INTRODUCTION

 Business Administration is the process of

managing every aspect of a business in order
for it to maintain its growth or stability,
depending on the overall goal of the owner or
owners.
 Companies have a dedicated group of
administrators who work to ensure this takes
place. Most also work to get to this point by
setting up a hierarchy.
 The head of overall operations in business
administration is usually referred to as the
chief executive officer (CEO) or president.
Fields of Business Administration
Business administration has come to
encompass an extraordinary number of
academic study areas. as business has become
more complex, so too has the oversight of
companies: their management, growth
strategies, personnel issues, taxes and the role
that taxes play in corporate economic strategy.
Advertising has grown to include multiple
media outlets: new customers, repeat
customers, stockholders, investors and new
geographic markets. Marketing has become the
term of choice for this entire strategically
placed product exposure.
 Defining business administration then means
defining oversight roles for the assortment of
internal specialties that every business of any
size has come to include.
 For a large corporation, business
administration is going to include
international and global business, as well
as strategy and economics. The definition
of business administration will include
requirements of certain cultural
differences and an acute understanding
of the global economy and its current
fluidity. Also included in business
administration is the art and science of
acquisition: when to buy a company or
property and why.
 The definition of business administration will
have to include marketing; you won't have a
business to administer unless you sell your
products. understanding of the new tools
available for product distribution

 In small businesses or starting your own

business, business administration includes an
understanding of entrepreneurship: tax
structures for small businesses along with
personnel issues at that level, inventory and
cash flow, and all the other small matters that
make a big difference to a new or small
business.
 DEFINITION OF BUSINESS
A business (company, enterprise or
firm) is a legally recognized organization
designed to provide goods or services for
consumer satisfaction
 FORMS OF BUSINESS
 Sole proprietorship: is a business
owned by one person. The owner may
operate on his or her own or may employ
others and has personal liability of the
debts incurred by the business.
 Partnership: is a form of business in
which two or more people operate for the
common goal which is often making
profit. three typical classifications of
partnerships: general partnerships,
limited partnerships, and
limited liability partnerships.
 Corporation: is an entity that has a
separate legal personality from its
members. Is owned by multiple
shareholders and is overseen by a
board of directors.

 Cooperative: is a limited liability entity

that can organize for-profit or not-for-
profit. typically classified as either
consumer cooperatives or worker
cooperatives.
 CLASSIFICATIONS OF BUSINESS
 Agriculture and Mining Businesses -
concerned with the production of raw
material such as plants or minerals.
 Financial Businesses - include banks
and other companies that generate profit
through investment and management of
capital.
 Information Businesses - generate
profits primarily from the resale of
intellectual property and include movie
studios, publishers and packaged
software companies.
 Manufacturers - produce products, from
raw materials or component parts, which
they then sell at a profit.

 Real Estate Businesses - generate

profit from the selling, renting, and
development of properties & homes

 Retailers and Distributors - act as

middle-men in getting goods produced
bymanufacturers to the intended
consumer, generating a profit as a result
of providing sales or distribution services.
 Service Businesses - offer intangible
goods or services and typically generate
a profit by charging for labor or other
services provided to government, other
businesses, or consumers.
 Transportation Businesses - deliver
goods and individuals from location to
location, generating a profit on the
transportation costs
 Utilities - produce public services, such
as heat, electricity, or sewage treatment,
and are usually government chartered.
Management
 The efficient and effective operation of a

business, all processes consist of actual

tasks that must be completed for any
business process to work properly.

The main branches of management:

financial management, marketing
management, human resource
management, strategic management,
production management, service
management and information technology
management.
Process management - is the management
of the activities involved in confirming
that procedures are in place to ensure
that those tasks get done properly.
 Part of process management involves

creating process designs, outlining roles,

and using strategic planning to determine
how and when all those tasks are
accomplished.
 BUSINESS PROCESS MODELS
Think like a user
As you work with business process it's
critical that you look at the processes
from a user perspective instead of a
system perspective. The reason for this:
If a system fails, users must still know
what to do in the process.
 McDonald's, the worldwide fast-food
restaurant. One of the benefits of working
there was to learn how to quickly count
change and add up purchases.
Speak for the user
To create processes that work with users
instead of against them. When you're
modeling new business processes, it's
imperative that you intimately
understand what that user will experience
with any change in the process.
Get the tools for the job
Helps you easily organize requirements,
trace them in processes, and analyze
what needs to happen in a business
process.
In business, administration consists of
the performance or management of
business operations and thus the
making or implementing of major
decisions.
Administration can be defined as the
universal process of organizing people
and resources efficiently so as to direct
activities toward common goals and
objectives.
 The word is derived from the Middle English
word administracioun, which is in turn
derived from the French administration,
itself derived from the Latin administratio —
a compounding of ad ("to") and ministratio
("give service").

