Business Administration

Business managers working as officials of the Federal Emergency Management Agency analyzing the economic situation following the damage of Hurricane Ike in Houston (2008).

The business administration, business administration, business management or business management is a complex study and extensive that seeks to improve the relationship between productivity, quality, costs, administration, distribution and logistics as well as production time, relationship of workers and trustworthiness to continuously and efficiently improve the competitiveness of a company or a business. Its purpose is to achieve certain goals in constant optimum time frames to increase productivity and competitiveness.

Another comparative element is the passage of time and its effect on the entire organization. In a car, the mechanical parts will wear out over time, but since they are normalized, they can be replaced by others, according to a maintenance program that will allow the vehicle to continue working. In the case of people, over time they will change: perception, experience, motivation. The aging process will affect your attitude and behavior. In addition, groups of people within the organization act differently depending on the moment in life in which they find themselves. Any change imposed on the group (for example, a change in personnel), will alter its nature, including its expectations. This example determines the importance that the development of human resources has in the general management of the company. Therefore, it is essential that the person in charge of this function knows the essential aspects of the organization and does not consider it a mere mechanical system, otherwise, it will undoubtedly fail in its objectives.

History

Starting from the administration, it spread from the 20th century, in the public and military sectors. His beginnings as a professional career date back to 1933 in Madrid, Spain.

The development of business management begins when several branches of innovation are derived from the administration, thanks to the great influence it has had.

The administration has been based, from the ancient Egyptians to the Sumerian merchants, on organizational methods according to the church and the ancient militias.

Businesses were guided based on these methods no matter how big or small, but they did not feel compelled to systematically deal with management applications.

Thus, little by little, the administration's innovations were creating base extensions, such as Arabic numerals and the appearance of accounting. These aforementioned areas provided a better approach and control of the organization quantitatively.

It wasn't until the 19th century that the first publications on management were created, but in a scientific way. In addition, the industrial revolution took place.

Another trend in business management that addresses processes is known as continuous improvement (Kaizen, in its Japanese version). This is another tool from which the processes are worked on and undergo continuous improvement.

Japan's experience in its teamwork methods and the involvement of all its staff in business improvements popularized the benefits gained from continually reviewing and challenging business processes.

The systematic or scientific method model of process improvement has been spread throughout the world by Kaoru Ishikawa. This author is based on the journey of a series of steps or stages, from the detection of a problem or a possibility of improvement (the engine can be a series of detected defects, or a new technological or organizational possibility), a study in search of its causes, of possible improvements or solutions, the choice of the solution or set of solutions that seem ideal, until its implementation and the measure of the improvements achieved.

Stages proposed by Ishikawa for the implementation of continuous improvement

Classification of business management according to its different techniques

Business management encompasses a set of techniques that are applied to the administration of a company, and the difficulty of the management of the entrepreneur or producer will depend on the size of the company. The fundamental objective of the management of the entrepreneur is to improve productivity, sustainability and competitiveness, ensuring the viability of the company in the long term.

Business management techniques

• Strategic analysis: Diagnosing the scenario, identifying political, economic and social scenarios, as well as international and national most likely, analyzing exogenous business agents to the company.

• Organizational management or administrative process: Planning the anticipation of future tasks of the company and the setting of the strategy and goals or objectives that the company must meet; organizing and determining the functions and structure necessary to achieve the objective by establishing the authority and assigning responsibility to those who will be responsible for these functions.

• Information technology management: Apply intra- and extra-business information and communication systems to all areas of the company, to make appropriate decisions together regarding the use of the Internet.

• Financial management: Get money and credit at the lowest possible cost, as well as assign, control and evaluate the use of the company's financial resources, to achieve maximum returns, carrying an appropriate accounting record.

• Human resources management: Using the workforce as efficiently as possible by worrying about the process of obtaining, maintaining and developing staff.

• Operations management, supply and distribution logistics: Provide goods and services that will meet the needs of consumers, transforming a set of raw materials, labour, energy, inputs, information. among other factors, in properly distributed final products.

