The Administrative Diagnosis is a systematic, comprehensive and periodic study whose main purpose is to know the administrative organization and operation of the area under study, in order to detect the causes and effects of the company's administrative problems, to analyze and propose viable solution alternatives that help to eradicate them.
It arises as a business need to detect the problems that cause crisis within the company, as well as the needs for adaptation from the present to the future.
It is based on the fact that all organizations must adapt and modernize their structural and functional apparatus to face and be in line with the evolution of current markets, as a result of which they must adapt their mentality and actions to the changes that are presented to them and accept, face as a challenge and find solutions to particular and general problems at any time.
Its field of application has no limits or barriers, it can be applied at any level within any area, department, function or process, there are simply variants of how to apply it depending on the particular characteristics of the problem that you want to attack.
It must be carried out in an integral way on the detected problem and all those administrative aspects that are directly or indirectly related to it, in addition it is necessary to periodically analyze the areas under study to feed back the solutions and improve them permanently.
The Administrative Diagnosis is nothing more than the analysis of the following aspects:
- Of the administrative and organic structure, lines of authority and sections of control. Of the functions of each of the administrative bodies, which includes the set of interrelated activities that need to be carried out in order to achieve its objectives. Of the general processes and graphic description of the sequence of functions that are carried out to fulfill each of them, of delegated powers within the staff, as well as the relationship between the execution of the specific functions of the positions and the decision-making process: communication and coordination between two or more areas to determine the relationship between each of them.
To properly carry out the Administrative Diagnosis, it is necessary to carry a logical order to successfully collect and interpret the information and meet the desired objectives, it will be difficult to obtain if there are no evaluation parameters that indicate the aspects to be evaluated.
The stages that make up the Administrative Diagnosis can be summarized as:
- Collection of information Organizational or administrative analysis Drawing of conclusions Proposal and action plan
Information gathering:
The information collected must be as accurate as possible, as it represents the basis for future conclusions, when the analyst is an expert in diagnosis, objective information will suffice just by observing or intuiting what the direct problem is or at least trying to understand the symptoms. direct; the information must be processed and analyzed with great care, since it will depend on possible solutions to the problems detected, it is necessary to indicate that each source of information is varied and different in relation to the original source and that each of them adds value when analyzing it and contributes to the final solution.
In all data collection processes, there is information to be replaced, if it is at hand, it is processed and analyzed immediately, if it is not available, it is created, that is, it is collected from personal sources with direct verbal information and then protected with legal sources and other documents from the affected area, to carry out a brief and quick analysis of what was collected to facilitate the completion of the diagnosis in the shortest possible time.
It is also necessary to analyze the information from external sources, since it will indicate the characteristics, possibilities and the particular situation of the environment of each element, its functions or activities that can be carried out in accordance with the analysis of the problem. This information is necessary to obtain other criteria that help normalize and guide the study.
The governmental regulatory framework and the growth of international markets that limits the volume of products and / or services, cancels demand, imperfect competition arises, economic and technological dependence, imply organic and functional imbalance and encourage expansion, restriction or disappearance. of companies.
The foregoing forces any company to study organizations through administrative research as a permanent function, so that with its products and / or services it adapts to what the environment requires.
The internal information existing in the company is a fundamental basis for carrying out the study and can be obtained from two sources, which are the company records and experimental through the information provided by the people who belong to the affected unit, collected based on interviews and conversations duly planned and executed in an orderly manner, this information must be verified by the subjective nature of their responses, the registration information must be controlled for its quality and coverage or comprehensiveness analysis, its update is necessary to obtain reliable data, it must be verified and verified cost of obtaining it taking into account the utility it will provide to the study.
In summary, it is vital to have available a list of possible functions to examine, a list of problems to start a preliminary self-diagnosis, taking into account the information registered or of the elements belonging to the company, as well as information external to the department or affected area to check its existence in order to replace the existing one and thus determine the analysis of the information and its possible conclusions.
