IMPORTANCE OF BUSINESS ADMINISTRATION: 10 REASONS - DUDAS - 2025

The importance of administration encompasses all relevant aspects of this process, which have a positive impact on the achievement of the organization's objectives. Therefore, the set of these factors will be key pieces for the taking of any decision of the working group.

It is essential that the company has clear and well-defined goals and purposes. These must be informed to the staff that makes it up, so that everyone can work in unison based on the consolidation of the proposed objectives.

The administration works to develop a systematized and structured process of planning, organization, execution and control of resources, in search of the growth and stability of the company.

The success of the administration lies in its being able to increase and maintain high levels of efficiency in each of the human, financial, material and technological elements that make up the company. This will be the basis for the organization to achieve the expected results.

Reasons for the importance of administration

Keeps finances at a level of excellence

In any company, money management is crucial. An excellent management of it will allow the organization to continue standing, moving forward. Otherwise it could disappear due to mismanagement.

The company is a dynamic entity, for which the administration needs to constantly evaluate the different scenarios, looking for successes or mistakes in the policies put into practice, not only to comply with them, but also to propose any possible modification to them.

In order to maximize benefits and minimize risks, expense controls are exercised and an accounting system is established to provide reliability to the data it projects.

Increase productivity

Identifying the weak and strong points of the process is vital for a company. The strengths found must be recognized and highlighted.

The errors of the process will receive a different treatment, since it is necessary to make planning in order to correct them.

Seeking efficiency in all processes will result in reducing the resources used and producing more in less time, which will guarantee better results.

Helps meet goals

There is nothing more important for an organization than to achieve the goals that it has set at all levels. The administration is one of the fundamental bastions for this to happen, for which it formulates a series of strategies harmoniously orchestrated with all departments.

The central idea is that everything revolves around the achievement of the objectives. This is why actions are taken to coordinate, direct and control resources, as well as to establish a solid organization, where the authority and responsibility relationships among the personnel are clear.

Strategies are evaluated throughout the process. It seeks to modify those that do not point to the consolidation of the organizational objective.

Generates satisfaction in customers and employees

The implementation of more efficient processes makes customers satisfied; This leads to closer commercial ties. For its part, the organization will better understand their needs and offer them better products and services.

In addition, as the tasks have been optimized internally, the employee's work becomes more effective and he feels more comfortable observing that he has less wear and tear in the fulfillment of his tasks.

Reduce waste

Waste within a company is extremely important. It would be a serious mistake not to consider the negative consequences that this brings.

Overproduction, the time lost between each process, excess inventory of a material, production defects and even the waste of human resources are examples of waste in a company.

All this does not add any value to the product, causing losses of all kinds to the organization. That is why the administration acts planning and controlling, to try to minimize the levels of waste. Once these are reduced, productivity will increase.

Adapt the organization to market demand

A company must survive in a changing environment. That is why the administration must keep up with external variations, in order to suggest actions that turn towards the growth and maintenance of the organization.

In addition, this open relationship with the different factors that make up the external environment provides a broad vision of situations, being able to predict future events and possible implications for the company.

Facilitates sustainable growth

The growth of a company is not the product of chance, it is the result of joint work between all the personnel that make it up and the effective execution of operational planning.

The administration works internally with motivation, teamwork and the search for personal success of the workers. All of these strategies promote a feeling of loyalty to the company. Therefore, supporting any growth initiative.

It also handles the external economic and social variables linked to the company, thus offering an essential global vision when deciding actions based on operational or financial growth.

Improve the corporate image

The organization needs to project itself, both internally and externally, with a strong and consolidated image.

The administration contributes directly to this, since by producing goods and services of excellent quality and creating a cordial environment with the internal and external public, it positively influences the projection of the company in the business and market areas.

By having an external identity congruent with the internal image, the company will have an excellent letter of introduction to competitors, customers and among the employees themselves.

Optimize the use of resources

The administration gives the company the opportunity to efficiently use the human resources and the technological and financial materials that comprise it. This translates into obtaining favorable results that will help to achieve the proposed goals.

This optimization offers the company different proposals, in which the possibility of saving on some resources or the need to work quickly on a critical point that is affecting its growth is contemplated.

The effective management of resources is the key to the growth and prosperity of an organization.

Reduce costs

One of the principles of management is to improve effectiveness. This translates directly into cost reduction, which is very important within any organization.

To achieve this, the administration uses as a strategy a successful combination between the different resources. In addition, it uses different processes and operational control strategies.

References

1. ABCM (2016). Learn the importance of administrative management to business. Taken from: myabcm.com.
2. Juneja Prachi (2018). Importance of Management. MSG. Taken from: managementstudyguide.com.
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4. Management innovations (2008). Define management & its functions. Taken from: managementinnovations.wordpress.com.
5. Samiksha (2018). Importance of Management to a Modern Business. Your article library. Taken from: yourarticlelibrary.com.