Business administration and administration by competences

The present work is entitled: "Monograph on Business Administration and its development based on Competency Administration."

The main purpose of this work is to carry out a bibliographic study on Business Administration with emphasis on one of its trends: Management by Competences.

business-administration-and-administration-by-competencies

From the development of the investigation it was concluded that the Business Administration has gone through different stages, there are various theories around it, being so widely useful that there is not a single universal administrative theory, there is a tendency to value to people, who are ultimately the basis of any organization.

For the achievement and fulfillment of the objectives of this research, the bibliographic review was used as a technique, thus providing all the necessary information for the development of this work. Furthermore, for the automatic processing of bibliography and bibliographic references, Endnote9 software was used.

Introduction

The current administrative conceptions are the result of a process initiated in the principles of humanity and which has been evolving and acquiring its own profiles through different times and stages.

This administrative process began as an obligatory fact when two individuals had to coordinate their efforts to do something that neither of them could do on their own and evolved into a previously planned and carefully planned and rational act that allows achieving objectives with the least effort. possible and with the greatest satisfaction for individuals.

The historical study of this administrative evolution shows us the approaches that this science had in Egypt, China, Greece and Rome, and the influence that certain procedures used in those places had on some current practices in the field, among them the functional organization of the powers of the state.

Currently, administration is a science that has been undergoing important changes within its theories or structures. The bases have been modified based on what certain authors may consider more important (Schools). Some consider existing technology an important factor; others consider human beings to be important as the main factor within the administration, and thus, each one presents different central fields defined in their theories.

Management is about consciously and constantly shaping organizations. Administration can be defined in various ways, like many other areas of human knowledge. Various trends have been derived from it, all with a high degree of importance for the development of an organization. These are: Administration by Instruction (API), by Objectives (APO), by Values (APV), by Competencies (APComp), Knowledge (APConoc), by Processes (APP), etc. Of which there is a common element, achieving greater efficiency and profitability in companies taking the human factor as the central axis.

The Administration by Competences is the tool that helps to raise to a degree of excellence the competences of each one of the members of an entity. This becomes a continuous channel of communication between workers and the company. It becomes an avenue within the organization capable of achieving harmony between organizational objectives and the individual development of people.

For this reason, it is necessary to go deeper into this topic within Business Administration, and therefore the essence of this work will be focused on it.

Hence the scientific problem is defined as:

Lack of knowledge on the subject of Administration and specifically of Competency Administration limits an adequate culture on the subject.

Scientific Questions:

What does Business Administration consist of?

What has been the historical development of Business Administration?

How is the Administrative Cycle made up?

What is the Competency Administration based on?

What is the link between the Competencies model and the rest of the administrative trends?

The objective of this work is to:

Carry out a bibliographic study on Business Administration with emphasis on Competency Management.

The following specific objectives are:

Carry out a bibliographic review that allows to elaborate conceptions around Business Administration. Explain the composition of the administrative cycle. Analyze the development of the different tendencies within Business Administration. Carry out an exhaustive analysis around Competency Administration. Explain the existing link between the Competency Administration and the rest of the Administrative Trends.

Development

Historical development of Business Administration

The administration was born as a science dedicated to the study of best practices in business management, always with the aim of achieving higher levels of effectiveness and efficiency.

Since the beginning of the last century, and for decades, in a relatively stable context, with relatively slow means of communication and, therefore, with a low speed of contextual change, the problems of administration have focused "in" on companies.

A detailed study of the context was not essential, since it varied slowly. Demand levels were stable and sufficient for all companies. Competition was mild or non-existent in some cases. This framework shaped business administration in its "traditional" form, which was primarily about controlling, registering, ordering, maintaining. No one spoke of the need for "change"… It was a paradigm focused on "maintenance"… in developing all those tasks required to sustain the organization in a relatively isolated and stable context.

However, the moment (the 70's) arrived in which technology and the media "exploited" in their development and dissemination… triggering a generalized process of change in which we are still immersed today. A turbulent process, originated in the abrupt interconnection of multiple cultures and markets that previously operated in isolation. Isolated markets got in touch. Isolated cultures were connected. And the merger began.

Thus began to speak of "taking positions" or "positioning", of "crushing the competition", "capture the customer", of "threats, strengths, weaknesses", "battlefield", "war marketing", " attack and defense strategies », of“ tactics ”, among others. Thus, the new administration paradigm was born and developed at that time. The "Strategic Administration".

While the "traditional Administration" was concerned with "maintaining" companies, almost unaware of the existence of competitors, the "Strategic Administration" was concerned with "changing" companies, changing them "strategically", to make them continuously more competitive against others.

This is how the science of strategic management developed profusely, during the 70s, 80s and 90s. But sooner or later common sense reappeared… and during the 90s many began to notice that there was something that "did not close" in the Strategic management. There was something intrinsically negative about the central idea of "competing" to "destroy the competition". The desperation for competition also brought other negative effects, such as the depredation of natural resources.

The strategic administration was accompanied in turn by fierce competition in the work environment, giving rise to the famous ultra-competitive "yuppies", desperate for power and money, with the same disease that attacked many political and military leaders from the past… and from the present. Fortunately, little by little, different people, from different backgrounds, began to see that fierce competition might seem like a good way for the winner, but that it was in no way a positive outlet for the system in general, for society, for countries in as a whole, for the people.

Thus a new way of looking at business administration was born. A new way of managing companies, no longer characterized by strategic change "against others", but by change "WITH others". And not a change to "win" but a change to "progress"… And not for the progress of MY company, MY country, MY team, MY management, MY salary, MY family, but for the progress of the Global System, in a environment of cooperation and mutual assistance worldwide.

