Profiling the Competency of Nazhir Waqf: A Conceptual Paper

Yayan Firmansah

, Lathiefa Rusli

and Hartomi Maulana

Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia (IIUM), Malaysia

Department of Management, Universitas Darussalam Gontor, Ponorogo, Indonesia

Keywords: Waqf, Nazhir Waqf, Profile, Competency.

Abstract: Nazhir play significant role in the waqf asset management. Their job is quite challenging since they should

keep the trustworthiness of the waqif. On the other hand, managing the asset of waqf is a complex job. This

reality leads to the idea that the waqf asset management should not merely rely on trust, but also on the

capability of the nazhir. Thus, nazhir waqf should master a set of competency so that they could carry out

their job well. Following this notion, study on what kind of competency should be owned by nazhir waqf is

lacking. Therefore, the current study attempted to address such an issue. Using qualitative methods,

literatures and documents related to the topic were adopted to analyze the contents found. As the result, four

main competencies of nazhir waqf are proposed, namely compliance, entrepreneurship, economic and

interpersonal (CEEI). As the implications, the CEEI could be used by waqf institutions as the basis of

recruitment and selection, as well as nazhir performance management. Furthermore, the proposed

competency profile is expected to contribute to the body of knowledge of human resource management in

waqf institutions. Eventually, as a conceptual paper in nature, it needs further studies to validate the concept.

1 INTRODUCTION

In the current era, many people realize that

productive waqf could give advantages on social

economics perspective, especially in the decreasing

the number of poverty and the increasing the

society’s welfare (Saiti, Salad, & Bulut, 2019).

Moreover, waqf also has important roles as of

Islamic fiscal instrument to achieve the well-being

of all people (Ambrose, Aslam & Hanafi, 2019).

This optimal empowered waqf would be reached

once the nazhir managed it well. Nazhir is waqf

manager or trustee whose main role is managing the

waqf assets. Some criteria are needed to be a good

nazhir, such as knowledge competency, skill

competency and attitude (Furqon, 2016). Despite a

good criterion provided, the waqif’s decision in

choosing nazhir is still based on trust merely without

considering the knowledge and skill.

As known, nazhir is the key role in managing the

waqf assets to be used productively. Thereby,

nazhir’s quality should be taken into consideration

when waqif is intending to donate his/her asset. For

waqf institutions, to attract a high-quality nazhir

waqf, they should conduct recruitment and selection

based on normative criteria determined. So far, few

studies carried out related to the quality of nadzhir

from human resource management perspectives. In

this sense, this study attempts to analyses

competencies that are required to be a professional

nadzir. These kinds of competencies are expected to

contribute to the betterment of waqf institutions in

term of, for example, recruitment and selection,

performance management, nazhir skill development,

and so on.

2 LITERATURE REVIEW

2.1 Nazhir Waqf

The presence of nazhir or mutawalli in the

sustainability of waqf institution is essential. The

nazhir, comes from “Nadzara”, which means a

guarantor and protector of monitoring the waqf

assets. According to Abbas (2017), nazhir is

individual, organization, or under law institution

which is given some responsibility to maintain the

waqf assets from the waqif. Nazhir is the manager

and administrator of waqf. He or she should take

responsibility for the asset of waqf to achieve the

sustainability of the asset and continuously aid the

beneficiaries. Nazir is also called as waqf trustee.

Firmansah, Y., Rusli, L. and Maulana, H.

Proﬁling the Competency of Nazhir Waqf: A Conceptual Paper.

DOI: 10.5220/0009976100002898

In Proceedings of the 7th ASEAN Universities International Conference on Islamic Finance (7th AICIF 2019) - Revival of Islamic Social Finance to Strengthen Economic Development Towards

a Global Industrial Revolution, pages 23-27

ISBN: 978-989-758-473-2

Islamic rule considers trustee as managers to whom

the waqf is confided. In the Islamic history, nazhir

were the ones who actually conserved the Islamic

heritage and enabled many assets of waqf to survive

for centuries.

According to Abbas (2017), a nazhir should

understand some categories that will lead waqif in

giving trust to them. Firstly, nazhir should

understand the underlying rules that control all the

things about waqf. For example, in Indonesia, the

nazhir should understand about UU No. 41 Year

2004 about Waqf. Secondly, nazhir should

understand the underlying belief on waqf according

to Qur’an. Thirdly, nazhir should be mature enough,

because he or she should has capability of thinking

and making decision in the use of waqf assets.

Fourthly, nazhir should be trusted not only by

the institution but also by the waqif once the waqf

assets have been delivered until they have been used

productively and fairly. Fifthly, nazhir should be

healthy both in physically and spiritually because

not only managing waqf assets but they ought to

think about how to resist the temptation in managing

stress. Finally, nazhir should not be involved in any

historical crime because it should be trusted that he

or she is a good people from the perspective of

waqif.

