Business Administration and Leadership Essentials

Posted on Feb 14, 2025 in Other subjects

Business Management and Administration Process

The management administration process is where administrators create a suitable environment in the company, coordinate the actions of individuals and the rest of the company’s resources, and perform activities to meet objectives efficiently. It should be:

  • Effective and efficient: Achieve the objectives as they are reached.
  • Human Element: This is fundamental.

Administrative Process

The administrative process is divided into four parts:

  • Planning: Achieve set goals and design activities to achieve them.
  • Organization: Establishes relationships between parts of a company and people.
  • Direction: Leadership role for staff, aimed at achieving higher performance.
  • Control: Compares the results obtained with those set.

Decision-Making in Business

Decision-making in business is the choice of a strategy or method of action given various alternatives.

Decision-Making Process

  • A goal is set.
  • Information is gathered and forecasts are prepared.
  • Alternatives are established.
  • Alternatives must be evaluated.
  • One alternative is selected.
  • The selected alternative is executed.
  • The process is controlled.

Planning and Control

Planning Function

If the planning function is not clear about where we want to advance, progress is impossible. With business plans, everything is organized.

Types of Plans

Plans are ranked according to the time horizon:

  • Long-term plans (3 to 5 years): Also called strategic plans.
  • Short-term plans.

From these two types are derived: strategic planning and tactical or operational planning.

Elements of Plans

  • Objectives: Called goals, results to be achieved.
  • Policies: Generally serve to guide the development of the company.
  • Procedures: Sequence of steps to undertake a certain action.
  • Rules: Specify how things have to be done at specific times.
  • Budget: Quantitative expression of a plan.

The Function of Control

Control Process Phases

  • Benchmarks: Parameters showing the desired result.
  • Measurement and comparison.
  • Correction: When it is below standard, take action.

Control Techniques

  • Observation: Verify personally the development of the plan.
  • Audit: Used for accounting and financial planning.
  • Budgetary Control.
  • Analytical techniques and graphics: Neutral or ratios.

The Role of Direction: Directive Level

This function relates to management. It is about managing the company’s staff to get them involved and achieve their business objectives. People who develop the leadership role are known as positions.

Levels of Management

  • Senior Management: Includes the president, general management, or business management. They make important decisions.
  • Intermediate Management: Fundamental mission within the company, acts as a liaison between senior management and first-line management. They serve as a transmission of orders.
  • Operational Management: Last command level. They are in contact with the workforce. They have many people under their influence and should therefore exercise authority.

Leadership

Leadership Concept

A set of features, innate, learned, or acquired, that influence others in order to route a group to meet its objectives. Several conclusions can be drawn from this:

  • The concept of a leader is not unique to the company.
  • Sometimes leadership is taken as a charge (formal leadership).
  • Some influence others through their personal characteristics.
  • There can be a combination of both types of leadership.
  • Is a leader born or made?
  • Leadership is about meeting mission objectives.
  • It is related to two other concepts (authority and power).

Models of Leadership Styles

There are three main models of leadership styles: autocratic, democratic, and laissez-faire.

Theory X and Theory Y (McGregor Theory)

Conceived by an American, this theory examines two types of leaders.

  • Theory X: Leaders who believe that people work out of necessity and intend to do as little as possible. This is an autocratic type.
  • Theory Y: As opposed to the previous, this is a democratic type.

Behavioral Grid

This model, from 1964, presents two dimensions in behavior: concern for people and concern for tasks.

  • High interest in people and low interest in tasks (social club leadership).
  • Low interest in people and high interest in tasks (task-oriented leadership).
  • High interest in people and tasks (team leadership).
  • Low interest in people and tasks (depleted leadership).
  • Average interest in people and tasks (midpoint leadership).