This is what we baptize as "Holistic Administration", a vision of administration that is perfectly synchronized with philosophical ideas of the end of the millennium, ideas that have to do with the possibility of a better world, a world in which coexistence reigns in peace, between people, companies, countries… intertwined by understanding, solidarity, cooperation.

The holistic Administration aims to manage companies as they should always have been managed, that is, so that they function as true agents of progress for the entire society. This implies an almost "sacred" role for the "new Managers", since in this vision they practically become true leaders in the progress of our civilization.

On the website http://fundamentoseconomicos.files.wordpress.com/2007/10/antecedenetes-historicos-y-evolucion-de-la-administracion.doc, it is also mentioned that administration can be defined in different ways, like many other areas of human knowledge, but it is possible to conceptualize it for the purposes of its easy understanding and including its most important aspects through the analysis and synthesis of various specialists in the field:

Brook Adams. The ability to skillfully coordinate many often conflicting social energies, in a single organism, so that they can operate as a single unit.

Koontz & O'Donnell. The direction of a social organism, and its effectiveness in achieving its objectives, based on the ability to lead its members.

Henry Fayol. To manage is to anticipate, organize, command, coordinate and control.

Wilburg Jiménez Castro. In «The key to success», based on the above concepts, and using its common fund, the following definition is proposed: «The process of anticipating, planning, organizing, integrating, directing and controlling the work of the elements of the organization and use the available resources to achieve the pre-established objectives ».

Theories around the Administration

At the beginning of the last century Taylor and Fayol appear, in the USA and Europe, respectively; they are the first to refer to administration.

- FW Taylor Scientific Management Theory. Frederick Taylor saw workers perform various tasks. He observed the individual movements of each task and noted the time it took to perform each one, neglecting somewhat the need to establish general principles of administration applicable at all levels; Taylor wanted to find the optimal way to work, and thus solve the problem present in his time; the lack of efficiency in the works or offices.

Steps of Taylor's Scientific Management:

Analyze the task or job. Design the best way to carry it out. Select suitable workers. Train workers. Pay incentives.

- Classical or Administrative Theory of Henri Fayol. Henri FayolHe is considered the true father of modern scientific administration. His postulates were applicable to all levels of the company; He was concerned with the efficient use of resources, with recognizing the various functions in the company and in the administration. He established 14 famous, flexible and adaptable principles, representing an achievement of desirable practices in the administration of any company, which deal with division of labor, authority, discipline, unity of command, centralization, hierarchy, initiative, order and stability of personnel. Equally distributed the work and its burden for workers. Each of the employees for a company or industry was valued and instructed, making him see the need to train him for a certain task,in addition to relating it to the scientific principles that were applied.

- Formal organization theory. It relates two aspects:

Concept of Man-Machine; working alone out of fear and greed for higher wages. He does the least to get the most. Men must conform to the positions created by the organization.

Importance of Administration

The conditions that prevail in this current time of crisis, as well as the need for coexistence and group work, require an efficient application of this discipline that will be reflected in the productivity and efficiency of the institution or company that requires it. So:

Administration can take place where a social organism exists, and according to its complexity, it will be more necessary. A social organism depends, for its success, on good administration, since only through it, is how good use is made of material, human resources, etc. which this body has.In large companies it is where the administrative function is most manifested. Due to its magnitude and complexity, technical or scientific administration is essential, without it they would not be able to act. For small and medium-sized companies, administration is also important, because by improving it they obtain a higher level of competitiveness, since their coordination is better coordinated. elements: machinery, labor, market, etc. The increase in productivity, in the social economic field, is always a source of concern, however,With proper administration, the landscape changes, having an impact not only on the company, but on society as a whole. For all countries, improving the quality of administration is an essential requirement, because all the elements involved in it need to be coordinated in order to create the essential bases of development such as: capitalization, the qualification of its workers and employees, etc.

Administration Features

It has been indicated that the administration provides the basic principles through whose application it is feasible to achieve success in the management of organized individuals in a formal group that has common objectives.

It is now necessary to add to such concepts the characteristics of the administration, which are:

Universality. The administrative phenomenon occurs wherever there is a social organism, because there must always be systematic media coordination. The administration occurs for the same in the State, in the army, in the company, in educational institutions, in a religious community, etc. Its specificity. Despite the fact that the administration is always accompanied by other phenomena of a different nature, the administrative element is specific and different from those that it accompanies. You can be a great production engineer and a lousy manager. Your temporary unitAlthough stages, phases and elements of the administrative phenomenon are differentiated, it is unique and, therefore, at any moment of the operation of an organization, all or most of the administrative elements are occurring, in a greater or lesser proportion. Thus, when making plans, that does not mean that he stops commanding, controlling, organizing, etc. For the same reason, it can be said that it is an interactive and dynamic process. Its hierarchical unity. All have the character of heads in a social body, participate in various degrees and modalities of the same administration. Thus, in an organization they form a single administrative body, from the President to the last supervisor.

Today, there are great opportunities for organizations to penetrate new markets, reach more and more potential buyers of their products, and expand their business horizons. It is true that globalization presents strong competition as a counterpart, but for companies that are prepared and ready, this will not represent major difficulties.

The Administrative Cycle

The administrative process gives a particular approach to the study of organizations and it is spoken of the administrative cycle when one wants to refer to the analysis of the functions of the administrator at any level of the structure.

The Administrative Cycle is nothing more than the set of functions and activities that are carried out in the organization, aimed at achieving goals and objectives.

