In all organizations, the “keywords” of production, productivity, competitiveness and leadership are handled daily; These words of totally technical language between administrative science and economics are dissimilar in the general sense of their projection in society and its global environment.
Due to this inadmissible fact of semantic incongruity between these two sciences, it leads us to think about the different reasons why such juxtaposition exists and its strategic impact on organizations. The production, from the economic point of view, expressed as a "volume" in which the final quantity is measured which is developed through the production process; on the other hand, the administration defines it as the process by which there is a transformation of INPUTS into OUTPUTS or final products and services, because through the administration services can be “produced” that economically cannot be measured in "Volumes" of production, so from the administrative point of view all goods and services are " produced”By an organization, or by a Nation-State if it were the case.
In the same way, the economy defines productivity as that production characterized by the maximization of the resources that are used, in order to achieve an efficient and effective economy.
From the administrative point of view, productivity is understood by the good use, or by the intelligent use, of resources; the simple fact of maximizing income and minimizing production costs is not enough, but productivity includes internal well-being that the company has related to all the components of said organization, that is, maximizing the talents, skills and abilities they possess.
For example, a company managed to minimize its costs and in turn substantially increased its sales, producing a great financial profitability at the cost of the deterioration of working conditions and the deterioration of organizational plans.
For the Economy, this is considered a company with a very high productivity since through business management it maximizes profits by minimizing production costs and maximizing income, but from an administrative point of view it is a company with a degree of Very low productivity as it did not maximize the talents and skills of the company's people.
Thus, it is possible to understand a little the conceptual clarity that one has of everyday words in the business world and the dissimilarity that exists around the social sciences. By understanding the basics of the modern and globalizing world, one can better understand the fact of competitiveness today.
From a purely economic point of view, it can be said that competitiveness is the productive understanding of an industry, the level by which companies are at the same level as their closest and most direct competition, the fact that an organization is at the same level with the competition and also can be sustained with that level in a market makes it Strongly competitive in the economy.
In administration, competitiveness is a process that is gained by the simple fact of being productive with the environment, that is to say that a part of competitiveness is "Productivity", and the other component is "Productivity of the environment", to be Competitive requires being productive and also "using the resources wisely" from the external environment, which in other words can be expressed as optimal internal management and the organization's environment.
The fact of controlling and managing the resources of the environment, appreciates the company in the good use of its sources of work and taking advantage of the opportunities provided by the environment, in this way the company can become a leader in the market.
The leadership is understood as reaction a company produces the competitive and first be on the market, comprising the representation or image the company gives the market to be formed as a company's " Productive " and " competitive " than others.
Thus we can observe the existing relationship between the conceptual and semantic differences of these two social sciences, the challenge now is to understand these differences and also make adequate use of business management based on what is most convenient for organizations and for a country.
Although these concepts are more profound, a basic relationship of these concepts in Administration and Economics is shown here, where it is not intended to formulate a theory of these concepts, much less define them deeply, what is intended is to create awareness that in our time there are marked differences between these two sciences, which instead of competing with each other, in the business world, should complement each other to create greater and better knowledge.
