| Summary: | This study aims to expand the existing research on empathic leadership and its impact on management effectiveness within Waqf institutions in Malaysia. This aim was achieved by including the concept of Rahmah in the analysis. Empathetic leadership exemplifies the manner in which the behaviours and emotional states of followers are impacted by the leaders' comprehension and provision of support. Data analysis was conducted via the Statistical Package for the Social Sciences (SPSS). Well-structured interviews were used to collect the opinions of the individuals entrusted with managing Waqf properties. Given the uneven distribution of Waqf employees across Malaysia, the study population was stratified into clusters based on the states. This practice ensured the suitability and sufficiency of the sample size obtained from each cluster, specifically referring to the states. The results indicated that Islamic leaders in Waqf organizations exhibit a notable degree of empathy, as seen by the mean score of 5.23 and standard deviation of 1.09, in the management of their personnel. Based on the findings, this study posits that the concept of Rahmah may have broader applicability outside the third government sector (TSO), encompassing many organizational practices. It also argues that the presence of a strong leader is crucial for the development of any organization and is not limited to TSOs, such as Waqf institutions. © The Authors.
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