Since man became aware of himself, he feels the urge to satisfy needs such as food, security and refuge for his well-being. The administration was born to satisfy these needs, from the beginning it was applied empirically, as the years went by, the human being understood himself and his environment, passing to a more advanced administration.
The man began to administer his resources when he understood that they are finite. To do this task, one man was not enough, which caused him to group together, resulting in the first organizations.
Administration evolves as much as the needs of the organization, that is, it is not static. The administration is a way of responding to the demands of life, as it seeks and finds solutions, therefore it is a continuous circle of learning, trial and error, teaching and success.
As man gains experience in this area, different theories that explain the administration and its practice are generated over time. The focus of each of the theories depends on the observation, experience and logical reasoning of the person proposing said theory, consequently different ideologies have been postulated, some have died out, others have lasted longer and have served as a foundation for current administration.
Today, administration is an important pillar in the culture of all organizations, it is not a methodology or tool, it is part of the culture of the successful organization.
Concepts
The basic concept must first be defined.
Some definitions of the word "administration":
- According to Idalberto Chiavenato, administration is "the process of planning, organizing, directing and controlling the use of resources to achieve organizational objectives." Henry Fayol (1916) says that administration is "planning, organizing, commanding, coordinating and controlling According to the American Management Association, "management is the activity by which certain results are obtained through the effort and cooperation of others." Koontz and Weihrich (2004) mentions that management "is to design and maintain an environment or appropriate environment to achieve the organizational objectives with the least possible effort ”.
Importance of administration
It is necessary to highlight the utility that the administration offers, you must know the benefits that are obtained by its implementation and the disadvantages that it would bring if it is not executed correctly.
The reasons why administration is a fundamental pillar in any company are listed:
- Administration is inherent to any social organism, it will be more necessary, the larger and more complex the organization. The success of the company is closely linked directly and indirectly to good administration. The increase in productivity levels depends on adequate administration.
Administration over time
Early times
The beginning of the administration arose with primitive man, he did not have knowledge but he did have enough needs to cover. The first unit that emerged was the family, these were grouped with others to form a tribe. The tribe was the first type of organization, it was characterized by being nomadic, which meant that it moved from one place to another, satisfying its food and shelter needs.
In the primitive organization the first indications of division of labor were given, such as hunting animals, fishing, harvesting fruits, manufacturing clothing and the army, the first positions were also designed depending on the characteristics required by the task. At this time the administration's objective was to survive.
Agricultural season
It was characterized by the emergence of agriculture and sedentary life. Primitive man stopped traveling to acquire his resources and became a sedentary man to practice agriculture and thus obtain his food, there was no need to go from one place to another.
In this period the first cities emerged, this caused an increase in the population and a greater effort in the social group. The administration was facing a new challenge with the creation of the State, which marks the beginning of civilization.
Sumerian Civilization (5000 BC)
It is considered the first and oldest civilization in the world. The Sumerians were the first to use writing and apply it to commerce, they had a system where they recorded on clay tables the transactions derived from the exchange of goods and services.
Some of their organizations as potteries, already applied the hierarchy of work in master craftsmen, workers and apprentices, the payment to each of the labor strata depended on the value of the work they contributed to the organization.
Egypt (4000-2000 BC)
One of the most ambitious projects the Egyptians did was the pyramids, which required administrators capable of planning, organizing, and controlling the supply of construction materials and directing large numbers of workers.
The Egyptians applied public administration aimed at collecting taxes from their inhabitants, which allowed them to have a significant economic fund. Babylon (2000-1700 BC)
The greatest contribution of the Babylonians to literature was the Code of Hammurabi where laws, norms and rules of daily life were stipulated. His contribution to the administration were as follows:
- Hierarchy of society. He defined 3 groups as free men, servants and slaves. He determined the doctor's fee depending on whether he cared for a free man or slave. He defined the salary depending on the value of the work towards the organization. Judicial functioning. The law was taught in the courts. Punishments were based on scales according to the crime or crime committed, the basis was the Law of Talion.
Hebrews (1200 BC)
Within civilizations, outstanding people with exceptional administrative and leadership capacities began to be generated, such as Moses. He showed great ability in human relations, which led his people to prosperity.