Characteristics of the Administrative Cycle Systematic conception: it refers to dynamic aspects of the organization, therefore its results arise from the interactions between all the processes (synergy). Logical order: it is a description of the way in which the administrator must analyze and solve the problems that arise in the organization Sequentiality: because it is an ordered sequence of steps or stages Simultaneity: from a temporal point of view, activities linked to different stages of the process are carried out in different areas of the organization Cyclical: it is a cycle because the control phase feeds back into planning by restarting the sequence.

On the website http://www.muece.org.ar/pdf/apuntes/ciclobasico/613/B613T08.doc, it is proposed that the administrative process of any company involves various phases:

Planning is the process by which a vision of the future is obtained, where it is possible to determine and achieve the objectives, by choosing a course of action.

Importance of Planning

It fosters the development of the company. It reduces risks to the maximum. It maximizes the use of resources and time.

Planning Classification

There are different types of plans, among which are:

Mission: it is the raison d'être of the company. It is also said to be the work, commission or special service that a company intends to achieve in the long term. Vision: it is the administrative capacity to locate the company in the future, where we want to be five years from now. Objectives: they are the result that is expected to be obtained, and towards which joint efforts are directed. Goals: the different purposes that must be met to achieve the objective. The goals are more specific purposes that integrate the objective of the company. Policies: are general guidelines or guidelines, which indicate the framework within which company employees can make decisions, using their initiative and good judgment.Rules: they are precise rules that regulate a particular situation. Here specific actions or omissions are exposed, and do not give freedom of action. Examples of this type are "no smoking", "do not eat food on this site", etc. Strategies: the action of projecting into an expected future and the mechanisms to achieve it, and make the future of the organization behave as determined. It can be said then that strategies are courses of action, prepared to face the changing situations of the internal and external environment, in order to achieve its objectives. Programs:They are plans that include objectives, policies, strategies, procedures, rules, allocation of functions and resources, and the actions necessary to achieve the objectives, establishing the time necessary for the execution of each of the stages of operation. Budgets: it is a plan that represents the expectations for a future period, expressed in quantitative terms, such as money, hours worked, units produced, etc. Budgets can be Operational (sales, production, inventories, etc.) and Financial (cash, capital, pro forma financial statements, etc.). Procedures: they are plans that indicate a series of concatenated tasks that must be carried out according to a chronological sequence, to achieve the pre-established objectives.

Types of planning

Strategic planning. It allows long-term decision making. The following must be taken into account: changes in the environment, the capacity of the company and the organizational climate. They are intended to establish or update the mission and general objectives of the company. It is very useful for developing new skills and procedures to face the path to follow in the future. Among the formal stages of strategic planning are:

Identification of current strategies Identification of potential strategic goals Selection of strategic goals Evaluation and execution of strategies

Tactical Planning. It is an annual process that guides towards the achievement of the objectives proposed in the company's programs. Some differences between the strategic and tactical plans are:

The term, the strategic plans imply the long term, while the tactical plans are short term, and sometimes medium term, the scope, since the strategic plans are more general, while the tactical ones are specific. since the tactical plans tend to reflect the goals and the strategic plans the mission of the company.

Planning Techniques

Process analysis diagram. It is the graphic representation of the trajectory in the elaboration of a product or activities, and in which all the actions that will be carried out are indicated, by using the corresponding symbols to show actions such as "transport", "operation", "Inspection", "delay" and "storage" or "archive".

Flowchart. It has many similarities to the process analysis diagram, except that it refers to administrative actions, and uses symbols such as: start or end of the flow, activity, document, decision or alternative, file, page connector and connector.

The forecasts. They are conjectures about a future situation, considering that certain known data are presented; it is an opinion on what can happen and based on past data.

It refers to the creation of a structure, which determines the necessary hierarchies and grouping of activities, in order to simplify them and their functions within the social group.

Thus, an organizational structure must be designed in a way that is perfectly clear to everyone, who must carry out a certain task and who is responsible for certain results; In this way, the difficulties caused by the imprecision in the assignment of responsibilities are eliminated and a communication and decision-making system is achieved that reflects and promotes the objectives of the company.

Organization requirements

-The objectives must be verifiable, precise and achievable. To be accurate they must be quantitative and to be verifiable they must be qualitative.

-There must be a clear definition of the duties, rights and activity of each person.

-The area of authority of each person must be established, what each one must do to achieve the goals.

-Know how and where to obtain the necessary information for each activity. Each person should know where to get the information and it should be provided.

Definitions around Organizational Structure

Strategor: (1988) It is the set of functions and relationships that formally determine the functions that each unit must fulfill and the mode of communication between each unit.

Mintzberg: (1984) It is the set of all the ways in which work is divided into different tasks and the subsequent coordination of them.

The organizational structure is an intentional role structure, each person assumes a role that is expected to fulfill the highest possible performance.

The following explains the elements of the organization which, once understood and assimilated, will contribute to better administration:

Division of labour. To divide the work, it is necessary to follow a sequence that includes the following stages: the first; (hierarchy) that has the functions of the social group in order of rank, degree or importance. The second; (departmentalization) that divides and groups all functions and activities, in specific units, based on their similarity. Coordination. It refers to the synchronization of the resources and efforts of a social group, with the purpose of achieving opportunity, unity, harmony and speed in the development of objectives. Unity of command.Classical writers who argued for the principle of unity of command argued that a subordinate should only have a superior to whom he was directly responsible. No person should report two or more bosses. Otherwise, a subordinate would have to face demands or priorities from several superiors that would conflict. Authority and responsibility. Authority refers to the rights inherent in an administrative position to give orders and expect them to be obeyed. It had to be delegated down to subordinate managers, giving them certain rights while setting certain limits within which they should operate. Authority relates to the position of one within the organization, and overlooks personal characteristics

of the individual administrator. When we delegate authority, we delegate a parallel responsibility. That is, when one is given "rights", one also acquires the corresponding "obligation" to perform them. Assigning authority without responsibility creates opportunities for abuse, and no one should be held responsible for something for which they have no authority.

