Sunday, February 16, 2014

business administration

The administration of a business includes the performance or management of business operations and decision making as well as the efficient organization of people and other resources to direct activities toward common goals and objectives.
The word is derived from the Middle English word business administration ', which came from the French administration, itself derived from the Latin administratio — a compounding of ad ("to") and ministrare ("give service").
Administrator is occasionally the title of the general manager or company secretary who reports to a corporate board of directors. This usage is archaic. In general, administration refers to the broader management function, including the associated finance, personnel and MIS services and people.
In some organizational analyses, management is viewed as a subset of administration, specifically associated with the technical and operational aspects of an organization, distinct from executive or strategic functions. Alternatively, administration can refer to the bureaucratic or operational performance of routine office tasks, usually internally oriented and reactive rather than proactive. Administrators, broadly speaking, engage in a common set of functions to meet the organization's goals. These "functions" of the administrator were described by Henri Fayol as "the six elements of administration" (see below).
  • Planning – is deciding in advance what to do, how to do it, when to do it, and who should do it. It maps the path from where the organization is to where it wants to be. The planning function involves establishing goals and arranging them in a logical order. Administrators engage in both short-range and long-range planning.
  • Organizing – involves identifying responsibilities, grouping them into departments or divisions, and specifying organizational relationships.
  • Coordinating synchronizes the elements of the organization and must take into account delegation of authority and responsibility and span of control within units.
  • Directing (Commanding) – is leading people in a manner that achieves the goals of the organization. This requires proper allocation of resources and an effective support system. Directing requires exceptional interpersonal skills and the ability to motivate people. One of the crucial issues in directing is the correct balance between staff needs and production.
  • Review – is a monitoring function that evaluates quality in all areas and detects potential or actual deviations from the organization's plan, ensuring high-quality performance and satisfactory results while maintaining an orderly and problem-free environment. Controlling includes information management, measurement of performance, and institution of corrective actions.
  • Creating output - includes all of the processes that create the product that the business sells.
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