Administration principles

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Administration principles by Mind Map: Administration principles

1. Planning

1.1. This is the first part of the administrative process. It should answer to questions like:

1.1.1. Where are we? (SWOT analysis) Strengths (What do you do well? What unique resources can you draw on? What do others see as your strengths?) Weaknesses (What could you improve? Where do you have fewer resources than others? What are others likely to see as weaknesses?) Opportunities (What oportunities are open to you? What trends could you take advantage of? How can you turn your strengths into oportunities?) Threats (What threats could harm you? What is your competition doing? What threats do your weaknesses expose to you?)

1.1.2. Where are we going?

1.1.3. How will we get there? (Tactics, strategy and actions)

1.1.4. Will we get there or not? (Result analysis)

1.2. It means to decide and "define our goals, the establishment of the appropriate strategies and the development of plans to coordinate activities" (Stephen Robbins 1994)

1.3. This plan is organized within the next 3, 4 to 5 upcoming years. Based in your Vision, Mission and Values. Nevertheless we still have a yearly planning, which will divide and make objectives even more realistic, step by step.

2. Organizing

2.1. Adquisition and order of resources the business needs for its appropriate development and to reach the goals previously set during Planning stage.

2.2. This depends on the division of tasks for each member of the business. These areas depend on the size of the business. There are generally three main departments or ares:

2.2.1. Accounting: Measures, processes and communicates financial situation of business)

2.2.2. Marketing: The acts of process of purchases and sales in a business.

2.2.3. Finance: The management of revenues, the creation and study of money, banking, credit, investiments, assets and liabilities.

3. Controlling

3.1. This stage helps measuring the accomplishment of the goals planned and the ones actually achieved.

3.2. It allows generating certain corrections and changes to the system being applied to reach efficiency and effectiveness in perfect balance.

4. Managing

4.1. Henri Fayol determines 5 main functions to Management: 1.- planning (forecasting) 2.- organizing 3.- commanding 4.- coordinating 5.- controlling

4.1.1. Organize and regulate the internal activities of an organization with LEADERSHIP.

4.1.2. Efficiency: is the (often measurable) ability to avoid wasting materials, energy, efforts, money, and time in doing something or in producing a desired result. In a more general sense, it is the ability to do things well, successfully, and without waste. Doing it with the least amount of resources (Koontz and Weihrich)

4.1.3. Effectiveness: is the capability of producing a desired result or the ability to produce desired output. When something is deemed effective, it means it has an intended or expected outcome, or produces a deep, vivid impression. "The achievement of objectives, the accomplishment of desired effects" (Harold Koontz and Heinz Weihrich)

4.1.4. 14 Management principles, can be applied to every management charge (top, middle, low): 1.- Division of work 2.- Authority and responsibility 3.- Discipline 4.- Unity of command 5.- Unity of direction 6.- Subordination of individual interest 7.- Remuneration 8.- Degree of centralization 9.- Scalar Chain 10.- Order 11.- Equity 12.- Stability of tenure of personnel 13.- Initiative 14.- Esprit de corps