Key Business Processes and Leadership Strategies
Administrative Process
The administrative process is a fundamental process that every company should undertake to ensure competitiveness. It is divided into four major activities:
- Planning: Decision on the objectives, defining plans for achieving them, and scheduling of activities.
- Organization: Structuring resources and activities to achieve goals, defining roles and positions.
- Direction: Designation of roles to address the objectives.
- Control: Defining standards for measuring performance.
Planning as an Administrative Source
Planning sets the stage for other administrative functions. When done correctly, it creates a solid platform for organizing, directing, and controlling.
Entrepreneurship
Entrepreneurs are individuals who start up ventures that give life to new ideas for products or services. Their features include:
- Internal locus of control.
- High energy level.
- Great need for achievement.
- Tolerance for ambiguity.
- Confidence.
- Action-oriented.
The Organization as an Administrative Function
With organization, the implementation process begins, clearly defining positions and relationships.
What is Organizational Structure?
- It is the system of tasks, hierarchical relationships, and communication channels that link the work of all individuals and groups in the organization.
Formal Organization
A formal organization is any structured system, specifying tasks, responsibilities, rights, communication channels, procedures, etc.
- The informal structure of an organization is made up of the unofficial working relationships between its members.
Leadership
“Leadership is interpersonal influence exercised in a situation, directed through the process of human communication to achieve one or several specific objectives.” (Chiavenato)
Authority
Authority in an organization is the right inherent in a position (and therefore in the person who occupies it) to influence decisions that affect other people.
Conflict Resolution
What is a Conflict?
We can understand conflict as a risky situation for the company, in which two groups face discussions and differences of thought.
Negotiation
Negotiation is a dynamic communication process where two or more parties try to resolve their differences and interests directly.
Mediation
Mediation is a variant of the negotiation process, with the difference that it involves a third party called a mediator.
Settlement
Settlement involves the collaboration of a neutral and impartial third party who maintains some control over the process but delegates the solution to the parties involved.
Arbitration
Arbitration is a dispute settlement system in which the will of the parties submits to the will of a third party.
Neutral Evaluation
It is the act by which the parties attend a mediation center for a third party (neutral evaluator) to clarify a litigious situation and facilitate a settlement.
Leadership Approaches
- Trait Approach: Focuses on the leader’s personal characteristics.
- Behavioral Approach: Focuses on the leader’s behavior towards their followers.
- Contingency Approach: Focuses on the match between leader behavior and situational characteristics.
- Charisma Approach: Focuses on the visionary, inspiring, and authority-delegating qualities of “super leaders”.
Situational Leadership Model of Hersey-Blanchard
- It argues that successful leaders adapt their style depending on the readiness of their followers to work in a given situation.
Leadership and Participation Theory Vroom-Jago
This theory is designed to help leaders choose the best decision-making method for any problem situation: individual or authority decision, advisory decision, or consensus decision.
Leadership Theory Path to Target House
Robert House argues that an effective leader clearly explains to their followers the way to achieve goals related to the task and human relations.
Transformational Leadership
Describes the person who uses their charisma and qualities to bring out aspirations and carry people and organizational systems to new patterns of high performance.
Transactional Leadership
- A transactional leader fits tasks, rewards, and structures to help their followers meet their needs while working to achieve organizational objectives.
Control
- Setting standards
- Measuring Results
- Correction
- Feedback
Approaches
Classical Approach
Late 19th century, based on four principles: stability, perfect information, production efficiency, and overall cost.
- Verification and monitoring
- Reducing costs and increasing productivity
Modern Approach
From the 1980s, based on interaction with the environment, the client, and the strategic approach.
- Dynamic Analysis
- Creating new foundations for effective leadership, people, and resources