The main elements of administration are planning, organization, direction, coordination and control. These elements were developed in the 20th century by the French engineer and administrator Henri Fayol, forerunner of the theory of administration.
Company directors often use these principles in a comprehensive and integrated way. There are some criticisms against this system, but most modern business administration theorists confirm the importance and validity of this system.
The 5 basics of administration
1- Planning
Planning is the first step and also the most important, since improper or wrong planning can derail the project completely, or create inefficiencies so great that they cause failure in the long term.
A large portion of any business is dealing with the unknown. For example, it is not known which direction public tastes will take when a product is sold, or what will happen in the stock rate.
Planning activities is essential to give shape to projects and to control an environment full of random events and full of financial risks.
2- The organization
Like most components of administration, the organization element comprises several activities.
The main idea is to identify which are the elements that make up the company and create a structure based on these elements, arranged in such a way that the use of resources is optimized and the goals set by the administration can be met.
3- The address
Managers must know the strengths and weaknesses of their organization and the resources within the company.
Management requires this ability, since it is in charge of the appropriate allocation of available resources.
This category also includes the motivation of employees so that they can optimally fulfill the tasks they must fulfill.
4- Coordination
A company is a complicated system. Therefore, all its components must be coordinated so that they work together harmoniously.
This component also includes the delegation of tasks to the most skilled resources, in order to complete them effectively.
Communication is considered the central tool to be able to coordinate all parts of the company on time.
If the administrator cannot communicate with all the departments of the company, there will be many coordination problems.
5- Control
Control refers to keeping the company's activities in the direction of the goals that were defined in the planning section. This is why it is considered the last step in administration.
A good control will allow to identify imperfections through the analysis or evaluation of resources, and correct them as soon as possible.
References
- Jetley, V. (August 21, 2014). What are Henry Fayol's "Five Elements of Business Administration"? Recovered from bayt.com
- Chandra, D. (February 6, 2014). Henri Fayol - Elements of Management by Henri Fayol. Recovered from hubpages.com
- University of Minnesota Libraries. (2017). Principles of Management. Recovered from open.lib.umn.edu
- Samiksha, S. (2017). What is the Importance of Planning in Management? Recovered from yourarticlelibrary.com
- Lotich, P. (July 24, 2013). Types of Organizational Business Structures. Recovered from pingboard.com