1. BUSINESS ADMINISTRATION BUS 103 Dr.Naill M. Momani, Ph.D., P.E.,– King Abdul-Aziz University Fall 2010

2. Index Introduction Planning Organizing Staffing Directing Controlling Decision Making Management Concepts and Extra Readings 2

3. Introduction 3

4. 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 4

5. 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 5

6. 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 SocialEconomics 6

7. 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 7

8. Difference Art of directing human activities and recourses to attain a goal Used in business world Implementing polices and regulations Used in government circles. ManagementAdministration 8

9. Five Basics Functions of Management Who is the Manager ? He is the one who acquires 5 basics functions of manage ment 1.Planning- develop future plans 2.Organizing- assign duties, establish authorities and allocate resources 3.Staffing- recruitment 4.Directing- influence and motivation 5.Controlling- monitoring the performance towards the attainment of organizational goals. 9

10. 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 Top-level Management (Executives) Upper Middle Management (Heads of various divisions) Middle Management (Directing the activities) Lower level or first line (worker) 10 Three Management SkillsLevel of Management

11. Modern Management 11 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.

12. Manager’s Objectives 12 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)

13. Managerial Roles 13 Provide information Interpersonal Figurehead Leader Liaison Process Information Informational Monitor Disseminator Spokesperson Use Information Decisional Entrepreneur Disturbance Handler Resource Allocator Negotiator

14. Scientific Management Definition A kind of management through which business is conducted through observation, experiment or reasoning. 14

15. History of Management Babbage (18 th, 19 th ): Specialization of labor Taylor (19 th, 20 th ): Science for each job, Select skillful workers, incentives Gilbreath (19 th, 20 th ): Rest pauses in 8-hour work Gantt (19 th, 20 th ): Bonus system Owen (18 th, 19 th ): Human recourses Munsterberg (19 th, 20th): Father of industrial psychology Mayo (19 th, 20 th ): Improve performance Fallet (19 th, 20 th ): Behavioral model of control group and self control Maslow: Hierarchy of needs McGregor (20 th ): Human view, employees work relationship (X,Y) Drucker (20 th, 21th): writer, developed thoughts on management and MBO 15 Scientific ManagementBehavioral Management

16. Business Environment 16 Business Environment Economics Capital Labor Price level Customers Technology Government input and tax polices Social Desires Expectations Education Customs Political Attitude of leaders Legal Webs of laws and regulations