5. Department. The division of labor creates specialists who need coordination. This coordination is facilitated by bringing together department specialists under the direction of an administrator. The creation of these departments is usually based on the functions that are developed, the product or service that is offered, the client that it focuses on, the territory or geographic area that is covered, or the process that is carried out to convert the inputs in the product or service. One of the most popular ways to group activities is by the functions that are developed, or functional department. Functional department can be used in all types of organizations.

The direction is that element of the administration in which the effective realization of everything planned is achieved, through the authority of the administrator, exercised on the basis of decisions, whether taken directly, or, more frequently, delegating said authority, and it is simultaneously supervised that all the orders issued are properly complied with.

Importance of Management

Management is the "essential" and "central" part of the administration, to which all other elements must be subordinated and ordered. Indeed: if it is foreseen, planned, organized, integrated and controlled, it is only for the good to perform. Complicated techniques are useless in any of the other five elements, if a good execution is not achieved, which depends immediately, and coincides temporarily, with a good direction. So much will be all the other useful and interesting techniques, as long as they allow us to direct and perform better.

It is the essence and the heart of the entire administrative process. Its importance due to its character. This element of administration is the most real and humane. Here they are analyzed and dealt directly with human capital, unlike the other phases, which are more concerned with relationships, with "how things should be." Here we struggle with things and problems "as they really are." For this reason, we are in the stage of greatest unpredictability, rapidity and, (if possible the expression), explosiveness, where a small error, - very easy due to the difficulty of anticipating human reactions - can sometimes be difficult to repair.

Leadership For Agustín Reyes Ponce, leader is the person who, possessing certain personal qualities, takes advantage to exert an exceptional influence on the group of his followers, which inspires them to constantly follow him.

Importance of leadership

The leader helps to direct and design the vision of a company. It promotes the necessary values and attitudes of the organizational culture.

Roles or roles of the leader

Within a company, the roles of leaders differ dramatically from the role of the traditional decision maker. The leaders are:

Designers: it has to do with designing the ideas of guidelines, purposes, vision and basic values, etc. Teachers: refers to helping all members of the company, including himself, to achieve more consistent visions of the current reality. Leaders are considered coaches, guides, or facilitators, and they are never an authoritative expert. power or to acquire material possessions.

Leadership styles

Kurt Lewin classified leadership styles as authoritarian, democratic or participatory, and liberal.

The authoritarian style is domination, it imposes its decisions, in other words, it is a dictator.

The democratic is participatory, involving, makes decisions in consensus with his subordinates.

The liberal style is one of freedom, individual and group responsibility, and allows the person to make their own decisions, which according to their criteria are the most appropriate for the common purpose. This style has been misinterpreted as anarchic, totally permissive.

For business management purposes, the first two styles are applied more regularly, but the use of the democratic or participatory style is more recommended, since in this way the individual is involved in company decision-making.

Stephen Robbins defines control as " a process of monitoring activities to ensure that they are proceeding as planned and to correct any obvious deviations." Whereas James Stoner states that "administrative control is the process that makes it possible to guarantee that the actual activities conform to the planned activities ".

Control refers to the mechanisms used to guarantee that behaviors and performance comply with the rules and procedures of a company. The term control has a negative connotation for most people, since it is associated with restriction, imposition, delimitation, surveillance or manipulation.

Importance of Control.

Control is the function of all administrators. Some, particularly at lower levels, forget that the primary responsibility for the exercise of control falls equally on all managers responsible for executing plans. Although the scope of control varies from administrator to administrator, administrators at all levels have the responsibility to execute plans, so control is one of the essential administrative functions at any level.

In this sense, the following aspects can be established for which control in a company is of utmost importance:

It contributes to measure and correct the work done by the employees, in order to achieve the purposes. It makes possible the analysis of what has been done with what is planned. The techniques and control systems are applicable to any administrative activity. tool, through which they check whether the purposes of the organization are achieved according to planning.

Types of Control.

At the time of its application, we have the following types of organizational control:

The preventive controls are the set of mechanisms and procedures used to analyze the operations designed to perform, before consent or before it is implemented, in order to determine the veracity and legality of such transactions and finally its conformity with the plans, programs and budgets.

These controls guarantee that before starting an action, the necessary Human, material and financial resources have been budgeted. Preventive control is the sole responsibility of each organization as an integral part of its own internal control systems.

Concurrent controls are those that are carried out while carrying out an activity. The best known form of this type of control is direct supervision. Thus, a supervisor observes the activities of the workers, and can correct problematic situations as they arise. The subsequent controls are those carried out after the action. In this way, the causes of any deviation from the original plan are determined, and the results are applied to similar future activities. For example, in accounting audits, statistics, accounting, etc.

Control Techniques

Administrators have a series of resources to control the operations of a company, among which we have:

Budgeting techniques. In these, the plans, programs and objectives are expressed in quantitative, measurable terms, which greatly facilitates the comparison of what has been done in relation to what is planned. Examples of this type of budget are: income budgets, expense budgets, input and material budgets, labor budget, etc.

Non-budgeting techniques. They are additional control resources that are frequently used in any company. Among these techniques we find statistical data, special reports or analyzes, direct observation, audit programs, the equilibrium point, etc.

Modern control techniques. Among these techniques we can find the Program Review and Evaluation Technique (PERT), Gantt Chart or Activity Schedule, Direct Costing and Operations Research, among others.

