Business Administration

Section 4
Revision on CH1,2,3

Prepared by : Wael Kharoub

1
 Background To the Management
2 ➢ Definition of planning and organizing

Planning: Planning involves choosing tasks that must be

performed to attain organizational goals, outlining how
the tasks must be performed, and indicating when the
tasks should be performed and who is going to do it
Examples of planning in management
Let's say your goal is to buy a gallon of milk. It may sound
like a simple task, but if you break it down, there are
many small tasks involved: obtain keys, obtain wallet,
start car, drive to store, find and obtain milk, purchase
milk, etc. BY: Wael Kharoub
 Background To the Management
3 Organizing : Organizing can be thought of as
assigning the tasks developed during planning to
various individuals or groups within the organization.
Organizing creates a mechanism to put plans into
action
Example of organizing in management

Such as divided the organization into departments

(Accounting . Marketing, Finance and Operation )
and assigning Activities or tasks of theses departments
to individuals or people in the company in addition to
use the organizational resources in the appropriate
way . BY: Wael Kharoub
 Chapter1 :Background to Management
4 Definition of influencing
Influencing is another of the basic functions
within the management process. This function—
also commonly referred to as motivating, lead-
ing, directing,
Influencing can be defined as the process of
guiding the activities of organization members in
appropriate direction

The ultimate purpose of influencing is to increase

productivity.
 Chapter1 :Background to Management
5 Definition of controlling
Controlling is the management function for
which managers (a) gather information that
measures recent performance within the
organization; (b) compare present performance
to pre-established performance standards; and
(c) from this comparison

Measuring actual performance - depending on

the organization's performance standards,
measuring performance can be done several
ways. Success evaluations, financial audit
reports, sales reports, and customer satisfaction
are just a few of how a company's performance
can be evaluated.
 Chapter1 :Background to Management
6 Management and Organizational Resources
 Management must always be aware of the status
and use of organizational resources. These
resources, composed of all assets available for
activation during the production process, are of
four basic types:
 (1) Human
 (2) Monetary
 (3) Raw materials
 (4) Capital
 Chapter1 :Background to Management
What is the difference between Managerial Effectiveness
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and Managerial Efficiency
Managerial effectiveness is defined in terms of resource
utilization in relation to organizational goal attainment. If
organizations are using their resources to attain their goals,
the managers are effective
( achieving organizational goals)
Managerial efficiency is defined in terms of the proportion
of total organizational resources that contribute to
productivity during the manufacturing process. The higher
this proportion, the more efficient the manager

(not wasting resources )

 Chapter1 :Background to Management
8 Differences between Effectiveness and efficiency
Effectiveness is about doing or using the right things —that
yield positive results. Efficiency is simply about doing things
right — i.e., completing a task cheaper or faster.

for example, if a company is not doing well it may decide

to train its workforce to use a new technology. The training
may go well, with employees learning the new
technology in record time, but if overall productivity
doesn't improve following the implementation of this new
technology, the company’ strategy was efficient but not
effective.
 Chapter1 :Background to Management
9
 Katz indicates that three types of skills arc important for
successful management performance: technical skills,
human skills, and conceptual skills.
 Technical skills involve using specialized knowledge and
expertise in executing work-related techniques and
procedures.
 . Human skills are skills that build cooperation within the
team being led. They involve working with attitudes,
communication, individuals and groups, and individual
interests—in short, working with people

 Conceptual skills involve the ability to see the

organization as a whole. A manager with conceptual
skills is able to understand how various functions of the
organization complement one another,
 Fundamentals of Planning
10  Defining Planning : planning is "the systematic development of action
programs aimed at reaching agreed business objectives by the process of
analyzing, evaluating, and selecting among the opportunities which are
foreseen

Purposes of Planning : organizational planning has two purposes:

protective and affirmative.
The protective purpose of planning is to minimize risk by reducing
the uncertainties surrounding business conditions

The affirmative purpose is to increase the degree of organizational

success
 Fundamentals of Planning
11 Planning: Advantages and Potential Disadvantages :
 One is that it helps managers be future oriented

 Decision coordination is a second advantage of a sound

planning program

 A third advantage to planning is that it emphasizes

organizational objectives

Wael Kharoub
 Fundamentals of Planning
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The Six steps in the planning process :
1. State organizational objectives
2. List alternative ways of reaching objectives
3. Develop premises(Assumptions) on which to base each
alternative
4. . Choose the best alternative for reaching objectives
5. Develop plans to pursue the chosen alternative.
6. Put the plans into action
 Fundamentals of Planning
13  The planning subsystem :
 A subsystem is a system created as part of the process of the overall management system

 The purpose of this subsystem is to increase the effectiveness of the overall

management system through more effective planning. The planning subsystem
helps managers to identify planning activities within the overall system and to
guide and direct these activities.

Wael Kharoub
 The Planner
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 Qualifications Of Planners
 First, they should have considerable practical experience within their
organization.
 Second, planners should be able to replace any narrow view of the
organization (probably acquired while holding other organizational positions)
with an understanding of the organization as a whole
 Third, planners should have some knowledge of and interest in the social,
political, technical, and economic trends that could affect the future of the
organization
 The fourth and last qualification is that planners should be able to work well
with others
 Fundamentals of Organizing (CH3)
15 Definition of Organizing
Organizing is the process of establishing orderly uses for all resources within
the management system

A primary focus of organizing includes determining both what individuals will

do in an organization and how their individual efforts should best be combined
to contribute to the attainment of organizational objectives

The organizing function is extremely important to the management system, be-

cause it is the primary mechanism with which managers activate plans

By: Wael Kharoub

 Fundamentals of Organizing (CH3)
16 The Organizing Process
(1) reflecting on plans and objectives
(2) establishing major tasks
(3) dividing major tasks into subtasks
(4) allocating resources and directives for subtasks
(5) evaluating the results of implemented organizing strategy

By: Wael Kharoub

 Fundamentals of Organizing (CH3)
17 Classical Organizing Theory
Classical organizing theory is the cumulative insights of early management
writers on how organizational resources can best be used to enhance goal
attainment. By max weber
The rest of this chapter summarizes three main considerations of classical
organizing theory that all modern managers should include in their organizing
efforts.
(1) structure
(2) division of labor
(3) span of management

By:Wael Kharoub
 Fundamentals of Organizing (CH3)
18 Structure:
Structure refers to designated relationships among resources of the management system. Its
purpose is to facilitate the use of each resource
Formal and Informal Structure
Formal structure is defined as the relationships among organizational resources as outlined by
management
Informal structure is defined as the patterns of relationships that develop because of the informal
activities of organization members such as individual norms, values, or social relationships
Organization structure based on
1- Function 2- Product
3-Customers 4- Territory
5-Manufactring process

By:Wael Kharoub
 Fundamentals of Organizing (CH3)
19 Division of Labor
The division of labor is the assignment of various portions of a particular task among a number
of organization members. Rather than one individual's doing the entire job
A commonly used illustration of division of labor is the automobile production line. Rather than
one individual assembling an entire car, specific portions of the car are assembled by various
individuals
Advantages and Disadvantages of Division of Labor
First, workers specialize in a particular task
Second, workers do not lose valuable time in moving from one task to another
Third, because workers concentrate on performing only one job

division of labor creates a situation in which workers need only to know how to perform their
part of the work rather than the process for the entire product.

By:Wael Kharoub