CONSTITUTION OF COMPANIES
The current situation makes many people look for new sources of income, within these possibilities is the creation of the company that with a little enthusiasm, effort and desire to succeed in life, a productive unit can be formed.
Within this business environment there are many ways to have a company either individually and / or associated.
So seeing this need for information that requires the current and potential business of Micro and Small Businesses, it has been deemed convenient to make a summary of the fundamentals and most important requirements for creating a micro and small business; Taking into account the legal regulations in force, this is any organization and business modality that it deems appropriate, and may be a sole proprietorship, an individual Limited Liability Company, or an Associated Company.
Likewise, it contains guidelines on how to manage them, using modern techniques of Organization and business administration, all this will enhance their competitive advantages and succeed in this great challenge that is to make companies logically evaluating and facing external factors such as opportunities and difficulties. and, internally, identifying their strengths and weaknesses.
In the hope of contributing both to the business community and to the person who is willing to know the scope of this productive sector, which contributes both to regional and national development; I allow myself to put this valuable contribution.
- START A COMPANY
Starting and establishing a small business is not reserved only for a privileged group of people. You can do it, it is only decision, self-confidence and a renewed faith, in the sense that every person is the one who determines their destiny of success or failure in this life. We believe that you will succeed because you are seeking independence, you have a panoramic vision of the objectives and how to reach them, and you have the desire to succeed, or not! We only tell you that you must be prepared to work intensively 12 or 16 hours a day and to face some risks considering them as a challenge.
Generally being an entrepreneur is getting greater comforts, personal fulfillment, moving away from dependent work, obtaining a different social level, among other benefits. You have the floor!
You can also meet some friends and think about a business; Her first concern is to estimate the economic advantages of the same, check the means available and anticipate what their respective contributions should be. If the agreement is reached, they proceed to establish a documented agreement that determines the rights and duties that will exist between them and before society. At this time the company is born. This institutional concept encompasses both individual and collective companies, that is, large and small companies.
Within the business environment there are many ways to establish and manage a company, either individually and / or associated. For this there is a set of laws that we will announce later.
We must recognize that starting a business at the present time represents high competition and decision, this is manifested by the threat of new competitors in the same line of business, change in the practice of customers, or suppliers, new substitutes, etc.. And especially in the highly competitive and globalized world in which we live, but this is counteracted by the strength and human dynamism of getting ahead in your family progress. Logically, this initiative must be accompanied by technical training to avoid failures and compete in an economy. open to international trade.
Make Company:
IT IS CREATE!
NEW JOB POSITIONS
NEW PRODUCTS
NEW MARKETS
NEW TECHNOLOGIES
NEW IDEAS AND CONCEPTS
PRIDE IN OWN ACHIEVEMENTS
RENEWED FAITH IN A BETTER FUTURE
- LOCATION OF THE COMPANY
This refers to the place where your company must be located or operate, there are generally factors that must be taken into account, such as demand, profitability, specialized labor, basic energy and water services, etc. All these factors will be analyzed in the market study.
But finally the business potential, with good technical criteria, will decide where to locate your business.
1.2.1 HOME BUSINESS
There are several people who choose to locate their company at home, saving certain administrative expenses, but logically it will depend on the size or line of business, however it is good to recommend that you should locate businesses that do not endanger your home, such as, develop seams, shoes, carpentry, typing and other computer services, etc. provided it is on a small scale.
Finally, it is suggested to evaluate the advantages and disadvantages of settling in your home.
1.2.2 SHOPPING CENTERS
They are places where there are all the facilities to start a business, since these places are attended by customers en masse and you have contact with other entrepreneurs who will learn a lot from them and may even carry out some commercial and financial operations.
Generally, these premises are easy to access and comfortable in their rentals and have the respective security against theft, but not against fire, which will be the responsibility of the employer, hiring insurance for their merchandise.
1.2.3 BUY OR RENT A LOCAL
Buying your own premises requires having enough money for this type of non-current investment, but logically it will bring you many advantages, such as using it as a guarantee to obtain a loan from a financial institution.
Although this acquisition can be done by financing, but of course, it is good to recommend that you be careful with the banking commitment, it can be dangerous, When you are just starting.
Renting a premises is the most used form by the company, since its cost is paid as the sale is made, and it has more working capital.
- CONSTITUTION AND ORGANIZATION
There are two ways to establish and organize a micro or small company.
- IndividualAssociated
In other words, two ways that you can have your company, alone and / or with the union of one, two or more people.
If you alone! You want to have your company you must choose between the uni personal company and the individual limited liability company; Let's see its main characteristics
1.3.1 THE UNIPERSONAL COMPANY
1.3.1.1 CONCEPT
The Unipersonal Company is an economic unit organized by a natural person in a private capacity, whose main function is to obtain economic resources (Profit End) in exchange for the production of goods and services.
It is the individual business itself, in which the owner carries out all business activity, contributing his capital, work, managerial effort, compromising his personal assets in a limited way.
Its legal form of constitutions is the simplest, being able to use your name or use a commercial name; The main disadvantage is that you are solely responsible for your debts.
1.3.1.2. CONSTITUTION REQUIREMENTS
- Unique registration of taxpayers: That will be provided by SUNAT, and must also obtain authorization to send their own proof of payment to print. which will be granted by the respective municipality.Ministry of Labor: Public entity that authorizes the use of the payroll and approves the work schedule
1.3.1.3. RESPONSIBILITY
Legally an individual owner has "unlimited liability" for all debts incurred by the company. If those debts are not satisfied; all its properties can be seized except those indicated by the civil code.
THE INDIVIDUAL COMPANY WITH LIMITED LIABILITY
1.3.2.1. CONCEPT
It is a legal entity, under private law, constituted by sole proprietorship, with its own assets different from that of its owner, which is established for the exclusive development of economic activities such as the production and / or marketing of small business goods and services. As we can deduce its responsibility is limited to the social capital of the organization.
The company in this case, will be constituted by public deed, granted personally and must be written in the Public Registries.
1.3.2.2. CONSTITUTION AND OPERATION REQUIREMENTS
Unlike the sole proprietorship, it must first register with:
■ REGISTRY OFFICE. The registration will be a book of Individual Companies, through the presentation of the deed of constitution, granted by a Notary Public.
■ SUNAT. In this agency, you will process and obtain your unique taxpayer registration. And authorization to print your payment vouchers.
■ MUNICIPALITY. Local governments are empowered to grant them the Municipal Operating License.
■ MINISTRY OF LABOR: Public entity that authorizes the use of the payroll and approves the work schedule
1.3.3. COMPANY IN SOCIETY
You can also set up companies with two or more owners, which, once registered in the Public Registers, generates a legal entity under private law.
One of the main characteristics of this type of company is that the company's social patrimony responds to the obligations of the company; without prejudice to the liability of the partners in the case of the limited partnership.
1.3.3.1. DEFINITION
The company is necessarily constituted by public deed before a notary; and for its legal validity, it must be registered in the Public Registries of its headquarters in the company; that is, in the place where you are going to carry out your business. Society is born as a consensus of wills of the people who are going to integrate it, but once it is constituted it is institutionalized, with its own life and differentiated from the partners who express the will to create it.
