LESSON 1: INTRODUCTION TO BUSINESS MANAGEMENT AND ADMINISTRATION (3 Hours)

1. Learning Objectives

By the end of this lesson, you should be able to:

No. Objective

1 Define business administration and business management
2 Distinguish between administration and management
3 Explain the five elements of administration according to Henri Fayol
4 Describe the key functions of management
5 Understand the role and responsibilities of the board of directors

2. Key Terms and Definitions

Term Definition

Business administration
The performance and management of business operations and decisionmaking, including the efficient organisation of people and other resources to direct activities towards common goals

Business management
The organisation and coordination of business activities to achieve defined objectives through the interlocking functions of planning, organising, controlling, and directing

Board of directors
A group of individuals elected to represent shareholders, responsible for
establishing policies for corporate management and oversight 

Inside director A board member who is also an employee or major shareholder of the companyTerm Definition

Outside director A board member who is not involved in the day-to-day operations of the company and provides an independent perspective

3. What is Business Administration?

Business administration includes all aspects of overseeing and supervising business operations, as well as related fields which include accounting, finance, project management, and marketing. The
administration of a business involves:
• The performance or management of business operations
• Decision-making processes
• The efficient organisation of people and other resources
• Directing activities towards common goals and objectives
In general, administration refers to the broader management function, including associated finance, personnel, and Management Information Systems (MIS) services. Administrators engage in a
common set of functions to meet the organisation's goals. 

Henri Fayol, a French mining engineer and management theorist, described these "functions" of the administrator as "the five elements of administration" . Fayol's work, published in 1916, remains
influential in management thinking today.

4. What is Business Management?

Business management is the organisation and coordination of the activities of a business in order to achieve defined objectives. Management consists of the interlocking functions of:
• Creating corporate policy
• Organising
• Planning
• Controlling
• Directing an organisation's resources
Management is both a function (a set of activities) and a process (a sequence of actions). As a function, management involves specific activities such as planning, organising, and controlling. As a process, management involves a continuous cycle of planning,implementing, monitoring, and adjusting.

5. Administration vs Management: Key Differences

(FOR A CLEAR UNDERSTANDING OF THESE DIFFERENCES I WOULD RECOMMEND YOU VIEW "INTRODUCTION TO BUSINESS MANAGEMENT & ADMINISTRATION PART 1 VIDEO ON MY YOUTUBE CHANNEL)

Understanding the distinction between administration and management is important for understanding how organisations function.
Table 1: Administration vs Management
Aspect>>Focus....Administration>>Level Policy formulation and rulesetting Strategic, top-level ....Management >>>Implementation of policies and rules Operational, middle and lower levels

Aspect>>Orientation....Administration Management
Orientation Reactive, routine office tasks Proactive, decision-making
Key activities Establishing procedures, ensuring
compliance
Organising resources, directing people,
achieving goals
Decisionmaking Broad, policy-level decisions Day-to-day operational decisions
Time horizon Long-term Short to medium-term
Example: The board of directors (administration) might decide that the company should expand into
a new market. The management team would then develop and implement the specific plans to achieve
this expansion.