Differences between Islamic Financing Methods and Conventional Research Paper

Differences between Islamic Financing Methods and Conventional Financing Methods - Research Paper Example The purpose of this study is to highlight the differences between the conventional financing methods and Islamic financing methods. The growing stature of Islamic financing methods in different parts of the world has offered different options to customers. It needs to be mentioned that Islamic financing methods are different from the conventional financing methods in terms of interest and profit elements. However, very few people are aware of that and often consider Islamic financing methods as similar to conventional financing methods. The study aims at highlighting the basic difference between these two financing methods along with analysing the overall importance and significance in the economic environment. The research also highlights the significance of the study in the current business and social environment. There is no doubt that Islamic financing methods are driven by religious teachings and preaching while conventional financing methods are based on modern and practical el ements of the economic environment like earning profit for every investment. The research encompasses a thorough analysis of differences between Islamic and conventional financing methods, assessment of advantages and disadvantages in the economic environment and preference of customers driven by religious issues and personal proclivity towards the financing methods. Financial institutions are often considered as the heart beat of any nation and smooth operation of these institutions often flourishes the perfect balance between the demand and supply of funds. There are a number of banks having different styles and perceptions of operating in a particular business and social environment. Islamic capitalism was based on Islamic principles where interest was prohibited in every sense. Islamic capitalism can be traced way back in 8-12th century but this has very little significance to this study. The primary purpose of this study is to highlight the differences between the conventional financing methods and Islamic financing methods. The growing stature of Islamic financing methods in different parts of the world has offered different options to customers. It needs to be mentioned that Islamic financing methods are different from the conventional financing methods in terms of interest and profit elements (Hassan, Kabir, Lewis, (2007). However, very few people are aware of that and often consider Islamic financing methods as similar to conventional financing methods. The study aims at highlighting the basic difference between these two

Organizational Leadership Essay Example | Topics and Well Written Essays - 5000 words

Organizational Leadership - Essay Example The critical role of a strategic leader in the overall success of the organization therefore is really important in terms of ensuring that the organization has a direction and a vision to achieve while at the same time ensuring that it can successfully deal with its external environment. Leaders and leadership within the organization therefore are probably the most important facets of a modern organization in order to help it to become successful and strategically managed. However, leaders ability to understand the general business environment, competition as well as the political economy are some of the really important aspects which make a leader successful in the current business environment. Above all the strategic thinking is extremely important in order to ensure that the leaders have the enough skills and capabilities to successfully negotiate with such challenges. This paper will look into the effects of strategic thinking and practices of business leaders in dynamic business environment. Leadership defined Before discussing on the strategic role of leadership, it is critical that a comprehensive view of the overall concept of leadership is presented in order to ensure that a solid theoretical foundation is laid for further discussion. Leadership has been defined in different manners and its definition has also changed over the period of time as the overall research on the subject evolved. What is also however, critical to understand that the leadership is often associated with the achievement of a common goal and how leader through his or her influence can actually get best out of the individuals to perform to their best.? It is significant to understand that leadership is often associated with the achievement of defined and shared objectives which are set... From the discussion it is clear that leaders and leadership within the organization therefore are probably the most important facets of a modern organization in order to help it to become successful and strategically managed.   However, leaders ability to understand the general business environment, competition as well as the political economy are some of the really important aspects which make a leader successful in the current business environment. Above all the strategic thinking is extremely important in order to ensure that the leaders have the enough skills and capabilities to successfully negotiate with such challenges.This paper stresses that  leadership has been defined in different manners and its definition has also changed over the period of time as the overall research on the subject evolved. What is also however, critical to understand that the leadership is often associated with the achievement of a common goal and how leader through his or her influence can actual ly get best out of the individuals to perform to their best.? It is significant to understand that leadership is often associated with the achievement of defined and shared objectives which are set at the beginning and the organizational resources are committed in order to ensure that the desired objectives are achieved. Leadership therefore is also associated with the effective utilization of the resources in order to achieve the desired objectives of the firm.