1. Concept
Agustín Reyes Ponce.
"Administration is the systematic set of rules to achieve maximum efficiency in the ways of structuring and managing a social organism."
José Antonio Fernández Arenas.
"Social science that pursues the satisfaction of institutional objectives through an operating mechanism and through human effort."
Heinz Weihrich and Harold Koontz.
"Administration is the process of designing and maintaining an environment in which, working in groups, individuals efficiently meet specific objectives."
George R. Terry.
"Administration is a very particular process consisting of planning, organization, execution and control activities, carried out to determine and achieve the stated objectives with the use of human beings and other resources."
Based on the concepts established by the authors, we can conclude that:
Administration is a process to efficiently achieve the objectives of the organization, through coordinating all resources and with the collaboration of the human factor.
2. Features
The administration is based on the following characteristics, according to Reyes Ponce and Hugo Rojas y Aguilar:
1. Its universality.
Administration occurs in all types of organizations, be it the State, the army, companies, churches, the family, etc.
2. Its specificity.
The administration has its own characteristics that are unmistakable with other sciences, even if it uses them.
3. Your temporary unit.
In the administration, all or some parts of the administrative process are always taking place.
4. Your hierarchical unit.
The levels of authority that are established within the organization are always respected.
5. Instrumental value.
Administration is a means to an end, since its purpose is eminently practical and through it it seeks to obtain certain results.
6. Flexibility.
The administration adapts to the particular needs of each organization.
7. Range of Exercise.
This applies to all hierarchical levels of an organization.
3. Importance
According to Agustín Reyes Ponce and Joaquín Rodríguez Valencia, the importance of administration is based on the following points:
- Management occurs wherever an organization exists. The success of a company or social body is due to the good management it has. For large companies, scientific management is essential. For small and medium-sized companies, the most Indicated to compete with others is the improvement of its administration, said in other words, to have a better coordination of its resources including the human. To achieve an increase in productivity, it will depend on an adequate administration. For organizations that are in the process of development, the main element to develop your productivity and your competitiveness with others is to improve the quality of your administration.
4. Principles of administration
The Salvat Encyclopedia tells us that a principle is:
"Any of the first propositions or truths where one begins to study, and they are the rudiments and as foundations of them."
For almost all the classic authors of the administration, they define the principles:
"As norms or" laws "capable of solving the problems of a social organism."
Therefore, we can say that the principles of administration are:
Primary truths that serve as a guide to solve problems within the organization.
In the year 1911, Frederick W. Taylor published his work "The principles of Scientific Management.", And establishes four basic principles of scientific management that are the following:
1. Principle of planning.
In which the worker is prevented from improvising his work
2. Principle of Preparation.
At this point, the employee is able to obtain training to better develop their work and therefore improve their productivity.
3. Principle of Control.
The worker is supervised to properly perform their work
4. Principle of Execution.
Responsibility is distributed in work tasks.
Taylor began to create the principles according to the observations made at that time, thinking about obtaining the best productivity based on times and movements.
In France, Henri Fayol published his book called "Administration Industrielle et Genérale" in 1916, where the principles of administration appear for the first time, which are the following:
1. Division of labor.
This principle refers to the way to specialize the functions of the members of the organization
2. Authority and responsibility.
Fayol considers authority and responsibility related, pointing out that one cannot be given without the other and vice versa.
3. Discipline.
The members of the organization must adhere to the established rules.
4. Unity of command.
It means that each employee should receive orders only from one boss.
5. Unity of direction.
The objectives and plans of the organization must be guided and coordinated by a single boss.
6. Subordination of the individual interest to the general interest.
This point tells us that the interests of the organization must be satisfactorily fulfilled before personal interests.
7. Personnel compensation.
The members of the organization must receive a fair payment according to the work they perform within it.
8. Centralization.
The authority must be concentrated or dispersed in the organization, according to the circumstances that determine the best final results for it.
9. Line of authority.
The members of each organization are governed by a chain that starts from the highest to the lowest rung.
10. Order
This point for the organization can be defined as "everything in its place and a place for everything"
11. Equity.
The people who exercise the administration must have the loyalty and devotion of the personnel who work within the organization, through justice and courtesy in their treatment.
12. Stability at work.
This principle shows us that constant staff turnover is a sign of mismanagement, therefore it should be avoided.
13. Initiative.
This point invites us to create and execute a plan and, in turn, tells us that we must encourage and promote creativity within the organization's workers.
14. Team spirit.
This principle shows us the importance of creating work groups to improve the work environment that helps us increase productivity and has a greater participation of employees.
Henri Fayol, created the principles based on observation, concepts and ideas already made, managing to establish them to this day.
5. The Administrative Process
Lourdes Münch Galindo.
"A process is the set of steps or stages necessary to carry out an activity."
