Introduction to Management and

Businesses

Business Ethics
Instructor Dr. Ahmad Warrak
Arab International University
Faculty of Business Administration
 Management Definition

The process of planning, organizing, directing, and controlling the

humans, financial, material, and information resources and activities of a
business to achieve specific goals in the most effective and efficient
manner possible
Management Definition
Human
Resources

Financial
Resources

Organization
Objective

Material
Resources

Information
Resources
 Types of Resources and Capabilities
• Tangible Resources and Capabilities:
1. Physical resources: land and real estate; manufacturing plants, equipment,
and/or distribution facilities; the locations of stores, plants, or distribution
centers, including the overall pattern of their physical locations; ownership
of or access rights to natural resources (such as mineral deposits)
2. Financial resources: cash and cash equivalents; marketable securities;
other financial assets such as a company’s credit rating and borrowing
capacity
3. Technological assets: patents, copyrights, production technology,
innovation technologies, technological processes
4. Organizational resources: IT and communication systems (satellites,
servers, workstations, etc.); other planning, coordination, and control
systems; the company’s organizational design and reporting structure
 Types of Resources and Capabilities
• Intangible resources and capabilities:
1. Human assets and intellectual capital: the education, experience, knowledge, and
talent of the workforce, cumulative learning, and tacit knowledge of employees;
collective learning embedded in the organization, the intellectual capital and know-
how of specialized teams and work groups; the knowledge of key personnel
concerning important business functions; managerial talent and leadership skill;
the creativity and innovativeness of certain personnel
2. Brands, company image, and reputational assets: brand names, trademarks,
product or company image, buyer loyalty and goodwill; company reputation for
quality, service, and reliability; reputation with suppliers and partners for fair
dealing
3. Relationships: alliances, joint ventures, or partnerships that provide access to
technologies, specialized know-how, or geographic markets; networks of dealers or
distributors; the trust established with various partners
4. Company culture and incentive system: the norms of behavior, business principles,
and ingrained beliefs within the company; the attachment of personnel to the
company’s ideals; the compensation system and the motivation level of company
personnel
Management Function 6

Planning- ‫التخطيط‬
ning Setting the organization’s goals and deciding how best
an Org to achieve them
Pl

an
Brain storming, Delegation, Organizing - ‫التنظيم‬

izing
consulting, timing, Determining how best to group activities and resources
collect data budgeting

Set Directing ‫التوجيه‬

indicators Follow up, Motivating members of the organization to work in the
C ont

and motivate, best interests of the organization

evaluate reward
Controlling - ‫الرقابة‬
rol

in
in g

g
l

t Monitoring and correcting ongoing activities to facilitate

re c goal attainment
D i
 Organization Definition
An open social system that works to achieve its set goals, and this system consists of a
set of inputs, outputs and transformational processes within the system, this system is
affected by the external and internal environment under which it operates.

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 Types of Organization

Public Public International Non-Profit Shareholding Partnership

Cooperative
Organizations Enterprises Organization Organizations Company Company
 Types of Organization
1. Public Organizations :Organizations established by a government using its
country's resources to provide sovereign services
2. Public Enterprises: Various organizations, some of which produce and provide
goods and services in order not to be monopolized by the private sector (water,
electricity, airports...).
3. International Organization:Organizations established by an international
resolution, located on the territory of another state, and funded by the
government.
4. Non-Profit Organizations :are organized for a public or mutual benefit other than
generating profit for owners or investors
5. Cooperative :is "an autonomous association of persons share their same common
economic, social, and cultural needs and aspirations through a jointly-owned
enterprise“
6. Shareholding Company: is a business owned by its investors, with each investor
owning a share based on the amount of stock purchased.
7. Partnership Company: is an arrangement between two or more people to
oversee business operations and share its profits and liabilities. In a general
partnership company, all members share both profits and liabilities.
 Examples of types of organizations
Shareholding Company

International Organization

Public Organizations

Non-Profit Partnership Company

Organizations

Public Enterprises

Cooperative
 Levels of Management
Organizations generally have
three levels of management,
represented by top managers,
‫مسؤولون عن قيادة األقسام واإلدارات‬
middle managers, and first-line
‫الرئيسية في المنظمة‬
managers. Regardless of level,
managers are also usually ‫مدراء مرتبطون باإلدارة الوسطى من حيث تقديم التقارير‬
associated with a specific area ‫لها ويشرفون مباشرة على مرؤوسين ال يمارسون اإلدارة‬
within the organization, such as
marketing, finance, operations,
human resources,
administration, or some other
area.
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 Upper Management

• Upper Management or Top managers make up the relatively small

group of executives who manage the overall organization. Titles
found in this group include president, vice president, and chief
executive officer (CEO). Top managers create the organization’s goals,
overall strategy, and operating policies. They also officially represent
the organization to the external environment by meeting with
government officials, executives of other organizations, and so forth.

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 Middle Management

• Middle management is probably the largest group of managers in most

organizations. Common middle-management titles include plant
manager, operations manager, and division head. Middle managers are
responsible primarily for implementing the policies and plans
developed by top managers and for supervising and coordinating the
activities of lower-level managers.