The point of balance. Thus, the situation in which the total sales of a company equals its total costs is known, that is, a situation in which the company does not win or lose. This analysis allows administrators to have accurate data, related to total fixed and variable costs more convenient for the organization, to maximize profits through planned sales.

Once all the analysis of the historical development of the Administration as a science, as well as the administrative cycle, has been carried out, this chapter can be concluded by summarizing that the administration is a process of planning, organizing, directing and controlling the efforts made by the members of the organization, using for it all the organizational resources with a view to achieving the established objectives.

Trends in Business Administration.

When analyzing the development of leadership, from the appearance of capitalism to the present day, one can observe substantial changes in the technical methods and styles of leadership, which take place in a relatively short period, when compared to the very existence of humanity.

Management has undergone essential and dynamic changes in different socio-economic regimes and this is the product of different factors, where one of the fundamentals is the rapid acceleration of economic and scientific-technical development.

In the development of the free enterprise system, notable changes are reflected in terms of the sole role of the manager, which some authors recognize as the vitality of the entrepreneurial spirit. Undoubtedly, such vitality has decreased, to the same extent that the business owner moves further and further away from the direction of his business.

With the emergence of large monopolies and technological development, management work has become more complex, to the point that it is no longer possible for a single person to efficiently manage a modern company. On the other hand, heirs to large capitals are no longer interested in dedicating their entire lives to business, especially when the market for management professionals offers them a highly qualified workforce in management tasks, capable of representing their interests and ensuring efficient business management.

The management activity of any company or social organization must always be in a position to adapt to the environment, to changing conditions, through methods, techniques and management styles, depending on the level of consolidation of the organizational system in question.

Management by Objectives (DPO) is a management approach that, firstly, uses the objectives of the organizational system as a fundamental evaluative system, of the results that each of its elements must achieve and, secondly, as a criterion for the design, maintenance and improvement of the internal structure of the system.

The operation of the DPO requires compliance with some premises: it must not make management work more complex, be flexible, apply the systemic approach, the objectives must be identifiable, define individual and collective responsibility, measure behavior in terms of results, participation collective and the good leadership of the leader in the face of the problems and contingencies that arise.

The DPO, like any management system, in the current conditions of complexity and scientific-technical development, uses sophisticated methods and techniques, however, its generalization within any organizational structure requires its simplification, so that its members, from the highest hierarchical level to the lowest, are identified with their introduction, application, improvement and control.

Basic Principles of DPO.

-Results-oriented management

-Human behavior (commitment and motivation)

-The duty and responsibility of each manager to prepare for the challenge of assimilating the most modern knowledge and essential skills in the field of planning, management by objectives, the use of computing and accounting as management tools.

Most frequent DPO errors.

The Senior Management sets the objectives, without the participation of the managers involved. The Senior Management delegates the direction and monitoring of the DPO. The excess of formalism (bureaucratization) Do not provide “feedback” to the managers on the degree of compliance with the Objectives. Do not relate rewards to performance (or achievement of objectives). Have objectives, but do not develop action plans. Focus exclusively on the objectives to be achieved by each manager, without communicating the reference framework (overall objectives of the organization). Not recognizing the importance of training, or doing it only in the initial phase. Senior Management does not lead by example and avoids commitment. Senior Management refuses to delegate and "leave the reins". Among others.

The administration by values (ApV), is based on values and states that true leadership is, at bottom, a dialogue on values. The future of the company is configured by articulating values, metaphors, symbols and concepts that guide the daily activities of value creation by employees. In other words, the basic strategic purpose of the company must be given a humanized form, which is, of course, survival, obtaining the maximum economic benefits.

Values-based management is a management approach in which managers establish, move and practice the shared values of an organization which form the culture of the organization, reflect what is its position, what they believe in and the way in which that the company operates and in the behavior of its employees. It is a strategic leadership tool. It is a new way of understanding and applying knowledge raised by social psychology and behavioral science. It has two possible moments of application: to encourage or create new companies with values and to revive, recreate or give new ethical and emotional meaning to existing ones.

The shared values of a company act as indicators of management decisions and their actions, helping managers to plan how to organize, direct, and control organizational activities. Have performance through excellence, respect for the individual, dedication to equity and integrity.

Identification of the values.

Being our people the result of such a wide mix of cultures and influences, it is not so easy to list these changing values and motivations in a homogeneous and valid way. But the continuous contact with people allows to establish a description, not so precise, but it tries to clarify the current trends.

Recognition and prestige Job stability Economic compensation Loyalty Growth opportunity Opportunity for participation Feedback Intrinsic importance and challenge Private life.

Management by Competencies is the tool that helps raise the competencies of each of the members of an entity to a degree of excellence. This becomes a continuous channel of communication between workers and the company.

This model forces companies to previously carry out an analysis of the organizational culture, strategy, leadership styles, among other factors, which allow the entity to begin to define core competencies and to break them down from them. until reaching the competencies that the worker must possess in his job in order to achieve a successful degree of competitiveness.

In addition, with this model the organization can develop new management tools related to Recruitment and Selection of Personnel, the study of potential, career plans and performance evaluation; Being of vital importance for this last factor, Management by Competences since from it, better results can be obtained in the evaluation process and at the same time give a response to people about their performance.

Advantages and disadvantages of using the skills model

What are the advantages and disadvantages of using the competency model in a business and organizational environment, and the most frequent reasons related to the failures that can be detected in the incorporation of these models in organizations.

