Core Administrative Principles in Enterprise Operations

Management of an enterprise involves the strategic direction of human and material resources within dynamic organizational units. The primary goal is to achieve objectives while ensuring the satisfaction of all involved parties, including partners, managers, employees, and customers.

Key Functions of Business Administration

Planning: Devising a Course of Action

Planning involves establishing a clear course of action to achieve organizational objectives. This critical process typically includes three main steps:

• Set Objectives: Determine precisely what is desired. Objectives should be:
  • Specific: Clearly state what needs to be done, when it will occur, and how it will be assessed.
  • Compatible: Consistent with the company's overall objectives and general policies.
  • Achievable: Realistic and set at a level that is enforceable.
• Establish Procedures: Decide how the plan's objectives will be achieved. This involves four key steps:
  1. Define the necessary activities.
  2. Determine the required timelines.
  3. Review available resources.
  4. Determine the appropriate locations for execution.
• Assign Responsibility: Select the employee or employees who possess the best skills and knowledge to execute specific tasks.

Organizing: Defining a Job Structure

Organizing involves defining a structure of jobs to effectively implement the plan. Key organizing principles include:

• Objectives: Every job must have a clear purpose.
• Coordination: Each role must understand its reporting lines and responsibilities within the organizational hierarchy.
• Authority: Each position must have clear decision-making capacity.
• Responsibility: Once authority is delegated, the individual is accountable for using it to achieve their objectives.
• Definition: A written document outlining the specific functions and duties of each job.
• Span of Control: Refers to the number of key result areas (KRAs) a position is responsible for. A KRA is a critical phase of an organization's operations.
• Unity of Command: Each position should report to only one superior for each key performance area.
• Delegation: Assigning important tasks and corresponding authority to subordinate positions.

Controlling: Ensuring Compliance and Performance

Controlling is the process of verifying compliance with the targets set in the plan and within the organization. It ensures that activities are performed according to established standards and objectives. Types of control include:

• Continuous Control: Designed to identify and correct deviations as they occur, ensuring ongoing alignment with goals.
• Warning Control: Alerts managers to potential issues or deviations before they escalate, allowing for proactive intervention.
• Personnel Control: Focuses on managing human resources effectively through several stages:
  • Selection: Finding the most qualified individuals for each role to prevent errors and optimize performance.
  • Training: Equipping selected employees with the necessary knowledge and skills for proper job execution and error prevention.
  • Motivation: Encouraging employees to perform their duties voluntarily and with a high degree of morale and commitment.
  • Verification/Inspection: Regularly checking work processes and outputs to identify and address any deviations from standards.
  • Evaluation: Systematically assessing employee performance against established standards and objectives.