GENERAL CONCEPTS IN ADMINISTRATION ADMINISTRATION:
Administration conceptually consists of developing three relevant steps: It is developing or executing decisions promptly, effectively and efficiently, following established procedures and standards, in administration.
management-by-objectives-and-results- Set objectives Direct the achievement of objectives Measure results MANAGEMENT:
RESPONSIBILITY:
It is the fulfillment of the obligations according to the requirements regarding quality (quality), quantity and opportunity.
GENERAL CONCEPTS IN ADMINISTRATION
AUTHORITY:
- It is the right or power that someone has to do something or to have it done (give orders). Authority can be delegated, not responsibility. It is only delegated, if by delegating authority you get advantages or you put yourself in advantage.
The advantages can be:
You can do more things at once. o Results may be better o There is time available for planning and innovation.
LEADERSHIP:
Viewed in modern terms it implies creation, innovation and change.
BASIC PRINCIPLES OF TOTAL QUALITY
"The process immediately after is your client"… Prof. ISHIKAWA
1. The customer as an absolute priority (full customer satisfaction)
2. The concept of quality has a broad and global connotation that involves the following aspects:
- CompetitivenessTimely deliveriesLow costExcelence MoralProductivityBenefitsQuality of productsQuantity / VolumeResultsServiceSafetyAttention to the environmentAttention to shareholders
3. Priority of quality among the factors of customer satisfaction
RELEVANT RESULTS OF THE TOTAL QUALITY APPLICATION
• The quality of products (goods and services) is improved.
• The flexibility of companies is increased.
• Increase the variety of products.
• Waste is reduced, while costs are reduced.
• Greater synergy CLIENT - COMPANY.
• Greater security, better service, favorable results, good attention, greater productivity, compliance with standards, opportunity in deliveries, greater communication and empathy, generation of criticism and self-criticism.
• Improving the quality of relationships between people.
• Improvement of the quality of work of each member of the company.
INTRODUCTION
Currently, the methodology of applying administration can be represented on a continuum between two extremes:
WHAT IS THE AAR?
• Planning is done immediately before or during the action.
• There are frequent changes in the plans, either due to lack of time to consider the alternatives (which is usually decided by a person) or the lack of a specific objective. (Administration by Reaction or Pulp)
• Efficiency is measured by the number of activities in progress and by the effort that is made, rather than by the results obtained.
• An example is that of an administrator who arrives at his office early without any pre-established plan, who only manages to meet the various requirements of his subordinates or his bosses depending on the arrival time and without taking priorities into account.
• At the other end is the AOR, which is described below.
WHAT IS THE MANAGEMENT BY OBJECTIVES AND RESULTS (AOR)?
• It is a management methodology in which the results to be achieved or to be achieved and the necessary stages of the program to achieve them are defined in advance.
• Implicit are tactical plans to overcome unexpected obstacles, such as machine damage, design changes, delays in receiving the necessary materials, etc. As soon as a problem appears, the established plan will help determine priorities for action and the best methods for handling any problem.
• The AOR does not require the presence of the administrator at all times.
WHAT DOES THE AOR DETERMINE?
- What to do (After careful analysis of why it should be done), and including setting priorities. How to do it (the stages of the program or the action plan required to achieve it.) When to do it. How much it will cost What constitutes successful execution How much progress has been made (Continuous improvement) When and how corrective actions should be applied (Continuous improvement)
Note: From 1 to 4 is Management by Objectives and from 5 to 7 is the Results Control Function.
COST BENEFIT ANALYSIS
• Before delving into the concepts of the AOR, it is necessary to have a clear idea regarding the concept of Cost-Benefit.
• It must be considered that each decision that is made will "cost" us something, such as saying: "There is no free lunch." At the same time, any decision will bring a "benefit".
• The correct or rational thing is that whatever decision is made, it should be treated that the "benefits" exceed the "costs". The "costs" must consider the explicit and implicit costs or also called hidden or opportunity costs.
Note: Depending on the size of the benefits or the minimum cost, the objectives or actions to be followed will be prioritized.
"Every mistake generates cost, someone pays it" (Armenio F. Galíndez Oré).
INCLUDED IN THE WORK OF ADMINISTRATION?
There are 05 basic functions and 20 activities that make up the administration work: Function I. Planning
1. Definition of Roles and Missions.
2. Projections
3. Establishment of Objectives
4. Programming
5. Schedule
6. Budget
7. Establishment of Policies
8. Establishment of Procedures
9. Structuring
10. Integration 11.
Determination of the needs of Personnel (CAP and PAP).
12. Selection of Personnel.
13. Staff Development
14. Assign roles and responsibilities to staff.
15. Motivation
16. Communication
17. Coordination
18. Establishment of standards
19. Measurement of execution
20. Taking corrective actions.
TYPES OF COSTS BY PETER F. DRUCKER
Drucker identified 04 great types of cost that are summarized in:
1. Productive Costs: Those costs generated by efforts to provide what the client requests and wants to pay.
2. Subsidy Costs: Those costs necessary in business for its operation that do not produce any direct value to customers. (Personnel manager, inspections).