Advantage

They explain and recognize the implicit knowledge associated with work that until now was ignored. They offer an alternative to the selection of initial school knowledge based on disciplines and diplomas. It contributes to the formators and the referent organizations of common analysis that until now they did not have. They provide a useful bridge between action and knowledge by defining qualifications based on observable and measurable behaviors, clearly defined and cataloged. It allows, at first glance, a social advance applying the rules of a humanist “learner-centered” pedagogy ”Giving you more control and autonomy in your learning.

Disadvantages

The current notion of competition is inscribed in an analytical vision of rationalization and objective normalization of restricted behaviors, which leads to a fragmentation of units to the detriment of the dimensions of integration and adaptive globality typical of contextualized activities. Observable actions lead to very abstract formulations that do not consider the implicit foundations of situational knowledge, social interaction and cultural practices that have been revealed by ethnographic research. Competent activity is reduced to closed and static summative enumerations., meticulous and endless roles, tasks and atomized acts, whose simple juxtaposition is judged as sufficient to account for the activity.The evaluation of the competences does not contemplate the educational purpose: it is almost always reduced to verifying the presence of actions based on observable behavioral indicators in the most appropriate cases based on reference schemes.

Traditionally, the idea that Knowledge Management is a sequential process has been defended. According to this conception, first, knowledge is created. Once that knowledge has been validated, it is presented in a certain format, thus allowing its distribution throughout the organization. In this way, company members can apply that knowledge to make decisions and solve problems.

Several authors have issued their criteria around this term:

According to Balasubramanian et al. (1999) is the organizational capacity that allows people from organizations, who work as individuals (knowledge workers), or in groups, projects or other communities of interest, to create, capture, share and influence their collective knowledge to improve Performance.

For Liebowitz (2001) it is nothing more than the process of creating value from the intangible assets of an organization.

From a Knowledge Management perspective, companies build Knowledge Management systems that store and distribute the company's reusable knowledge. On the other hand, the definition of the necessary knowledge does not depend on the individual spontaneous demands, but rather the companies must define at the organizational level the knowledge they need according to their strategy.

The notion of Knowledge Management is closely linked to that of Intellectual Capital. While Intellectual Capital represents the intangible assets of a company (human capital, structural capital, and relational capital), Knowledge Management attempts to formalize and systematize its identification, administration, and control processes.

From this perspective, Knowledge Management involves two fundamental variables. We will call the first of these variables hard, since it involves the hardest or most formalizable aspects of management. It includes all the processes related to the administration of knowledge generated in the company: the organization's formal communication systems, its process structure in terms of the value chain, as well as the computer systems through which the information is stored, classifies and distributes throughout the entire structure of the company.

In these processes, the objective is to transform the knowledge generated by people again into information that can be stored, classified and distributed so that it is accessible to those who need it at the right time.

Knowledge management is an organizational management process whose objective is to identify the knowledge produced by the high-performance employees of a company to convert it into information that can be reused by the rest of the employees of that company. The fundamental objective of this process is to identify the way in which people use information to generate new knowledge, the competences that are put into play for it, the processes of informal communication, the capacity for teamwork, and the motivation that People may or may not have to share their knowledge.

The best way to get a good use and control of all the resources available to any company is to carry out an exhaustive analysis of all the processes that influence the final finish of the product or service, in this way we will achieve a better understanding and allow us make the necessary decisions to save efforts and energy.

Process Management is the way to manage the entire organization based on Processes. Understanding these as a sequence of activities aimed at generating added value on an INPUT to achieve a result, and an OUTPUT that in turn satisfies the Client's requirements.

The Management by Processes, allows to abandon the classic and outdated departmental structure, which slows down the reactions against possible changes and favors the existence of concentrated nuclei of power, by a sequence of activities oriented to generate a result from an entry and coming together in an output which responds to customer requirements.

The ISO quality standard is based on the process model. This rule states that: "the company must define and manage multiple interrelated processes leading to the provision of services"; defining processes as: "any activity that receives inputs and transforms them into output."

Some existing methodologies for improving business processes.

Systematic or scientific method of process improvement. Ishikawa. 1985 ARP Methodology (Process Analysis and Rationalization). Vilalta. 1997 Guide for the identification and implementation of processes. Amozarrain. 1999Improvement of Business Processes for organizations. STX Arena Company. 2000 Procedure for the improvement of hotel operational processes. Negrín Sosa. 2002.

Purposes for which process management is used

Putting process management into practice has encouraged the creation of different work schemes that are shaped depending on the situation that has caused their implementation. Some of these situations are:

Design a process (create, study). Redesign in search of improvements. Organize a fractional process.

In any of the cases, the search for the improvement of the processes should be the premise.

Development of Administration by Competencies.

In the current stage of development of humanity, in the sphere of the Directorate, organizations are subjected to challenges, challenges and pressures to which they have to respond with a high degree of creativity and realism. The main challenges are given by the constant scientific-technical achievements, the rapid appearance and acceptance of new products, increasing restrictions on Human, material and financial resources, more aggressive markets in the international arena, the growth of social demands and the revolution in computing and communications.

After these significant changes, modern companies increasingly agree to recognize the significance of the human dimension of the company and Human Resource Management (HRM), equaling it in degree of importance with economic, financial and technological resources, since the human factor that is part of an organization is one that is able to innovate and make competitive the activities of the business of an entity and is really the one that is going to achieve that the clients are satisfied or not, becoming the same one of a vital element to manage effectively and efficiently.

Human Resources Management has been evolving, modern Human Resources Management is embroiled in new challenges, with Competency Management being one of them and turning this within the organization into a way capable of achieving harmony between organizational objectives and the individual development of people, raising to a degree of excellence the skills of each of the individuals involved in the actions of a company.

Origin and evolution of Competency Management .