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 Lower- Level Management

• Lower- Level Management or First-line managers supervise and coordinate

the activities of operating employees. Common titles for first-line managers
are supervisor, coordinator, and office manager. Positions like these are
often the first held by employees who enter management from the ranks of
operating personnel

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 Roles of Manager

Decisional Role Informational Role Interpersonal Role

• How managers use • How the manager • How the manager deals
information to make exchanges and processes with others:
decisions: information:
• Figurehead
• Entrepreneur • Monitor/Receiver • Leader
• Disturbance Handler • Disseminator • Liaison
• Resource Allocator • Spokesperson
• Negotiator

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 Skills of Manager
• Skill: is the ability to do something well; expertise

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 Skills of Manager
• Technical skills: involve the ability to apply specialized knowledge and
expertise to work-related techniques and procedures. Examples of these
skills are engineering, computer programming, and accounting. Technical
skills are mostly related to working with “things” processes or physical
objects.
• Human skills: build cooperation within the team being led. They involve
working with attitudes and communication, individual and group
interests in short, working with people.
• Conceptual skills: involve the ability to see the organization as a whole. A
manager with conceptual skills is able to understand how various
functions of the organization complement one another, how the
organization relates to its environment, and how changes in one part of
the organization affect the rest of the organization.
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 Traits of successful Manager
Professionalism

Communication

Team Work

Traits of successful
Manager
Self Management

Leadership

Critical Thinking
 Traits of Successful Manager
1. Communication: are the abilities you use when giving and receiving different kinds
of information
2. Teamwork: is the collaborative effort of a group to achieve a common goal or to
complete a task in the most effective and efficient way
3. Self-Management: are the abilities that allow people to control their thoughts,
feelings and actions. If you have strong self-management skills, you’re able to set
goals independently and take the initiative to achieve them.
4. Professionalism is commonly understood as an individual’s adherence to a set of
standards, code of conduct or collection of qualities that characterize accepted
practice within a particular area of activity
5. Critical Thinking is the ability of gathering and analyzing information to provide
creative solutions to various problems, in addition to understanding situations in a
holistic manner
6. Leadership: is a process by which a person influences others to accomplish an
objective and directs the organization in a way that makes it more cohesive and
coherent
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 What is the Business-Government-Society 20

Filed?
• In the universe of human endeavor, we can distinguish subdivisions of
economic, political, and social activity-that is, business, government, and
society-in every civilization throughout time. Interplay among these
activities creates an environment in which businesses operate. The
business-government-society (BGS) field is the study of this environment
and its importance for managers. To begin, we define the basic terms.
• Business: is a broad term encompassing a range of actions and
institutions. It covers management, manufacturing, finance, trade,
service, investment, and other activities. Entities as different as a
hamburger stand and a giant corporation are businesses. The
fundamental purpose of every business is to make a profit by providing
products and services that satisfy human needs.
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 Good Successful
capital
ideas business

Be aware that is equation is right at the early stages of

the business; in other words at the beginning. Then
the management should change and develop its
practices to ensure the continuation and growth in the
future.
conclusion
Every business is an organization, because
it do has the same characteristics as
organization.
While not every organization is a business,
due to its social interests and the absence
of gaining profit.
 WHAT IS THE BUSINESS-GOVERNMENT- 23

SOCIETY FIELD?
• Government: refers to structures and processes in society that authoritatively
make and apply policies and rules. Like business, it encompasses a wide range
of activities and institutions at many levels, from international to local. The
focus of this book is on the economic and regulatory powers of government as
they affect business.
▪ A society: is a cooperative network of human relations, organized by flows of
power and relatively distinct in its boundaries from other, analogous
networks. Or a network of human relations that includes three interacting
elements:
▪ Ideas
▪ Institutions
▪ Material things
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 WHAT IS THE BUSINESS-GOVERNMENT- 24

SOCIETY FIELD?
• Ideas, or intangible objects of thought: include values and ideologies.
1. Values are enduring beliefs about which fundamental choices in personal
and social life are correct. Cultural habits and norms are based on values
2. Ideologies are bundles of values that create a worldview. They establish the
meaning of life or categories of experience by defining 1Nhat is considered
good, true, right, beautiful, and acceptable. Sacred ideologies, or theologies,
include the great religions that define human experience in relation to a
deity. Secular ideologies, such as democracy, liberalism, capitalism, socialism,
or ethics, all of which will be discussed in this book as they relate to business,
explain human experience in a visible world, a world ordered by values based
on reason, not faith. The two kinds of ideology can overlap, as 1',jth ethics,
an ideology rooted in both faith and reason. All ideologies have the power to
organize collective activity. Ideas shape every institution in society,
sometimes coming in conflict as when capitalism's practiced values of
exploitation, ruthless competition, self-interest, and short-term gain abrade
values of love, mercy, charity, and patience.
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 WHAT IS THE BUSINESS-GOVERNMENT- 25

SOCIETY FIELD?
• Institutions: are formal patterns of relations that link people to
accomplish a goal. They are essential to coordinate the work of
individuals having no direct relationship with each other. In modern
societies, economic, political, cultural, legal, religious, military,
educational, media, and familial institutions are salient. There are
multiple economic institutions such as financial institutions, the corporate
form, and markets. Collectively, we call these business.
• Material Things: including land, natural resources, infrastructure, and
manufactured goods. These shape and, in the case of fabricated objects,
are partly products of ideas and institutions. Economic institutions,
together with the extent of resources, largely determine the type and
quantity of society's material goods.
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