1.3.3.2. CLASSIFICATION OF COMPANIES
- ANONYMOUS SOCIETY
It is a capital company, with limited liability, in which the capital stock is represented by negotiable instruments and which have their own dynamic legal mechanism, aimed at separating property from the company.
In other words, in the corporation, the capital is represented by shares and is delivered by contributions from the partners, who do not personally answer for the social debts.
In order for the company to be established, it is necessary that it have its capital subscribed and fully paid; at least in a quarter.
The organs of the company are: The General Meeting of Shareholders, the Board of Directors and Management; The representation of the company can be exercised by the members of the board or manager.
Currently, according to the General Companies Law, corporations can be open and closed corporations.
- LIMITED LIABILITY COMPANY
In the limited liability company, the capital is divided into equal, accumulative and indivisible shares, which may not be incorporated in securities, nor be called shares; the partners are not personally liable for social obligations.
The organs of the society are the General Meeting of Partners and the Management, the representation of the company is exercised by the manager.
- COLLECTIVE SOCIETY
The collective society is of a personalistic type. In it, the partners with collective name and under the principle of personal or unlimited responsibility, are dedicated to the exploitation of the Industry, Commerce or Service.
In this type of company, the partners are jointly and unlimitedly liable for social obligations.
- COMMANDITY SOCIETY
The limited partnership, is analogous to the partnership, has partners with limited liability and others with unlimited liability.
The limited partnership, presents joint partners who are jointly and unlimitedly liable for social obligations, while limited partners are liable for such obligations only up to the amount of their contributions.
The constitutive act must indicate who are collective and limited partners, the social participations cannot be represented by shares and by any other negotiable title.
The limited partnership, has a similar characteristic to that of a simple limited partnership, but in this case, the share capital is divided into shares.
1.4. CONTENT OF THE COMPANY CONTRACT
The partnership contract includes the expression of will of the founding partners; It is the starting point for the constitution of the company, which must contain, apart from the general requirements of contracts, the elements indicated in Article 5 of the general company law:
The minutes of incorporation must contain:
- Identification of each partner:
- If you are a natural person: your name, nationality, marital status and occupation. If you are a legal person: the name or business name and the names of who or those who represent you. In both cases: the address of each of them.
- The specific type of company The economic activity to which it will be engaged The duration and date in which it begins its operations. In the case of partnerships and limited partnerships, a term of duration is indicated. The amount of capital stock. The contribution of each partner in money, as in other goods or in services or industries, determined the value of non-monetary contributions and their criteria for their valuation. The registered office and, where appropriate, that of the branches. The administration regime and the powers of the administrators. The appointment of the first administrators or directors.
2. THE ORGANIZATION
2.1. THE BUSINESS ORGANIZATION
To organize is to combine the available means (man-capital technique and other resources) to achieve production.
In a more practical way, it involves the implementation of a structure of functions, via the determination of the activities required to achieve the goals of a company and each of its parts; This grouping of activities and their respective assignment to one of the members of the company, the delegation of authority to execute them, the provision of the means for horizontal and vertical coordination, of information and authority relations within the organizational structure, it constitutes the organizational function.
The Organization is the process that is followed to establish the appropriate uses of all the resources of the administrative system.
It is the process by means of which it is possible to endow:
- The organic structure and the Organizational Chart. The categorization of the jobs. The necessary human resource. The necessary means and equipment. The elaboration of the organizational instruments. The geographical area or premises where the company must operate.
An organization must be structured in such a way that people can carry out their tasks efficiently. The organization must be designed in such a way that everyone knows who is going to do what and eliminate obstacles in the execution of activities, caused by confusion and uncertainty and to allow a flow of communications in the vertical and horizontal direction.
- ELEMENTS:
The objective
Every company or organization always seeks an objective, be it social, economic or financial; The objective to be achieved must be clear, precise and concise.
The legal basis
It is made up of the set of legal norms that make it possible for the company to function formally. Example:
- Micro and small business law. Law 28015
- Law of the individual company of limited responsibility. Law 21621
- General company law. Law 26887
The resources
They are the fundamentals that the company needs to achieve its objectives, the quantity must be in relation to the possibilities and needs of the organization, but taking care that it does not exist neither in excess nor in defect. The main resources that the company needs are:
- Human resource Economic resource Financial resource Material resource Technological resource Information resources
The organic structure
When we speak of organizational structure, we refer to the structure of the formal organization and not the informal one. For example the structure of the Peruvian state
It is made up of the different organs and administrative units that have been established in the organization, constitutes the "Bone body" of the company and must be established according to the needs, size, line of business, or other special characteristics of the organization; For its establishment there are essential principles that must be taken into consideration:
- Determination of the work to be carried out to achieve the objectives Delegation of authority and responsibility to avoid excessive centralization of command Hierarchical levels Coordination level Communication between the different positions or positions within each administrative unit, to facilitate teamwork and make it more profitable. Control of human resources.
Generally for the elaboration of the business structures, the administrative units and the organs are taken into account, being the following:
- Senior Management Bodies Management Bodies Line Bodies Advisory Bodies Consulting Bodies Control Bodies Support Bodies Decentralized Bodies
NOMINAL ORGANIC STRUCTURE
The processes
Set of procedures that must be performed to execute the operations and / or activities of the company; A process must be followed for the production of goods, for the sale in the same way, for purchases, etc.
The physical infrastructure
It refers to the areas and / or physical environments where the company must operate
2.3. PRINCIPLES OF ORGANIZATION.
The principles of an organization must reflect the characteristics of each company and be in accordance with its objectives, policies and strategies.
However, some principles are of general application and serve as a starting point for the analysis of a specific organization. These are:
a.- Principle of the Division of labor: it refers to decomposing a complex task into its components, in such a way that people are responsible for a limited series of activities, instead of tasks in general.
b.- Principle of the Objective.- Every organization and its components must be oriented to achieve certain objectives and pre-established goals.
c.- Principle of Coordination.- In every organization there must be unity of criteria, and therefore, unity of effort.
d.- Principle of Authority-Responsibility- In every organization there must be a clear line of authority, which extends to each of the subordinate levels, and each worker must be responsible for the fulfillment of the assigned functions.
e.- Principle of Rationality.- The organization must improve, but taking into account the rational use of available resources.
f.- Participation Principle.- The organization must guarantee in its internal structure, the relevant forms and mechanisms to develop the participation of its workers.
g.- Principle of Flexibility.- So that it achieves its objectives and goals, facing changing situations.
2.4. PURPOSES OF THE ORGANIZATION
- Allow the achievement of the main objectives of the company as efficiently and with a minimum effort. Eliminate duplication of work. Establish communication channels. Represent the official structure of the company.
2.5. ORGANIZATION PROCESS
2.5.1 BASIC STEPS TO ORGANIZE
- Divide the entire workload into tasks that can be carried out logically and comfortably by individuals or groups. This is known as the division of labor. Logically and efficiently combining tasks, grouping employees and tasks is often referred to as the mentalization department. Specifying who depends on who in the organization, this linking of the departments produces a hierarchy of the organization. Establish mechanisms to integrate the activities of the departments into a consistent whole and to monitor the effectiveness of such integration. This process is known as coordination.
