
regulation and supervision, professional zakat
management organizations and institutional
management systems that support and have good
principles. Zakat management accompanied by a
quality approach will, in turn, contribute to the
sustainability and inclusiveness of the national
development program, which will ultimately bring
about the welfare of Muslims in particular and the
Indonesian people in general.
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