An Islamic Perspective of Organizational Controls and Performance Evaluation Mawdudur Rahman and Muhammad Al-Buraey An organizational performance evaluation is one part of a larger management control process involving complex relationships between var- iables at the social, the organizational, and the individual levels. The philosophy, criteria, and methods used in performance evaluation vary greatly between different social and organizational cultures. In this paper, we address the issue from the perspective of a specific religion,’ Islam, and the culture which it has created, Islamic culture (IC), and compare it with a secular culture (SC). Improvement and effectiveness in secular or- ganizations (SO) are driven by economic considerations: while Islamic organizations (10)3 are required to look beyond such considerations. The supremacy of economic considerations limits an SO’S vision to thme ma- terialistic aspects which provide the domain for deriving individual, social, and organizational goals and, at some point, everything must add up to dollars and cents. An SO also derives transitory goals from economic con- siderations, for its organizational process emphasizes utilitarian and objec- tive principles which state that profit maximization (or optimization4) is Mawdudm Rabmau is a pmfesor of Bccwntltl& * Suffolk Univ-, Bostoa, Massachusetts. Muhammad Al-Buraey is an sssoCiate prof- at the College of J n m Management, King FahdUnivedy of PetmleumandMbmk, Dhainan, SaudiArabia ’Ihe authorsthaukMuham- mad Shahid al Islam and Usama Othman of KFWM for their comments on an earlier draft. ‘The concept of religion in Islam is different from its usual meaning, for Islam is con- sidered a d%, a term signifying a complete way of lie. % a comparative study of long-mnge lanning in America, Japan, and England, Kono showed that out of Ween basic goals, %e top twelve are related to the profa or eco- nomic interests of the companies surveyed. Social policy goals are at the bottom (16 percent of the response). Toyohiro Kono, ”Long Range Planning of U.K. and Japanese Corporations: A Comparative Study,” Long Range Planning 17, no. 2 (April 1984): 58-76. 3An Islamic organization is defined as an economic organization that subscribes com- pletely to the principles of the Qur’an and Sunnah. It is questionable whether such an or- ganization exlsts at the present time in the contemporary economic environment. ‘Herbert Simon, Administrative Behavior. 3d ed. (New York The Free Press, 1976), 272. 500 The American Journal of Islamic Social Sciences possible and also provides the criteria by which to measure success. In an 10, utilitarian objectives are allayed by spiritual needs, where the ideal is “reasonable profit,” and where there are sanctions against excessive profits. By definition, an organization is a purposive human system with pur- poses and goals which organizes and ptocesses material and human re- somes for the generation of output. For an SO, output is determined by social and economic goods and services, and a system’s success is mea- sured by its output’s quality and cost efficiency. The system’s reward is the profit earned. Most of its output and reward measures are necessarily quantitative and extrinsic in natute. An individual is, like any other part of that system, a supportive element vis-his the production of goods and services. Thus the individual is part of a process driven by economic and quantitative criteria of success, one which has no room for hisher own moral and ethical standards. In other words, religious standards play no formal role in the SO management process.’ This paper is an attempt to develop and use a framework of control and evaluation based upon Islamic principles. Assumptions and Axioms The paper is based on the following assumptions and axioms: 1. 2. 3. 4. 5. 6. An Islamic organization is one that subscribes to all principles found in the Qur’an and the Sunnah. An individual is a spiritual entity with guided rationality and an unlimited potential for knowledge. An individual is not only an economic entity with bounded ration- ality, as assumed in a secular culture. Each outcome has both spiritual (intrinsic) and material (extrinsic) contents. Relationships among effort, ability, and outcome include moral There is no information asymmetry between God and the individual, in the sense that the individual can know more than God, for God has perfect knowledge of everything, while the individual does not. questions. ’Religions play a vital role in the life of most people, despite its official discourage- ment and repression in various countries. Most people subscribe to one particular faith. A person brmgs hk/her religious beliefs and values to the work place, although they are not formally discussed or considered relevant to organizational controls. From a mana e ment point of view, as opposed to a strictly legal one which allows no discrimination, I& ferences in religious faith should be viewed as being just as important as differences in race, sex, color, and social class, for it affects how a person apprmhes his/her job. Rahman and Al-Buraey: Organizational Controls and Performance