Division of labor: refers to breaking down a complex task into its components, such that people are responsible for a limited series of activities, rather than tasks in general.
All tasks in the organization from production to administration can be subdivided. The division of labor creates simplified tasks that can be learned to perform with relative speed, therefore comments on specialization, as each person becomes an expert in a certain job. Furthermore, as it creates a series of jobs, people can choose positions, or can be assigned to those, that are limited to their talents and interests.
Departmentalization: refers to grouping into work departments those work activities that are similar or have a logical relationship, for which purpose an organizational chart is worked out where tables represent the different departments that make up the organization. For example, collaborators can be grouped into purchasing departments, production department, etc. Departmentalization is the result of decisions made by managers regarding work activities. Once the tasks have been divided, they can be related to "similar" groups, as may be assumed there are many varieties of jobs and departments in organizations and jobs. and departments of one organization will be different from those of others.
Hierarchy: From the earliest days of industrialization, managers have been concerned with the number of people and departments they could effectively manage, this question belongs to the administrative control section (often called the control section or administrative section) when the job, created departments and chosen the section of control managers can select a chain of command; that is, a plan that specifies who depends on whom. These lines of dependency are fundamental characteristics of any organization chart to represent the hierarchy that is a plan that specifies who controls who in an organization.
Coordination: consists of integrating the activities of interdependent departments in order to pursue the goals of the organization efficiently, without coordination the members of the organization would lose sight of their roles within it and would face the temptation to pursue the interests of the departments, to thickens the organization's goals. An important degree of organization in all likelihood will benefit a job that is neither routine nor predictable, a job in which environmental factors are changing and there is much interdependence.
- FUNDAMENTAL ASPECTS OF THE ORGANIZATION PROCESS
Among the fundamental aspects of the organization we have:
- Subdivide work, authority, and responsibility among workers; Clearly establish the duties of each employee; Establish the areas of authority and responsibility; Provide employees with all the necessary resources to carry out their work
ORGANIZATION PROCEDURE
- Establishment of the general objective Determination of the activities or areas Establishment of the administrative units Elaboration of the organic structure Structure of the organization chart Establishment of the functions and responsibilities Elaboration of the table of positions Assignment of personnel
2.6. IMPORTANCE OF THE ORGANIZATION
The organization promotes collaboration and negotiation between individuals in a group and thus improves the effectiveness and efficiency of communications in the company.
At the same time, the organizing function creates defined areas of authority and responsibility in a company, thus improving the development of all the activities that are needed to achieve the proposed objectives and goals.
In one way or another most people have been members of an "organization" teams, classes, social, cultural groups, etc. In summary we can synthesize the importance of the organization in:
¤It is continuous (expansion, contraction, new products).
¤It is a means that establishes the best way to achieve the objectives.
¤Supply the methods so that activities can be carried out efficiently, with the minimum of effort.
¤ Avoid slowness and inefficiency.
¤Reduces or eliminates duplication of efforts, by delimiting roles and responsibilities.
- INSTRUMENTS OF THE ORGANIZATION
- Statute Organization and functions regulations Organization and functions manual The organization chart Procedures manual Position classifier Internal work regulations Personnel assignment table Other regulations
- Single Procurement Regulation
- Tender Regulations
- Contract Regulations
-Loan Regulation
-Security Regulation
- Other Manuals
-Manual of Written Communications
-Manual of goods catalog
-Policies Manual.
2.7.1. STATUTE
It is the first administrative normative document, the same that gives rise to its constitution and legal operation of the company: It contains the basic rules, regarding its constitution, associative and business organization as well as the management system.
The Statute must be registered in the Public Registers by means of a public deed, issued by a Notary.
CONTENT
Chapter l. Background and Constitution
Chapter II. From Nature: Denomination, Object, Responsibility. Duration and Address
Chapter III. Economic system. Share Capital, Status of contributions and / or shares
Chapter IV. Administrative Regime. Of the organs of the company
Chapter V. Balance and Distribution of Profits
Chapter VI. Of the Liquidation and Dissolution of the Company
Chapter VIl. Transitory dispositions.
2.7.2. REGULATION OF ORGANIZATION AND FUNCTIONS
It is an organizational technical document, which aims to give legal formality to the structure, both on the associative and business side and, in this way, facilitate the understanding of the role of the company and the responsibility of those who run it and those who carry out tasks. This regulation is derived from the statutes and is based on the type of activities of the company and the way in which it carries out its activity.
2.7.3. THE ORGANIZATION AND FUNCTIONS MANUAL
The Organization and Functions Manuals are operational documents that detail the structure, functions, coordination relationships and tasks of the different organic units of an institution, in close relationship with the Organization and Functions Regulations; It also establishes the positions and requirements to be filled by people within the organic structure.
OBJECTIVES OF THE ORGANIZATION AND FUNCTIONS MANUAL
- Indicate the basic functions of each organic unit, delimiting the nature and scope of the work. Determine the location and specific tasks that the positions will fulfill, within the institution. It specifies the internal and external hierarchical and functional interrelationships of the unit. It provides information to the officials and workers on their functions, location within the general structure of the company, of the formal and functional interrelationships (of authority, responsibility and coordination). It serves as a basic instrument for the rationalization of administrative procedures, in accordance with the Administrative Simplification Law.
SCHEME OF THE ORGANIZATION AND FUNCTIONS MANUAL
TITLE I
GENERAL
- PURPOSE OF THE MANUAL
Specify what is intended to be achieved through the application of the standards contained in the Manual.
- LEGAL BASE
Point out the legal norms that approve the organization and management documents.
- SCOPE
Determine the scope over which the Manual has organic jurisdiction.
- APPROVAL
Specify the level and class of legal device that the Manual approves and puts into effect.
TITLE II
OF ORGANIC DESIGN
GENERAL FUNCTIONS OF THE BODY
Describe the general functions that the body is responsible for developing, as an integral part of the institutional organization.
ORGANIC STRUCTURE OF THE ORGAN
Indicate the distribution of the organic units that comprise the institution, in decreasing order, from the highest level of decision to the last organizational level:
- Senior Management, Consulting, Line, Support, Advisory, Control, and Decentralization
HIERARCHICAL RELATION OF ORGANIC UNITS
Specify levels of authority, degrees of responsibility and lines of coordination.
ORGANIZATIONAL CHART OF THE INSTITUTION
Establish the graphic design of the organic structure of the company.
TABLE OF DISTRIBUTION OF CHARGES BY BODIES
Record the list of positions, specifying their nomenclature, structural and classified.
TITLE III
FROM THE MANUAL
GENERAL FUNCTIONS OF THE BODY
Describe the general functions of the organ
SPECIFIC FUNCTIONS OF CHARGES
Determine the specific functions of the positions, observing the following scheme:
- Title of the position Nature of the position (summary function) Specific functions of the position Line of dependency of the positions Degree of responsibility Coordination channels Minimum requirements of the positions
** Knowledge and / or Instruction
** Work experience
** Qualities
FUNCTIONS OF THE LEADERS OF BUSINESS ORGANIZATION
General Manager
He is empowered to make company decisions regarding contracts, costs, financial aspects and the general operation of the company in the future.