The term competencies has its origins in the year 1949, as referenced on the website http://www.gestiopolis.com/recursos/documentos/fulldocs/rrhh/sobrecomp.htm, when Professor T Parsons draws up an outline Conceptual that allowed structuring social situations, according to a series of dichotomous variables. One of these variables was the concept of Acheviement vs Ascription, which in essence consisted in valuing a person for obtaining concrete results instead of for a series of qualities that are attributed to him in a more or less arbitrary way.

In the early 1960s, Harvard University Professor of Psychology, David McClelland, one of the most recognized authors in this field, proposes a new variable to understand the concept of motivation: Performance / Quality, considering the first term as the need for achievement (quantitative results) and the second as the quality of work (qualitative results). Following this approach McClelland considers the possible links between these types of needs and professional success.

In 1973, McClelland looked for new variables capable of reliably predicting the adequate adaptation to the problems of everyday life, and consequently professional success, which he called competencies, that would allow a better prediction of job performance.

Models of labor competence analysis.

The models of instrumentation of labor competence that exist worldwide are multiple, depending on the approach you want to give to staff learning and the position that the person occupies in the command and responsibilities structure of the organization.

The existing models can be classified into three classes according to CONOCER (1999): functionalist, behaviorist and constructivist, the main characteristics of these are presented below.

Functional Model. It is a comparative methodology. The basis of the Functional Analysis is the identification, by means of the breakdown or disaggregation, and the logical ordering of the productive functions that are carried out in a company or in a representative set of them.

Behavioral Model. It is a methodology that focuses on the identification of work behaviors in relation to tasks and occupations. Their results are verified in the things that the best ones do, the relevant ones, by observable behaviors, evident registrable and never by requirements. Generally it is applied to the managerial levels in the organization.

Constructivist model. In the constructivist model, the competencies of the personnel are not defined a priori, but are constructed based on the analysis and process of solving problems and dysfunctions that occur in the organization. In this perspective, competencies are linked to processes in the organization: it is the development of competencies and the improvement of processes.

Definitions around Labor Competencies.

Regarding labor competencies, various authors have given their point of view, some of them will be referred to below, and more can be found on the website http://www.gestiopolis.com/recursos2/documentos/fulldocs/rrhh/controcomplab. htm.

Mertens (2000), states that Labor Competence is the “aptitude of an individual to perform the same productive function in different contexts and based on the quality requirements expected by the productive sector. This aptitude is achieved through the acquisition and development of knowledge, skills and abilities that are expressed in knowing, doing and knowing how to do it. ”

POLFORM / ILO states that “labor competence is the social construction of significant and useful learning for productive performance in a real work situation that is obtained not only through instruction, but also - and to a large extent - through learning from experience in specific work situations.

In general, it can be argued that all these authors agree that job competencies are the set of knowledge, skills, attitudes and aptitudes that an individual must gather to perform efficiently in his job and thereby achieve the development of the organization..

For a person to show the behaviors that make up the skills included in the profiles of their job, according to the author Tejada (1998) , the presence and conjunction of the following elements is necessary:

Know: A set of knowledge related to the behaviors involved in the competition. They can be technical in nature (task oriented) and social in nature (interpersonal relationship oriented). Know How: A set of skills that allow you to put into practice the knowledge you have. Typically, these different skills interact with each other. Saber Estar: Set of attitudes in accordance with the main characteristics of the organizational and / or social environment. Want to do: Set of motivational aspects responsible for whether or not the person wants to perform the behaviors of the competition. These are factors of an internal nature (motivation to be competent, identification with the task, etc.) and / or external ("extra" money, days off, social benefits, etc.) to the person, which determine that the person strives or not for showing competence. Can do: Set of factors related to personal capacity that considers aptitudes and personal traits as variables that can provide information regarding the ease with which someone will display a certain behavior, or about their learning potential, and the degree of "favorability" of the medium that are the different situations that can mark different degrees of difficulty to show a given behavior.

Fig.1.1. Elements that make up job skills.

All these elements lead us, as a whole, to competence, to « doing «, which is observable for others and which allows establishing different levels of performance of people in their personal and / or professional field, whether during various tasks or in their social interactions.

Types of Labor Competencies.

On this aspect, many authors have proposed ways to classify the competencies and even studies have been carried out where the competencies for managers have been formed or also called universal competences, which ensure their leadership abilities, which allow them to perform successfully in a highly complex and globalized market.

According to the author Leonard Mertens (1997), the competences can be classified into:

Basic competences: they describe the elementary behaviors that the workers must show, and which are associated with knowledge of a formative nature, as well as skills for reading and writing, oral communication, calculation, among others. Generic competences: they are related to the behaviors associated with performances common to various occupations and branches of productive activity, such as the ability to work in teams, plan, schedule, negotiate and train, which are common to a large number of occupations. Specific competences: they are identified with the technical aspects directly related to occupation and are not so easily transferable to other labor contexts such as: the operation of specialized machinery, the formulation of infrastructure projects, etc.).

On the website www.inteligencia-emocional.org another group of competences is exposed, the emotional ones, which arise from Emotional Intelligence and are divided into five groups which are referred to below:

Self-awareness : "It involves recognizing your own moods, resources and intuitions." Self-regulation: Refers to "managing your own moods, impulses, and resources." The emotional competencies that depend on self-regulation are:

- Self-control: keep an eye on disturbing emotions and impulses.

- Reliability: maintain adequate standards of honesty and integrity.

- Awareness: assuming the responsibilities of one's own job performance.

- Adaptability: flexibility in handling change situations.

- Innovation: feel comfortable with new information, new ideas and new situations.

Motivation : Refers to "emotional trends that guide or facilitate the achievement of established goals." They are:

- Impulse of achievement: effort to improve or reach a standard of labor excellence.