Evaluation 501 The rest of this paper will deal with an Islamic framework of organi- zational controls; motivation and performance evaluation; organizational controls, effectiveness, and performance; and performance appraisal sys- tems. It will end with a summary and a conclusion. An Islamic Framework of Organizational Controls The Islamic concept of an organization is more profound than that found in a materialistic SO environment. It begins with the fundamental principle that everything has been created by God and worships Him (Qur’an 5156, 17:44). In order to satisfy this requirement, any human organization, be it economic or otherwise, must conform to the principles of the Qur’an and the Sunnah and must have as its ultimate goal the wor- ship of God. This implies that any human act done in conformity with the teaching of God and done for His sake is considered an act of worship. It is not always possible to visualize the comprehensiveness of the Islamic principle in a systematic manner without a framework of analysis. How is the worship of God intertwined with an economic organization’s (or an individual’s) goals and activities? To illustrate this difficult and complex relationship by way of a hierarchical structure, we used a re- cently developed analytical tool known as the Analytical Hierarchy Pro- cess (Saaty 1988). Figure 1 (on the following page) shows the organizational and/or individual goals and outcome hierarchy from an Islamic perspective. An I 0 is a system whose main function is to develop an individual and a collective morality and spirituality in conjunction with the produc- tion of the goods and setvices needed to sustain growth and advancement for the creations of God. Economic considerations are guided by the moral and ethical standards found in the Qur’an and the Sunnah that lead to an individual’s spiritual growth. Islam emphasizes spiritual develop ment in all good deeds by any individual. In fact, it places a greater em- phasis on the spiritual value of work than it does on the materialistic out- come (Qur’an 27:77). Evaluation methods and criteria developed within the proposed frame- work illustrated in figure 1 will conform to the prescriptions of ‘ibduh (worship). The hierarchy’s elements are: a) focus, b) criteria, c) sub- criteria, d) factors, and e) outcome. As shown in figure 1, at the top is the worship of God (the focus) and at the bottom is the outcome desired by an organization or an individual: power, security, and peace. Each element 6AHP is used only to develop the hierarchy and not to evaluate the alternatives. 502 The American Journal of Islamic Social Sciences FOCUS: CRITERIA: SUBCRI’IERIA: worship of God Lil Level 1: Teachings from Authority of God theQur’an ObediencetoGod Level 2: Sunnah of the Obedience to the Prophet Prophet Level3: Guidancefrom Obedienceto kder/Rder h&r/Rder I Level 1: ‘Ad K k ‘ A d ‘Amm Governing the Governing the Self Followers I Level 1.1: Supportive Participative I I Level 1: Rewards Level 2: I OUTCOMES: Power punishments Forgiveness Security Peace Figure 1: Organizational and/or Individual Goals and Outcome Hier- archy: An Islamic Perspective (based on Qur’an 2455). Rahman and A l - B a y : Organizational Controls and Perfomance Evaluation 503 on a given level is connected with each element of the following level. For example, on Criteria: Level 1, the entry "Teachings from the Qur'an'' is connected to Level 2's "Sunnah of the hphet" as well as to its "Obe- dience of the Prophet," while the entry for Level 1, "Authority of God/obedience to God," is also cmected to these same two entries on Level 2. The two entries on Criteria: Level 1, however, are not connected to each other. This connection hold true for all other levels and their en- tries. All criteria for evaluating performance are generated from the Qur'an and the Sunnah and follow the guidance of the leadership. The factors (i.e., deeds, equity, and so on) to which these criteria are applied have to flow from the hierarchy's upper levels. The outcomes have two levels: intermediary (in terms of reward and punishment) and long term (in terms of power and peace). The process shows that these outcomes are possible only through the practice of Islamic principles. As all human beings are created ubun al rnakhlzlqdt (the best of creation) nanimous "Being," the path of the hierarchy needs to be repiicated in all endeavors and accepted as the only way to success. Humanity is God's vicegerent (Qur'an 2:30). This copies the principal- agent relationship from the agency theory perspective. While information asymmetry is assumed in the agency model, as the principal does not have access to all of the agent's information, no such information asymmetry is assumed in God's agency relationships with an individual, for God has perfect knowledge. A true Muslim believes that all of h.k/hez actions are known and measured and that rewards and punishments will be distributed by God regardless of the deed's size (Qur'an 99:7-8). Thus, to achieve success means to implement the directives of the Qur'an and the Sunnah. For an organization to achieve success according to God's criteria, its rules, roles, and