"The set of successive phases or stages through which the administration is carried out, which are interrelated and form an integral process."
Agustín Reyes Ponce.
"Every administrative process is unique in itself, it forms an inseparable continuum in which each part, each act, each stage, must be indissolubly united with the others, and that, furthermore, they occur simultaneously."
The administrative process in its simplest concept is "administration in action." The administration comprises several functions or stages necessary to know in order to apply them to any structure, the set of stages is known as the administrative process. The separation of elements is used for methodological and analytical purposes, since the stages are interrelated and occur as a comprehensive process.
We come to the conclusion that a process is:
The set of essential stages or steps to carry out any administrative task.
Lyndall Urwick makes a fundamental separation in the administrative process, calling them, mechanical phase and dynamic phase.
1. Mechanical phase.
This is the theoretical part of the administration that is the structural part of it and has a projection towards the future.
2. Dynamic phase.
It refers to the operational part, it is responsible for seeing that the activities are carried out and reviewing how they have been carried out within the organization.
The next step is to identify, within each phase, the elements or sectors that correspond to each of them.
Henri Fayol tells us that the elements of administration are the main stages or steps through which the administrative process is carried out.
Within the administration, the main exponents have different criteria in the elements or factors that make up the administrative process; Among them, we find Henri Fayol, Lyndall Urwick, Koontz and O'Donnell, George R. Terry, Agustín Reyes Ponce, José Antonio Fernández Arena and Isaac Guzmán Valdivia. (Table 1)
Elements Or Factors Of The Administrative Process. Fernández, José Antonio Arena; "The Administrative process"; DIANA Publishing House; Mexico; 1991; p. 75.
(Table 1)
| AUTHOR | YEAR | ELEMENTS OR FACTORS | ||||
| HENRY FAYOL | 1886 | forecast | organization | coordination command | control | |
| LYNDALL URWICK | 1943 | forecast planning | organization | coordination command | control | |
| KOONTZ YO´DONNELL | 1955 | planning | organization | integration | direction | control |
| GEORGE R. TERRY | 1956 | planning | organization | execution | control | |
| AGUSTIN REYES PONCE | 1960 | forecast planning | organization | integration | direction | control |
| ISAAC GUZMAN V. | 1961 | planning | organization | integration | direction | control |
| J, ANTONIO FERNANDEZ A. | 1965 | planning | decision motivation implementation communication | control |
Most organizations manage a four-part administrative process, as they are the most widespread and accepted in almost all parts of the administration world. For the administration in Mexico, its main exponent is Agustín Reyes Ponce, who proposes six elements of the administrative process, based on what Terry and Koontz and O'Donnell proposed, where he only breaks down the planning into two parts and explains the steps in detail. to continue within the administration without being too practical or exaggerating in the factors, and therefore, we will be based on them. (table 2)
Administrative process
As the first fundamental step in his process, Agustín Reyes Ponce considers the division made by Lyndall Urwick, which is the mechanical phase and the dynamic phase, then relates the elements to questions assigned in each one and which are answered at the time of their application:
Forecast: answers the question What can be done?
Planning: answer the question What is going to be done?
Organization: answer the question How is it going to be done?
Integration: answers the question, What is it going to be done with?
Address: answer the problem see that it is done correctly.
Control: answers the question How was it done?
The elements of the mechanical phase are:
1. Forecast.
It consists of determining what you want to achieve through an organization, and research and assessment of what the future conditions will be, until determining the various possible courses of action.
It is comprised of three stages:
a) Objectives.
Set the ends.
b) Investigations.
It refers to the analysis and discovery of the resources that can be counted on.
c) Alternative Courses.
It refers to the general adaptation of the means, to the intended ends, to observe how many different probabilities of action exist.
2. Planning.
Planning consists of determining the specific path of action to be followed, setting the principles that will preside and guide it, the sequel of operations necessary to achieve it, and setting times, units, etc. Necessary for its realization.
Planning comprises three stages:
a) Policies.
Ways to guide the action.
b) Procedures.
Sequences of operations or methods.
c) Programs.
Setting of required times. At this point, it also includes budgets, which is defined as programs that require units, costs, etc. And different forecasts that are defined as future visions.
3. Organization.
It refers to the technical structuring of relationships, which must occur between the hierarchies, functions and individual obligations essential in a social organism to improve efficiency.
It consists of three stages:
a) Hierarchies.
Establish the authority and responsibility that correspond to each level.
b) Functions.
The determination of how the large specialized activities, necessary to achieve the common goal, should be divided.
c) Obligations.
Those that specifically have each work unit capable of being performed by a person.
The elements of the dynamic phase are:
4. Integration.
It consists of the procedures to provide the organization with all the resources that the mechanical phase indicates as necessary for its most effective operation, choosing them, introducing them, articulating them and seeking their best development.
