Business Administration

Part (1)Stage one

Department of Business Administration

By: Ahmed Mahmood AlFiky

What is management and business administration

- Management is one of the social sciences and it’s definition depend on many aspects like:

Some define it as an activity. Some define it as a group of individuals.

Some define it as an organization. Some define it from the view of public management,

others by the view of business administration. Others went to categorize it based on the classical

term (administration) and the modern term (management).

The concept of management and business administration

Frederick Taylor defined it as “the art of leading and directing the activities of a group of people to achieve a

certain goal”.

Others defined it as “organized human activates to reach the goal”.

Based on this definition we can distinguish four main characters related to Management:

1. Organized: which means that it’s a planned and organized activity aimed for a certain goal.

2. Human: it’s human based not electronic.3. Group: More than one person participate in this activity.

4. Goal: it’s related to a goal which is clear and beneficial to the Organization.

The elements of management and business administration

Management and business administration development motives

1. The growth of industrial and commercial facilities which assist market and workers growth.

2. The age of global and international companies which has many units and branches in a remote

places.

3. The psychological gap between the workers and the owners, especially after the industrial revolution.

Business Administration and Public Management

To explain how business administration is an important part of management definition, we should

know first what the word “Business” mean

Business can be defined as “a group of activates aim to product and distribute the products and

services necessary for human needs.”

While business administration is “managing the economic activity to gain profits”

Business Administration and Public Management

Management can be called public administration when it’s related to one of these characters:

Public is not privet, which means that there is public benefits and needs.

Public is shared, which means that the case is common between most of the individuals.

Public is transparent, it’s clear and everyone can know and access the information related to it.

The similarity between public management and business administration

1. Both seek to implement the same management principles (planning, organizing, coordination,

directing, supervising) to achieve the desired goals.

2. The manager in both do the same roles and duties.

3. Both need human interactions within it.

4. Both suffer the same effect from the administrative problems.

The difference between public management and business administration 1. The governmental activities are public management, the non-

governmental activates are business administration.

2. The activities that serve the public domain are public management, while those who serve the privet domain are business administration.

3. Public management has public authority while business administration doesn’t have it.

4. Public management works in monopolistic environment while business administration works in a competitive environment.

How to distinguish between public management and business administration.

Based on the time: Public management started since ages while

business administration came long after it.

Based on the area: the area of public management is much wider than

the area of business administration, because the public management goals are not bounded and

related to many aspect and fields like economic, health, education and social fields, while the goals of business administration are bounded and mostly

focused at the economic field.

How to distinguish between public management and business administration. Based on the resources: the resources at public

management are public assets, while in business administration the project owners are the owners of the assets.

Based on the goal: the goal of public administration is mostly to serve the public domain, while the goals of business administration put to gain profit. And the success of any privet project can be measured by how much profit it can gain, while the public project’s success can be measured by how much it helped the public domain or the goal that the government desire.

How to distinguish between public management and business administration.

Based on the laws: the laws that rule the public domain are public laws, while the laws that rule the business administration

are based on privet laws like civil law and trading law.

Based on the workers: the worker at the public management get salaries

from the government, while the workers at the business administration work by contracts.