elationships must be defined within the pt.oposed frame- work. When this is achieved, the individual will not only participate in the production of goods and seMces for economic ends, but will also perform 'ibdduh (worship) and enhance tuqwd (purity and piousness). The framework will be used throughout this paper as a reference while discussing different aspects of control and evaluation. However, it should be noted that the hierarchy's factors were derived from the Qur'an and the Sunnah and do represent a complete list. For example, good deeds are always rewarded and unlawful deeds, while punishable, may be forgiven; equity in giving rewards is urged, and one has to work accord- ing to his/her ability. God repeatedly mentions good deeds, efforts, faith, rewards, punishments, equity, dedication, forgiveness, and obligations 29:7,58). When these factors a= mlized in organizational and individual ( Q ~ * a n 17:70; 95~4-6) and are to represent God's endless and mag- (Qur'an 99~6-8; 2012, 15; 21:94; 456-9, 69, 85, 95, 110-2; 13~30, 49; 504 The American Journal of Islamic Social Sciences life, power, security, and peace will increase (Qur’an 2455). Both the Qur’an and the Sunnah stress the importance of leadership. The Prophet recommended that leaders impose no hardships on followers and that their leadership style be relationship-oriented and supportive. In an 10, the system’s success depends on the leader’s behavior. Each per- son must fulfill his/her duties to God and to hifier constituency (Qur’an 459; 51). This analysis shows that the guidance used by an individual to perform hifier actions and thoughts within an organization’s frame- work comes from the Qur’an and the Sunnah. This is the starting point for designing a control system rooted in Islamic principles. Motivation and Performance Evaluation In studies of the relationship between motivation and work, scholars have focused on such variables as needs, performance, rewards, punish- ments, satisfaction, and expectations.’ Performance appraisal is related to an individual’s motivation to work through sanctions and tewards. In an appraisal system, an organizational unit or an individual is periodically evaluated in terms of actual output as compared to target output and input to determine the distribution of rewards or the imposition of penalties. For example, a manager is given a sales quota to fulfill during a given month. At the end of the month, the actual sales will be compared with the quota. The individual is free to fulfill the quota any way he/she can as long as the company’s rules are not violated. In an SO, it is assumed that an indi- vidual is an economic and rational person with bounded rationality’ (i.e., hisher ability to make and carry out a correct decision is limited). In other words, the organization/individual can only address the issues of a p praisal, tewards, and development in a partial manner, and that the ‘driving force is profit maximization goals. This sometimes creates problems, such as fraud, misappropriation, falsification, and theft, all of which are unde- sirable elements of organizational behavior. As emphasized earlier, Islam views an individual as having both eco- omic and spiritual goals, as a spiritual entity whose rationality’ is guided by the Qur’an and the Sunnah, and as being engaged in satisfying rather ‘See the classic book of V. M . Vroom, Work und Motivation (New York Wiley, ’ 1976). ‘See Simon, Ahinistrative Behavior, 38-41. 9An individual derives his/her power of rationality accodig to his/her practice of Islam and, to him/her, God is the source of all knowledge. In that sense, an individual has an unlimited knowledge potential. R h a n and Al-Buraey: Organizational Controls and Performance Evaluation 505 than maximizing economic goals ( w a n 9:34). There is a need to realize the superiority of the soul (etemal) over the body (temporal). In pursuing hisher livelihood, an individual must simultaneously fulfill hisbet physi- cal and spiritual needs. Therefore an 10’s evaluation criteria must ttan- scend an individual’s economic and physical needs. The extant litetatute on motivation does not consider the individual a spiritual person and ignores hisher spiritual needs. As an example, we examined Lawler’s Expectancy Model, which is based on a commonly used motivation theory. Ability II Motivation=. Effort =. Performance=. Outcome (Rewards) Figure 2: Lawlet Expectancy Modell’ According to the Lawler Expectancy Model, an individual’s performance is related to the expected outcome which, in turn, influences him/her to exert effort according to hi#er ability. The model has been tested empirically by many scholars, some of whom concluded that goals influenced performance as well as expectancy (Garland 1984; Steers and Porter 1974; Matsui et al. 1981). It is observed that the setting of harder goals with the intent of building higher expectations maximizes per- fotmance (Garland 1984). It may be observed that motivation is both extrinsic and intrinsic, and that emphasizing extrinsic rewards may reduce intrinsic motivation which, in tum, may reduce the subsequent inclination to perform that activity (Tang and Baumeister 1984). Many scholars have recommended placing less emphasis on extrinsic rewards and have observed that the evaluation of a task depends on the individual’s interpretation and personal values. The analysis of the rela- tionships among motivation, effort, ability, and outcome does not include “See David A. Nadler and Edward E. Lawler ID, ”Motivation: A Diagnostic A p proach,” in J. Richard Hackman, Edward Lawler III, and L. W. Porter, eds., Perspectives on Behavior in Organizations (New York McGraw-Hill, 1977). 