Business administration bus 103

2. Business administration bus 103 Dr.Naill M. Momani, Ph.D., P.E.,– King Abdul-Aziz University Fall 2010

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

4. Introduction

5. 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

6. Risk Definition • Managing Risk • Exposure to the chance of loss (Probability or Uncertainty) • HOW? • Change of Technology • Change in Customer's Taste Preference • Competitive Threat • Government Policies

7. Objectives of Business Social Economics • 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

8. 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

9. Difference Management Administration • Art of directing human activities and recourses to attain a goal • Used in business world • Implementing polices and regulations • Used in government circles.

10. Five Basics Functions of Management Who is the Manager? He is the one who acquires 5 basics functions of management Planning- develop future plans Organizing- assign duties, establish authorities and allocate resources Staffing- recruitment Directing- influence and motivation Controlling- monitoring the performance towards the attainment of organizational goals.

11. Management Skills & Levels Three Management Skills Level of Management • 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

12. Modern Management • 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.

13. Manager’s Objectives • 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)

14. Managerial Roles

15. Scientific Management Definition A kind of management through which business is conducted through observation, experiment or reasoning.

16. History of Management Scientific Management Behavioral 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

17. Business Environment