China
One of his great contributions to the administration was the Chow Constitution, it is a guide that contained the definition of functions, tasks and duties of the emperor's servants, with this, labor savings and greater productivity were achieved.
Philosophy was beginning to become involved in the administration of the state, the philosopher Confucius who laid the foundations for them to have a good government in China, the Chinese had an orderly administrative system.
Greece (500-200 BC)
The Greeks were characterized by having a democratic government. They were the creators and pioneers of the scientific method.
Once again philosophy made its contribution to the administration through the following characters:
Socrates separated technical knowledge from experience within the organization. Plato proposes the specialization of work according to the natural aptitudes of man, each person should dedicate himself to a job in which he has the best ability. Pericles, proposed the selection of the personnel, which implied the principle of the administration of people of the company.
Rome (200 BC-400 AD)
In Rome we can realize about the evolution of the state, the changes that the government undergoes within its internal administration are manifested. The Romans had 3 stages in their form of government, which produced changes in their public administration:
- The monarchy made up of the king and the senate did not take into account the people.The republic was a form of government in which the people exercised power, it was based on the balance of three organs: magistrates, elections and senate. empire dominated by an emperor who was the supreme command.
In turn, companies begin to be classified depending on the control that the State exercises over them, companies were classified into 3 types:
- Public: organizations that carry out activities of the State. Semi-public: Companies that belong to unions, at this time there are groups of workers that look after their interests. Private: organizations controlled and created by civilians or individuals, who do not belong to the government.
Feudal epoch
Social relations were characterized by a regime of servitude. The feudal lords delegated activities to their servants but did not delegate authority, the internal administration of the fief was subject to the decisions of the feudal lord.
At this time, very important advances were made in accounting administration, such as the double entry proposed by Lucas Pacioli (1340, Italy), as well as the audits. On the other hand, the Soranzo brothers in 1410 made use of the daily and the oldest books, which allowed for a better administration of the financial resources of the companies.
Industrial Revolution
This period was characterized by technological advances applied to the company, among which the steam engine stood out, which optimized production. The industry began to mechanize, the motive force was applied, the means of transport and communications had great advances.
Factories arose and with them serial production, artisan workshops gradually became extinct, the artisan had a transition to a specialized worker. This era led to the start of a new management approach since there were many changes in production systems, since they were previously carried out in an artisanal way and with this fact, human force was replaced by machines, causing greater productivity.
Inside the factories, workers began to be exploited, which led to the investigation and the origin of administrative theories, which would try to explain the best way to use company resources.
Twentieth century
The first pioneering jobs in management were developed, Frederick Winslow Taylor founded the School of Scientific Management, concerned with increasing the efficiency of companies through, at first, the rationalization of operator work.
Administrative theory
Administrative theory is a way of understanding administration, since it contains proposals on the best way to administer. It should be noted that during previous times productivity levels were low, so one of the purposes of the theories was to increase it.
To know the origin of the theories it is necessary to understand the situation within the organizations, the conditions of the materials and the spirit of the workers was precarious both in the labor and personal aspects, working daily more than 10 hours, with minimal resources for a housing, deficiencies in food and rest.
The emergence of theories allows evaluating and understanding the various processes involved in organizations, which helps to plan and develop solutions to problems or take advantage of areas of opportunity.
The different administrative theories are listed below as they emerged and developed:
- Scientific theory of administration. Classical theory of administration. Human relations approach. School of administrative sciences. Systems approach. Contingency approach. Human resources approach. Scientific theory of administration
Its creation and development was attributed to Frederick W. Taylor, I consider “the father of scientific administration”, he was characterized by emphasizing the tasks that the worker carried out.
This theory is characterized by the following aspects:
- Division of activities into very simple tasks, the worker performed one or two recurring tasks. Separation of management tasks from operational tasks. Workers had limited knowledge of working together, only knowing their tasks for what they received It was a very simple training. The aim was to raise productivity levels by controlling the methods used in the work process, the movements that were executed and the chronometer measurement of the duration of the task. The man was considered as "Rational" motivated only by economic elements. The employee is motivated to improve their performance by increasing their salary.
This model of thought generated advantages such as:
- It represented a great advance in his time with the application of scientific and not empirical methods as it was done until then, it served as a basis for later theories.
