Core Principles of Business Administration

Characteristics of Administration

• Universality

  Administration is present wherever there is a specific social organism. It possesses unmistakable characteristics and is often accompanied by insights from other sciences.

• Continuity

  Throughout the life of a company, most administrative elements exist in varying degrees, demonstrating their ongoing presence and importance.

• Hierarchical Unity

  Administration respects established authority levels within an organization, ensuring a clear chain of command.

• Instrumental Value

  Administration serves as an instrument to achieve specific organizational ends, rather than being an end in itself.

• Flexibility

  Its purpose is practical; administration adapts to the particular needs and unique circumstances of each organization.

• Scope of Exercise

  Administrative principles and practices apply to all hierarchical levels within an organization, from top management to operational staff.

Relation to Other Sciences

• Social Sciences

  • Sociology
  • Psychology
  • Law
  • Economics
  • Anthropology

• Technical Disciplines

  • Mathematics
  • Industrial Engineering: The application of scientific knowledge to the research and development of industrial techniques.
  • Accounting
  • Ergonomics
  • Cybernetics

• Ethics

  The consideration of moral issues for an individual, providing an orientation about the problems of society and organizational conduct.

Administrative Process

The administrative process typically involves a series of interconnected stages:

1. Planning

   Developing a plan or an integrated pattern of future activities. This requires the ability to anticipate, visualize activities, and look ahead:

   • Clarify, amplify, and determine objectives.
   • Forecast future conditions and trends.
   • Establish the conditions and assumptions under which work will be performed.
   • Select and define the tasks necessary to achieve objectives.
   • Establish policies, methods, procedures, and performance standards.
   • Anticipate possible future problems and challenges.
   • Adjust plans in light of the results from control mechanisms.

2. Organization

   Distributing work activities among group members and clearly indicating the participation of each member in the overall work activity:

   • Subdivide operating units into manageable components.
   • Group operational obligations into distinct posts or roles.
   • Collect operational positions into related and manageable units.
   • Clarify specific job requirements for each role.
   • Select and place individuals in the right job based on their skills.
   • Provide necessary personnel facilities and other resources.

3. Execution

   Physically carrying out the activities that result from the planning and organization stages. Managers need to take decisive action that enables groups to fulfill their assigned tasks effectively.

4. Control

   (This stage, while listed as part of the administrative process, was not detailed in the original document. It typically involves monitoring performance, comparing it with objectives, and taking corrective action.)