It is particularly responsible for:
- Legally represent the organization.Compliance with the legislation, statutes and agreements taken.Regularization of inventories of goods consigned in inventories.Make immediate decisions in the administrative function of the company.Sign and authorize to pay workers when the case so requires. require.Meet monthly with managers.
Head of the Accounting Area
Its main mission is to prepare the daily costs of production and direct labor.
The head of accounting is responsible for:
- Plan, organize, direct and control the proper functioning of the accounting system. Prepare the necessary data for the planning and control of the company. Settle and record wages and salaries, discounts, withholdings and adjustments; in accordance with current legal provisions.
Head of the Production Area
He is directly responsible for production, being in charge of the quality control area.
Specifically, the production manager is tasked with:
- Control the scheduling of productive activities. Reduce the cost of production to the minimum possible. Make and promote optimal relationships.
Head of Sales Area
It is in charge of establishing the marketing policy of the final product (cash or credit), the areas where the product will enter, in what percentages of the final production.
In addition to these functions, the sales manager aims to:
- The rapid recovery of credit (if any), and maintenance of the liquidity necessary for the production process. Train vendors and guide them in security, product rotation and immediate collection.
Head of the Purchasing Area
It is responsible for buying what is necessary according to product demand and production requirements
At the same time, the Head of Purchasing has the following fundamental tasks:
- Ensuring speed of delivery, product quality and transport safety Identification of specific suppliers, so that they become safe customers and obtain future benefits, such as discounts, timely supply, etc. Make wholesale and retail purchases within a period of not more than 30 days nor less than 15, depending on the needs of the company
2.7.4. THE ORGANIZATION CHART
It is the graphic representation of the formal structure that the organization has adopted. It is therefore the representation of the way its parts are arranged and related: in which they are shown:
- The main organic units. The division of functions. Hierarchical levels, Lines of authority and responsibility. Formal channels of communication.
IMPORTANCE AND USES
The organization charts are of great importance because they reveal the place or place that corresponds to each person within the organization; For this reason, any company, large or small, requires organizational charts, so that managers and workers in general know the position they occupy and the relationship they have with the rest of the structure.
Organization charts are also used as communication and analysis elements. In communication they are used to:
Represent the different units that make up the company with their respective hierarchical levels.
Inform the relative position of the members of the organization.
Provide a global picture of the business structure
Make it easier for new employees to contact the structure itself.
Facilitate the understanding of future positions for promotions and promotions, Inform third parties of how the company is structured.
It shows a representation of the division of labor, indicating:
- The existing positions in the company.
- How these positions are grouped into administrative units.
- How authority is assigned to them.
TECHNICAL RECOMMENDATIONS FOR THE ELABORATION OF ORGANIGRAMS
For the elaboration of an organization chart, some technical aspects or criteria must be taken into account that are necessary to know for its correct layout. These aspects are: Symbology, balance, simplicity, aesthetics, etc., and here are some rules:
2.7.5. PROCEDURES MANUAL
It is a specific document aimed at describing in detail the operational actions necessary for the execution of a company procedure or service. For example, the procedures manual for obtaining a credit implies the steps to be followed, the forms to fill out, the requirements to be met, the responsibilities of each person involved in the process and the criteria that will be used to make the corresponding decisions..
SCHEME OF A PROCEDURAL MANUAL
Presentation
CHAPTER I General
■ Objectives of the Manual
■ Legal basis
■ Approval
■ Review
CHAPTER II: General Standards
CHAPTER III: Description of the procedures
In this chapter, all the procedures carried out in the organization are elaborated according to the following guidelines:
■ Denomination or name of the procedure
■ Unit and / or executing areas
■ Purpose or purpose of the procedure
■ Frequency
■ Approximate duration time
■ Description of the procedure
■ Formats used
2.7.6. CHARGE CLASSIFIER
It is the document that details the functions that correspond to each of the company's workers, with the relationships of authority and organic dependency, coordination, information, authority and / or functional dependency, and others. It also specifies the requirements that a worker must meet to occupy the position, both in terms of training and personal experience and skills.
2.7.7. INTERNAL REGULATIONS
It is the administrative normative document that contains a set of norms, which allows the administration to regulate the Worker-Employer relationship, these norms are subject to the current labor legislation, requiring approval by the Ministry of Labor for their legal implementation.
CONTENT
Presentation
objective
Purpose
Legal base
Scope
Chapter I Admission and Hiring of Personnel
Chapter II Duties and Rights of Workers
Chapter III Of the Working Day
Chapter IV Remuneration System
Chapter V Scale of Fouls and Penalties
Chapter VI Permits, licenses and absences
Chapter VII Awards and incentives
Chapter VIII On Hygiene and Safety
2.7.8. STAFF ALLOCATION TABLE
It is the technical document that contains the positions with budget support assigned by the immediate higher administrative body, and which is ordered according to the hierarchy that it has in the organization or organization chart.
The most used types are "structural" and "Nominal". The first shows the positions and positions: the second lists the names and surnames of the workers who occupy those positions.
- ORGANIZATIONAL DEPARTMENTALIZATION
3.1 TYPES OF ORGANIZATIONAL STRUCTURES: LINEAR, FUNCTIONAL, MIXED ORGANIZATION AND FLAT ORGANIZATIONS
- LINEAR ORGANIZATION
It is the organization of line or hierarchy based on the scalar principle.
This type of organization is also known as a vertical organization and contains a series of direct relationships between superiors and dependents, based on direct responsibility.
In this kind of organization, consulting does not work and coordination is only taken by administrative units that are at the same level of authority.
Advantage:
¤ There are no conflicts of authority or escapes of responsibility.
¤ Speed in the fulfillment of orders
¤ Greater ease in decision-making and execution.
¤ Discipline is easy to maintain.
¤ It is easier and more useful in small business.
Disadvantages:
- ¤ Leave the entire organization in one person, therefore the success or failure of that person will be the triumph or failure of the organization. ¤ It does not allow the advice of subordinate personnel. ¤ The members of the organization become mechanistic. ¤ No fosters specialization.¤ Executives saturated with work, do not perform management functions, they are only operational.
LINEAR ORGANIZATION SCHEME
- FUNCTIONAL ORGANIZATION
This class of organizations are formed according to the specialty in a certain area of knowledge of each administrative unit, generally growing horizontally.
It is called functional because the head of a certain area can work in other related areas, that is, it allows functionality.
ADVANTAGE
- They encourage specialization, allowing greater efficiency It allows the coordination of the members of the organization at all levels. Decisions are made with a more technical criterion. The highest efficiency of each person is obtained. It reduces the pressure on a single boss.
DISADVANTAGES
- They do not allow for timely and effective control. Specialties in more than one area of knowledge and not rationally used can lead to a decrease in effectiveness. Duplication of command occurs very frequently. Difficulty locating and setting responsibility. Difficulties among bosses for not clearly defining authority.
