BUSINESS ADMINISTRATION

BUS 103 Dr.Naill M. Momani, Ph.D., P.E.,– King Abdul-Aziz UniversityFall 2010

Index

• Introduction • Planning • Organizing • Staffing• Directing • Controlling • Decision Making • Management Concepts and Extra Readings

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Introduction

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Business Definition

– What does Business mean?

– The purchase and sale (Exchange) of goods in an attempt to make a profit

• What? Goods (Product, Services)

• For? Profit (Money)

• By? Labors (Workers)

• To? Clients (Customers, Consumers)

• In? Markets

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Risk Definition

• Exposure to the chance of loss (Probability or Uncertainty)

• HOW? – Change of Technology– Change in Customer's

Taste Preference– Competitive Threat – Government Policies Managing Risk

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Objectives of Business

• Prevention of environmental pollution

• Development of the locality of business

• Development of backward areas

• Promotion of small industries

• Return on investment (ROI) = (Gain – Cost)/ Cost• Growth of business• Product innovation• Ensure productivity

Social Economics

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Essential of Good Business

• Well-defined and attainable objectives• Up-to-date, reliable and proper planning• Proper layout and location • Flexible management • Good organization structure• Customers – Focused Marketing System• Sound personnel polices

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Difference

• Art of directing human activities and recourses to attain a goal

• Used in business world

• Implementing polices and regulations

• Used in government circles.

Management Administration

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Five Basics Functions of Management

• Who is the Manager?

• He is the one who acquires 5 basics functions of management

1. Planning- develop future plans2. Organizing- assign duties, establish

authorities and allocate resources3. Staffing- recruitment4. Directing- influence and motivation5. Controlling- monitoring the

performance towards the attainment of organizational goals.

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Management Skills & Levels

• Technical: use technique of specialized filed, e.g engineers, surgeons

• Human: understand and work with other people

• Conceptual: coordinate and integrate the goals and activities

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Three Management Skills Level of Management

Modern Management

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• Encourage employee to use technology• Encourage employee to develop team work• Makes an atmosphere of empowerment by

making workers take decision• Applies scientific methods in the development

of knowledge.

Manager’s Objectives

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• Efficient use of resources (energy, waste of time, productivity)

• Customer Satisfaction (growth, development)• Return on Capital (Investment)• Satisfied workforce (Assets to the company)• Improved work conditions (wages, good working

conditions, security)• Supplier relationship (Raw material)• Contribution to the national goal (important

locality)

Managerial Roles

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Scientific Management Definition

• A kind of management through which business is conducted through observation, experiment or reasoning.

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History of Management

• Babbage (18th, 19th): Specialization of labor

• Taylor (19th, 20th): Science for each job, Select skillful workers, incentives

• Gilbreath (19th, 20th): Rest pauses in 8-hour work

• Gantt (19th, 20th): Bonus system

• Owen (18th, 19th): Human recourses• Munsterberg (19th, 20th): Father of

industrial psychology• Mayo (19th, 20th): Improve

performance• Fallet (19th, 20th): Behavioral model

of control group and self control• Maslow: Hierarchy of needs• McGregor (20th): Human view,

employees work relationship (X,Y)• Drucker (20th, 21th): writer,

developed thoughts on management and MBO

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Scientific Management Behavioral Management

Business Environment

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