• Environmental management: Contribute to raising awareness of the need to implement, in the enterprise and environmental policies.

Field covered by management

The technological changes that have occurred in society have expanded the field of management. In the early stages of economic development, companies were characterized by performing repetitive tasks that were easy to define. In the workshop or in the office, the staff knew exactly what their mission was and would remain. The job of the managing director was to oversee the progress of work in progress in an iterative process. The result was measured according to what was produced, and it worked under strong discipline and rigorous control. You had to meet the expectations of the owners to make money and that was the biggest motivation. This simple interpretation of the management that existed then is still standing, like an echo of the past. Some entrepreneurs continue to behave as if nothing had changed. But it is the blows of reality that have made businessmen take many other factors into account, because markets no longer grow based on supply, and we have to fight in very competitive markets and sometimes with little recession internally, without counting on competition problems of foreign companies. Automation, computing, new information technologies and the growing expectations of society have exposed many shortcomings of Spanish managers. The nature of management has become more complex to act based on a series of priorities, such as achieving constant benefits, above all of them.

Qualities and knowledge of a good manager

The manager has a special responsibility to his subordinates, but if he applies this responsibility only in terms of control and supervision, he will not be fulfilling it. He has to establish a system of interrelation. Staff should be clear about what is expected of them. Staff should be directly involved in setting their work objectives. This will promote clarity and efficiency of the task to be developed and will make the subordinate feel more committed and willing to collaborate. Staff should feel supported by the physical and human resources necessary to achieve their goals. Staff will contribute and be able to develop their own personal resources to act more effectively. For its part, the company will help you achieve this through ongoing advice and advice, and even additional training. Staff should receive consistent feedback or critical feedback on their performance. Although his performance will sometimes have to be criticized, this will serve as an incentive and not a coercive threat that can damage his self-esteem. Achieving these objectives in personal relationships and the unlimited support of management is more rewarding than mere financial incentives.

Activity of a business nature that aims to improve the competitiveness and productivity of a company

For a given management to be optimal and, therefore, to give good results, it must not only do things better, but must also improve those issues that directly influence success and this will be affordable by bringing together experts to help identify problems, provide solutions and propose new strategies, among other issues.

Management of this type must consider a series of factors, including financial, productive and logistical, to name the most important. Professionals, individuals who are dedicated to business management, must yes or yes master all these conditions in order to succeed in the subject and for the company they run to be successful.

Formal training and experience

Due to the relevance that this activity has within companies today, careers that train professionals in this specific matter have proliferated. Normally it is the faculties of economic and business sciences that dictate this type of professional training. However, not all the factors involved in business management are learned in the formal university framework; Accompanying education must be present the experience held in the field, and the latter is essential. Theoretical knowledge is extremely important, but business management also concerns many other aspects that are associated with planning and decision-making that are more closely linked to the practice that one has in this field, not to mention the influence of the personality that is demanded by those who are in charge of this task, since a series of command and creativity conditions are required to be able to carry it out efficiently.

Functions

There are four fundamental functions that the company's administration must fulfill in order to achieve efficient management that produces good results:

• Planning, from which resources will be combined in order to produce new projects that can be re-established for the company.
• The organization, vital when it comes to grouping all the resources with which the company has to, after having an idea, promote them to work together and online to obtain from them a better use and thus just wait for the good results.
• Communication, or better said, a good level of communication between managers and employees; this is essential if you want to have a good working climate and thus increase efficiency.
• Management control applied to management, because it will only be possible to quantify the progress that, for example, staff have observed with respect to those goals that were marked at the beginning of a strategy or plan. And at this stage of events we cannot ignore that the current panorama implies constant changes in the markets, also added to the constant movements and developments that occur in areas such as technology and communication, so linked to business management, in case, the context is being combined and so it is necessary to implement new, more dynamic, management models and that they are precisely adapted to these current and successful markets.