ADMINISTRATIVE LEVEL: FUNCTIONS AND CONCEPTS - DUDAS - 2024

The administrative level is the administration of an organization. It includes all aspects of the supervision and review of business operations, as well as related areas, which include finance, accounting, marketing, and project management.

It includes the performance or management of business operations and decision-making, as well as the effective organization of people and other resources, to guide activities towards common objectives and goals.

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Administration generally refers to a broad management function, including financial services, personnel, and associated information systems.

Some analysts see the administrative level as a subset of management, specifically associated with the technical and operational aspects of an organization, and distinct from the executive or strategic functions.

In business, day-to-day operations are just as important as long-term plans for the future. The administrative level is also related to information technology, leadership dynamics and increasingly with ethics and international relations.

Administrator functions

Success in business today depends on much more than the ability to produce or sell products.

An administrator at the administrative level of modern business must also be proficient in financial management, business resources, accounting, human resources, purchasing, marketing, stock control, office organization and control, computerization, communications, and much more.

Many top business executives might start out by working at the administrative level of the office. Also in the management of human resources, distribution, operations or sales.

Chores

Executives and administrators work in all industries, from single-person businesses to companies with thousands of employees. The tasks corresponding to the administrative level are:

- Establish and carry out departmental or organizational objectives, policies, and procedures.

- Direct and supervise the financial and budgetary activities of an organization.

- Consult with other executives, members of the board of directors and staff about operations.

- Manage general activities related to the manufacture of products and the provision of services.

- Negotiate or approve contracts and agreements.

- Innovate by applying new technologies in the workplace.

- Appoint department heads and managers.

- Analyze financial statements, sales reports, as well as other performance indicators.

- Identify places to reduce costs and improve performance, policies and programs.

Some typical areas of work at the administrative level include general administration, as well as human resource management, office management, operations management, store management, and sales management.

Specialist versus generalist

The administrative level is designed to train new and future managers to successfully run business, thus providing the foundation for managing any successful company that involves business or management.

The administrative level and the managerial level have a lot of overlap in a company. Both levels cover marketing, accounting, finance, ethics and also business management.

Administrators and managers alike need to know the basics of how businesses work, how to manage money, and how to successfully market the company's products.

However, those who work at the administrative level are generally more specialized in their area of ​​responsibility. Possible majors include economics, computer science, management, and accounting.

It is recommended that leaders at the administrative level take additional courses such as communication, logistics, decision-making, and human resources. The goal is not so much to master a particular area, but to prepare yourself with general skills to manage people and projects.

Administrator vs. manager

In a small company with few staff the difference between these two levels may not matter much. However, in larger companies with a greater number of administrators and managers, the differences can begin to show.

At the administrative level, the job of an administrator is to keep the business, or a section of the business, running on a day-to-day basis.

For example, accounting managers keep the books balanced. Information technology managers keep computers running and hackers free.

Plant managers keep physical facilities running smoothly.

Managers work at a higher level. They deal with bigger issues, like expanding the business, acquiring or merging with another company, using new distribution channels, and diversifying into new products.

Managers set both goals and benchmarks for departments and projects. Managers put those goals into action.

Main concepts within the administrative level

The administrative level is extremely broad within a company, since each area that composes it needs to be administered.

Therefore, the main topics that an administrator must cover at the administrative level are the following:

Business environment

Public, private and commercial companies, sole proprietors, corporations, limited liability companies, board of directors.

Business objectives

Planning and forecasting in business, business plan, competition analysis, location, knowledge and market potential.

Start or take over a business

Factors to investigate and consider, research, competition, market potential, location factors, intangible assets. In addition, business organization, structure, expansion, delegation, reorganization.

Capital and business financing

Sources of capital, issuance of shares. Also income, expenses, production expenses, general expenses.

Importance of working capital, its components and management, cash flow and funds.

Budgeting

Budget control, limiting factors, sales, production and other secondary budgets, master budget. Also, pricing policy and factors that affect established prices.

Communications

Internal and external, vertical and horizontal, channels, effect on employees, communication with managers and also with clients.

Personnel management

Recruitment, job analysis, advertising, selection, induction, training, control, remuneration. Also motivation, human resources, discipline, advice, resignations, retirements.

Credit

Types and purpose, credit limits, credit control, bad debts, trade discounts.

Sales

Sales and marketing management, market research, advertising and sales promotion, pricing policy.

Stock control

Warehouse department, stock keeping costs, stock levels, stock records, inventory. Also buy, supplier selection, order, negotiate.

Production management

Market factors, technology and labor, production methods, factories, machinery and equipment, variable costs, standard costs, standard deviation.

Financial Accounting

Accounting records, accounting, manufacturing and marketing, profit and loss accounts, balance sheet, ratios and analysis.

Office management

Delegation of responsibilities, structure, statistical tables, control and standards, communication.

Computing

Computer programs and systems, security, office machinery and equipment, word processing.

Organization and control of the office

Design, data, records, the office environment, health and safety at work, plus organization and method studies.

References

1. Wikipedia, the free encyclopedia (2019). Business administration. Taken from: en.wikipedia.org.
2. All Business Schools (2019). Business Administration Job Description: Is This Career for You? Taken from: allbusinessschools.com.
3. Fraser Sherman (2019). What Is the Difference Between Business Administration & Business Management? Small Business-Chron. Taken from: smallbusiness.chron.com.
4. Cambridge International College (2019). Business Management & Administration. Taken from: cambridgecollege.co.uk.
5. Market Business News (2019). What is Business Administration? Definition and Meaning. Taken from: marketbusinessnews.com.