- LINEAR ORGANIZATION WITH ADVISORY
The two types of organization are combined, taking advantage of the advantages and avoiding the disadvantages inherent in each.
It retains from the linear or military organization the authority that is transmitted through a single chief. And of the functional one, the specialization of each activity in a function.
It is based on the employment of specialists, placed in their respective sites and considered exclusively based on consultation.
This type of organization is the most widely used today.
Staff
It arises as a consequence of large organizations and the advancement of technology, having specialists capable of providing expert information and advice to line departments.
The inquiry function has no power to issue orders but is in charge of advising line members.
The advisory body may enter the line only for specific tasks and not permanently.
Advantage:
- It achieves that the expert knowledge influences the way to solve the management problems. It makes possible the principle of responsibility and authority, and the Staff specialization.
Disadvantages:
It is confusing if the duties and responsibilities of the consultancy are not well defined.
Next, in the figure presented, we can see the location of the consultation and line organs.
- FLAT ORGANIZATIONS
The traditional structure of companies has been threatened since the beginning of the second half of the 20th century, with the advancement of technology and the use of new management concepts. The Administration and Management have had to adjust to the new paradigms and thus ensure the permanence of companies in today's troubled and changing world.
The new world in which business is moving is changing the old paradigm of administration. Hierarchical organizations are being displaced by flat or horizontal organizations with more open structures, and authoritarian and coercive leadership styles are no longer effective.
Traditional management relies on a pyramid structure that is currently strongly questioned, most researchers point to flat organizations as the future scheme of tomorrow's companies. According to specialists they visualize as «the image of the open or interconnected organization (open networked organization = ONO)… it is a structure that slides from a multilateral hierarchy to businesses with flat, related, relatively autonomous structures».
- DEPARTMENTALIZATION STRUCTURES:
There are different methods of grouping activities into applicable organizational units according to the nature or line of business. The main ones are the following:
- By functions By products By customers By territories By process
BY FUNCTIONS
The grouping of activities according to the functions performed by a company is a very general practice. A company will carry out industrial, commercial or service activities. Depending on the type of main activity, the different functions within it will take on more or less importance.
For example, in an industrial company, the fundamental function is that of production, therefore the most important units will correspond to that function (Manufacturing, design, assembly, production control, quality control, etc.)
In a commercial company, the functions of buying, of sales, will acquire a great importance with respect to the other functions.
By Business Function
- BY PRODUCTS
The establishment of organizational units by products or product lines is an organizational criterion, which has been gaining great importance in large companies that have a diversified production and based on the different products obtained. This fact is explained because each product requires specialized personnel, facilities and special machinery.
Examples:
In a poultry farm, the fundamental units according to this criterion, would be:
* Eggs.
* Meats.
* Incubators.
In an agro-industrial sugar complex, they would be:
* Sugar.
* Alcohol.
* Bagasse.
* Paper.
* Molasses.
* Sulfuric acid, etc.
- BY CUSTOMERS
This type of grouping of activities, places all the emphasis on customers, is used in many kinds of companies, preferably in commercial companies, in terms of purchasing and sales activities. The volume of these operations, the common products that are exchanged allow classifying the following units:
- Wholesalers.
- Retailers (retailers).
The companies that provide services classify the functions according to the branch of activity:
- Farmers.
- Ranchers.
- Industrial.
- Hardware store.
- Constructions, etc.
- BY TERRITORY OF ACTION
Also called territorial, regional, or geographic location departmentalization. It requires the differentiation and grouping of activities according to the location where the work will be carried out or the market area that the company will serve.
Territorial departmentalization is generally used in companies that cover large geographic areas and whose markets are extensive, establish organizational units that allow for efficient and coordinated action within a radius of action.
Large-Scale Companies Geographically Dispersed
It is generally applied to the Production and Sales functions but not to Finance
- BY PROCESS OR TEAM
This criterion is based on certain processes that include a set of operations and that must be carried out in a specific place and with specialized equipment. It is frequently used in industrial companies. For example production of canned fruits, The most frequent activities are:
- ORGANIZATION AND MANAGEMENT OF SESSIONS AND ASSEMBLIES
4.1. GENERAL CONCEPTS
Assemblies
The general assembly is the supreme body of the company and / or institution and is made up of all partners, and / or shareholders.
The meetings of the General Assembly will be ordinary and extraordinary. The ordinary ones will be held once a year, the extraordinary ones will take place when the circumstances advise it, in the judgment of the President, when the Board of Directors agrees or when it is proposed in writing by two thirds of the associates, with specific expression of the issues to treat
The powers of the Ordinary General Assembly are:
- Approve, where appropriate, the management of the Board of Directors (directory) b. Examine and approve the statement of accounts Approve or reject the proposals of the Board of Directors Set ordinary or extraordinary fees Any other that is not the exclusive competence of the Extraordinary Assembly.
It corresponds to the Extraordinary General Assembly:
- Appointment of the members of the Board of Directors Modification of the Statutes c. Dissolution of the Association Disposition and alienation of property. Expulsion of partners, at the proposal of the Board of Directors f. Constitution of Federations or integration in themg. Request for a declaration of public utility Establish agreements with public and private entities, both national and international
SESSION
It is the meeting of associates or members of an institution in which important matters for its proper operation are discussed.
It must be called by written summons and with due anticipation. In some cases, such a summons is made by advertising means.
The sessions are ordinary and extraordinary.
The first ones are carried out at regular intervals, and the second ones by emergency, being summoned at the request of the associates or at the initiative of the president.
QUORUM
It is the number of attendees for the session or assembly to take place; half plus one of the total summoned members is considered.
For example, 14 is the quorum of 26, but also 27 members. At the 2nd. Citation is made with those who attend. The quorum must be taken into account to start the session and / or assembly, but also during its course. If some Assembly members leave the room and there is no statutory quorum, the President must suspend the session. Minority agreements are void.
ABSOLUTE MAJORITY
It is half plus one of the total members or partners. The relative majority is half plus one of those who attend, the minimum number with which agreements are made.
VOTE
It is the personal pronouncement of each assembly member in the face of a proposed situation, once the debate has been exhausted. There are different ways of voting.
Nominal Vote.- when it is expressed verbally and personally. It is customary to compute in the order of the list.
Secret Vote.- The one that is issued in writing in small certificates. For the computation, tellers are appointed, (2 at most), at the proposal of the president and by agreement of the assembly.
Voting Dirimente.- It is the vote of the president or the director of debates, which he exercises only in case of a tie. At no other time does the President have the right to vote. Nor can it issue opinions, as its function is limited to directing, directing or channeling the debate, enforcing the regulation.
The approval of a matter can be by majority or unanimity, the latter when there is no vote against. Voting by acclamation is also used, especially when people who enjoy general sympathy are chosen; is expressed through applause.
RECTIFICATION OF VOTING
It proceeds at the verbal request of one of the participants in the session, when the votes expressed, raising their hands, have not been properly counted.
GO DOWN TO THE PLAIN.
