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.