The integration includes:
a) Selection.
Techniques to find and choose the necessary elements.
b) Introduction.
The best way to get new elements to come together as best and as quickly as possible within the organization.
c) Development.
Every member of every organization seeks and needs to progress and improve.
5. Address.
It is promoting, coordinating and monitoring the actions of each person and group in an organization, so that all of them carry out the indicated plans in the most effective way.
The management comprises three stages:
a) Command or authority.
It is studied how to delegate it and how to exercise it.
b) Communication.
It is the process by which information is transmitted and received, this being the nervous system, bringing to the directing center all the elements that must be known, and from this, to each organ and cell, the orders of action, duly coordinated.
c) Supervision.
The last function of management is to see if things are being done as planned and commanded.
6. Control
It consists of establishing systems or methods that allow us to measure current and past results in relation to those expected, in order to know if what was expected has been obtained, correct, improve and formulate new plans.
It comprises three stages:
a) Establishment of standards.
Because without them it is not possible to make the comparison.
b) Operation of controls.
This is usually a function of the technical specialists in each of them.
c) Interpretation of results.
This is the function that once again constitutes a means of planning.
6. Concept of the company.
José Antonio Fernández Arena.
“It is the productive or service unit; constituted according to practical or legal aspects, made up of resources; and supported by the administration to achieve its objectives. "
Lourdes Münch Galindo.
"Social group in which, through the administration of capital and labor, goods and / or services are produced aimed at satisfying the needs of the community."
We can conclude as follows:
The company is a group of members aimed at satisfying the needs of a community through a service or a good, through the administration and integration of resources.
7. Difference between a private and a public company
According to Lourdes Münch Galindo and Agustín Reyes Ponce, companies are divided into two classes, public and private.
a) The private company.
In this company, the capital belongs to a group of investors, whose purpose is to obtain an economic benefit by satisfying some need
b) The public company.
In this type of business, capital belongs to the State, and its purpose is to satisfy social needs, with or without being able to obtain an economic benefit.
8. Classification of companies.
Currently there are different classification criteria of the company, below we will present two types of them based on Lourdes Münch Galindo, since none is exact because they vary according to the characteristics of each company.
Activity or turn.
Companies can be ordered according to the activity they carry out, and are classified into:
1. Industrial.
The main activity of this business is the production of goods through the transformation and / or extraction of raw materials. Industries have the following classification.
a) Extractive.
They are those that are dedicated to the exploitation of natural resources, renewable or not, understanding by natural resources all things of nature that are necessary for the subsistence of human beings.
b) Manufacturing.
They are companies that transform raw materials into finished product. They are divided into two types:
- Companies that produce final consumer goods. Companies that produce producer goods.
c) Agricultural.
Its function is the exploitation of agriculture and livestock.
2. Commercial.
These companies are dedicated to the sale and purchase of finished products, considering themselves as intermediaries between the producer and the consumer. These are classified into:
a) Wholesalers.
When they make large-scale sales to other companies (retailers), which in turn distribute the product to the consumer directly.
b) Retailers or retailers.
Companies that sell products at “retail”, or in small quantities, to the consumer.
c) Brokers.
They are dedicated to selling merchandise that producers give them on consignment, receiving a commission for this function.
3. Service.
They are companies that provide a service to the community and are for profit. They are classified into:
a) Transportation.
b) Tourism.
c) Financial institutions.
d) Professional services.
- Advertising agencies. Various accounting, legal, administrative services. Promotion and sales.
e) Education.
f) Medical services.
g) Recreation services.
Magnitude of the company.
According to the Official Gazette of the Federation published on March 30, 1999, it is classified as follows:
| SECTOR | |||
| SIZE |
CLASSIFICATION BY NUMBER OF EMPLOYEES |
||
| INDUSTRY | COMMERCE | SERVICES | |
MICRO |
0-30 | 0-5 | 0-20 |
| LITTLE | 31-100 | 6-20 | 21-50 |
| MEDIAN | 101-500 | 21-100 | 51-100 |
| BIG | 501- onwards | 101- onwards | 101- onwards |
Also in the Official Gazette of the Federation published on December 3, 1993 according to the Program for the Integral Development of Medium and Small Industry, companies are classified according to the annual sales obtained:
| SIZE OF THE COMPANY. | ANNUAL SALES. |
| MICRO | Up to 900,000 |
| LITTLE | Up to 9,000,000 |
| MEDIAN | Up to 20,000,000 |
| BIG | more than 20,000,000 |
According to the dimensions of each company, José Antonio Fernández Arena concludes that:
A micro business is one that is made up of a family or artisan workshop, with an emphasis on services.
A small business has a modest initiative and a fragile survival.
