Bachelor of Science in Computer Science

Lesson 1

• Introduction to Business Administration Lesson 1
  1. Administration
  Administration can be defined as the process of organizing resources efficiently to
  accomplish a goal.
  1.1 Concept of Administration
  Provides the foundation for management in many different industries.
  A business manager may have a wide variety of responsibilities depending on the
  organization they are employed with.
• Universal functions include:
  • Planning
  • Organizing
  • Staffing
  • Directing,
  • Controlling
  • Budgeting
• 1.2 Common Business Terms
  Business – Activity that seeks to provide goods and services to others while
  operating at a profit.
  Nonprofit organization – An organization whose goals do not include making a
  personal profit for its owners and organizers.
  Sole proprietorship – Business owned and managed by one person. (Taxed Once)
  Limited Liability – Partners are not responsible for the debts of the business.
  e-commerce – Buying and selling of goods over the Internet.
  Need – Necessary wants (things you need in order to survive.)                                                                                        Want – Things you wish you could have
  Profit – The amount of money left over a business has paid for the cost of
  producing its goods & services
  Revenue – Total amount of money a business takes in during a given period by
  selling goods and services
  Loss – Occurs when expenses are more than revenues
  Competition – Rivalry among business who share target customers to sell their
  goods and services.
  Demand – The amount of a good or service that customers are able and willing to
  buy at various possible prices during a specified time period.
  Resources – economic or productive factor required to accomplish an activity, or
  achieve a desired outcome.
  Three most basic resources are:
  • Land
  • Labor
  • Capital
  Goods – Tangible products that
  are used to satisfy our needs and wants.
  Services – Activities that are consumed at the same time they are produced
  Importing – Buying products from another country
  Exporting – Selling products to another country
  Natural Resources – Raw materials supplied by nature that come from the earth, water,
  air and are used to produce goods.
  Productivity – measurement of production per worker
  Efficiency – Producing goods and services using the least amount of resources
  Monopoly – a market in which there is only one seller for a product or service.
  Other resources include:
  • Energy
  • Entrepreneurship
  • Information
  • Expertise
  • Management
  • Time

1.3 Importance of management
Management is the process of getting things completed effectively and efficiently
with and through other people.

• Planning
  A business manager is responsible for looking down the road and preparing the
  organization for what lies ahead.
  Involves:
  • Budget projections
  • Market research
  • Strategic planning.
• Organizing
  The purpose of organizing is to create the optimal environment for workflow
  efficiency and results.
  Goals must be defined first prior to Organizing
  Business administrator then:
  • Identifies responsibilities to be performed
  • Analyzes the human resources and tools needed
  • Delegates the responsibilities
  This may involve reorganizing or developing new departments or creating new
  roles.
• Staffing
  This role is a large part of any business administrator’s job.
  • Determining staffing needs
  • Preparing job descriptions
  • Interviewing
  • Training

An effective manager understands issues such as:
• Diversity
• Ethics
• Politics

• Directing
  The “sweet spot” of directing is finding the balance between staff needs and
  economic production.
  This involves:
  • Allocating resources properly
  • Providing a support system that responds to problems quickly
  • Motivating employees
  • Lead staff towards a common goal with strong interpersonal skills.

Controlling
Controlling involves evaluating quality at all levels of the organization.
By tracking work and comparing it to the strategic plan, a business manager can
minimize deviations from the plan.
Controlling tasks include analysis of:
• Business expenses
• Information management
• Performance measurement

• Budgeting
  Critical to any business manager’s success are:
  • Projecting
  • Tracking
  • Reviewing the budget

Important areas of knowledge for a business administrator include:
• Statistics
• Marketing
• Human resources
• Economics
• Decision-making
• Logic
• Problem-solving
• Interpersonal skills