Administrator can serve as the title of the

general manager or company secretary who
reports to a corporate board of directors. This
title is archaic, but, in many enterprises, this
function, together with its associated Finance,
Personnel and management information
systems services, is what is intended when
the term "the administration" is used.
 ADMINISTRATIVE FUNCTIONS
 Henri Fayol as "the 5 elements of administration"
Planning is deciding in advance what to do, how
to do it, when to do it, and who should do it. It
maps the path from where the organization is
to where it wants to be. The planning function
involves establishing goals and arranging them
in logical order.
Organizing involves identifying responsibilities
to be performed, grouping responsibilities into
departments or divisions, and specifying
organizational relationships. The purpose is to
achieve coordinated effort among all the
elements in the organization. Organizing must
take into account delegation of authority and
responsibility and span of control within
supervisory units.
Staffing means filling job positions with the right
people at the right time. It involves
determining staffing needs, writing job
descriptions, recruiting and screening people to
fill the positions.
Directing is leading people in a manner that
achieves the goals of the organization. This
involves proper allocation of resources and
providing an effective support system. Directing
requires exceptional interpersonal skills and the
ability to motivate people. One of the crucial
issues in directing is to find the correct balance
between emphasis on staff needs and emphasis
on economic production.
Controlling is the function that evaluates quality
in all areas and detects potential or actual
deviations from the organization's plan. This
ensures high-quality performance and
satisfactory results while maintaining an
orderly and problem-free environment.
Controlling includes information management,
measurement of performance, and institution
of corrective actions.
Budgeting, exempted from the list above,
incorporates most of the administrative
functions, beginning with the implementation
of a budget plan through the application of
budget controls
 Legal Business Organization
IMPORTANT CONSIDERATIONS
 At the most basic level, you should consider
the ultimate goals of the organization. Is the
business being formed for the sole purpose of
making money or are there other goals, such
as bringing jobs to the community, raising food
with a particular set of values, or protecting
the environment?
• Who will control the organization?
Who are the stakeholders in the organization
and how can they ultimately affect the
operation? Possible candidates include the
people who contribute capital, the producers
who provide the product, employees, and the
community where the business is located.
 How much capital does the organization
need and who will contribute the capital?
Does the organization plan to process
and market its own products, which may
require a large amount of capital? Or is
the joint producer organization a
bargaining agent or an information
network that does not require a lot of
capital to operate?
 Who owns the organization?
Who has equity or ownership rights in the
business being created?
What type of profit-sharing rights do the owners
have?
 Equity rights typically provide owners the right

to certain profits.
Is the ability to sell or transfer shares limited?
 Organizations may choose to restrict who can

own an equity interest. For example, the by-

laws of the entity may require that the equity
may pass only to other members of the
organization or to members of the community.
Who is liable for injuries caused by the
organization?
 The business structure usually determines who

must pay for damages caused by the business.

Can a corporation be set up for the sole purpose
of avoiding liability?
 One of the main advantages of being part of a

corporation is the organization, rather than the

individuals who own it, is liable for the
business’ debts. This concept of “limited
liability” is a major consideration in why people
form these type of entities. But courts will not
allow people to form corporations with the
intent of committing fraud or furthering an
injustice. In these situations, the court will
“pierce the corporate veil.” In other words, the
court will look past a scheme that uses the
corporation as a cover for an individual’s bad
acts and make the individual liable.
Who can participate in the organization?
 The organization can be set up to prefer or

restrict membership to a certain class of

people, for instance only those who provide
livestock to the business or those who live in a
certain community.
Who manages the organization and makes the
decisions?
 Most formal organizations have at least two

levels of decision makers: the board of

directors and the management. Generally, the
board of directors make major financial and
structural decisions while management handles
the day-to-day affairs and reports to the board.
Such decisions can include:
• How to implement a major business strategy once it
has been decided on;
• Who to hire and fire;
• How to deal with employees, suppliers, and buyers;
• Reporting on the financial performance of the business.
What does a board do?
 A board of directors is a group of people
legally charged to govern a corporation.
 The board of directors is responsible to the
stockholders, the board is also responsible to
other stakeholders, that is, everyone who is
interested in or can be effected by the
corporation.
 In a nonprofit corporation, the board reports to
stakeholders, such as the donors and the
communities which the nonprofit serves.
Major duties of board of directors
Board members have the following duties:
1. Provide continuity for the organization by
setting up a corporation or legal existence and
represent the organization’s point of view
through interpretation of its advocacy,
products, and services.
2. Select and appoint a chief executive to whom
responsibility for the administration of the
organization is delegated, including:
 Reviewing and evaluating the executive’s performance
regularly on the basis of a specific job description,
including executive relations with the board, leadership
in the organization, program planning and
implementation, and management of the organization
and its personnel
 Offering administrative guidance and determining
whether to retain or dismiss the executive.
3.Govern the organization by broad policies and
objectives formulated and agreed upon by the
chief executive and employees; assign priorities
and ensure the organization’s capacity to carry
out programs by continually reviewing its work.
4. Acquire sufficient resources for the
organization’s operations.
5. Account to the public for the products and
services of the organization and expenditures of
its funds, including:
- providing for fiscal accountability, approving
the budget, and formulating policies related to
contracts from public or private resources
- accepting responsibility for all conditions and
policies attached to new, innovative, or
experimental programs.
How will the organization and the owners
or members be taxed?
The organizational structure will determine
how the income of the organization will
be taxed – at the organization level, the
individual level, or both. Tax rates may
be different depending on the type of
organization you choose.
Leadership
 With Christ in my Vessel

