Summary
The following article is aimed at anyone who in one way or another is interested in the study of economics and within it the role that business administration plays. It tries in a concise way, and no less important, to analyze the edges of the concept of administration, reasoning about the close relationship that exists between some highly managed and significant terms such as the 3 E (Efficiency, Efficiency, Effectiveness) and quality.
Introduction
The word administration comes from the Latin ad (towards, direction, tendency) and minister (subordination, obedience, in the service of), and means one who performs a function under the command of another, that is, one who provides a service to another, be at the service of another (of society, making it more productive (efficiency, for the fulfillment of its objectives (effectiveness)).
Administration is the social and technical science in charge of planning, organizing, directing and controlling the resources (human, financial, material, technological, knowledge, etc.) of an organization, in order to obtain the maximum possible benefit; This benefit can be economic or social, depending on the ends pursued.
According to several authors:
- The Administration consists of achieving a predetermined objective, through the effort of others. (George R. Terry) Administration is a social science that pursues the satisfaction of institutional objectives through a structure and through coordinated human effort. (José A. Fernández Arenas) Administration is the process whose objective is the effective and efficient coordination of the resources of a social group to achieve its objectives with maximum productivity. (Lourdes Münch Galindo and José García Martínez)
From the definitions given above, it can be summarized that administration is one of the oldest and most important human activities that exists in the world, and is defined as: the process of designing and maintaining an environment in which people, working in groups, efficiently achieve selected goals.
An extension of this basic definition would be:
- As administrators, people carry out administrative functions of planning, organization, integration of personnel, management and control. Administration applies to all types of organizations as they constitute their object of study, it is applicable to private and public companies; public institutions and state organisms, and to the different private institutions, for example: churches; universities; governments and municipal, provincial, national organizations, hospitals and other health institutions, foundations, etc. and to all types of private companies including families and households. It is applicable to managers at all organizational levels. The goal of all managers is to create a surplus. Management is concerned with productivity which implies effectiveness and efficiency.
It is essential to stop looking at these last elements that complete the basic definition of administration, so its description will be made in the development of this article.
Development
The managers' goal is to create surplus, productivity, which implies efficiency, effectiveness, and effectiveness.
Productivity is defined as the relationship between results (products or others) and inputs (labor, materials, capital) within a given period, considering quality.
Productivity = Results / Inputs (given period of time, quality)
Productivity implies efficiency, efficacy, effectiveness, and quality has always been considered in its formula for good individual and organizational performance.
We then pass to the definition of the 3 E's and the term quality.
1. Efficiency: it is to achieve productivity that is favorable, that is, to achieve the maximum result with a certain or minimum quantity of inputs or resources, to achieve the predetermined or expected results with a minimum of resources.
The word resource is widely used, not only referring to those who are financially needed to carry out the production process or the service provided, but to all those who come to play a fundamental role such as energy, human efforts, the time factor, the quality, etc.
Efficiency is measurable either through an indicator or a set of them. It constitutes one of the bases to achieve competitiveness and marketing activity in the organization.
2. Efficacy: is the degree to which the product or service meets the actual and potential needs or expectations of customers or recipients.
3. Effectiveness: degree of fulfillment of the planned objectives, that is, the result or the product of dividing the Real / Plan or what is the same: the results obtained between the predetermined or fixed goals. It is the degree of compliance with the delivery of the product or service on the date and time when the customer really needs it.
As it has been observed in the aforementioned definitions of the 3 E's, the term quality is implicit, which we will describe below.
Quality
Quality is a basic tool for an inherent property of anything that allows it to be compared to anything of its own kind. The word quality has multiple meanings. Basically, it refers to the set of properties inherent in an object that give it the capacity to satisfy implicit or explicit needs. On the other hand, the quality of a product or service is the perception that the client has of it, it is a mental fixation of the consumer who assumes conformity with said product or service and its capacity to satisfy their needs. Therefore, it must be defined in the context under consideration.