Organizational or administrative analysis:
This phase of the Administrative Diagnosis aims to compare the information recorded in the analysis stage and the technical aspects established, in order to list the findings and determine the critical points that affect the good performance of the evaluated area.
Among its main objectives are:
- Collect data that allows obtaining a general idea of the company. Determine with real data the evolution of the company in a more or less long period, in terms of capital, sales or services, resources, etc. to systematically analyze whether there has been growth or has developed both in its administrative and operational aspects. Investigate personnel, their activities, functions, relationships, etc.
It is done through the analysis of the following organizational aspects:
Analysis of the structure:
It includes the study of each one of the components that make up the organizational structure, to determine if the way in which they are organized helps to fulfill the mission, vision and objectives of it and of the company in general.
The aspects that must be evaluated as a minimum are the following:
- Structural organization chart Hierarchical levels Type and lines of authority Tracts of control Existing resources Dependence and relationship with other areas
Analysis of functions:
It includes the study of the functions assigned to the area under study, as well as the attributions and obligations that they have to fulfill for the performance of the work.
The basis for this type of analysis is represented by each of the jobs that make up the organizational structure, therefore it is important to verify:
- Main functions of the area under study. Relationship between the functions performed in each job with the objectives of the area and whether they are adequately regulated or simply performed empirically. Duplicity or omission of functions within the area in relation to its objectives. Degree of complexity and specialization needed to perform each of the functions. Description and job profiles
Process analysis:
It includes the study of the processes that are developed within the area under study, as well as the contribution they partially offer to the general processes of the organization in which it is involved.
The basis for this type of analysis is represented by the sequence of each of the activities carried out within the area under study.
- Main processes Sub-processes Contingent processes Activities carried out that correspond to processes in other areas.
It is very useful to carry out this analysis based on the Manual of Norms and procedures that are developed within the area.
Relationship analysis:
It includes the study of the coordination, communication and dependency that exists between the members of the organization in general and that are related to the area under study.
The types of relationships that must be defined and evaluated are the following:
- Among the hierarchical levels that make up the organizational structure of the area under study. Among the general staff of the area under study with the other areas. Among the functions and jobs that make up the area. Among the general processes of the organization in which dependence on the area in at least one of its component activities.
Drawing conclusions:
All the stages of the administrative diagnosis are closely linked, each one of them can produce conclusions, even before the end of the data collection, and by simple observation at the beginning of the study giving results later verified by means of the information obtained.
To carry out a more complete analysis, it is important to review the evolution and development that they have undergone over time and compare these data with other similar data, whether from other areas or departments within the company or with other similar companies, and finally verify or check whether the objective set has been achieved through effective control of the situation.
Following the previous stages or phases, it is fair to indicate that both the organization of the affected area and the management techniques used for its operation, activities and relationships between its elements, growth of the area and the stage in which it is located must also be analyzed. The objectives it pursues, what policies and procedures does it employ, what is its formal structure and what regulations establish it, what are the communication and distribution channels used, in what way are staff motivated or incentivized and if any eventual retirement has been considered?.
It is also necessary to analyze the information, its needs, its source, its quality and quantity, its collection and registration procedures, as well as the appropriate use of electronic data processing, if there is an integrated information system or a simple general system.; With all this, functional analysis will be developed, which is nothing more than the operational way in which the activities inherent to the problem under study are carried out.
Finally, a list of things that are wrong and fail within the organization should be drawn up, to obtain partial conclusions of the problems and the way to solve them in importance relative to the final solution, select possible solutions and establish or structure a action plan.
