We explain what is the administrative process of an organization or company and what is its importance. We explain its four stages.
Administrative process definition
First of all, it is worth asking what is process.
Process: Set of the successive phases of a natural phenomenon or an artificial operation. (Dictionary of the Royal Spanish Academy)
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Administration: Social science that pursues the satisfaction of institutional objectives through a structure and through a coordinated human effort
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What is the administrative process?
The administrative process is a set of administrative functions that seek to make the most of every resource that a company has in a correct, fast and efficient way.
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So the administrative processes are intended to enhance the efficiency, consistency, and accounting of its human, technical and material resources.
Origin of the administrative process
We owe the origin of the administrative process to Henry Fayol. Around 1916, after 50 years as manager of a mining company, Fayol published his book “Administration Industrielle et Générale”. In Spanish, it would be something similar to «Industrial and General Administration».
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In this book, he developed, based on his experience, his entire theory. Fayol, highlighted in his work the different levels of management, administrative functions, and a list of principles to manage correctly.
However, it is worth mentioning that the most recognized of all his work are his principles. Specifically 14 principles for proper administration.
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Phases of the administrative process
There are two phases in the administrative process, one mechanical and the other dynamic.
The first, the mechanical phase, seeks to establish what to do and the necessary structure to do it is prepared, including planning and organization activities.
Stages of the administrative process
The administrative process consists of 4 elementary functions: planning, organization, execution, and control.
Next, we explain each stage of the process.
1. Planning
This function is the first one that the administrative body of a company must exercise. This is where the objectives and goals that the company must meet and the methods to be carried out will be foreseen.
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The relationship between the working staff and the administrative staff must have a common character so that they can complement each other for the proper functioning of the company and the fulfillment of its objectives.
A plan is developed that objectively contains the different future activities to be carried out; This plan must be implemented with a previous visualization taking into account each characteristic.
Some of the most important planning activities are:
- Predefine the objectives and goals that you want to achieve during a certain time.
- Predict.
- Establish a strategy with its corresponding methods and techniques to carry out.
- Act against future problems.
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2. Organization
After planning the objectives and future activities to be carried out to achieve the proposed goals, the next step is to distribute each activity to the different work groups that make up a company.
It is strongly related to the physical and intellectual abilities of each worker and the physical resources that the company possesses. The purpose of the organization is that objective assigned to each activity of the company so that it can be fulfilled with the minimum expenses and in turn with a maximum degree of satisfaction in each employee.
Some of the most important activities of the organization are:
- Make a detailed selection of the workers indicated for the opposite indicated
- Subdivide each task into operational units
- Select an administrative authority for each sector
- Provide useful materials and resources to each sector
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3. Execution
Here it is necessary the figure of a manager capable of directing, making decisions, instructing, and helping the different labor sectors. In the execution it is sought to take the first step in the realization of the activities designated to each work group and that they continue to carry out these activities periodically and effectively.
Each working group is governed by rules and measures that improve its operation.
Some of the most important activities of execution are:
- Offer a motivating character to the staff
- Reward each employee with the corresponding salary
- Be attentive to the needs of each worker
- Maintain stable communication between all sectors
4. Control
This last function has the role of guaranteeing that the company is headed for the course of success. While each previously named function can be performed to the letter, that will not guarantee that the entity will lean towards a positive economic path.
Control is an administrative task, which must be exercised professionally and transparently. The control of the activities carried out in a company serves to analyze the high and low points of the same.
After obtaining the corresponding results, the different modifications that will have to be carried out to correct those low points will become feasible.
Some of the most important control activities are:
- Compare the results obtained with previously made plans
- Evaluate and analyze the results obtained
- Start the corresponding correction actions
The functions of the administrative process are the same as the stages of the administrative process: planning, organization, direction, and control. They differ from the administrative stages because they are considered managerial functions, therefore, they are applied to the general objectives of the company or organization.
