Abstract
This study highlights the managerial characteristics that can be fitted in the overall role of manager from conventional and Islamic perspective. It is observed theoretically and empirically that a manager may deviate from the core objective of the firm and may adopt self- interested behaviour in decision making. This approach leads towards agency conflict in agency theory. We argue that managers may adopt such characteristics that might decrease the agency conflict among stakeholders. Wherefore, the study suggests the role of manager from the perspective of Islamic principles to enhance economic and social benefits avoiding self-interest or opportunism from managerial behaviour. This paper is conceptual in nature based on Islamic principles that a manager ought to be an honest and trustworthy person. We develop a model for such a reliable management that covers economic, moral and social benefits for all stakeholders and society. This aspect is rarely focused previously regarding the role of manager. This novel attempt may help the recruiting authority to select honest and trustworthy managers as well as train them accordingly. The role of manager affects the firm in maximizing the value and the society, in essence, all stakeholders including owners, suppliers, and consumers, make a society when combined. This research, thus, implies a productive effect on the firm in particular and society in general. The research has central importance for the Muslims and Shariah firms to follow the management activities applying this model for the effective role of manager due to growing number of Muslims worldwide.
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