Some examples of organizational problems that can be detected through the application of the Administrative Diagnosis are the following:
- Lack of clearly defined mission, vision and objectives. Lack of administrative strategies, goals and policies that guide the organization's objectives, so as not to confuse autonomy with independence. Lack of organizational structure according to the objectives of the study area Duality of command and abuse of authority Inability or lack of managerial interest of middle managers to direct their subordinates and efficiently meet the objectives of the company. Improvement at work as a result of the absence of administrative plans and programs. Lack of communication and coordination among staff all levels or between the different areas or departments that make up the company (hierarchical line). Lack of timely information for proper decision-making.Existence of bureaucracy within the processes that are developed within the company. Obsolescence of procedures, method and work techniques. Insufficiency of professional and technical quality in the different jobs. Lack of induction and training programs for the personnel who carry out the different activities Duplication of functions Bottlenecks Inadequate facilities for the tasks being performed Lack of controls for the proper use of available resources Excessive stationery and forms in general Inadequate distribution of work, which does not allow for delimiting responsibilities. Lack of delegation of authority and responsibility Excessive stretch of control Resistance to change and conformist attitudes of the staff Inappropriate use of skills and abilities of the staff.Slow and complex decision-making process, concentrating and congesting them in senior management, even those that are routine. Excessive middle management or unnecessary positions. Low productivity as a result of technical, human and organizational problems. Unscheduled growth, when not anticipated and take correct measures to what the environment causes and which implies that the structural and functional organization is conditioned by external and internal factors, which implies a weakening and unproductiveness on the part of those responsible for carrying out activities within the company. in one person or area (not substitutes) Lack of inadequate leaders or leaders.Excess of middle management or unnecessary positions Low productivity as a result of technical, human and organizational problems Unscheduled growth, when it is not foreseen and they take correct measures to what the environment causes and which implies that the structural and functional organization is conditioned by factors external and internal which implies a weakening and unproductiveness on the part of those responsible for carrying out activities within the company. Specialization of work in a single person or area (not substitutes) Lack of inadequate leaders or leaders.Excess of middle management or unnecessary positions Low productivity as a result of technical, human and organizational problems Unscheduled growth, when it is not foreseen and they take correct measures to what the environment causes and which implies that the structural and functional organization is conditioned by factors external and internal which implies a weakening and unproductiveness on the part of those responsible for carrying out activities within the company. Specialization of work in a single person or area (not substitutes) Lack of inadequate leaders or leaders.when it is not foreseen and they take correct measures to what the environment causes and that implies that the structural and functional organization is conditioned by external and internal factors which implies a weakening and unproductiveness on the part of those responsible for carrying out activities within the company.Specialization of work in a single person or area (not substitutes) Lack of inadequate leaders or leaders.when it is not foreseen and they take correct measures to what the environment causes and that implies that the structural and functional organization is conditioned by external and internal factors which implies a weakening and unproductiveness on the part of those responsible for carrying out activities within the company.Specialization of work in a single person or area (not substitutes) Lack of inadequate leaders or leaders.
The list of conclusions is represented through the administrative SWOT, which includes Strengths and Weaknesses as internal factors and Opportunities and Threats as external factors, as well as the interrelation between the four factors.
Proposal and action plan:
It is the synchronization of the detail of the actions to be taken, both to carry out the investigation, the analysis of the information and to have the ease of possible solutions in the organization or reorganization that determines which phases are necessary for a real investigation, which areas Are affected in the study, what objective is pursued, what resources are necessary for the analysis, obtain conclusions that allow recommending possible solutions or alternatives for a better result, evaluating the time required, its costs and for the operation and methodology adopt in the new system indicated throughout the study process.
The proposal and action plan in very general terms should describe:
- How to take advantage of the strengths of the organization, to face the opportunities detected. How to minimize the weaknesses of the organization, to counteract the threats detected.
Through the following series of video-lessons taught by Professor Antonio Verdú, from the Miguel Hernández University of Elche, you will be able to learn more about some useful techniques and tools in business analysis that allow identifying those aspects that can be considered as strong points and weak of the organization. The following topics are specifically addressed: (1) internal diagnosis of the company; (2) the value chain; (3) analysis of resources and capacities; (4) The strategic analysis matrices and (5) The SWOT matrix. A good complement to the subject of administrative diagnosis. (11 videos - 42 minutes)