But it also had its deficiencies or disadvantages:
- This theory is only applicable when the environment is stable. The assumptions or principles are considered very general, so they would only be applicable to organizations of a certain complexity. He did not consider man as a social being but as an appendix to the machine.
Classical administration theory
The deficiencies of the previous theory in the human sphere, where the worker was considered in a lower plane in relation to the machinery and was not given importance in the production process, encouraged sociologists and psychologists to carry out studies that involved aspects of human relations.
The classical theory was characterized by the emphasis on the structure and functions that an efficient organization must have, its main exponent is Henry Fayol, considered the father of modern administration, both this theory and the scientific seek the efficiency of organizations.
Henry Fayol presented the 6 basic functions of an organization: technical function focused on production, administrative function occupied by management, commercial function occupied by purchases and sales, accounting function focused on the control of resources, financial function dedicated to managing capital and safety functions, focused on the protection and welfare of the worker.
Related to the previous functions that an efficient organization must have, Fayol proposes 14 general principles of administration, which are:
- Division of labor. Authority and responsibility. Discipline. Unit of command. Unit of management. Subordination of private interests to general interests. Compensation of personnel. Centralization. Hierarchy. Order. Equity.
Human relations approach
The two previous theories are within the stage of the classical school of administration, which concluded that the human being is motivated by economic needs, over the years new thinkers arrived who would test this premise by taking take into account social and psychological aspects and their relationship with good job performance.
Elton Mayo carried out experiments in search of new motivators that influence worker productivity, among his works is the experiment carried out in a Western Electric factory in Hawthorne, concluding that there is a relationship between the effect of lighting and the level of Productivity, variations were applied in the working day, during the performance of these works, sometimes the expected results were not obtained.
One of the interpretations of this experiment was that workers increase their level of productivity by being constantly observed, that is, when the worker perceives that they are evaluating him, he increases their level of performance. This was called the "Hawthorne effect"..
The main contribution of this approach was the emphasis on man, since another version was proposed that proposed that man was motivated by his social needs and not by economic needs.
School of Administrative Sciences
It proposes the creation of high-performance multidisciplinary teams in the areas of mathematics and physics. They were called Operations Research teams. These groups presented solutions to senior management.
With the intervention of technology, these teams were able to delve into the solution of problems, creating simulation models that allowed them to condition the variables and have an approximation to a real result.
Systems approach
This school changes the way of seeing companies and modifies the concept of organization, since it defines it as a system formed by interrelated subsystems, so it is not valued by parts but rather as a whole in an integral way, taking into account not only the internal environment but also the external one.
Problems begin to be solved systemically and not in isolation.
Contingency approach
It began to be observed that in apparently the same events the same techniques were applied to solve problems, but the results were not always the same, so it was concluded that it was due to the change in the situation in the surrounding conditions.
This approach proposes that before using a theory, changes in the environment are analyzed and the pertinent modifications in the process to achieve objectives are analyzed. The contingency approach promotes adaptation to the current circumstances of the environment and from them, propose solutions.
Human resources approach
This theory is born from the interest in the company-worker relationship, in previous approaches the emphasis on tasks, structures, multidisciplinary groups, working conditions, systems and situations from abroad had been addressed, now it began to develop the subject of human resources administration, the main aspects of this school are the following:
- Strong interrelation between the organization and its employees. Recognition of people as the most important and decisive motivator or incentive in companies. Promote individual and group motivation. Workers involved in decision-making. Have a suitable work environment for compliance with the objectives of the workers and the organization. To develop the self-management capacities of the employees.
Current currents
Today there are important social, economic and cultural changes of great impact on organizations, generating new trends:
- Market instability: increases in oil prices, changes in the global financial system, are factors that are unpredictable. Markets: there are markets that go from increasing to decreasing and stagnant. Turbulent changes: the lack of response capacity to Unplanned changes, rapid and precise responses are needed to face the obstacle of change Globalization of markets and culture Increase in the debt of the countries Prevailing ideas: market, competitiveness, efficiency, quality and customer satisfaction Society: The organization is within an increasingly diversified society where there are many groups with different interests.
All these changes translate into new challenges for the administration, because the company does not exist by itself, it is in a constantly changing environment and it is the task of the administration to balance external forces to continue operating in a globalized world.
Total quality
Armand Feigenbaum was the first to speak of Total Quality Control in the 1950s, he stressed that quality control activities are not only the responsibility of the quality area but of the entire company.