506 The American Journal of Islamic Social Sciences moral questions. In other words, it is implicitly accepted that relation- ships between effort and ability, when seen thtough a utilitaritarian cri- tique, will not raise any m o d questions, for an individual will always try to receive more by giving less. However, from an ethical critique, an in- dividual must earn his/her income through honest effort, which is a very important criterion in an 10. In summary, the Islamic model directs our attention to the relationships among motivation, effort, ability, and ex- pected rewards which are, in turn, related to evaluation and performance. The following table compares an SO and an I0 based on these factors: No honest effort pres- Honest effort a must. Gen- supposed. May circum- uine effort a precondition vent. for permissible income. Limitation of physical and intellectual ability. Physical and intellectual ability do mt limit spihal gains. I one dimension: { TWO dimensions: economic economic. and spiritual. Material and economic: Unlimited rewad here and accrues from within an in hereafter for material and I organization. I spiritual satisfaction. A Table 1: Comparison of Factors in Lawler’s Model from SO and I 0 Perspectives. It may be n o d that the factors present in table 1 are already in- cluded in figure 1 as factors and outcomes. This model, when compared with figure 1, offers only a limited view of an individual’s motivation to work, for it ignores many aspects of an individual’s concern: the moral and ethical aspects of motivation, faith, a sense of obligation, dedication, and forgiveness. Furthermore, its perspective is limited to the individual level arid does not extend to the upper levels of the leadership. It also does not transcend the materialistic bounds and thus does not enter the Rahman and Al-Buraey: Organizational Controls and Pedomauce Evaluation 507 spirituality of God's magnanimous presence." In figme 3, some of our proposed model's factors have been incorporated. Ability Motivation = .Effort = .Performance =. Outcome Faith Ability Equity Reward Dedication Conflict Punishment Faith Deeds Forgiveness Obligation Faith Figure 3: Modified Expectancy Model (no information asymmetry be- tween God and His agents). Organizational Controls, Effectiveness, and Performance Performance is one aspect of organizational effectiveness. An organi- zation tends to focus on those performance items that will increase its ef- fectiveness (i.e., its responsiveness to the preferences of its internal or ex- ternal constituents). BY htxsfying its constituents' prefemces, an organi- zation is legitimized by society and gains its license to exist (Ravlin and Goodman 1984). Since the leadership both inside and outside the organi- zation is an important constituency, effective organizational control is de- fined in terms of Ieademhip preferences and underscores the importance of the leadership's quality and value system. To design an appraisal sys- tem based on Islamic principles, the organizational leadership and its sc+ cia1 environment must be positively oriented towards such a system. Organizational effectiveness is evaluated in both subjective and ob- jective terms, for organizational and individual performance cover quan- tifiable and nonquantifiable areas. Researchers support the subjective evaluation of an organization, a technique which is dependent on "values" but remains inconclusive when determining whose values are to be used (Campbell 1977; Keeley 1984). This crisis of "values" sometimes leads to disarray and discontinuity in an SO'S evaluation process. Such a prob- "In Western societies, though God's esence is recognizedin pemonal life and poli- tical speeches, its influence has still not k n acknowIedged in work situations. 508 Control hierarchy Social control Administrative control Self-control The American Journal of Islamic Social Sciences Control agent Society Leader Individual lem does not arise in an I 0 for, as shown in figure 1, its values are those found in the Qur’an and the Sunnah. This crisis in values may also influence the leaders’ “interpretive scheme.” An organization’s structure, of which the appraisal system is one component, is influenced by the leaders’ “interpretive schemes” and their uses (Bartunek 1982), as shown in the subcriteria levels in figure 1. Thus the leaders’ values a important determinants of an organization’s criteria and appraisal method systems. The validity of this can be traced back to the administrations of the early Muslim leaders. The canons of Islamic management have always been a) buqcq Allah (HA) (the rights of Allah) and b) buqziq al ‘ibdd (HI) (the rights of the ~orshippers).’