Fundamentals of Administration

• Administration is a fundamental process for designing effective environments to achieve goals and is a discipline
• Work is done in groups to achieve goals

5 Factors of Administration:

• Planning

• Organizing

• Directing

• Controlling

• Integrating personnel

• An organization is a group of people working together to provide added value

• An organization is a social system consisting of interacting people to achieve common goals using resources like capital, technology, knowledge, and labor

Interest Groups:

• Internal such as employees, managers, executives, shareholders, or owners

• External such as stakeholders, clients, suppliers, or competitors

• Productivity is the relationship between production and inputs

• Effectiveness is the achievement of objectives

• Efficiency is how good one is at achieving objectives

Diversity Management in the Workplace:

• Ethnicity

• Sex

• Gender

• Religion

• Human capital refers to the idea that people are a valuable resource in a society or economy because of their skills, knowledge, experience, and capabilities

• Organizational design is the process by which roles, responsibilities, relationships, and resources are formally structured within an organization to meet its strategic objectives

Factors Influencing Design:

• Environmental

• Anatomical

• Operational aspects

• Behavioral consequences

• Organizational behavior includes the study of the behavior of people within organizations, as well as the groups and teams that make them up

• Functional objectives align with the specific goals of different areas or functions within an organization

Organizational Climate:

• Refers to the set of perceptions, attitudes, and feelings that employees have about their work environment

• Includes the emotional and social environment prevailing in the organization, the labor relations, organizational culture, internal policies, leadership style, and physical conditions of the workplace

• Intellectual capital refers to the set of intangible assets that an organization possesses, which have significant value for its success and competitiveness

• Corporate objectives are the general goals and aims that an organization seeks to achieve in the long term, focusing on the success and sustainability of the company

Organizational Behavior (Duplicate) :

• The study of how individuals, groups, and structures within an organization affect employee behavior, and how this behavior impacts the performance and effectiveness of the organization as a whole

Stages of the Life Cycle of Organizations

• Birth involves the creation and establishment of the organization, with a focus on survival

• Childhood involves initial expansion, professionalization of management, and establishment of a solid base

• Youth involves rapid expansion and diversification, consolidation of the organizational structure

• Maturity involves stability and efficiency, with a focus on maintaining leadership and adapting to changes

• The psychological contract refers to the mutual, unwritten expectations that exist between employees and the organization

• Vertical integration refers to the expansion of a company up or down its supply chain

• Horizontal integration refers to the strategy of expanding a company through the acquisition or merger with other companies operating at the same level of the value chain or in the same sector, but which are not direct competitors

• Mission is the reason for being of each organization

• Vision is the image that the organization has of itself and its future; its ultimate goal

• Global objectives include the desired future which should be turned into reality, and achieving goals of productivity, profitability, cost reduction, quality, and competitiveness

Objectives

• Individual objectives are the goals or personal aspirations that employees seek to achieve within their work environment
• Social objectives of an organization refer to the goals and purposes related to corporate social responsibility (CSR) and the positive impact that the organization seeks to have on society and its environment
• Personal objectives are the goals that an individual sets in their personal and professional life which guide their development, motivation, and performance within an organization

Company Size:

• Large

• Medium

• Small

• Micro

• Departmentalization is the grouping of tasks and people

Types of Departmentalization:

• Functional (Finance, Marketing, Human Resources, Production)

• Product or service

• Geographical

• By process

• By clients

• An open system refers to an organization that constantly interacts with its environment and adapts to external conditions such as changes in the market, technology, social, political, and economic regulations

• Adequate compensation refers to the set of remuneration, benefits, and rewards that an organization offers its employees in exchange for their work, effort, and performance

Management Functions:

• The key activities that managers must perform to effectively lead and coordinate an organization

• Allow managers to plan, organize, direct, and control the resources and processes necessary to achieve organizational goals

• A company is an organization whose main objective is the production and distribution of goods and services to meet the needs of society, while generating value and obtaining economic benefits in return

Managerial Skills:

• Technical skills are essential to perform operational tasks efficiently and with quality, being more relevant at lower levels, but also important for managers at higher levels

• Human skills are key for teamwork, communication, and employee motivation, directly impacting productivity and the work environment

• Conceptual skills enable to make strategic decisions and plan long-term, identifying opportunities and threats to guide the company toward success

• Productivity refers to the relationship between the results obtained (products or services) and the resources used (labor, materials, time, capital, etc.)

• Reengineering approach is a management approach that seeks to radically transform the business processes of an organization, to drastically improve its efficiency, effectiveness, and competitiveness

• Group behavior approach focuses on how people interact within a group or team, and how these interactions influence individual and collective behavior.

• Total quality management approach refers to an integral approach to improve quality in all aspects of an organization

The Total Quality Management Approach:

• Aims to continuously improve the quality of products and services, involving all members of the organization.
• Its success depends on the commitment of top management, employee participation, customer orientation, and process optimization
• It allows organizations to increase customer satisfaction, efficiency, and competitiveness

Sociotechnical Approach per Chiavenato:

• Focuses on the interaction and integration of social and technical systems
• Maximizing both technical performance and employee well-being
• The technical system includes infrastructure, tools, processes, technology, and working methods
• The social system includes people, groups, social structures, and organizational culture

Operational Management Approach :

• Refers to the efficient management and control of resources and processes within an organization to achieve optimal production of goods and services

• Integrating personnel refers to the process of attracting, selecting, incorporating, and adapting employees within the organization in a way that aligns with the objectives, values, and needs of the company

• Inputs are the resources or factors that an organization uses in its production processes or in the provision of its services

• The influence of human motivation is a key factor for performance and productivity within an organization

• Motivation refers to the fundamental principles or beliefs that guide the decisions, behaviors, and actions of a person within an organization

• The Hawthorne experiment was directed by Elton Mayo and his colleagues, and began as an attempt to investigate the relationship between lighting and productivity.

• The stages of motivation-frustration include motivation, action, frustration, reaction to frustration, adaptation or new motivation, and achievement or new frustration

Qualities of an Effective Leader

• Autoconfidence for making decisions

• Empathy to understand others

• Effective communication skills

• Quick and accurate decision making

• Integrity and ethics in all actions

• Long-term vision

• Ability to motivate their team

• Flexibility and adaptability to change

• Responsibility for results

• Resilience to face adversities

• The Human Relations Theory emphasizes the importance of relationships between individuals within the organization, and how these relationships affect the productivity and well-being of employees