When the president wants to intervene in a debate, exposing his points of view, he must momentarily leave the presidency, entrusting it to whoever corresponds. Then, confused with the assembly members, he participates in the discussion.
FOURTH INTERMEDIATE.
It is the suspension of the session for brief minutes. It proceeds when it is necessary for the assembly members to agree on the matter raised in session, since the associates group themselves obeying certain criteria or positions. Attendees must not leave the session venue.
RECONSIDERATION
It is the approach formulated so that a matter already sanctioned by the court is discussed again. It should be formulated in the next session. The president will vote to see if reconsideration is admitted or not. If the majority is in their favor, then proceed to discuss it. This majority, in this case, is not half plus one, but two thirds of the attendees.
PREVIOUS ISSUE.
It is an approach that is considered basic to the solution of the main issue under debate. It is formulated by any assemblyman. The president will consult the room if he agrees to admit the previous question to debate.
If two thirds of the attendees vote in favor, it enters into discussion, suspending the debate of the principals. Once the previous question was approved or rejected, the discussion of the main matter that had been suspended continues.
ADJOURN
Due to various circumstances, including lack of quorum, because it is late. The president has the power to suspend the session before it has ended, in which case the date and time to continue will be indicated, and a new summons is not necessary.
LEAVE THE SESSION.
When the items on the agenda have been exhausted and no others arise in the course of the meeting, the president ends it, more or less with the following expression: "There being no other matter to discuss, the meeting is adjourned."
4.2. STATIONS OF A SESSION
- Approval of the Minutes.- The secretary reads the minutes of the previous session, and the observations of the case are made. If the minutes are not observed, it is approved and signed in faith
- Reports.- After reading the minutes of the previous session and their corresponding approval, with or without observation, you enter the reporting station, which will be placed on the Agenda for discussion.
III. Despachos.- In said station communications that are selected to account for the assembly will be read. The secretary will read each of them. At the request of some of the attendees and in the opinion of the room, they can also go to the Agenda for discussion.
- Orders.- They are formulated verbally and specifically, reserving the rapporteur's grounds for the Agenda.
- Agenda.- It is the only station of the session, in which the content of the Agenda is discussed in an orderly manner. Reports, Dispatch and Orders are also discussed. The president guides the discussion, giving up the floor as requested.
The corresponding Regulation sets the duration of each intervention and the number of times that a person can speak on the same point. The debate exhausted, the president submits the vote. At this point there is no room for interventions.
- Closing.- It is the final season and varies depending on whether the session is suspended or adjourned. It is worth mentioning the time and the reasons for its completion.
- BUSINESS ADMINISTRATION AND MANAGEMENT
5.1. THE STUDY OF THE ADMINISTRATION
The administrative act exists from the dawn of humanity, because the administration is but a manifestation of the gregarious condition of man. Whenever men unite their efforts to achieve a purpose, the administrative act is present, no matter how elementary its components are. Every social nucleus, whatever its size, importance or condition, requires a certain dose of administration to make its coexistence and functioning possible and, therefore, to achieve its purposes. Harmonious or efficient or conflictive and awkward development depends on good administration.
Although administrative phenomena are as old as humanity itself, their systematic study and analysis are relatively recent. It begins with the emergence of large public and private organizations that gave rise to tremendous economic development motivated by the technological advances made in the industrial and communications fields, the expansion of markets and the flourishing of the competitive system in the field of relationships. economic.
Administration as a social product, stemming precisely from these relationships, cannot escape the process, which has made it increasingly necessary to establish administrative patterns that regulate and make possible the progress of any organization.
One of the reasons that makes the study of administration important is because this science allows efficient use of human, financial and material resources. It establishes how to obtain opportunities for activity and action, in addition to representing the fundamental factor in planning, organizing, directing and controlling in order to achieve good performance within organizations; The effectiveness with which individuals work together or in groups depends to a great extent on administrative science and the abilities or aptitudes of their leaders or administrators.
It should be noted that in our country, 80% to 90% of companies fail due to poor administration. Thus, management represents the basis of failure or success for organizations.
This conjunction of material and technical resources is an essential characteristic of all collective activity, tending to seek common objectives, with the least cost in time, money or material resources, complying here with the economic principle that says: Minimum resources, maximum use, adopting for this purpose the basic processes and principles of administration.
The administration consists in making the social body of a company work, to achieve the objectives and goals established by the organization, through the orientation, coordination and motivation of the personnel.
Change management refers to the world of objects, such as resources, tasks, plans, programs, obtaining funds, among others: This is considered first and starts the same day you make the decision to restart a change.
The direction of change refers to the world of people, and words such as vision, motivation, commitment, knowledge. Treatment, quality, satisfaction, etc… are priorities for those who lead the change.
On the ability to manage and direct the change, depends on the success or the process of the redesigned project; For success, you need to be concerned with how to get people to actively support and participate in change.
Keep in mind that modern administrative management requires the use and application of certain techniques and systems, referring to the various aspects of business management, among which are human, economic, financial and statistical in the perspective of preparing information that serves to rational and timely decision making.
5.2. THE COMPANY AND ITS ADMINISTRATION
The first impression we have of the company is that of a conglomerate of people and material resources, whose purpose is to produce goods and / or services.
As we deepen our observation, we find that in its operation, this cluster combines material resources, constantly acquired, called inputs; material resources existing within the company, such as machinery and equipment; and the work of a certain number of people.
This combination, in proportion and defined characteristics and its modifications, require a continuous set of decisions, which are made throughout the life of the company and which specify, formulate and specify its objectives, permanently responding to the questions of what, when, and how to produce our good and / or service. This is what we call company management.
The company requires the knowledge and uses of principles, rules and techniques of business administration, let's see why:
As we have defined the company, this is a conglomerate, where the work of people, using certain means, equipment and resources, combine these resources in the proportions and with the most appropriate characteristics in order to guarantee the success of the company in terms efficiency and profitability, represents a very complex task that gives rise to administration.
Managing represents achieving the goals of the company. Obtaining results is important, since it allows the company to position itself in the market, make profits and therefore obtain profitability, which benefits those who invest; but the media must never violate the dignity of the people.
The administration as a science has achieved a great development, the knowledge and use of the principles, techniques and instruments of business administration are a guarantee for the achievement of the objectives of any company, in terms of efficiency and profitability.
In order for every company to fulfill its economic and social role, it must necessarily adapt to modern and recent administrative and organizational techniques, applying them with certainty, that is, knowledge, criteria and capacity are needed to successfully achieve what is desired. Administration is done with people, for people.
In conclusion, the principles and techniques of modern organization are valid for all types of companies.
5.3. ADMINISTRATION IN BUSINESSES: COMPANY, BUSINESSMAN AND MANAGER
BUSINESS
The company is a society made up of people, who organize themselves to achieve objectives, aimed at producing services that will satisfy the needs of an intellectual consumer market, expecting a social and economic profit margin. The company in a more exact sense, we define it as a legal, economic and social organization of people, who put their capital and effort, in order to produce an educational service and therefore obtain results whether they are economic or social.