14 principles of the administrative process administration responsibility
The 14 principles of the administrative process by Fayol focus particularly on the five management functions of an organization. These are the basic guidelines for managing the organization as a whole.
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Although the principles were not created on the basis of experiments, they were created by the experience of Henry Fayol. These principles are universal and can be applied to any organization anywhere in the world.
Fayol suggests that these principles are not rigid, but flexible and should be used according to need. Therefore, it is up to the part of the manager how he uses the above to adapt to the organization and to manage effectively and efficiently.
- Division of work: work should be divided between individuals and groups seeking your skills.
- Authority and Responsibility: Authority defined here is the right thing to do to give orders, and responsibility means accountability.
- Discipline: a successful organization requires the common effort of the workers. Sanctions must be applied prudently to encourage this common effort.
- Unity of command: workers must receive orders from a single manager. administration responsibility
- Unity of direction: the entire organization must move towards a common goal in a common direction.
- Subordination of individual interests to general interests: the interest of one person should not take precedence over the interest of the organization as a whole.
- Compensation – Many variables, such as cost of living, supply of qualified personnel, general business conditions, and business success, must be considered when determining a worker’s pay rate.
- Centralization: centralization means reducing the importance of the subordinate role.
- Scalar chain: the manager in hierarchies is part of the scalar chain.
- Order: For the sake of efficiency and coordination, all materials and people related to a specific type of work should be treated as equitably as possible.
- Fairness – All employees must be treated as equitably as possible.
- Stability of staff tenure: Retaining productive employees should always be the top priority of management.
- Initiative – Management must take steps to encourage worker initiative, which is defined as a new or additional work activity that is carried out through self-management.
- Espirit de corps: or esprit de corps, the management must promote harmony and general well-being among employees.
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The importance of the administrative process
Essentially when a company decides to start with an administrative process cycle, it seeks to obtain improvements and growth. In addition, it is the best way to manage the order of all areas, but above all, it is verified that all are aligned with the mission, with the vision, and with the objectives in the short, medium, and long term.
When administrative process tasks are carried out correctly, companies gain competitiveness with more refined and efficient processes in which resources are used to grow, instead of losing them. In addition, it is possible to work more easily in a team.
When done right and businesses enter back-office process cycles, businesses can find general organizational weaknesses, but they can also find financial opportunities.
Many businesses do not make the decision to apply for loans to promote growth because they do not find how to use the resources they will obtain, they are not clear about the processes in which they can escape and they prefer not to lose that money or how they can focus on growing when they have to fulfill those commitments.
When a company has already found what to do with these resources, thanks to a good administrative process, it should focus its efforts on finding the best institution that grants it a loan that allows it to grow.
For this reason, institutions like Grupo FINDEP can offer advice and personalization of loan agreements that can be used in business growth and you can make an application very easily from the comfort of your desk.
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Benefits of applying the administrative process
Hernández (p. 194), points out as benefits of the application of the administrative process, the following:
- It is a practical and methodological guide for business administration.
- It allows systematizing and controlling of continuous operations.
- It lays the foundation for structuring (organizing) work and dividing it into departments and hierarchies according to the needs and resources of companies.
- It allows the establishment of a system of selection of individuals according to the needs of the company.
- Facilitates the development of skills and job skills.
- It enables direction, by giving strategy and control to those who drive it.
- It empowers the analysis of problems for their solution.
- It gives the bases to apply the scientific method for the improvement of the company or its rethinking.
- It is an important instrument of a company reorganization.
Administrative process example
For example, suppose we are mountaineers. Our goal is to reach the top of the five highest mountains in the world. The goal is clear, but we need a process to achieve our goals as safely as possible. That is, without putting our health at risk.
In this sense, any company or organization that intends to achieve goals must apply an administrative process. Without the administrative process, it is very difficult to achieve the proposed objectives. Almost impossible. Can you imagine climbing Everest without having anything planned, without having trained, and with everything out of control? Right? The same thing happens in business.
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