Quality control covers the entire organization and involves the practice of customer-oriented activities. Armand Feigenbaum stressed that for quality control to be effective, you must start with product design and end only when the product is in the hands of a satisfied customer.
Armand Feigenbaum defines quality control as “an effective system for the integration of the development, maintenance and improvement efforts that the different groups of an organization carry out in order to provide a product or service at the most economical levels to satisfy needs. of the user. ” The quality must be present at all times in the organization, it is to produce with quality from the beginning of the production process, rather than to inspect and control the quality after the product is made. Some principles of this philosophy:
- Quality should have a focus on excellence instead of the traditional approach focused on failure. All members of the company are responsible for quality. Definition of standards, evaluation of compliance with standards, corrections when the standard is not met Statistical tools must be used for quality control and process improvement. The human factor is fundamental in any total quality program. Automation is not the answer to quality problems.
Ishikawa philosophy
This philosophy proposes that quality control consists of developing, controlling and guaranteeing the quality of products and services.
To achieve the objectives, the entire organization must be involved and work together. Statistical techniques, rules and regulations are necessary.
Some basic principles of quality according to Ishikawa:
- The first step towards quality is knowing the needs of customers. The ideal state of quality control occurs when inspection is no longer necessary. Eliminate the root cause and not the symptoms (Ishikawa diagram) 95% of the problems of companies can be solved with simple analysis tools.
Organizational development
It arose in 1970, in response to the continuous change of organizations. Its creators are Warren Bennis and Richard Beckhard.
According to Warren Bennis, organizational development “is a response to change, an educational strategy whose purpose is to change the beliefs, attitudes, values and structure of organizations so that they can better adapt to new technologies, markets and challenges, as well as to the dizzying pace of change itself ”.
According to Richard Beckhard: “A planned effort by the entire organization and administered by senior management to increase the effectiveness and well-being of the organization through planned interventions in the entity's processes, which apply knowledge of the behavioral sciences ”
Organizational Development is based on the following principles:
- Each era shapes the needs and characteristics of the current organization. The only way to transform companies is by changing the organizational culture, which is the set of values, expectations, norms, and beliefs practiced in an organization. they must be open to a new social consciousness. They must be prepared for change.
The implementation of organizational development is a long-term process that at first can cause conflicts and discouragement, but that in the medium or long-term horizon the satisfaction of individual and group objectives is reached and consequently in the increase in productivity. Organizational development is generally carried out by a change agent external to the company. It is executed through the following stages:
- Diagnosis. It begins by evaluating the organizational structure and organizational processes such as culture, the way of working of the teams and aspects related to values. Planning of the strategy. Once the diagnosis is available, the change agent and the managers determine the times, stages and techniques with which the change will be achieved. Education. It consists of the modification of individual and group behavior, through strategies, achieving the change in organizational culture. Advice, training and consulting. Implemented at the same time as the education stage, the change agent offers advice and training to make the necessary adjustments. Once the strategies are executed, the results obtained are evaluated.
Theory of constraints
All companies must select the mix of products or services that maximize their profits. Each combination of products or services produces different levels of utility and effect on the organization.
The author of this theory is Eliyahu Goldratt, which was developed to find attractive solutions in optimizing the organization's profitability.
This business philosophy aims to achieve the strategic goals of the organization taking as a reference the external and internal links of the value chain. This chain is a tool that allows analyzing the activities of the company and identifying its competitive advantage.
This theory helps administrators identify both internal and external constraints and decide how to get the most out of them. It is implemented through 5 stages:
- Identify the constraints of the organization. A restriction is defined when a variable conditions the course of action, the most common being physical, such as labor, machinery and raw materials. Exploiting the system's restrictions. It seeks to get the most benefit from the constraints. Subordinate the decisions to the constraint. The system should operate at the rate set by the constraint. Raise system constraints. Execute a continuous improvement program to reduce the limitations of the existing restriction. If in previous stages a restriction is removed, it is necessary to return to step 1, only to work with the new restrictions that appear.
Just-in-time theory
The just-in-time philosophy started as a Toyota company production system, with Taiichi Ohno, who saw the need for an efficient system to produce small quantities of cars of different models.
