Definitions: Adminstration, Business, Management, Organization

T A S K  1

Administration

Provide a definition of administration.

§  A social science that pursues the satisfaction of institutional objectives by means of a structure and through coordinated effort.

 

§  It is a social process that involves the responsibility to efficiently plan and regulate the operations of a company to achieve a given purpose.

 

§  The science and technique in charge of planning, organizing, directing and controlling the resources of a company and organizational system.

 

Concepts of Administration

 

§  It is the use of authority to organize, direct and control responsible subordinates, so that all services rendered are properly coordinated with the achievement of the company. (Frank Tannenbaum)

 

§  It is a technique by which the purposes and objectives of a particular human group are determined, clarified and realized. (Peterson and Plowman)

 

§  It is the management of a social organism and its effectiveness in achieving its objectives, based on the ability to lead its members. (Harold Koontz)

 

 

Universal functions in Administration

 

Planning

WHAT DO YOU WANT TO DO?

·         Purposes

·         Investigations

·         Objectives

·         Strategies

·         Politics

·         Programs

 

Organizing

HOW IS IT GOING TO BE DONE?

·         Division of labor

·         Coordination

 

Directing

BE SURE ACTIVITIES ARE BEING DONE

·         Communication

·         Delegation

·         Authority and command

·         Monitoring 

 

Controlling:

HOW HAVE THE ACTIVITIES BEEN DONE?

·         Establishment of standards

·         Measuring results

·         Correction of results

·         Feedback

 

Business

Define Business

It's an enterprising entity that produces distributes and sales goods and services for a profit.

Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services)

 

Concepts of Business. (Define them in detail)

The concept of business is the idea behind it for it to exist a plan, vision, mission and model.

 

Objective of Business.

Profit making

 

Types or classification of business. (Define each in detail)

 

·         Sole Proprietorship.

It is an unincorporated company that is owned by one individual only. It also offers the least amount of financial and legal protection for the owner. Therefore, the owner is fully liable for any and all liabilities incurred by the company.

 

§  Partnership.

It is a business owned by two or more people, known as partners. The income is treated as the owners’ incomes so it is only taxed once. Owners in partnerships are responsible for the liabilities of the firm.

 

Limited Partnerships: This type of partnership has at least one general partner. This general partner takes on unlimited liability for the partnership and manages the operations of the company.

 

 

Limited Liability Partnerships (LLP): LLPs are similar to general partnerships, where multiple partners are each responsible for the operations of the business.

 

§  Limited Liability Company (LLC)

LLCs combine aspects of both partnerships and corporations. They retain the tax benefits of sole proprietorships and the limited liability of corporations. LLCs are able to choose between different taxes treatments.

 

§  Corporation

Corporations are a separate legal entity created by shareholders. Incorporating a business protects owners from being personally liable for the company’s debts or legal disputes. A corporation is more complicated to create.

 

C CORPORATION: the corporation is taxed as a business entity and owners receive profits that are then also taxed individually.

 

S CORPORATION: only consist of up to 100 shareholders. S corporations are pass-through entities like partnerships, so profits are not taxed twice.

 

NON-PROFIT CORPORATION:  often used by charitable organizations, non-profit corporations are tax exempt.

 

§  Franchises

       A franchise is a system in which entrepreneurs purchase the rights to open and run a business from a larger corporation

 

Types of negotiation according to their size

 

·         Big company. Large companies that have a number of workers greater than 250.

·         Medium company. Medium-sized companies, the number of workers cannot be less than 51 or greater than 250.

·         Small company. Eleven and fifty workers. Its balance sheet can exceed ten million euros.

·         Micro-enterprise. Permanent workers in the company is less than ten and its turnover must be less than two million euros.

 

Types of businesses according to their economic activity

 

•             Primary sector. Dedicated to obtaining raw materials.

•             Secondary sector. These types of companies are characterized by being in charge of either the extraction of raw materials, or the transformation of these materials into manufactured products.

