Introduction Dr. Mahmoud A. Arafa Lecturer at Agric. Economic Dep.

1. Business Management Lecture 1 Introduction Dr. Mahmoud A. Arafa Lecturer at Agric. Economic Dep. Website: http://scholar.cu.edu.eg/mahmoudarafa E-Mail: mahmoud.arafa@agr.cu.edu.eg

2. “Companies fail when they become complacent and imagine that they will always be successful. So we are always challenging ourselves. Even the most successful companies must constantly reinvent themselves. -- Bill GatesChairman and Chief Software ArchitectMicrosoft

3. The Importance of Business Management

4. Business - Definition • An organization or economic system where goods and services are exchanged for one another or for money. • Every business requires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit. • Businesses can be privately owned, not-for-profit or state-owned. An example of a corporate business is PepsiCo, while a mom-and-pop catering business is a private enterprise.

5. The Business World Today • Constant change! • Technology • Society • Environment • Competition • Diversity

6. What is Management? • The process of deciding how best to use a business’s resources to produce a product or provide services resources • Employees • Equipment&Matrials • Money

7. Levels of Management • Senior management • Middle management • Supervisorymanagement

8. Levels of Management (a) Senior management • Establishes or setsthe goal/objectives of the business • Decides how to use the company’s resources • Not involved in the day-to-day problems • Set the direction (Vision) the company will follow • Tasks • Chairperson of the company’s board of directors, Chief operating officerCOO, Chief executive officer CEO, senior vice presidents SVP.

9. Levels of Management (b) Middle management • Responsible for meeting the goals that senior management sets • Sets goals for specific areas of the business • Decides which employeesin each area must do to meet the goals • Tasks • Department heads, sales managers

10. Levels of Management (C) Supervisorymanagement • Make sure the day-to-day operations of the business run smoothly • Responsiblefor the people who physically produce the company's products or services • Tasks • Fore persons, crew leaders, store managers

11. The Management Pyramid

12. The Management Process • Three ways to examine how management works: • Tasks performed • Planning, organizing, staffing, leading, controlling • Roles played (set of behaviors associated with a particular job) • Interpersonal, information-based, decision-making • Skills needed • Conceptual, human relations, technical

14. The Management Process Controlling • Measures how the business performs to ensure that financial goals are being met • Analyzingaccounting records • Make changes if financial standards not being met

15. The Management Process Leading • Provides guidance employees need to perform their tasks • Keeping the lines of communication open • Holding regular staff meetings

16. The Management Process Organizing • Groups related activities together and assigns employees to perform them • A manager sets up a team of employees to restock an aisle in a supermarket

17. The Management Process Planning • Decides company goals and the actions to meet them • CEO (Chief executive officer) sets a goal of increasing sales by 10% in the next year by developing a new software program • developing a new software program

18. The Management Process Staffing • Decides how many and what kind of people a business needs to meet its goals and then recruits, selects, and trains the right people • A restaurant manager interviews and trains servers

19. Assignment#1fill the following cells with management Process according to management level

20. Relative Amount of Emphasis Placed on Each Function of Management

21. 4 steps Management process Step 1:Established Performance Standards Step 2: Measure Actual Performance Step 3: Compare Measured Performance Against Established Standards Step 4: Take Corrective Action

22. Step 1:Established Performance Standards • Establishes a base for future measurement • Predicts specific expectations for a product, service, machine or individuals • Set numerically (quality, quantity, time) • Occurs mainly in top management

23. Step 2: Measure Actual Performance • Collection of data to determine variation from standard • Written: time cards, production tallies, inspection reports, sales tickets • Personal: statistical reports, oral reports, and written reports • Management by walking around, observation of workers

24. Step 3: Compare Measured Performance Against Established Standards • Comparing results with standards determines variation • Supervisor’s role

25. Step 4: Take Corrective Action • Fixing inefficiency, making sure employees and company is on track • Supervisor’s role

26. Management Roles • Managers have authority within organizations • Managers take on different roles to best use their authority • Interpersonal roles • Information-related roles • Decision-making roles

27. Management Roles • Interpersonal roles • A manager’s relationships with people • Providing leadership with the company • Interacting with others outside the organization • Senior managers spend much of their time on interpersonal roles • Represent the company in its relations with people outside the company, interacting with those people, and providing guidance and leadership to the organization • Determine a company’s culture

28. Management Roles • Information-related roles • Provide knowledge, news or advice to employees • Holding meetings • Finding ways of letting employees know about important business activities • Decision-making roles • Makes changes in policies, resolves conflicts, decides how to best use resources • Middle and supervisory managers spend more time resolving conflicts than senior managers

29. Management Skills • Conceptual skills • Human relations skills • Technical skills

30. Management Skills • Conceptual skills: Skills that help managers understand how different parts of a business relate to one another and to the business as a whole • Conceptual skills most important at senior management level • Decision making, planning, and organizing

31. Management Skills • Human relations skills: Skills managers need to understand and work well with people • Human relations skills important at all levels • Interviewing job applicants, forming partnerships with other businesses, resolving conflicts

32. Management Skills • Technical skills: The specific abilities that people use to perform their jobs • Technical skills most important at lower levels • Operating a word processing program, designing a brochure, training people to use a new budgeting system

33. Entrepreneurship

34. What is an Entrepreneur? • People who launch and run their own businesses • At first, they must perform many of the basic management functions • Estee Lauder, Kellogg, General Electric, Microsoft, Dell, Land’s End • All started by entrepreneurs!

35. What is an Entrepreneur? • A lot of risk! • Can lose all the money invested in their company • Can be more rewarding than working for a company • High reward!

36. What is an Entrepreneur? • Tend to be more independent • May have less formal education • Some jump from job to job before starting their own business

37. What is an Entrepreneur? • Start with an idea for creating or modifying a product or service they believe in • Like being their own boss! • Tremendous satisfaction in their work • Must work long hours and make decisions about every aspect of a business • Without entrepreneurs, there would be no new businesses and fewer exciting innovations in business and industry

38. Types of ownership • Sole proprietorship: people who run their businesses single handedly • Medicine, dentistry, accounting • Partnership: one or more partners supply the money and runs the business • Corporation: avoid being held personally liable for financial losses