2.2 Competency

From the study of competency by Sant’Anna et al.

(2013), despite no consensus regarding the concept

of competency due to the variety of philosophical

and ideological views, there are two prevalent main

streams of thought. Firstly, Anglo-American which

emphasizes aspects related to performance

requirements in organizations (Sant’Anna et al.,

2013). According to this view, competency refers to

an underlying characteristic of individuals

surpassing expected performance, while skill is the

capability to manage and organize a set of behaviors

that support performance achievement (Boyatzis,

1982).

Secondly, from the perspective of Le Boterf

(2000), competency involves an individual’s

competent action that leads to a dynamic state

generated. This competent action is generally

produced by the combination and the interaction of

personal and environmental resources (Lustri et al.,

2007). Additionally, Hamel and Prahalad (1989)

propose the third approach, which involves core

competencies in organizational level and collective

organizational learning (Markus et al., 2005). This

approach advocate competency as traits of

organizations based on the assumption that human

capital as organizational uniqueness allows the

organization to become competitive (Garavan and

McGuire, 2001).

On the other hand, work competencies can be

explained from two perspectives, the trait

perspective and the behavioral perspective (Campion

et al., 2011; Chuttipattana and Shamsudin, 2011;

Shah and Prakash, 2018). Boyatzis (1982) asserted

that competency from the trait perspective refers to

which competencies are the underlying characteristic

of an individual and, it could be “a motive, trait,

skill, aspect of one’s self-image or social role, or a

body of knowledge which he or she uses” (p. 21).

Meanwhile, competency from the behavioral

perspective is a set of behavior patterns brought by

employees to their work context to carry out their

duties with efficient and competence (Kansal and

Singhal, 2018; Woodruffe, 1993).

Furthermore, previous studies divided the work

competencies into three broad categories, namely

knowledge and skills, traits and motives and self-

concept (Boyatzis, 2009; Brown et al., 2018; Sanghi,

2016; Spencer and Spencer, 2008). Knowledge is the

information an individual has regarding a particular

expertise, and skills are the capabilities to carry out a

task. Traits are the personality characteristics, and

motives are the fancy that drive actions (Campion et

al., 2011). Finally, self-concept is the positive

attitude toward the achievement of a task (Boyatzis,

2009).

The current study, then, defines competency

from the behavioral perspective since the

performance of the employees is mainly measured

from their work activities and not based on the traits

they have (Campion et al., 2011; Kansal and

Singhal, 2018).

3 METHODS

This is primarily a conceptual paper that adopts

qualitative method and takes a descriptive approach,

using literature as the main source, both in data

collection and data analysis. Qualitative study is

appropriate for pursuing greater details and

understanding of social meaning, describing the

intricacy of a problem and/or analyzing the

relationship between the variables studied. It also

appropriates for a research that intends to understand

the logic and dynamics underlying a given

phenomenon.

7th AICIF 2019 - ASEAN Universities Conference on Islamic Finance

4 DISCUSSION

4.1 Compliance-Related Competency

Nazhir ought to be creative in managing the waqf,

ranging from how to attract, how to utilize to how to

make the waqf to be productive. The nazhir waqf

shall possess the disciplines, knowledge and skills

essential to the performance of their institution. This

management of waqf will be more effective and

sound if the nazhir has relevant and adequate

knowledge on Islamic as well as government rules.

Fiqh is definitely the most essential competency

should be mastered by nazhir as waqf have to be

solidly managed with the guidance of Islamic rules

and principles. In this sense, proficiency in Islamic

rules and principles in general, and fiqh al-muamalat

in particular, is required. Strict requirement might be

applied, such as nazhir should holds a bachelor’s

degree in Shariah, which includes a study in ushul al

fiqh (the origin of Islamic law) and fiqh al muamalat

(Islamic transactions/commercial law). Otherwise,

the waqf institution should provide appropriate

training for the nazhir pertaining this kind of

competency. It should be emphasized that the

competency of fiqh is not merely regarding fiqh of

waqf, but also other fields of fiqh, such as

murabahah, ijarah, sukuk, etc. This due to in some

cases, nazhir needs to be able to connect waqf and

another aqd.

For instance, the government of Indonesia is

currently proposing the model of cash sukuk linked

waqf. From the terminology used, the model

obviously connects waqf and sukuk as the alternative

financing in such a country. The example showed

indicates that nazhir is required to master the fiqh

muamalat to be innovative and be able to realize the

prosperity of the ummah.

On the other hand, waqf have to be managed by

obeying the government regulation. Otherwise, it

could be considered as an illegal action. Therefore,

nazhir need to understand the legal regulation

regarding waqf in a country in which the waqf

institution is operated.