ENTREPRENEUR. It is he who assumes the financial risk of starting or opening, the operation, management of a business and its control. He is a man with an entrepreneurial spirit, a positive man who thinks of personal development and of society itself.
MANAGEMENT. It is the permanent body of ordinary administration executing the general policy and the resolutions agreed by the board of directors. The title holder is the manager.
In this graph, we appreciate that the company depends on the administration, and in turn it depends on the functions of the administrative process, we compare it with a structure of a house, if the planning fails the company and administration collapses, and if the columns are poorly established, likewise, will go to failure:
5.4. ADMINISTRATION CONCEPT
It is the social science that consists of the functions of planning, organization, execution and control, which are performed to achieve objectives, through the use of people and resources. The administration allows efficient use of human, financial and material resources; that is to say «Minimum of resources, Maximum of use».
Administrative Science deals with material and capital resources, but what is fundamental is its close relationship with human resources, without considering that the latter are trained or not to work. If he is not, he will obviously use a training program for these people. The administrative factor has such a preponderance in activities, both public and private, that it is already a consensus that good administration is the condition without which there is no economic and social development.
The administration becomes effective through the fulfillment of the managerial functions of the planning, organization, execution and control, these in turn must be properly interrelated to achieve the objectives.
They are its most genuine representatives:
FEDERICK WINSLOW TAYLOR: Your philosophy is based on the mental revolution of workers, executives, administrators and owners; that it must as a central notion to stop worrying about surplus value and rather continue to increase it vertiginously for a future of well-being.
Its basic principles are:
- Apply science as organized knowledge, replacing empirical rules and conventions. Banish discord and establish harmony in group action. Eliminate chaotic individualism, and impose cooperation between the elements or components of companies. Raise productivity every Again, to achieve maximum production, leaving aside the spirit of restricted production.
Scholars of the Administration in general have conceived or have believed it appropriate to consider FEDRICK TAYLOR as the father of the Administration in general for being an initiator and discoverer of the importance of administrative science.
HENRY FAYOL: Father of the modern theory of operational management. It divided the industrial company in terms of its dynamics into six (6) well-characterized groups:
²Techniques ²Commercial ²Financial
²Security ²Accountants and ²Administratives
I consider that the qualities of the Administrator should be:
²Physical ²Moral ²Mential
²Educational ²Techniques ²Experience
With the criterion that the administrative principles are flexible, I formulate 14 principles, being these:
- Division of labor Authority and responsibility Discipline Unit of Command Direction Unit Subordination of individual interest to the general Remuneration Centralization Hierarchy of Authority Order Equity Job Stability Initiative Group Spirit
After these two great figures of administrative thought, the currents of Industrial Psychology emerged (whose father is Hugo Munsterberg) and social theory (whose parents are: Max Weber, Emile Durkeheim, Vilfredo Pareto characterized by the behavioral school, his followers are Elton Mayo and Roethlisberg among others.
5.5. THE ELEMENTS OR PROCESS OF THE ADMINISTRATION
Administration is an essentially dynamic and evolutionary process that continually adapts and influences social, political, economic, and technological conditions to efficiently and timely achieve the objectives it pursues.
The administrative process consists of:
- PlanningOrganizationManagementControl
It is considered a process because the organization cannot be developed if the planning has not been established, it cannot be managed if it has not been previously planned and organized, and so on until it can be controlled if it is not planned, organized, and directed. activities, tasks, operations and actions. The functions of the administrative process are as follows:
PLANNING
Concept.- It is the administration process that consists of the determination of the different types of plans for the consequence of purposes, during this process cases and facts will be provisioned to later analyze them, formulate and reformulate the ideas to later specify them in plans.
Planning is the fundamental element that has the mission of determining and establishing all the different types of plans.
ORGANIZATION
Concept.-It is the process by which it is possible to establish:
- The evaluation and categorization of the jobs to define the requirements that the staff must possess, the types of organs and the hierarchical levels. Organizational structure and the organizational chart The geographical area that comprises the company premises. The infrastructure for the best location of workshops, machines, warehouses, equipment and accessories, administrative offices, maintenance systems and conservation of all resources. The best location for work areas. The development of organizational instruments such as: The statute, Internal Regulations, Organization and Functions Regulations., Manuals of procedures, Organization charts.
DIRECTION
It is the process by means of which everything embodied within the organized aspect is carried out, in which are the resources that must be directed, divided by the administrator.
Management means creation, contribution, imagination, initiative, directional criteria to make decisions by extending orders and instruments, the director will know how to choose the strategic location of his offices to be able to lead effectively
- CONTROL
Concept.- It is an instinctive and rational act that practices and applies and man is man. It is the element that closes the cycle of the administration process that comprises, planning, organization, direction, control, of all the activities that man makes.
Control is the function of observing, verifying, analyzing, inspecting, supervising, supervising, comparing, evaluating, qualifying, concluding, operating and recommending the different actions, corrective measures and sanctions so that the activities are carried out in a normal manner and the personnel fulfill your duties of function by subjecting yourself to the rules, regulations and laws.
Control is permanent and current, the offices program control actions according to the needs of the organization.
ADMINISTRATIVE MANAGEMENT TECHNIQUES
The administrative techniques are defined below:
- Strategic Analysis Business Context: diagnose the scenario, identify the most probable international and national political, economic and social scenarios, analyze the business agents exogenous to the company (suppliers, customers, government, competition, creditors, etc.), typify the companies, typify the entrepreneurs, etc. Organizational Management or Administrative Process: planning, anticipation of the future work of the company and setting the Strategy and the goals or objectives to be met by the company; organize, determine the functions and structure necessary to achieve the objective establishing authority and assigning responsibility to the people who will be in charge of these functions; lead,It consists of making others act to fulfill the objectives and control verify what has been done with the proposed objectives. Marketing Management and Business Plan: detect, capture, secure, maintain and increase a portion of the market or segment in which to market the good or service produced. Management of Information and Communication Technologies: applying information and communication systems intra and extra company to all areas of the company, to contribute to optimal decision-making in conjunction with the use of the Internet. Financial: obtain money and credit at the lowest possible cost, as well as allocate, control and evaluate the use of the financial resources of the company, to achieve the maximum performance of these limited resources of the company by keeping an adequate accounting record.Human Resources Management: aims to use the workforce in the most efficient way possible, taking care of the process of obtaining, maintaining and developing personnel. It also seeks its integration through motivation, leadership, teamwork, in conjunction with communication and negotiation techniques. Operations and Logistics Management of supply and distribution: supplying the goods and services that will satisfy the needs of consumers, transforming a set of raw materials, labor, energy, supplies, information, etc. in properly distributed final products. Analyze the technological level of production processes from artisanal to automation. Environmental Management: contribute to raising awareness of the need to apply, in the company,environmental defense policies.
5.7. FAILURE AND BUSINESS SUCCESS FACTORS
5.7.1.- THE REASONS FOR A FAILURE
There are many reasons why a company fails. But this last word is simply understood another, terrible for any manager, and even more so, for anyone who calls himself an entrepreneur: bankruptcy
Annually, thousands of companies know what it is to close their doors for having reached their situation of economic insolvency. Others, despite not reaching total failure, live in permanent anxiety.
