Notes, summaries, assignments, exams, and problems for Other subjects

Management Definition

Administration comes etymologically from the Latin, meaning "action to manage." The latter term is composed of ad and minister, which together mean "to serve." This implies that administration is an activity devoted to service and cooperation.

Purpose of Management

The aim of administration is to get the company to achieve productivity, i.e., a balance between efficiency and effectiveness.

• Efficiency: The ability to minimize the resources consumed to achieve the objectives of the organization. "Do things right."
• Effectiveness: The ability to determine appropriate goals. "Do the right things."

Importance of Management

Administration is very important in this era, full of complexities, changes, and uncertainties. Sustaining a business... Continue reading "Business Management: Definition, Principles, and Importance" »

Theme 1: Company and Organization

Company: An institution where a diverse group of people transform resources into goods and/or services to meet needs and obtain benefits. It must be understood as a technical, economic, social, and political decision-making unit.

Organization: A group of people with the means and/or adequate resources, functioning through a set of established rules and procedures to achieve a particular purpose. They require physical, financial, technological, and human resources.

Difference: Firms are a type of organization that differ from others because, although they may have other purposes, profit is necessary for their creation and maintenance.

Functional Subsystems:

• Procurement: Responsible for decisions relating to the purchasing

Human Capital as a Source of Competitive Advantage

Essential competencies are a set of aptitudes and attitudes that predispose individuals to perform their activities at the highest level. The key components for implementing these competencies are: knowing (knowledge), applying knowledge (skills), demonstrating appropriate attitudes and interests, wanting to perform (motivation), and having the ability to do so (available resources).

Human capital is a source of competitive advantage because:

• People differentiate organizations. Their resources and capabilities are not available to all companies under the same conditions.
• They add value to a company and explain differences in profitability.
• They are scarce; few individuals can guarantee high performance

Administration can be conceived as a science that studies companies and organizations for descriptive purposes, aiming to understand their operation, evolution, growth, and behavior. Managers in organizations are not confined to specific profiles. They work in organizations whose aim is to obtain profits and those that strive to achieve a social good. Regardless of who they are or where they work, these individuals share a common objective: getting their work done through the efforts of others.

Who are the Managers and Where do They Work?

Managers work within an organization. An organization is a systematic agreement between persons to carry out a specific objective, in the same way as churches, NGOs, associations, etc. All are organizations... Continue reading "Understanding Management and Organizational Structures" »