With Christ in my vessel, I can smile at

the storm
Smile at the storm ( 2x )
With Christ in my vessel I can smile at
the storm
Until he leads me home
Sailing, I am sailing home ( 2x )
With Christ in my vessel I can smile at
the storm, until He leads me home.
 Types of Leaders
1. According to status
 Formal – one who officially occupies a

position of leadership as president, vice

president or
 Informal or contributory – one who has no

official position but who provides or

contributes bright ideas for the group
2. According to managerial skill
 autocrat – one with very high regard for work

but very little regard or career for workers

 missionary – one with the highest concern for

people
 compromiser – one with equal concern for

work and people

 deserter – one with very little concern for

service and people

 executive – one with the highest regard for

service, or work as well as for workers or

people. This is the highest type of leadership
3. According to manner of participation

 Autocratic – there is practically no

participation of the group in decision
making
 Participatory – authority is
decentralized. The group is involved in
decision making.
 Free rein – the leader depends upon the
group for decision making
4. According to democratic Practice

 Authoritarian - decision making is in

the hands of one man
 Democratic – decision making is in the
hands of the group. The group itself is
self – governing
Skills Required of Leaders
1. The first of these is
to Set Goals.
Leaders should be
well-organized,
allocate priorities,
establish short-
term and long-term
goals, then ensure
all efforts to achieve
them.
2. The leader should be an
Effective
Communicator

It is important for a
leader to understand
needs of clients, the
expectations of top
management and the
current situation in the
organization. In
communicating, active
listening is also
important because it
helps leaders gather
relevant data.
 Communication
Levels of Communication
 Intrapersonal-

Communication with one

self
 Interpersonal-From one

person to another
 Group-Individual-Occurs

in two levels, one

to many or many to one
Group to group-
Organizational type of

communication
 Levels of Listening
by Stephen Covey

Ignoring Making no effort to listen

Pretending Make believe or giving the
appearance that you are listening
Selecting Hearing the parts that are of
interests the person
Attentive Paying attention and focusing on
what the speaker says and
comparing that with his/her
experiences
Emphatic Listening and Responding with both
heart and mind
3. The leader should
be talented in
Networking

Socializing,
contacting and
interacting with
others are a source
of unstructured
managerial
information and a
tool developing a
good reputation.
4. The Leader should
be Good Negotiators

One of the necessary

requirements is to negotiate
with superiors,
subordinates and clients.
The aim should always be a
win-win approach.
Therefore, leaders must be
able to discuss interests and
not positions. Only when
managers get involved in
the ideas of others can they
understand their situation
or behavior and find the
best situation for both sides.
3R’s of Management
Bringing out the best in people
means
recognizing/appreciating
what they do, rewarding them
for it, and giving them role
models to become top
performers
 3A’s of Excellence
Attitude-excellence is a mindset. you
must believe.
Aggressiveness-in the spirit of
competition, any organization should
work fast.
Appearance-the business community
responds to appearance.
 EFFECTIVE LEADERSHIP
 I-nitiating-task-motivated or goal directed
 R-egulating-control rewards and
punishment/Ability to minimize conflicts
 I-nforming-Communicates/informs
everyone of any development
 S-upporting-gives mutual trust,warm,
affectionate,coordinate activities
 E-valuating-willing to make
changes/flexible
 Ineffective Leadership
 I-indifference-detached,habitually late and
absent
 C-onflicts-unresolved,avoids responsibility
 R-ejection-refuses to accept ideas/narrow
minded
 A-nxiety-emotionally
unstable,pessimistic,indecisive
 S-elf centeredness-selfish/self-righteous
 H-ostility-hypercritical
 What motivates employees?

 Feeling “in” on things

 Good wages
 Good working conditions
 Job security
 Full appreciation of work that is done
 Tactful disciplining
 Employer loyalty to employees
 Interesting work
 Promotion and growth in the
organization
 Final thought:

Non Schola
Sed Vita Discimus

(We don’t learn for school,

but for life)

Peter Drucker, “The New Realities”