To know more exactly about this problem, we asked ourselves, why companies that seemed to be a success, suddenly start going downhill from one moment to the next)
If failure has a cause, aside from simple business ineptitude, it is the reality that many executives too often do not understand one of the fundamentals of business. They never worry about finding answers to questions such as what are the keys that lead to a competitive situation in the sector where they carry out their work?
A company is above all a mental model; If this is lacking, decision-making is inconsistent and the company drifts.
One of the clearest symptoms of these is seen in the tendency to diversify the activities of the company in fields increasingly distant from its main core of achievements, in fact, which frequently manifests itself with reckless acquisitions or mergers, many of which are They make with the idea that the impact they will produce will have a favorable impact on sales, decisions that in most cases are wrong
- FAILING FOR LACK OF VISION
The problem according to the experts is that the companies were only content with surviving the situations as they arise.
That is much easier than carrying out the complicated analyzes of the trends that are appearing and which are the ones that at the end of the account show what the course of history will be. Immersed as they are in the reality of the moment, very few managers have time for imagination and creativity.
In recent years one of the most common disasters is staying tied to the technologies of the past example. The man runs a company dedicated to the manufacture of paint for metal, he should already be thinking about new products that will be used in ten years and that will replace current ones.
- THE DEBTS
Debts can be a heavy burden, but paradoxically they can make a company much more efficient, because they force their executives to work harder and make better approaches.
Although debt also robs you of two of its most essential attributes: the strength to resist the ups and downs of the market and the flexibility to respond to competitive challenges.
Many companies have fallen into debt problems due to the need to face new competitors who were entering their land. However, many companies end up going bankrupt. The reason: they did not contemplate that the exchange rate and the debts would prevent an adequate reaction to new challenges.
- HOLD ON TO THE PAST
Similarly, one of the most damaging things for a company is to rely on outdated models and try to rescue glorious pasts. An important cause of such passive management is human nature itself: Most of us have a big problem when it comes to changing a strategy that has worked well in the past.
Incredible as it may seem, today's success may be the seed of tomorrow's failure. Complacency is one of the ills that most often afflicts large companies almost directly in proportion to their size.
- THE RELATIONSHIP WITH CUSTOMERS
Another reason why companies fail is because they lose the "touch" with their most important customers.
Companies that manufacture high-tech related products or services are particularly vulnerable when it comes to detecting tacking with the changing market winds. Whatever the business, staying in constant contact with customers often involves much more than just market research.
The most efficient managers usually spend a good part of their time being close to their key clients, only by knowing their needs, management can find the right direction. Many failures occur simply because the man in charge of them did not know how to properly train his sales personnel.
- THE INTERNAL ENEMIES
Unfortunately, there are cases in which the same workers of a company become their executioners. The attacks and hostilities are the clearest evidence that such a situation is taking place. Usually these are death threats sent by mail or by pints on factory networks.
Less blatant, but by no means less damaging, are the cynicism and resentments that arise when management preaches one thing and does another. There is an all too common example of this: Corporate leaders can quickly thwart a reengineering effort by ordering the purchase of luxury vehicles for the company's senior staff, while forcing workers to tighten their belts.
This, which could be called corporate hypocrisy, ignores that it violates the unwritten rules of human coexistence. If they preach importance of teamwork, then they should not be excluded when sacrificing comforts for the welfare of the company. On the other hand, many failures happen due to the breakdown of something that may seem as prosaic as the relationship of loyalty between employers and employees.
5.7.2. BUSINESS SUCCESS FACTORS
Hundreds of books have been written giving more or less miraculous recipes for success in business, none have deserved as much attention as the famous Business Realities of the master Peter Drucker whose principles have been amply demonstrated in the field of business dynamics; however, they are useless if executives do not assume these principles as conduct.
Business realities are a precedent for effective executive behavior and the reinforcing consequences of such practices, it is the successes achieved in the management of companies that constitute reinforcers of managerial behavior. Among these realities we have the following:
- PROJECT THE COMPANY ABROAD
"Neither the results nor the resources are within the company, both are outside the same"; Against this background, the executive must direct all its strategy and tactics abroad, where the resources and results are, and then attract them to the company.
If we look closely at this reality, in no type of company the results are produced within it, nor the goods and services, within it there are only costs, for example the results in commercial and industrial companies are clear since their profits are in In the hands of the client, the executive has to make efforts to attract them if he wants to have results, these efforts can materialize in price reductions, quality, credit advantages, etc. In other words, innovating and marketing. The alternative to this reality would be concern with petty squabbles, gossip, or maintaining internal order unless a conscious effort is made to go outside or its effectiveness will inevitably be diluted.
Another way of projecting abroad is through the quality of the products, their economy and permanent innovation; These three aspects are the best ambassadors of any company in its projection abroad and this must be its practice, its conduct and not just the manager's momentary enthusiasm.
- THE EXPLOITATION OF OPPORTUNITIES
"The results are achieved through the exploitation of innovation opportunities, not by solving problems", The executive must seek and take advantage of opportunities in those lines of activity or forgotten segment of the market to innovate them, even those activities that are poorly operated are Exploitable as opportunities, The executive must turn the needs of his clients and society into authentic opportunities to innovate. For the rest, problem solving only returns the fair balance to the company, but it is nothing more than that; it does not add profits, what gives results are the exploitation of innovation opportunities.
- LEADERSHIP TO ACHIEVE ECONOMIC RESULTS
It is desirable for the company to exercise leadership in one or more products or in some aspect of its business that means value for the client, but those that do not catch a single leading product or service are, in fact, candidates for failure. This antecedent impels the executive towards a conduct of search and permanent creation of leadership in the business. Of course, the customer is ultimately the one who determines what is valuable or significant to him, hence the executive must study and analyze what the customer buys and what is valuable, meaningful to him and exercise leadership through innovation in favor of the client. Paradoxically, a small company that exercises leadership in some aspect of its business can obtain greater economic results than in a larger one, but,that you are not exercising leadership in any aspect of your business.
- INTEGRATION
The integration factor refers to the union of the individual needs of all those who work in an organization, with the objectives and organizational goals.
BIBLIOGRAPHY
- AYALA VILLEGAS SABINO: Business Management Volume I. Graf. Castillo Tarapoto- Peru 1996 CERTO PETER: Strategic Management and Administration Mac.GrillCOLLINS JAMES: Companies that Last. Editorial Forma 1999 CAMPANA MENDOZA JULIO: Strategic Management. Cusco - Peru 1998 CHAVENATO Idalberto: Administration Edit. Mac Grill Hill 2000DRUCKER PETER: Management for the FutureDIAS DIAZ CARLOS: Administration. Edit. San Marcos Lima –Perú 2002MARTHANS GARRO CESAR: Business Rationalization Edit.San Marcos2002RUIZ MARQUILLO, DARWIN: Organization and Business Administration Trujillo- Peru 2000.REYES PONCE AGUSTIN: Administration Edit. Limusa México 2000KOONTZ. AO`DONNELL: Modern Administration Course. Edit.Mc Gran Hill México 1999