- Commitment: enroll with the goals of the group or organization.

- Initiative: availability to react to opportunities.

- Optimism: persistence in the pursuit of objectives, despite the obstacles and setbacks that may arise.

Empathy : This implies "being aware of the feelings, needs and concerns of others." And it includes:

- Understanding of others: realizing the feelings and perspectives of coworkers.

- Develop others: be aware of the development needs of others and reinforce their skills.

- Orientation service: anticipate, recognize and satisfy the real needs of the client.

- Promote diversity: cultivate job opportunities through different types of people.

- Political awareness: being able to read the emotional currents of the group, as well as the power of the relationships between its members.

Social Skills : It involves "being an expert to induce desired responses in others." This goal depends on the following emotional capacities:

- Influence: devise effective persuasion tactics.

- Communication: knowing how to listen openly to the rest and elaborate convincing messages.

- Conflict management: knowing how to negotiate and resolve disagreements that arise within the work team.

Competency matrix.

A matrix of labor competencies is configured by preparing a double entry table in which the competence levels are represented in the rows and the competence areas in the columns.

The labor competency norms are elaborated to reflect real working conditions that appear in different degrees of complexity, variety and autonomy. Such degrees generate different levels of competence required for performance.

In the system applied in the United Kingdom, the levels have been structured based on the analysis of productive functions.

The five levels of competence defined in the UK are:

Level 1: Competence in carrying out a varied range of work activities, mostly routine and predictable.

Level 2: Competence in an important and varied range of work activities, carried out in different contexts. Some of the activities are complex or non-routine and there is some autonomy and individual responsibility. Often collaboration with others may be required, perhaps as part of a group or team.

Level 3: Competence in a wide range of different work activities carried out in a wide variety of contexts that, for the most part, are complex and non-routine. There is considerable responsibility and autonomy, and often the control and provision of guidance to others is required.

Level 4: Competence in a wide range of professional or technically complex work activities carried out in a wide variety of contexts and with a considerable degree of autonomy and personal responsibility. Often, it will require taking responsibility for the work of others and the distribution of resources.

Level 5: Competence involving the application of an important range of fundamental principles and complex techniques in a wide and sometimes unpredictable variety of contexts. Very important personal autonomy is required and often great responsibility for the work of others and the distribution of substantial resources. It also requires personal responsibility for analysis and diagnosis, design, planning, execution and evaluation.

The intersection between levels of competence and area of competence defines sub-areas of competence where professional qualifications made up of sets of basic, generic and specific units of competence can be located.

Being the matrix the element that allows the organization to obtain from a more detailed plan each of the competences that an individual meets with their respective levels.

Relationships of the Administration by Competences with the rest of the trends.

As it has been well explained, we are currently characterized by the era of constant changes in technologies and development within our organizations, where the search for new administrative approaches has been used taking as central axis the development of human capital, being This is an essential and determining factor for the actions of an organization.

In this sense, it is necessary to recognize that today people learn to diversify their knowledge and experience in order to strengthen their skills and creativity, and in this way increase their capacity to understand the changes that are taking place in this dynamic and changing sector..

In the administrative context, the information society and the knowledge society is one more stage in the permanent development process, where human resources cease to be passive subjects to become active subjects that facilitate improvements in production processes and encourages the introduction of new values to take on the most important and unique challenges in the current era, and thus overcome on this new path; fears of failure, rejection, criticism, traditional hierarchy schemes and thus breaking with the old mental schemes that cause so much damage to the internal and external of different organizations.

The challenges that organizations have before them, implies being in continuous movements without losing balance. The only thing that is really clear is that the organization must be flexible and able to adapt in the midst of the new demands of business. Human resources management has a crucial role, such as: participating more and more actively at the strategic level. of the organization, but this is not easy. All this implies a profound change and requires commitments from all members of the organization.

This means that Competency Management is developed as a way of raising the skills of each of the members of an entity to a degree of excellence and, in turn, of its interaction with the rest of the administrative trends, since it needs to be nurtured for its development. of knowledge, values, setting objectives and in turn the analysis of the processes in which the human capital of an organization is involved, in order to achieve higher levels of profitability, quality and efficiency.

In general, it can be concluded that Competency Management is a modern tool that Human Resources Management has to convert the human factor within an organization, as that indispensable element for it, capable of overcoming and raising it to a degree of excellence in job performance through job skills, which in turn serve to measure the performance of all those involved in an organization.

Conclusions

Business Administration has gone through different stages, there are various theories around it, being so widely useful that there is not a single universal administrative theory, there is a tendency to value people, who are ultimately the basis of any organization. The Administration is a process of planning, organizing, directing and controlling the efforts made by the members of the organization, using for it all the organizational resources with a view to achieving the established objectives. The Administration is also the art of combine the four processes of the administrative cycle effectively, in order to achieve the proposed goals, involving in this process all the members of an organization.Business Administration has been characterized by being subject to changes in management methods and styles since its inception, all of which leads to the existence of various trends such as Administration by Objectives, Administration by Values, Administration by Competencies, Administration by Knowledge and Administration by Processes. The Administration by Competences is a modern tool that Human Resources Management has to convert the human factor within an organization, as that indispensable element for it, capable of surpassing itself and raising it to a degree of excellence. their job performance through job skills, which in turn serve to measure the performance of all those involved in an organization.The Competency Administration is closely linked to the rest of the administrative trends since they have the human factor as their central axis and for its development, it needs to be nourished with knowledge, values, set objectives and in turn the analysis of the processes in which they are found. involved the human capital of an organization, to achieve higher levels of profitability, quality and efficiency.

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