Introduction to Business Management Lecture 1 PDF

Introduction to Business Management  Introduction to Business Management Dr. Weal Elgharib College of Commerce, Ain Shams University Lecture (1) – English Section Course Description This course is an introduction to the concepts, principles, problems, and...

Introduction to Business Management  Introduction to Business Management Dr. Weal Elgharib College of Commerce, Ain Shams University Lecture (1) – English Section Course Description This course is an introduction to the concepts, principles, problems, and practices of Business Administration. Managerial activities This course examine Business activities 1–3 The Content: Part one: Managerial Activities 1. Introduction to management 2. Planning 3. Organizing 4. Leading 5. Controlling Part Two: Business activities 1. Forms of Organizations 2. Marketing 3. Operation and Production 4. Purchasing and Warehousing 5. Finance and accounting 1–4 Course Grading Policy A unique consideration in this course is a requirement for students to demonstrate a satisfactory level of competency or knowledge on several specific elements of the course. For these topics or problems a variety of approaches may be used including: Mid-term exam and final exam. Scoring of the course grade in the grading process is shown below. Mid-term exam 40 points Final exam 60 Points 1–5  Chapter (1) Introduction to management What Is Management? Management is a set of activities or the process of achieving organizational goals and objectives by using organizational resources by efficient and effective way. The management elements: 1. Set of activities or managerial process (planning-Organizing – Leading – Controlling) 2. These Process directed by organizational goals ( Profit – Growth ) 3. Organizational resources: Material, Financial, Human, Capital, information). 4. Efficiency and Effectiveness 1–7  Efficiency Effectiveness “Doing things right” “Doing the right  Getting the most output things” for the least inputs ( No  Attaining Wastes). organizational goals. 1–8 Management: Science or Art? Science Art  is a collection of systematic  uses the known rules and knowledge, collection of principles and uses the skill, truths and inferences after expertise, wisdom, continuous study and experience to achieve the experiments. desired result.  It has fundamental principles discovered. Note:  Management has got two faces like a coin; on one side it is art and on the other it is science.  Management has got scientific principles which constitute the elements of Science and Skills and talent which are attributes of Art. Management is both art and science. 1–9 Who Are Managers? Manager Someone who coordinates the work of other people so that organizational goals can be accomplished. 1–10 Levels of management Top Management President, CEO, Executive Vice Presidents Middle Management Plant Managers, Division Managers, Department Managers First-Line Management Foreman, Supervisors, Office Managers Non- Managerial Employees 1–11 Classifying Managers  Individuals who are responsible for Top Managers making organization-wide decisions and establishing plans and goals that affect the entire organization. Middle Managers  Individuals who manage the work of first-line managers. First-line Managers  Individuals who manage the work of non-managerial employees. 1–12 Importance of management functions to managers in each level Most Important Controlling Controlling Controlling Organizing Organizing Organizing Planning Planning Leading Leading Leading Planning Least Important Top Middle First-Line Managers Managers Managers 1–13 What Do Managers Do? Functional Approach Planning Defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities. Organizing Arranging and structuring work to accomplish organizational goals. Leading Working with and through people to accomplish goals. Controlling Monitoring, comparing, and correcting work. 1–14 What Is An Organization? An Organization Defined A deliberate arrangement of people to accomplish some specific purpose (that individuals independently could not accomplish alone). Note: Common Characteristics of Organizations 1. Have a distinct purpose (goal) 2. Composed of people 3. Have a deliberate structure 1–15 Exhibit Characteristics of Organizations 1–16 Skills Approach Tec hnic Knowledge and proficiency in a specific field. al skill s Hu ma The ability to work well with other people. n skill s The ability to think and conceptualize about Con cept abstract and complex situations concerning the ual organization. skill s 1–17 Exhibit 1–5 Skills Needed at Different Management Levels 1–18 Roles of manager In 1960, Henry Mintzberg conducted a study to understand about the managerial roles. He identified 10 managerial roles that are common to all managers. These 10 managerial roles are grouped under: Interpersonal, decisional, and informational roles. Roles of Manager Decisional Interpersonal Entrepreneur Informational Figurehead Disturbance Monitor Leader handler Disseminator Liaison Resource allocator Spokesperson Negotiator 1–19 Roles of manager (Cont’d) Inter-personal Role Figurehead Represents the company on social occasions. Attending the flag hosting ceremony, receiving visitors or taking visitors for dinner etc. Leader In the role of a leader, the manager motivates, encourages, Training subordinates to work under pressure, forms part of the responsibilities of a manager. Liaison Consists of relating to others outside the group or organization. Serves as a link between people, groups or organization. The negotiation of prices with the suppliers regarding raw materials is an example for the role of liaison. Prof. Henry Mintzberg 1–20 Roles of manager (Cont’d) Decisional Role Entrepreneur Act as an initiator and designer and encourage changes and innovation, identify new ideas, delegate idea and responsibility to others. Disturbance Take corrective action during disputes or crises; resolves handler conflicts among subordinates; adapt to environmental crisis. Resource Decides distribution of resources among various allocator individuals and groups in the organization. Negotiator Negotiates with subordinates, groups or organizations- both internal and external. Represents department during negotiation of union contracts, sales, purchases, budgets; represent departmental interests. Prof. Henry Mintzberg 1–21 Roles of manager (Cont’d) Informational Role Monitor Emerges as nerve center of internal and external information about Information. Disseminator Transmits information received from other employees to members of the organization. Spokesperson Transmits information to the people who are external to the organization, i.e., government, media etc. For instance, a manager addresses a press conference announcing a new product launch or other major deal. Prof. Henry Mintzberg 1–22 Assignment Q1: Choose the correct answer for the following sentences: (1) The process of achieving organizational goals and objectives by using organizational resources by efficient and effective way are called: A. Organization. B. Manager. C. Business. D. Management. (2) Efficiency structure refers to the: A. Doing things right. B. Doing the right things. C. Getting the most output for the least inputs. D. A and C together. (3) Management strives to: A. Low resource waste. B. High goal attainment. C. High efficiency and high effectiveness. D. All of the above. (4) Skill, expertise, wisdom, and experience to achieve the desired result, is part of which one of the following management areas? A. Science B. Art C. Art and science D. None of the above (5) A collection of systematic knowledge, collection of truths and inferences after continuous study and experiments, is part of which one of the following management areas? A. Science B. Art C. Art and science D. None of the above (6) Which one of the following characteristics should be assigned to the science rather than the art? A. Skills B. Talent C. experiments D. experience (7) A Someone who coordinates the work of other people so that organizational goals can be accomplished : A. Manager. B. Top manager. C. Middle manager. D. First - line manager. (8) Who are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization : A. Manager. B. Top manager. C. Middle manager. D. First - line manager. (9) Who manage the work of first-line managers.: A. Manager. B. Top manager. C. Middle manager. D. First - line manager. (10) CEO is called: A. Manager. B. Top manager. C. Middle manager. D. First - line manager. Q2: Mention in brief points the ten administrative roles for Henry Mintzberg, use drawing whenever possible.