The main objective of this industrial philosophy is to manufacture the strictly necessary products, at the right time and in the right quantities, to try to produce and buy only what is needed and when it is needed, eliminating the need for inventories.
By implementing this philosophy in the purchasing and production area, all activities that do not add value are eliminated, which generates benefits effects on the profits and on the competitiveness of the organization. Benchmarking
The word benchmarking comes from the English word "benchmark" which means the action of taking an object as a model in order to compare with the own model. It is a form of administration that consists of comparing your business and the competition, with the intention of discovering and analyzing the winning strategies, and if possible applying them to the organization.
This practice is carried out in 5 stages:
- Know the company in depth. Know the competition. Identify the strengths of the competition. Apply strategies of the competition to your own company. Evaluation.
Reengineering
This approach is applied to organizations to review their processes and identify those that need to be changed, to improve quality, cost, service and speed. Reengineering is in charge of designing new processes and not improving existing ones. For many organizations, reengineering is a way to update their processes and eliminate those that no longer add value. This model seeks to work more intelligently.
Empowerment theory
The word empowerment means empowerment or empowerment, it consists of delegating power and authority to subordinates, making them feel that they own their own work.
This theory was born as a complement to Reengineering and Just in Time, it was proposed in the year of 1988 by Kenneth Blanchard and Paul Hersey.
Empowerment features:
- It promotes creativity and innovation. Better decisions are made, which are made as a team. Employees feel not only responsible for their task, but also for the success of the organization. Leadership promotes participation. The leader has a democratic style, which generates the favorable conditions for knowledge, without imposing its criteria. There is respect and recognition of the ideas of the team members.
Japanese Administration (Theory Z by William Ouchi)
The “Z” theory, also called the Japanese method, suggests that people do not separate their human condition from that of their employees, and that by humanizing working conditions, workers' productivity and self-esteem are increased. The basis of this theory is human relations, it postulates the worker as an integral being who cannot separate his personal life from his working life, for this reason certain special conditions are granted such as trust, teamwork, employment life, all this with the purpose of obtaining a higher performance of human resources and as a consequence greater business profitability.
The aim is to create a new humanistic philosophy in which the company is committed to its collaborators. William Ouchi considers that a job is more than that, it is the basis of the workers' lives, it allows them to live in the place where they live, eat what they eat, so if this job is fully developed within the company, the person is integrated into the organization and generates a sense of belonging, so it seeks to achieve organizational goals, ensuring an increase in productivity.
There are 5 common factors in companies that implement the Z theory:
- Training of all its employees. There is a constant training plan. It leads to reducing staff turnover. They have a slow process for the evaluation and promotion of staff. The objectives and policies of the company are totally consistent.
conclusion
It can be understood in this article that the current administration is not as it was in its beginnings, since during the course of time it has undergone important modifications related to the change in needs that man has.
Another reason why the administration has evolved is due to the circumstances in the environment, social factors are not the same as in the past, competition today is more aggressive and technological advances have to be adapted in the future. administration.
As we can see, as man knows himself more and has a better understanding of his environment, his style or way of managing changes, we can identify him from primitive administration to more complex theories such as the Japanese administration.
We cannot predict the future, but we can have a great reference of what could be for this prepared for the obstacles that arise. There is only one thing for sure, man and his administration must be ready for the inevitable changes of the future.
The reader must understand that administration is a fundamental pillar for companies and the achievement of their objectives. There is no organization without administration.
Finally, in my opinion, the administration can only continue to evolve with the innovation and creativity of the people. These elements are essential for any science that wants to transcend, the future of administration lies in people.
Bibliography
- Chiavenato, I. Introduction to the General Theory of Administration. Mcgraw- hill.Chiavenato, I. (1994). Human resources management. Mexico: McGraw Hill. Robbins, SP, & A., d. C. (1996). Management fundamentals. Prentice Hall. Munch Galindo, L., & García Martínez, JG (1990). Management fundamentals. Mexico: Trillas.com Expert. (2001, February 26). What is Just in Time? Recovered from http://www.gestiopolis.com/que-es-justo-a-tiempo/Tarantino Salvatore. (2012, October 8). Empowerment or empowerment. Recovered from http://www.gestiopolis.com/empoderamiento-o-empowerment/OUCHI, William. Theory Z: How American Business Can Meet the Japanese Challenge. 1981, Perseus.