A medium-sized company has a more solid effort, with differentiated products or services and with prestige and quality.
A large company has leaders in its fields of activity with products and services at international levels.
Other classification criteria.
According to Lourdes Münch Galindo, there are other criteria to classify companies, the most important are presented below:
1. Criterion of legal constitution.
This classification is based on the legal regime in which a company is constituted, it can be: Anonymous Company (SA), Anonymous Variable Capital Company (SA de CV), Cooperative Society (SC), Limited Liability Company (SRL), etc.
1. Criteria of Nacional Financiera.
For this institution, the classification is made according to the importance of each company within the line of business.
2. Production criteria.
This criterion classifies companies according to the degree of machining that each organization has.
10. Objectives of the company.
According to José Antonio Fernández Arena, each company creates its own objectives according to the needs that each one has, but establishes that there are three categories of general objectives, these are the service objectives, social objectives and economic objectives.
Service objective.
At this point, objective is divided into three:
1. Scope of the service objective.
Companies seek to satisfy consumer needs through their product or service.
2. Consumer demands.
Companies that offer a product or service, and this is of poor quality or, failing that, does not meet customer needs, it tends to fail unlike companies that offer a product or service that meets customer expectations.
3. User demands.
According to the needs of customers, companies seek to satisfy them, this results in greater competitiveness between them, managing to offer better services and in turn customers seek the best satisfaction of their needs, becoming more demanding in the search for themselves.
Social objective.
This objective consists of four parts:
1. Scope of the social objective.
This objective is based on meeting the needs of the company, the official authority and the community.
2. Government demands.
This point is based on timely compliance with its tax obligations to contribute to the development of the country.
3. Demands of the collaborators.
The company must seek the satisfaction of the members who collaborate within it, this satisfaction is not only economic but also must train each of its members.
4. Community demands.
The needs of the community must be respected by the company, establishing the proper use of the occupied territory within it, reducing the noise of its machinery, the low emission of gases that pollute the environment, etc.
Economic objective.
The latter is divided into four:
1. Scope of the economic objective.
Companies seek to obtain a profit through a service or product given to the consumer.
2. Demands of the institution.
Organizations must be prepared for whatever situation comes their way.
3. Lawsuits of creditors.
Creditors have the need to collect in the established time for providing a service or product.
4. Demands of the shareholders.
The shareholders receive a dividend for the investment made in the organization, but in turn, they have the obligation to create new companies.
10. Elements of the company
According to Lourdes Münch Galindo, the elements are also called resources, they are essential to reach the objectives established in the company because they must contribute adequately to the operation of the organization.
They are classified into:
1. Material resources.
They are all the tangible assets of the company, such as: buildings, land, machinery, equipment, tools, etc.
2. Technical resources.
They are the instruments that serve in the coordination of other resources, such as: production systems, sales systems, finance systems, etc.
3. Human Resources.
This resource is the most important for any organization, since the proper functioning of the other resources depends on them and they have the characteristic that they can be creative, contribute ideas, to improve the development of the company.
4. Financial Resources.
They are the monetary elements that the company has, whether they are its own or others, within its own financial resources we find: cash, contributions from investors and profits.
While, on the part of external financial resources, we find: Loans from creditors and suppliers, bank loans, private loans, etc.
All resources are important within the company, since they must be managed properly to achieve the objectives proposed from the beginning of it, this results in better productivity and the success of the company.
11. Functional areas of the company
Lourdes Münch Galindo says that the functional areas are also known as areas of responsibility, departments or divisions, they are divided into four mainly: production, finance, marketing and human resources.
1. Production.
This department is considered one of the most important within the organization, since it is in charge of producing the products by supplying and coordinating the labor, materials, required tools, production equipment and facilities.
2. Marketing.
The purpose of this area is to create a product or service through researching consumer needs to satisfy them, and in turn, provide a good service at the most affordable price for the consumer.
3. Finance.
This division is in charge of obtaining funds and supplying the capital that is used for the operation of the company, trying to have the financial means to satisfy each department or area and ensure that it functions properly.
4. Human Resources.
This department has the purpose of finding and assigning the person in the right place to perform efficiently, it is also responsible for creating harmony in each of the departments and in turn, creating a work team throughout the organization based on the objectives established therein.
12. Bibliography
- Anda, Gutiérrez Cuauhtémoc; "Administration and quality"; LIMUSA Noriega editors; Mexico, 1995. Fernández Arenas, José Antonio; "The administrative process"; DIANA Publishing House; Mexico, 1991. Münch Galindo, Lourdes; "Fundamentals of administration"; Editorial Trillas; Mexico, 1997. Reyes Ponce, Agustín; "Modern administration"; LIMUSA Publishing House; Mexico, 1992.
