Commercial administration; Definition and Stages

  • Jul 26, 2021
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Since man adapted to living in society, there has been the exchange of goods and services in order to achieve greater resources for life.

Today's world is made up of organized companies, with different work areas, tasks, specializations, each employee having a particular role depending on his professional training, his experience and its efficiency.

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Among these areas is the commercial administration, that responds to the organization of the available resources in terms of achieving the highest performance before the achievement of a certain objective.

In this article you will find:

What is commercial administration?

The commercial administration It is a science uses tools and techniques for optimal use of resources (human, financial, material and technological), and based on this organize,

to plan, direct and control the stability and growth of organizations, be they companies, institutions, corporations or any other form of organization that offers or provides a good or service.

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For its correct performance, the commercial administration must have a fair relationship with sciences such as sociology, psychology, law, economics and other exact sciences such as mathematics, accounting, and cybernetics that allow you to apply behavioral insights of man and societies, working with numbers and technological equipment, always aiming at the development and fulfillment of objectives business.

Administration is what managers do to make the company function properly, starting with the coordination of work activities so that they are carried out efficiently and effectively by all employees of the company.

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What is the commercial administration looking for?

According to the formal definition, which says that administration is a process that creates a business environment, in which, working as a team, objectives are obtained in a manner Efficient and effective.

Well, that is precisely what the administration seeks for efficiency and effectiveness in the performance of the organization.

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Efficiency

Obtain the best possible results with the minimum investment of resources, doing well the tasks and activities without wasting a single resource, in order to achieve the objectives at the least cost.

Effectiveness

Complete each of the planned activities, to achieve the goals of the organization, doing the right and specific things.

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Stages of good administration

Like any process, the administration must follow certain stages, these are:

Planning

It focuses on the establishment of objectives and goals, defining the efforts that will be carried out in order to realize various purposes and meet those objectives.

This process requires respecting the steps that are set in the first moment, which implies teamwork under the same line, from the beginning of the project.

Organization

It focuses on the development of action plans to achieve the objectives and goals set, defining the specific activities and tasks to be carried out, as well as who will carry them out.

Unification of Personnel

It focuses on assigning the different tasks to specific areas or departments so that they are executed by the human resource defined in the organization phase of the project.

Address

It focuses on the task of directing the personnel assigned to each of the Tasks or functions, so that everything is carried out in conditions of excellence and efficiency.

It is that phase of the administration in which the realization of everything planned is effectively achieved, through the authority of the administrator, exercised based on decisions and delegation of functions, tasks and authority.

Control

It is the last of the phases of the administrative processIn this, it must be determined if the tasks and objectives have been carried out according to what is established, complying with what is planned.

Its purpose is to find and point out errors and weaknesses in order to correct them and prevent their recurrence, establishing the correct feedback throughout the process that allows measuring the deviations made and establishing necessary modifications to the original plan.

To conclude, it is necessary to say that the administrator is responsible for managing the administration in a company, among his functions are:

  • Create and execute relevant knowledge on the correct use and optimization of the resources available to operate in the organization.
  • Grant effectiveness to human resource efforts.
  • Develop and allow the sustainable growth of the organization.
  • Generate important information on the correct treatment of operating resources, especially human resources, as an essential element in any organization.
  • Measure performance and generate relevant information to make the relevant changes to benefit the operation and better performance of the company.
  • Reduce operating costs as much as possible.

Good administration is one that is based on the optimization of all resources, generates constant ideas of innovation, has the capacity to adapt to change in favor of the benefit and efficiency of achieving the objectives.

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