~ These rights have to be recognized and implemented by the leader in every aspect of hisher administration. Under the rule of the first four Muslim rulers,L3 HA and HI were prac- ticed very diligently. They are also complementary, for when one per- forms HA, he/she will also perform HI. ‘Umar and ‘Umar ibn ‘Abd a1 ‘A& (d 720 AH) left excellent examples of Islamic administrative performance in this. regard (a1 Tamawi 1967; Shibli Nomani 1957). To perform HA and HI, the Prophet and the above-mentioned rulers emphasized a three-level control hierarchy in their administrations as shown in table 2 below: Table 2: Control Hierarchy as Practiced by Islamic Rulers. According to ‘Ali, the qualities of people are very important in control. He therefore recommended the appointment of honest, intelligent, LzHI in a broader sense means the rights of all of God‘s creations on any human being. A fair evaluation is the right of an employee in au organization. I3The early leaders referred to here are the four immediate successors to the Prophet: Abfi Bakr, ‘Umar, ‘Uthmiin, and ‘Ali. For more information about their admhktmtion, see Muhammad A. Al-Buraey, Administrative Development: An Islamic Perspectiw (h- don: Kegan Paul International, 1988), 247-57. Rahman and Al-Buraey: Organizational Controls and Performance Evaluation 509 and active people to leadership positions (Al-Bumey 1988).14 This hier- archy of control practiced fourteen centuries ago by Muslim adrninistra- tors is now recognized by contemporary researchers in organization con- trol (Hopwood 1976). What d t s from this analysis is that control sys- tems (i.e., performance appraisal) in an organization cannot be separated from the society’s culture, values, norms, leaders, and individuals. If an I0 is to practice an appraisal system based on the Shari‘ah, it must be supported by the surrounding Islamic culture, social values, 0rganizati0~1 leaders, and employees. Performance Appraisal Systems In an SO, there are many approaches to performance appraisal, and few agree with the effectiveness of the traditional performance appraisal (Loo 1989; Moss 1989; Nicolay 1989). For example, Apt (1991) sug- gested that an employee’s job be broken down into job factors, evaluation standards, and performance descriptors, job factors defined here as the performance characteristics with which evaluation standards and per- formance descriptors must relate. Emphasis is also placed on the effective communication of the appraisal system and feedback (Sahll990; Gomez- Mejia 1990). However, authors rarely agree on the usefulness of per- formance appraisal in improving employee performance. It has been observed that the= ate intentional inaccuracies in an SO’S performance appraisal, and the ethics of such deliberate manipulation has been criti- cized by many (Longerneck 1990). In spite of its apparent weaknesses, the traditional appraisal system is still the most widely used. In a survey of 324 California employers, Locher and Tee1 (1988) observed that a) most organizations have formal performance appraisal programs; b) rating scales are widely used; c) most organizations use a combination of rating and narrative appraisals; d) most appraisals are conducted by the employee’s supervisors; e) almost all employees are informed of the results of their appraisals; and 9 ap- praisals are most frequently used for compensation, performance enhance- ment, and feedback to employees. The criteria and methods used in performance evaluation vary widely. The criteria and methods used in conducting a performance appraisal in an SO generally pertain to the following five areas: a) objectives or goals are defined in quantitative terms (i.e., the nature of the job, units pro- duced, hours of service rendered, amount of profit earned, number of pro- “See also Advices of Ali for Statesmen (Ankara, Turkey: Seha Mesriyat Merkez, n.d.). 510 The American Journal of Islamic Social Sciences jects completed, sales figures achieved, quota targets achieved, patients visited, customers pmssed , etc.) and nonquantitative terms (behavior in the work place, collegiality, habits, concern for the company, service to the company, service to the community, etc.) and are decided in advance; b) objectives are decided from the top, jointly set by the supervisor and the employee or by the employee; c) evaluations are performed either by a group composed of the supervisor, manager, and/or personnel director, by a group composed of supervisors, by one’s peers, or by the employee; d) feedback is provided or the evaluation is kept confidential; and e) re- wards and punishments are either linked or not linked with performance. The appraisal criteria used by an I0 must conform to the model por- trayed in figure 1. There are certain preconditions to an I 0 appraisal sys- tem, such as a) managers must always be conscious and aware of God’s names and attributes (especially those related to justice, all-hearing, and all-seeing); b) there must be a conducive social and organizational cli- mate, which involves leaders being devoted to Islam and workers valuing both spiritual and economic