Until a few years ago, management functions and theories for the common Colombian administrators seemed more like stories or fallacies that we hoped one day to be able to apply in our companies, since the realities of local companies were not even similar to most of the examples that we heard in conferences, seminars, symposia, or in university chairs of administration, finance or marketing.
The title of administrator, for example, was used to indicate the existence of a person in charge of the commercial establishment (call it restaurant, bar, clothing store, etc.), who probably did not have administrative knowledge but rather had experience in the commercialization or manufacture of some products.
It is evident that the formal practice of administration today is a daily and unavoidable task in Colombian companies, this is how managers are concerned today with developing motivational and innovative activities within their organizations, hoping that this dedication administrative translates into materialization of business objectives.
Similarly, the decision-making of current managers is increasingly being analyzed and compared, with currents of administrative thought and with various business experiences. In such a way that the implementation of concepts such as: value-based management, continuous improvement, Empowerment and total quality management, are present in the administrative work of modern organizations.
Below we will list 10 activities that should be taken into account for the formal practice of contemporary business administration in Colombia:
1. Comprehensive Administrative Knowledge: For all of us who have had to delve into the study or practice of administrative science, the understanding of various sciences and disciplines such as: marketing, finance, accounting, economics, law, engineering and psychology, among others. They have facilitated and allowed us to make the right decisions.
2. Theoretical foundation: The understanding and knowledge of both classical and contemporary administrative theories allow us to evaluate everyday events and argue the decisions to be made.
3. Internalize the phenomenon of globalization: The economic liberation and the abolition of a protectionist model have forced public and private companies to adopt a new competitive position against their counterparts, for this reason the leaders of the organizations must implement a new culture of constant change that allows defining the current situation and improving it.
4. Constant innovation: The design of strategies and tools that improve productive activity should cease to be unusual tasks to become daily occupations that provide a positive aspect of distinction in companies.
5. Organizational empowerment: Combining the assignment of responsibilities according to job competencies, and demonstrating the importance of a good execution of organizational tasks, instills a high degree of motivation in the company's collaborators.
6. Initiative and proactivity: In addition to being the organizational philosophy in any organization. It is the mainstay of modern administration.
7. Design of indicators: The design of indicators allows to quantify and assess the management carried out by each of the areas of the company, said measurement shows the results obtained in a specific unit of time.
8. Constant improvement: At present, continuous improvement is a system that has inputs, processes and outputs that must be constantly improved and feedback with the intention of meeting the current needs of customers on a daily basis and exceeding them, this will allow the customer to give a higher valuation, that is to say that you pay a better price for the good that is being offered, and thus achieve success within a market economy.
9. The EVA: The use of the EVA as the main indicator of value generation, offers the possibility of measuring the financial performance of a company without taking into account the costs of investment in working capital and taxes, it is a simple characteristic procedure value-based management, which empowers investors to make decisions.
10. The Administrative Process: It is undeniable that Henry Fayol was an extraordinary visionary, because the process of planning, organizing, directing, coordinating and controlling, is still as useful and current, as in the nineteenth century. Well, at present all companies (regardless of their economic activity) and their managers must make the administrative process a common practice, if their desire is to continue operating in the market.
The above activities represent basic actions, which must be used in current companies, however for their implementation it is necessary to take into account three fundamental factors:
- Very good reading habits: It gives an advantageous position, since the greatest source of information is reading. Generate training sessions: Updating allows identifying and taking advantage of opportunities, and in the same way counteracting possible threats. Mental disposition open to change: Definitely We must admit that resistance to change is the great limitation of entrepreneurs in Colombia, if we measure the number of Colombian companies that have an Internet portal, or the amount of transactions and businesses that are done daily through the network, or the implementation of good competitive practices, or perhaps the frequency with which business is done abroad, we could affirm that the unwillingness to have an open mind is the eminent obstacle to modern administration in our country.
Both macro and microeconomics facilitate the decision-making process.
Fundamentally the tax, commercial and labor law.
Hernández Armando. Globalization and Continuous Improvement, CUN Continuous Improvement Booklets, Bogotá 2005
Bearing in mind this statement, we must remember that relative results is a way of measuring organizational success.
Hernández José Armando. Globalization and Continuous Improvement, CUN Continuous Improvement Booklets, Bogotá 2005
Financial indicator that translates Economic Value Added, and is known as EVA for its acronym in English Economic Value Added, one of the pillars of EVA is
Another of the pillars of value-based management is the use of compensation based on incentives.
Author of the classical theory and pioneer, along with Frederick Taylor, of the classical approach to administration.
In modern administration, the administrative process is shaped by planning, organization, execution, leadership and evaluation.
Peter Drucker, stated that information is the most valuable resource that a company can count on.
The knowledge society is one of Peter Drucker's most successful assertions.