Definitions from a production perspective
Quality can be defined as the relative conformity with the design specifications, commonly it is to find the satisfaction in a product fulfilling all the expectations that some client is looking for, thus being controlled by rules which must go to the market to be inspected and have the stipulated requirements. by organizations that have a product certified.
From a value perspective
Quality means adding value to the client, that is, offering conditions of use of the product or service that are superior to what the client expects to receive and at an affordable price. Also, quality refers to minimizing the losses that a product may cause to human society, showing a certain interest on the part of the company to maintain customer satisfaction. A current vision of the concept of quality indicates that quality is delivering to the client not what he wants, but what he had never imagined he wanted and that once he obtains it, he realizes that it was what he had always wanted.
Formal definitions
Other definitions of recognized organizations and experts in the world of quality are:
- Definition of the ISO 9000 standard: “Quality: degree to which a set of inherent characteristics meets the requirements.” According to Luis Andres Arnauda Sequera, the ISO 9000 standard is the «Set of quality standards and guidelines that must be carried out in a process ». Royal Academy of the Spanish Language:" Property or set of properties inherent in a thing that allow it to be appreciated as equal, better or worse than the rest of its kind ". Philip Crosby:" Quality is fulfillment of requirements ". Joseph Juran: "Quality is adequacy for the use of the customer". Armand V. Feigenbaum: "Satisfaction of customer expectations" and also, "the result of a combination of engineering and manufacturing characteristics, determining the degree of satisfaction that the product to provide to the consumer during use. ”William Edwards Deming:"Quality is customer satisfaction." Walter A. Shewhart: "Quality as a result of the interaction of two dimensions: subjective dimension (what the customer wants) and objective dimension (what is offered).
Quality should never be confused with higher levels of attributes of the product or service, but with the regular and permanent obtaining of the attributes of the good offered that satisfies the clients for whom it has been designed.
Quality-related factors
To achieve a good quality in the product or service, three important aspects must be taken into account (basic dimensions of quality):
- Technical dimension: encompasses the scientific and technological aspects that affect the product or service. Human dimension: takes care of good relationships between clients and companies. Economic dimension: tries to minimize costs for both the client and the company.
Other factors related to quality are:
- Fair and desired quantity of product to be manufactured and offered. Speed of product distribution or customer service. Exact price (depending on product supply and demand).
Quality parameters
- Quality of design: it is the degree to which a product or service is reflected in its design. Quality of conformity: It is the degree of fidelity with which a product or service is reproduced with respect to its design. Quality of use: the product it must be easy to use, safe, reliable, etc. The customer is the new objective: the new theories place the customer as an active part of the quality rating of a product, trying to create a standard based on the subjective point of a client. The quality of a product is not going to be determined only by purely objective parameters but by including the opinions of a customer who uses a certain product or service.
Basic concepts in quality standardization
It aims to achieve the following objectives:
- Reduce and unify products, processes and data. Improve security aspects. Protect the interests of consumers and general society. Lower general costs.
Applicable standardization fields
Materials, Products, Machines, Environmental Management, Risk management at work, Data, Testing and calibration activities, Provision of a Service, Processes in general.
Internal management and quality assurance
Quality assurance could be defined as those actions that make a product or service meet certain quality requirements. If these quality requirements fully reflect customer needs, then quality assurance can be said to be met.
Quality assurance
Quality assurance can be defined as the total effort to raise, organize, direct and control quality in a production system with the aim of providing customers with products of adequate quality. It is simply ensuring that quality is what it should be.
Internal assurance or internal quality management system
The norms that include the guidelines to implement internal quality assurance systems are:
- UNE * EN * ISO 9000 “Quality systems. Standards for Quality Management and Quality Assurance ".UNE * EN * ISO 9004" Quality Management and element of a Quality System ". LAQI 1000« Latin American Quality Institute - Institute for the Development of Standards and The most important Quality Standards in Latin America »The Latin American Quality Institute certifies the Quality Managers of the main Latin American organizations with the« Quality Assurance Manager »certificate.
External assurance system
Reasons for external quality assurance:
- Internal improvement. Commercial reasons "marketing". Control and development of suppliers. Legal requirements or our clients. As a first step towards Excellent Management.