outcomes; c) a supportive and participative leadership, one which knows the relevant Islamic principles, to set the target; d) the target(s) should be achievable and conform to the Qur’an and the Sunnah (i.e., controlling COGfs or increasing sales only through Islamically acceptable means); e) performance should also include pre- scribed religious duties for the satisfaction of spiritual needs. This can be compared with the physical fitness requirements of certain organizations; and f) the outcome should include forgiveness, rewards, and punishments. While the reward-punishment construct is a classical economic paradigm, forgiveness is an attribute of supportive leadership behavior that is used subjectively in many evaluative situations. Summary and Conclusion Organizational performance evaluation, as a component of organi- zational control, involves complex relationships of variables at the social, organizational, and individual levels. Thus there are fundamental differ- ences in the individual, organizational, and social perspectives of Islamic and secular organizations. The driving force in an SO is a worker’s economic interest, while a worker in an I0 goes beyond the economic outcome and actively works for intrinsic rewards as a measure of spiritual advancement. A Muslim seeks two types of rewards from his/her good deeds: material and spiri- tual (Qur’an 2:201). The framework proposed here gives a hierarchical view of the relationships between an employee’s work and its outcome and his/her worship of God. In Islam, there is no conflict between the Rahman and Al-Buraey: Organizational Controls and Perfonnance Evaluation 5 11 worship of God and the doing of good deeds. In fact, if the principles of the Shari‘ah are used, it will become apparent that there is a systematic link between the different aspects and factors of organizational control. In an SO, individual motivation is limited to the reward/punishment paradigm in the classical economic sense, according to which an indi- vidual is an actor with bounded rationality and limited physical and spiri- tual ability. In an 10, however, an individual does not seek economic re- ward in the classical sense only, as hisher intrinsic and spiritual rewards are included in his/her good deeds. This is an important factor in the indi- vidual’s motivation to perform hisfier contractual obligations to the best of hisher ability as cofnmanded in the Qur’an and the Sunnah, which describe good deeds as ‘ikduh-a form of prayer. Scholars agree that organizational controls promote dysfunctional be- havior at the individual, organizational, and social levels. This might be due to the absence of spiritual content and the absence of unity in the in- dividual actor’s values. When faced with organizational controls, an SO encounters a crisis of values because of differences in the participants’ perspectives and the absence of a spiritual context. In contrast, an I 0 derives its values from the Qur’an and the Sunnah and therefore works within the necessary spiritual context and can avoid a crisis of values (i.e., “good“ and “bad” values are determined only by Gad). This analysis questions the merit of the traditional performance ap- praisal system on the grounds of its limitations. The traditional appraisal system considers the individual to be an economic being and ignores hifier spiritual being. It also does not focus on the leaders’ responsibility to pmvide supportive and participative leadership and then to link this with the employees’ performance. Furthermore, while forgiveness is widely used at various degrees in the traditional appraisal system, it is never fonnally recognized as a part of the evaluation process. Thus an I 0 needs to practice a different appraisal system or systems. As discussed earlier, SO appraisal systems do not recognize many of the criteria es- sential to the Islamic faith and culture (Seddon 1987). Therefore, repli- cating an SO appraisal system may actually m counter to the goals of an Islamic organization. An Islamic organization should consider a new order of performance evaluation, one which corresponds to Islamic faith, culture, and belief at the individual, organizational, and social levels. In this regard, the following suggestions are made: 1. Performance should be defined according to I 0 perspectives. 2. Self-evaluation (Barnhart 1987) for a Muslim should be of primary importance and should be encouraged along with an organizational 512 3. 4. 5. The American Journal of Islamic Social Sciences evaluation. As a Muslim is told by the Qur’an to fulfill hisher obli- gations, he/she must perform hisher work according to the contract. Performance evaluations should include those factors considered rele- vant by the Qur’an and the Sunnah. The factors mentioned in figure 1 may be considered for adoption. Each of them may be expanded in measurable terms and new factors may be included. Two outcome levels should be Considered, and forgiveness should be for- mally included in the outcome struchm. Outcomes in level 1 m more ma- terial in nature, while outcomes in level 2 are mote spiritual in nature. 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