The administration of a venture or a family business has different characteristics compared to what happens in a large company.
Administration is a concept that refers to the operation, structure and performance of organizations . The term comes from the Latin ad-ministrare ( "to serve" ) or ad manus trahere ( "to manage" or "manage" ).
The notion can also be used to name a public authority , such as the government of a territory, or those responsible for a private entity , such as the directors of a company .
On the other hand, the public administration of a State is the set of organizations that are responsible for applying the directives essential for compliance with laws and regulations. Public buildings and officials also make up the public administration , which appears as the link between political power and citizens.
Administration as a science
Administration can be understood as the discipline that is responsible for managing resources (whether material or human) based on scientific criteria and aimed at satisfying a specific objective.
There are times when the term administration is used to refer to the social science known as business administration . This science studies the organization of companies and the way they manage resources , processes and the results of their activities.
Accounting (which provides useful information for making economic decisions) and marketing (which analyzes consumer behavior in the market), for example, are considered administrative sciences.
For example: "If we want this company to grow, we will have to improve resource management", "I think you still have a lot to learn about managing a house", "Complaints should be made to the administration office" .
The organizational culture determines the way in which the administration of an entity is developed.
The concept according to the TGA
The General Theory of Administration , known by the acronym TGA , brings together the knowledge we have to date about the administration of companies and organizations.
It is possible to analyze administration through this theory of organizations, which is dedicated to studying the way in which people manage their resources and establish interactions with the external environment to satisfy their needs.
There are two ways with marked differences to define this concept: administration as a discipline (set of principles, ideas and concepts that must be taken into account to guide a group), and administration as a technique (set of functions and activities that an administrator must carried out to achieve the objectives of the organization it represents)
In administration, theory only occupies a tiny space: it is not possible for it to exist without technique, without these concepts being pigeonholed within a set of activities that make them truthful. Therefore, in administration, technique is the natural vehicle to carry out and test the discoveries of science.
In the administrative study, an attempt is made to analyze companies and organizations to understand their real functioning, evolution, growth and behavior. If the technique were not based on knowledge of science, then we would be dealing with an empirical test and acting in a way that cannot be considered scientific.
Administration can be carried out with different leadership styles.
Administration under the eyes of different authors
According to Jorge Hermida , Roberto Serra and Eduardo Kastika , it is impossible to consider administration as an art, because neither experiences nor subjective interpretations of reality have a place in it. This is expressed in the book titled "Administration and Strategy, Theory and Practice" , published by Ediciones Macchi.
For Henry Sisk and Mario Sverdlik, administration is the fusion of all the resources that are possessed through a planned scheme, a process made up of planning , direction and control and whose objective is to achieve what the company proposes as goal.
José A. Fernández Arena sees it as a social science whose goal is to satisfy the institutional objectives of each medium through a structure and unified effort.
For his part, George R. Terry says that it consists of planning to achieve specific objectives based on the efforts of others.
In the technique of administration , in short, it is essential to understand the resources one has in order to know how to find the most appropriate objectives based on them and carry out efficient administrative work. It should be noted that it has principles, laws and procedures that serve the rational conduct of organizations.
The management of a company
The management of a company consists of multiple tasks carried out by the team of managers who make the most important decisions.
Broadly speaking, directors and managers must organize human resources , be in charge of coordinating teamwork , carry out problem resolution and execute actions that increase sales, improve productivity, achieve customer loyalty and ensure the sustainability of the company.
In this framework, the preparation and supervision of a business plan is part of the administration's tasks. Management usually sets objectives to reinforce the positioning of the brand and promote continuous improvement of all processes.
As you can see, management leadership is key to the operation of the company. If those responsible for this area perform efficiently and effectively , and carry out accurate communication of their functions and objectives, success is more likely.
It cannot be omitted to mention that the administration assumes numerous administrative activities. Financial management , project management , and operations management are some of them.
The administration also carries out numerous analyses: the so-called SWOT analysis , risk analysis , profitability analysis , competitor analysis ... It can even carry out an internal audit in order to increase quality and promote, if necessary, a organizational change .