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Is Earned Value Management (EVM) consistent with Sharia Law

Will it help in fighting corruption?

 

FEATURED PAPER

By Yasmine Taybi

SKEMA Business School

Morocco and Paris, France

 


 

ABSTRACT

This paper will observe another potential area in the EVM and its relationship with the Sharia law. Countries around the world are facing many challenges. One of the big problems that affect the achievement of the state is Corruption. Corruption is attracting a lot of attention around the world. Based on Transparency international corruption Index, North African and Middle East Countries have a high level of corruption. One of the main reasons for corruption is a problem with payments, lack of planning, and absence of incentive plans in government organization and contract term. North African and the Middle East nations don’t use EVM or prompt payment inside the government organizations.

One of the main reasons to ensure that the project is on time and within budget is to make sure employees, contractors, and subcontractor’s performance is high. There is no better way to do so than to use EVM and integrate the concept of pay for performance. These being said, means that pay for performance and earned value are significant in the success of the project; thus, fighting corruption. A simulation model will show how the money supply chains flow in a plan; and its correlation to the selection of payment method, Long versus Prompt payment duration, and how it is measured will help in fighting corruption in Muslim countries.

Regarding this, the author will highlight the problem of corruption and give a thorough analysis of this dilemma by providing a practical tool to find a solution such as using EVM, integrating incentive plans and planning. Besides, stressing the history of EVM, scheduling and incentive plan and how it was proven that they complement each other. Finally, describing how important it is that the Middle East and North Africa embrace Earned Value Management, not only because it is a “best tested and proven” practice but also, more importantly, it is consistent with their religious beliefs and teachings.

Key words:  Earned value, pay for performance, Sharia law, project management, Performance, incentive plans, payment term, pay when paid, owner company, Main Contractor, Sub Contractor.

INTRODUCTION

According to the global survey reports of the Transparency international corruption has been identified as one of the most fundamental problems facing the world today.[1] The World Bank estimates that consistently, “the measure of cash paid in rewards is just about 1 trillion USD (World Bank, 2004) and now, current assessments of the worldwide expense of defilement have expanded to 2 trillion USD, around 2% of worldwide GDP” (International Monetary Fund, 2016).  The Arab world is one of the most corrupted nations in the world. In spite of the political changes that shook the Arab world six years ago, the desire for Arab countries to battle bribery and end exemption has not seen any improvement. yet. Despite what might be expected, the more significant part of Arab nations has neglected to satisfy the desire of the general population to assemble popularity-based frameworks taking into account more noteworthy straightforwardness and responsibility. The inability to battle corruption clarifies the sharp drop of the vast majority of Arab nations in the Corruption Perceptions Index 2016. 90 percent of these have scored underneath 50, which is a failing grade.[2]

In North Africa and the Middle East, an area with the dominant Muslim population, the Islamic belief frequently assumes an outstanding job in culture, society, and government. More than 50% of the countries in the region have communities that are approximately 95% Muslim or greater[3]. Muslims are obliged by their religion to do great with the goal that Islamic values are carefully integrated into their lives. While that according to Islamic teaching, corruption is forbidden (Haram) and there are several narrations (Hadiths) of the Prophet Muhammad and the Quran (PBUH) that prohibit it. God (PBUH) said: “May the Curse of Allah be upon the briber and the bribe recipient.”[4]  Although corruption has been forbidden by sharia law, the Arab nations have failed to condense it.

One of the main reasons for corruption is the problem in prompt payments, lack of planning, and absence of incentive plans in government organization and contract term. Most of North African and the Middle East nations don’t use EVM or prompt payment. There are unfair and late payment terms in government and privet organizations. Moreover, whether civil servants are appropriately compensated or grossly underpaid, this will affect motivation and incentives.

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To read entire paper, click here

 

Editor’s note: This paper was prepared for the course “International Contract Management” facilitated by Dr Paul D. Giammalvo of PT Mitratata Citragraha, Jakarta, Indonesia as an Adjunct Professor under contract to SKEMA Business School for the program Master of Science in Project and Programme Management and Business Development.  http://www.skema.edu/programmes/masters-of-science. For more information on this global program (Lille and Paris in France; Belo Horizonte in Brazil), contact Dr Paul Gardiner, Global Programme Director paul.gardiner@skema.edu.

How to cite this paper: Taybi, Y. (2019). Is Earned Value Management (EVM) consistent with Sharia Law: Will it help in fighting corruption? PM World Journal, Vol. VIII, Issue VIII, September. Available online at https://pmworldlibrary.net/wp-content/uploads/2019/09/pmwj85-Sep2019-Taybi-is-evm-consistent-with-sharia-law.pdf

 


 

About the Author


Yasmine Taybi

Paris, France

 

 

 

Yasmine Taybi is an MSc student in SKEMA Business School Paris France, major in Project and Program Management & Business Development (PPMBD). Before coming to France, Yasmine completed her studies at an American University in Morocco and hold a Bachelor’s degree in Engineering and management science.

She has been working for ‘IP plus consulting Inc’ as a Junior Network Engineer. She worked with the Network Engineering department to develop efficient ways of implementing large data communications networks. In addition, she held a position of  Business Sales Account Executive for 4 years in a ‘Wireless telecommunications company’ (USA). She was responsible to deliver innovative business solutions that change the way businesses connect. As well as developing strategy, to regularly interact with leadership, employees and various IT teams. She was leading a team of nine sales professionals to bring in new large enterprise accounts.

Yasmine has the potential to be a promising project manager. At the same time, she has great enthusiasm and interest in the IT field. Yasmine is now working on a master in sciences in Skema business school in France. In her course she was doing International Contract Management under the tutorage of Dr Paul D. Giammalvo, CDT, CCE, MScPM, MRICS, GPM-m Senior Technical Advisor, PT Mitrata Citragraha, to attain Guild of Project Controls certification.

Yasmine Taybi lives in Paris, France and can be contacted at Yasminenorataybi@gmail.com

 

[1] LOPEZ-CLAROS, A. (2014). Six Strategies to Fight Corruption. [online] Future Development. Available at: https://blogs.worldbank.org/futuredevelopment/six-strategies-fight-corruption [Accessed 5 Nov. 2018].

[2] OPEZ-CLAROS, A. (2014). Six Strategies to Fight Corruption. [online] Future Development. Available at: https://blogs.worldbank.org/futuredevelopment/six-strategies-fight-corruption [Accessed 5 Nov. 2018].

[3] Mooney, L. (2015). How to ensure prompt payments. [online] ArabianBusiness.com. Available at: https://www.arabianbusiness.com/how-ensure-prompt-payments-580881.html [Accessed 5 Nov. 2018].

[4] Haseeb, M. (2015). Islam And Human Resource Management. [Online] Linkedin. Available at: https://www.linkedin.com/pulse/islam-human-resource-management-muhammad-haseeb/ [Accessed 12 Jul. 2015].