Elements and Concepts of the Administration and Business Management
Elements and Concepts of the Administration and Business Management

Elements and Concepts of the Administration and Business Management

  • Objective: That the administration is always focused on achieving goals or results.
  • Efficacy: It consists in achieving the objectives satisfying the requirements of the product or service in terms of quantity and time.
  • Efficiency: It refers to doing things right. It is to achieve the objectives guaranteeing the resources available at minimum cost and with the highest quality.
  • Social group: For the administration to exist, it must always be within a social group.
  • Resource coordination: To manage, it is necessary to combine, systematize and analyze the different resources involved in achieving a common goal.
  • Productivity: It is the relationship between the quantity of inputs needed to produce a certain good or service. It is obtaining the maximum results with the minimum resources, in terms of effectiveness and efficiency.

Administration as art, technique and science

Administration as art

In ancient times it was thought that the administration was an art, because there was a belief that making resources render a skill, taking into account that art is defined as «Achieving results by applying the skills to achieve the desired objectives », so it is said that the administration is one of the most creative arts because it organizes and uses human talent.

It refers to the use of the fundamental knowledge that administrative science provides and its application to a specific situation based on the knowledge, capacity, ability and skills of administrators in the perspective of obtaining practical results. It is said that administering is an art, but the term is used with more property to refer to the set of knowledge (science) that serves as the foundation.

Administration as a technique

Because it uses specific procedures derived from its scientific nature because it complies with the following:

  • With the value of utility because it is used to organize in relation to objectives that generate products in organizations.
  • Because it is made up of a set of rules and instruments necessary to regulate the relationships between members and hierarchies of agencies.
  • Because it uses changing procedures to make the processes dynamic, updating itself with innovations in technical, material and human resources.
  • Because it creates the rules and instruments that make up a technique, according to innovations and obsolete ones are abandoned.
  • Because it is essentially practical in nature, taking up interdisciplinary aspects of science.

Administration as Science

  • It has a defined theoretical framework, since the mid-eighteenth century with the Industrial Revolution that studies have been systematic.
  • Because it has responded to social needs about organization.
  • Because it has responded to changing and updated practical needs, which have resulted in the reinforcement and innovation of initial theories.
  • Because they have been used through different methods with which pre-established objectives have been achieved.
  • Because such results have been observable and experimental. The administration can be conceived as a science, this is a set of ordered and systematized knowledge of universal value, which studies companies and organizations for descriptive purposes, to understand its operation, evolution, growth and behavior. It is a tactical science, whose real purpose is organizations.

What is the importance of administration?

The importance of the administration is that it imparts effectiveness to human efforts. It helps to obtain better personnel, equipment, materials, money and human relationships. It keeps up with changing conditions and provides foresight and creativity. The improvement is its constant watchword.

Administration Features

  1. Universality The administrative phenomenon occurs wherever there is a social body, it is the global decision-making process aimed at achieving organizational objectives effectively and efficiently, through planning, organization, integration of personnel, management (leadership) and control. The administration is the same in the state, in the army, in the company, in educational institutions, in a religious society, etc. It can be said that the administration is universal because it can be applied in all types of social organizations and in all existing political systems.
  2. Specificity Although the administration is always accompanied by other phenomena of a different nature, the administrative phenomenon is specific and different from those it accompanies. You can be a magnificent production engineer and a lousy administrator. The administration has specific characteristics that do not allow us to confuse it with another science or technique.
  3. Temporary unit. Although stages, phases and elements of the administrative phenomenon are distinguished, it is unique and, therefore, at all times in the life of a company, all or most of the administrative elements are occurring to a greater or lesser extent.
  4. Hierarchical unit. All who have the character of bosses in a social organization, participate in different degrees and modalities, of the same administration. In a company they form a single administrative body, from the general manager, to the last butler.
  5. Instrumental Value Administration is a means to an end, that is, it is used in social organizations to efficiently achieve the established objectives.
  6. Interdisciplinary The administration makes use of the principles, processes, procedures and methods of other sciences that are related to work efficiency. It is related to mathematics, statistics, law, economics, accounting, sociology, psychology, philosophy, anthropology, political science.

Flexibility Administrative principles and techniques can be adapted to the different needs of the company or social group. Featured image source

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