•             Third sector. Within this category, companies dedicated to the service or trade sector can be differentiated.

Services. Those that are focused on providing clients with a service or intangible good.

Commercial companies are those dedicated to the purchase and sale of material goods.

 

What does “form of business ownership” refer to? Provide definitions.

 

Property rights in business Property is a resource to which an individual or company has a legal right; that is, the resource belongs to you. Resources are land, buildings, equipment, capital, mining rights, companies, and intellectual property.

There are 4 main types of business organization: sole proprietorship, partnership, corporation, and Limited Liability Company, or LLC.

 

 

Management

 

Define management.

Management is conduct of affairs of business, moving towards its objective through a continuous process of improvement and optimization of resources. (Henri Fayol)

 

The efficient and effective operation of a business, and study of this subject, is called management. The major branches of management are financial management, marketing management, human resource management, strategic management, production management, operations management, service management, and information technology management.

 

Functions of management. (Describe them in detail)

·         Planning. It controls all the planning that allows the organization to run smoothly and involves defining a goal and determining the most effective course of action needed to reach that goal.

·         Organizing. It controls the overall structure of the company, without this structure, the day-to-day operation of the business becomes difficult and unsuccessful. Organizing involves designating tasks and responsibilities to employees with the specific skill sets needed to complete the tasks.

·         Staffing. It controls all recruitment and personnel needs of the organization. The main purpose of staffing is to hire the right people for the right jobs to achieve the objectives of the organization. Without the staffing function, the business would fail because the business would not be properly staffed to meet its goals.

·         Coordinating. It controls all the organizing, planning and staffing activities of the company and ensures all activities function together for the good of the organization. Coordinating involves communication, supervision and direction by management.

·         Controlling. It is useful for ensuring all other functions of the organization are in place and are operating successfully. Controlling involves establishing performance standards and monitoring the output of employees to ensure each employee’s performance meets those standards.

 

Important areas of knowledge for a business manager. Mentions as many as you know or find.

 

·         Financial Accounting

Business managers need to know how to prepare financial reports that provide information about a company’s performance. They need to be able read a profit and loss statement and balance sheet to identify a company’s assets -- the obligations to pay debts known as liabilities plus the owner’s equity.

 

·         Analysis

Competent business managers need to interpret financial ratios -- performance metrics -- to make these decisions.

 

·         Data Analysis

Knowing how to summarize datasets, recognize trends, and test hypotheses can give you an analytical framework for approaching complex business problems, and help you make informed decisions that could benefit your firm.

 Organization

 

Provide a definition of organization. Be extensive.

According to Louis A. Allen, “Organization is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationship for the purpose of enabling people to work most effectively together in accomplishing objectives.”

In other words: a group of people who work together in an organized way for a shared purpose,  an entity – such as a company, an institution, or an association – comprising one or more people and having a particular goal.

 

REFERENCES

 

Hernández, Sergio (2007), Introducción a la Administración. Teoría general administrativa: origen, evolución y vanguardia, 4ª edición, Mc Graw Hill, México.

Munch – García (2009). Fundamentos de Administración. Editorial Trillas. México.

Reyes Ponce, Agustín (2008). Administración Moderna. Editorial Limusa, México.

D. (2014, December 24). Definitions and Theories of Organization. Your Article Library. https://www.yourarticlelibrary.com/organization/definitions-and-theories-of-organization/44937

Duggan, T. (2017, November 21). What Does a Competent Business Manager Need to Know About Finance? Small Business - Chron. https://smallbusiness.chron.com/competent-business-manager-need-finance-41185.html

Gavin, M. (2019, May 23). 10 Important Business Skills Every Professional Needs | HBS Online. HBS. https://online.hbs.edu/blog/post/business-skills-every-professional-needs

Tamil Nadu Agricultural University. (n.d.). MANAGEMENT. Http://Eagri.Org/. http://eagri.org/eagri50/AECO341/lec03.pdf