4.2 Entrepreneurship Competency

Waqf is aimed to increase the prosperity of the

ummah. It needs nazhir who is competent in

entrepreneurship, meaning that the nazhir could

make the waqf to be productive and profitable.

Therefore, four characteristics are proposed to build

such a competency, namely beneficiaries awareness,

creativity, flexibility and risk taking propensity.

Mauquf alaih (beneficiaries) awareness is the

ability to sympathize with the needs of beneficiaries.

Successful nazhir waqf appeal to the specific needs

of a clearly defined target group of beneficiaries and

have the ability to anticipate changes in the society

based on their awareness of the needs of

beneficiaries. Moreover, creativity is the ability to

adopt views from different perspectives and to see

and try new possibilities based on open observations

of (changes in) the environment. Moreover,

creativity reflects the capability to turn problems

into new opportunities. It is an important ingredient

for successful nazhir waqf.

Furthermore, flexibility is based on a measure of

the ability to adapt. Successful nazhir waqf react to

changes they observe in their environment, such as

new needs of beneficiaries or new way in managing

the assets of waqf. Finally, risk taking propensity

means both the ability to deal with uncertainty and

the willingness of risking to take a loss. These are

important entrepreneurship competencies for

successful nazhir waqf.

4.3 Economic Competency

Waqf is aimed to increase the economic welfare for

every contributed moslem country. It needs nazhir

who is competent in analyzing the economic

condition. The nazhir should make the waqf not only

used in religious facilities but also through

educational facilities, health facilities, and other

social benefits. In supporting to increase economy

welfare, there are three characteristics which are

proposed to build such a competency, namely

analyzing, evaluating, and adaptive,

Analyzing and evaluating means the ability to

convert and process statistical data (both figures and

graphs) into any information that can be used to

solving problems, making decisions, and predicting

future decisions. The capability of analyzing and

evaluating are important for the nazhir to understand

the economic condition. Successful nazhir waqf is

showed by his or her responsiveness through the

change for every economic condition. Therefore, the

nazhir will be reactive to the waqf decisions in the

economic policies (both micro and macro policies).

As a result, the capability for adapting any

economic change will lead nazhir to make decisions

which based on data and information. Successful

nazhir waqf reacts in making money instrument of

waqf assets to be used productively. The more waqf

assets is used productively, the more increase

economic prosperity in a country. These

competencies are important for the economic skills

that nazhir waqf should have in managing the use of

waqf assets.

Proﬁling the Competency of Nazhir Waqf: A Conceptual Paper

4.4 Interpersonal Competency

Interpersonal competency is the ability of

cooperative interaction and communication with

others (Baron and Markman, 2003). Skills that are

needed to support such a competency are skills in

understanding a situation and other co-workers,

higher management and beneficiaries. Meanwhile,

the elements in interpersonal competency are such

consultancy, sensitivity, persuasion and others,

including the realization of others’ thoughts,

emotions, and attitudes, and sympathizing with

them. Thus, selecting nazhir waqf with such abilities

can be effective, especially with regards to

entrepreneurship advantages, such as providing new

communicative networks and subsequently

achievement of critical resources of waqf.

Interpersonal competency also involves the

ability to engage effectively in complex interper-

sonal interaction and to use and understand people

effectively. People in an interpersonal relationship

tend to influence each other, share their thoughts and

feelings, and engage in activities together. Because

of this interdependence, most things that change or

impact one member of the relationship will have

some level of impact on the other member.

In the case of nazhir waqf, interpersonal

competency means that the nazhir are expected to be

able to build and enlarge their networks. Build and

maintain partnership with other party, ranging from

other nazhir, government, private organizations to

waqif (including targeted waqif), would increase the

effectiveness of waqf management and long-term

goal, which is the prosperity of the ummah. Thus,

nazhir need to have social orientation, which is the

understanding that the success could be achieved

through the connection with others. Nazhir should

make these connections easily and are driven by

professional considerations in their social activities,

both nationally and internationally.

5 CONCLUSION

A set of competency profile is important for any

organization to ensure if the people within are

qualified to achieve the organizational goals. In the

case of waqf institution, it has to be firmed that the

nazhir are individuals who are competent to manage

the assets of waqf. Such a job is quite challenging

since managing waqf is a mandate that should lead

to the prosperity of the society, the Muslim ummah

in particular.

The proposed competency profile of nazhir waqf

can be adopted by waqf institution upon its human

resource management activities, particularly in the

recruitment and selection as well as performance

measurement. It is also recommended for the future

studies to validate the concept proposed, using either

qualitative or quantitative approach.

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Proﬁling the Competency of Nazhir Waqf: A Conceptual Paper