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When managing a company it is necessary to find in a person certain kind of skills and abilities that allow him/her to fully lead a company and thus ensure the success and achievement of goals in the short, medium and long term, but in addition to possessing these attributes, he/she must also respond to an academic profile with basic knowledge in business administration, for that reason, today we present a complete descriptive and informative guide about the concepts of business administration.
What is and what is the role of Business Administration?
Before continuing it is important to define that business administration is the branch of social sciences that is responsible for managing the capabilities and resources at its disposal in addition to being the process of planning, organizing, directing and controlling the activities of the main representatives, to ensure and achieve success in meeting the objectives in the long, medium and short term.
The basic functions of corporate performance business management are:
Planning, consists of programming and adjusting in advance the objectives to be achieved, the chain of succession and the plan of action at the internal level of the company.
Organization, after establishing the planning, each person is assigned the functions, lines of command, and responsibilities that correspond to him/her in the company, in other words, the scope and limitations of his/her position are established in order to carry out his/her work. For the organization to be a success, the determination of the structure must be fundamental.
Direction, it orients, communicates, trains and motivates the human talent, how the decision making and the ordinances should be executed without underestimating its own criteria, taking into account that these should follow the same scheme, be coherent, reasonable, realistic and concrete. Management is the central axis of a business administrative process, since here, all the previous functions concur and are necessary for the achievement of the company’s objectives.
Coordination, generates the articulation of all operational areas and human working capital.
Control, after establishing and implementing all the guidelines, a follow-up and control must be carried out, comparing the determined parameters that allow measuring the results obtained in order to determine the success of all the strategies, which in the case of business administration are statistics, accounting, auditing, measurement, budget plan and quality control, to name a few.
Basic concepts of business administration
Here are 10 basic concepts that will serve as a preamble to understanding the notions of business administration.
- Administration, is the process by which the personnel or financial movements of a business organization are organized, bringing with it the control of the same to achieve the proposed goals.
- SMEs, are a categorization of a small or medium-sized enterprise or companies, which can be classified depending on the country or region in which they are working, as they can be agglomerated according to the number of employees, type of activity or annual income earned.
- Company, is defined as the organization oriented to the development, production or commercialization of goods and services for the benefit of the community that obeys supply and demand.
- Hierarchy, is the pyramidal or horizontal way in which the different positions within a company are organized and classified, as well as the distribution of employees according to their profile.
- Benchaming, refers to the process of comparative research and analysis of products, services and work processes belonging to other corporations, highlighting improvements or failures in order to learn from them and improve future market strategies.
- Authority, is nothing more than the faculty or power that a person has within the company to impart an order to one or more people, in which they have the duty to respond by showing obedience, according to the position they hold within the corporate hierarchy.
- Bureaucracy, within a company is the organizational representation of the structure that is characterized by respecting the guidelines resulting from the hierarchy, impersonal relationships, specialization of work and regularized procedures that are generated within it.
- Chain of command, is an organizational system with hierarchical, strong and vertical structures that unfolds from the president of a company to the last line of action.
- Teamwork refers to the group of people capable of understanding, sympathizing and coexisting in the same purpose, project or area to achieve common goals.
- Leader is the person who leads a company with qualities, skills and intellectual capacity, who must have a competent training and practical base.
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