What is administrative management?

What Does Administrative management Mean

We explain what administrative management is, its functions, importance and characteristics. Also, a brief historical review.

Administrative management controls and coordinates the actions of a company.

What is administrative management?

Administrative management is the set of activities that is carried out to direct an organization through a rational management of tasks, efforts and resources.

Its ability to control and coordinate the actions and the different roles that are performed within the company allows to prevent problems and achieve the objectives . The systematic conduct of a correct administrative management favors obtaining favorable results for the organization.

The importance of administrative management consists in preparing the organization and arranging it to act in advance, considering all the means and procedures it needs to meet its objectives and reduce negative effects or possible problems.

It can help you: Management in administration

Administrative management functions

Administrative management is a process that includes four main functions:

  • Planning . It is the first function necessary to guide and successfully develop the following stages. It consists of projecting goals , defining objectives and establishing the necessary resources and activities to be carried out in a certain period of time . For this, for example, an internal and environmental investigation can be carried out through analysis tools suchas “Porter's five forces” or “SWOT”.
  • Organization. It consists of putting together a structure to distribute the human and financial resources available to the company to organize and develop its work and achieve the planned objectives. Here the areas within the organization are determined, tasks are grouped according to job positions, and suitable personnel are selected.
  • Address . It consists of executing theplanned strategies , directing the efforts towards the objectives through leadership , motivation and communication . It involves encouraging employees, maintaining fluid communication with all areas of the organization and establishing constant evaluation mechanisms, among others.
  • Control . It consists of verifying that the daily tasks are progressing in line with the planned strategies, in order to optimize decision-making , reorient some activities, correct problems or evaluate results, among others. It is an administrative task that must be carried out with professionalism and transparency. The measurement of the results obtained (to compare them with the planned results) makes it possible to seek continuous improvement.

Administrative management characteristics

Administrative management is carried out by the administrative manager , who oversees the operations of the organization and ensures that the flow of information is effective and that resources are used efficiently. Provide added value to the organization, since it can identify obsolete practices and develop processes that contribute to improvement.

The administrative manager usually has a work team in charge, made up of bosses, analysts and managers . The administrative manager and his team have several responsibilities to fulfill and, depending on the field or specialty in which they work, they can take care of:

  • Propose and develop policies , rules and procedures.
  • Lead several work teams.
  • Supervise the budget execution of the company.
  • Propose and implement improvements in personnel management policies.
  • Control the process of compensation to employees.
  • Prepare training and staff development programs.
  • Perform studies and diagnoses periodically, on the work environment.
  • Propose, inform and keep updated the directory of the organization.
  • Prepare sales plans and forecasts.
  • Select sales strategies.
  • Diagram the layout of the workspace for employees.

History of administrative management

Adam Smith postulated the need for the division of labor and free competition.

The current administrative management is the result of various contributions that took place throughout history. Among the main protagonists are:

  • Confucius (551 BC - 479 BC). He was a Chinese philosopher, politician, and renowned thinker who enunciated a series of rules for public administration . For example, public employees had to know well the situation in the country in order to solve problems, they should not be selected because of favoritism or partisanship, and officials should be honest people.
  • Adam Smith (1723-1790). He was a Scottish economist and philosopher who in his thesis "The Wealth of Nations" enunciated the key to social welfare that resided in two principles: the division of labor and free competition, as necessary actions to increase the level of production and to achieve the specialization of positions within an organization.
  • Henry Metcalfe (1847-1927). He was an American military man, inventor, and theorist who published new control techniques for scientific management through his book "The Cost of Production and Management of Public and Private Workshops."
  • Woodrow Wilson (1856-1924). He was an American politician and lawyer who managed to separate the concepts of politics and administration , granting the latter the status of science , which propelled his teaching at the academic level.
  • Frederick Winslow Taylor (1856-1915). He was an American industrial engineer and economist promoter of scientific work methods , with the aim of achieving greater efficiency in industrial production by optimizing the work of the employee.
  • Henry Fayol (1841-1925). He was a Turkish engineer and theorist who developed the general theory of management, but focused on the performance of the hierarchical direction of the organization so that it developed all administrative functions (and not only in the work of the employee as proposed by Taylor).

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