The 6 Essential Elements of Administration

It is important to know what the elements of administration to be able to run a company and the employees in it. Although there are several that can be attributed to it, the main administrative elements are planning, organization, direction, coordination and control.

If you want to know how each of them work within a company, keep reading this post where we will explain it to you.

Administration elements

Entrepreneurs often make use of these principles that we are going to explain so that their company can function in a comprehensive and comprehensive manner.

Despite the fact that there are some criticisms of this system, a large part of modern theorists affirm that these are valid and very important to correctly manage a company.

Next, we will explain each of the main elements of the administration:

1. Planning

This is the first step to properly managing a large company, and even a medium or small business. It is quite important because proper or poor planning can be what determines whether a project works or not.

On the other hand, by not having a well-drawn plan, inefficiencies on the part of the staff cannot be avoided and in the long term represent failures of great magnitude.

Dealing with a business means running into unfamiliar situations, at any time and without prior notice. It is completely unpredictable what direction consumers will take when faced with new products or new marketing strategies.

Can good planning avoid these risks? No, but it allows the company to be prepared for it, and therefore to quickly change strategies to avoid huge losses.

2. Organization

This is one of the administrative components that has the most variations, since it largely depends on the activities carried out by the company, as well as the goods and services it offers.

The main idea that the organization works in administration is to identify the elements that make up the company in question, and thus be able to create functional and efficient structures based on the themselves.

This means that the organization of the company must seek at all times to optimize the use of the resources used in production, meeting the goals that administrative agents have tracing.

3. Address

Part of the job of an administrator is to know in detail the strengths and weaknesses of the implemented organization and the existing resources in the company.

Being able to lead the business management requires a certain skill, and that is why the administration is entrusted, to be in charge of making the assignments of available resources and tasks according to the abilities of the employees.

In addition, it includes the motivation towards the personnel, this in order that they can fulfill their functions in an optimal way.

4. Coordination

Businesses are one of the most complicated systems out there, especially large ones. That is why the components of it must be well coordinated, thus a harmonious operation can be achieved and with less risk of errors.

This element also includes the delegation of tasks, always thinking about the abilities of each individual employee, and assigning them to achieve an effective use of resources.

One of the most used tools within the administrative coordination of a company is communication between the different departments.

5. Control

Although it sounds a bit rough, it really refers to keeping each of the company's activities in the same direction, the fulfillment of objectives with goals specified in planning, this being the main reason why it is considered one of the last steps.

A company that keeps a good control of its operation and administration of resources can easily identify errors just by performing a simple analysis and evaluating the resources, managing to correct them in a short time and with efficiency.

6. Other elements of the administration

Although we have already mentioned the essential administrative elements, those that we are going to describe below are also important within the administration of a company:

• Integration: this element consists of selecting resources of all kinds (economic, material, human and technical) in order to achieve a good operation.

Although all the resources used are important and entail challenges, humans are the most changeable and complicated to integrate in the company, and therefore they are the ones that require the most attention.

• Forecast: this element is responsible for investigating the factors that help the company, or on the contrary, pose a problem to achieve the planned objectives.

It is important to consider the future, both positive and negative, in order to determine the actions to be taken to correct mistakes and continue moving forward to achieve the goals.

• PlanningThis is something completely different from planning, and it is the process established by managers to set goals and objectives.

Also the strategies, means and tactics that are going to be implemented to achieve them, as well as the evaluations that indicate the level of success and the times in which they must be achieved.

These are the essential elements of running a business, those who cannot be absent so that everything is managed efficiently within the company, obtaining favorable results and that everything can operate effectively and in the correct way, both at the level of production, in the management of personnel, as well as in sales and contact with consumers.

Sources and references:

• Gallardo-Gallardo E. (2020, March) Fundamentals of Administration Department of Economics and Business Organization.
• Garcia S. (2019, February) The Elements and Principles of Public Administration and its Validity in the XXI Century.