3. The Costs of the Policy: Those costs that involve prevention activities, so that errors or equivocal events are not generated (Follow-up, Control and Corrective Actions).
4. Waste: Includes both the costs of "not doing" something and the most obvious: Ineffective and wasted effort.
QUALITY LEVELS OF THE ADMINISTRATION
THE AOR PROCESS
COMPONENTS OF MANAGEMENT AND ADMINISTRATION
PLANNING: MAIN ROLE OF THE AOR
The backbone of the AOR is Planning and Control, without neglecting the importance of personnel administration and management. It is evident that the best plans in the world have very little value for achieving the objectives if we do not also have an effective organization, appropriately selected and appropriately located personnel and a very well-balanced management.
The list of the 7 points indicated above, which must be determined by management, clearly divides the AOR's approach between the functions of planning (determining the work to be carried out) and control (ensuring the effective fulfillment of the objectives).
Importance of planning
Gives sense of direction
Facilitates control
Reduces Risk and Uncertainty
Visualizes the changes that must be made for Continuous Improvement
SUPREMACY OF PLANNING
• Planning and control are inseparable.
• The plans establish the control standards.
• Any control without plans is meaningless.
CLOSE RELATION Planning and Control
Main planning objectives
Facilitate control:
• When planning, objectives are determined and, on the other hand, the control function will compare actual performance against objectives.
• Without planning there can be no control.
Main Planning Objectives
Reduce Risk and Uncertainty:
• Forces managers to permanently measure behaviors based on standards and shape those required in the future, anticipate changes, consider their impact, and develop appropriate responses.
Main planning objectives
Reduce duplication of functions and inefficiency:
• Avoid that two people or units carry out the same activity and that the process for carrying it out is very long, confusing or expensive.
Main planning objectives
Establish a coordinated effort:
• When everyone involved knows where the organization is heading and what they must contribute to achieve the organizational objectives, they can start to coordinate their activities, cooperate with each other and work in teams.
Main planning objectives
Visualize the Changes for the Application of
Continuous Improvement
• It is important to conceptualize: WHAT IS A PROBLEM?
• Continuous Improvement is applied where behaviors have exceeded standards; that is, where there is no problem or contradictions have been resolved.
Types of Plans
• Plans by their sphere of influence
• Plans by their time horizon
Plans by their sphere of influence
Operational plans:
• They are those that specify the details regarding how the organization's objectives are to be achieved. They are derived from strategic plans and are short-term.
Strategic plans:
• They are today's decisions projected into the future, high cost and high risk. They seek to achieve the general goals of the organization, placing it in terms of its environment and affecting all functional areas. And they are long term.
Plans for their time horizon
Short-term plans:
• They cover periods of less than one year. Medium-term plans:
• Cover periods between one and five years. Long-term plans:
• Cover periods of more than five years.
• Strategic plans are established in the long term and operational plans in the medium and short term.
Plans by their Nature
Specific Plans:
• They are those that are clearly defined and do not give rise to interpretations.
Directional Plans:
• They are flexible and established as general standards. They provide focus, but give freedom of action.
COMPONENTS OF PLANNING
DEFINE ROLES AND MISSIONS
What work should be executed or not executed? And by whom and fulfilling what functions?
PREDICTION
What probable requirements will there be in the future in terms of your work?
ESTABLISHMENT OF THE VISION (STRATEGIC) AND OBJECTIVES
What results are expected to be obtained with the efforts made?
SCHEDULE AND TIMETABLE
How and when will the proposed objectives be achieved?
BUDGET
At what cost will these objectives be achieved?
POLICY SETTING
Establishment of predetermined rules, regulations or decisions.
ESTABLISHMENT OF PROCEDURES
Determination of methods and processes in a consistent and systematic way to do the job.
ROUTES OF ANALYSIS FOR THE DETERMINATION OF THE OBJECTIVES ROLES, MISSIONS AND OBJECTIVES OF THE SUPERIOR
1. NORMAL WORK OUTCOME
- What products or services are a normal part of work (in normal work period) What are the measurable units of production for these products or services? How many units of production will be required during the predicted time period?
2. IMPROVEMENTS IN NORMAL JOB RESULTS
- What products or services make up the normal result and how much can be improved? What are the areas of execution where improvement is desirable or necessary? How much can be realistically improved during the time period that has been predicted?
3. IMPROVEMENTS OF PERSONAL OR ORGANIZATIONAL CAPABILITIES
- What are your current individual or organizational capacities? What capacity improvement will need to be decided or will be desirable? How much can be realistically improved during the time period that is predicted?