Quality in design and product
To obtain quality products and services, we must ensure their quality from the moment of their design. A quality product or service is one that meets the needs of the client, therefore, to develop and launch a quality product it is necessary:
- Know the customer's needs. Design a product or service that meets those needs. Make the product or service according to design. Get the product or service done in the minimum time and at the lowest possible cost.
Quality in purchases
It is necessary to ensure the quality of purchases to ensure that the products or services purchased meet the necessary requirements. The best way to guarantee the quality of products and services is to rely on the responsibility of the supplier, to manufacture a good product and provide the corresponding quality tests.
Supplier Evaluation
The quality of an organization's products or services depends to a significant extent on its suppliers. To develop new products and services with a high degree of reliability, it is essential that the supplier collaborates from the initial phase of development.
It is important to keep in mind that a well-stimulated supplier, supported by the organization, can give an irreplaceable contribution of creativity and technological innovation in new products and services and can also actively work to continuously reduce costs.
Concerted quality
It is the agreement established between the buyer and the supplier, according to which, the supplier is attributed a certain responsibility for the quality of the lots supplied, which must meet previously agreed quality levels. This agreement should be signed in the form of a contract.
Quality in production
It is carrying out the necessary activities to ensure that the required quality is obtained and maintained, from the time the product design is taken to the factory, until the product is delivered to the customer for use. The main objectives of quality assurance in production are:
- Minimize costs.Maximize customer satisfaction.
Planning of quality control in production
The planning of quality control in production is one of the most important activities since it is where it is defined:
- The processes and works that must be controlled to obtain products without failures. The requirements and form of acceptance of the product that guarantee the quality of the same. The necessary measurement equipment that guarantees the correct verification of the products. data to maintain control and take corrective action when necessary. Training and education needs of personnel with inspection tasks. Testing and monitoring to ensure that these activities are performed correctly and that the product is free from failure.
Product Verification
The verification of the product, service or process must be considered as an integral part of the production control, being able to find three types:
- Inspection and input tests of materials. Inspection during the process. In finished products.
Quality management in services
One of the first actions in the quality of service is to find out who the clients are, what they want and expect from the organization. Only in this way can products and services, as well as processes, be oriented towards their best satisfaction.
Quality customer service
It is the set of benefits that the customer expects, in addition to the basic product or service. To give the best service, the set of benefits that the client wants must be considered:
- The added value to the product. The service itself. The business experience. The service provided to the client.
Basic customer needs
The main basic needs of a client are:
- Be understood. Feel welcome. Feel important. Feel comfortable. Feel confident. Feel heard. Feel safe. Feel valuable. Feel satisfied.
The importance of service quality management
The importance of quality in service can be understood for the following reasons:
- Growth of the service industry. Growth of the competition. Better knowledge of the clients. Quality of service towards the client, being satisfied according to their perspective.
Customer service
In order to provide adequate customer service, you must:
- Identify who the customers are. Group them into different types. Identify the needs of the customers, as well as know where and how customers want it in addition to the increase in terms of productivity, is essential for any company.
Conclusions
As has been seen in the definition of administration, the concept of productivity is implicit as one of the main goals to be achieved, which implies efficiency (favorable productivity), efficacy (degree to which the product or service satisfies the actual and potential needs or expectations of the clients or recipients), and effectiveness (degree of fulfillment of the planned objectives), in turn, the productivity in its formula considers the quality (inherent property of anything that allows it to be compared with any other of the same species) for good individual and organizational performance.
In addition to being considered in the productivity formula, the concept of quality is explicitly reflected in the elements that are implicit in it, such as efficiency, effectiveness and effectiveness, since quality refers to the set of properties inherent to an object that give it the capacity to satisfy virtual or palpable needs, and it is also the perception that the client has of the product or service, or it could be said that the consumer is mentally fixated who assumes conformity with said product or service and its capacity to meet your needs.
This is the close relationship that exists between all these terms and the valuation of the title that gives rise to this article: Quality, its close relationship with the 3 E's (Efficiency, Efficacy, Effectiveness.
