Planning, organization, direction and control (Administrative process)

An administrative process is known as the set of stages that include planning, organization, direction and control of a company or organization, in order to achieve the proposed objectives or goals and be as efficient as possible.

Below we will detail what the administrative process consists of and each of its stages.

What is the administrative process?

An administrative process is a set of acts that follow certain rules, policies and activities established in an organization or a company. The main objective is to achieve maximum efficiency , consistency and accountability of both its human, technical and material resources.

This process is generated as an interaction of the planning, organization, direction and control stages , established to achieve maximum efficiency in the use of the organization’s resources. In turn, each of these activities is based on certain business rules that must be respected.

Through this process, organizations will be able to achieve their goals and objectives to satisfy both their profit and social needs. The work of managers and administrators is very important and their performance is measured according to compliance with this administrative process.

The creator of this famous process was Henri Fayol and it is from him that the four stages that compose it arise . They are: Planning, organization, direction and control. The process was created by Fayol in 1916 after serving more than 50 years as a manager of a mining company. It is here that he publishes his first book called “Administration Industrielle et Générale”, translated into Spanish would be something similar to “Industrial and General Administration”. In it, he published his experience and his theory, highlighting the different levels of management, administrative functions and the principles to achieve a correct administration.

Fayol establishes the four stages that he considered essential for good managerial management: planning, organization, direction and control

Importance of the administrative process

The administrative process is of vital importance since it resides in the forecast of future events and the correct control of the organization’s resources in an orderly manner. In order to apply a good process, it is essential that the rules, policies and activities established for each process are applied effectively and in line with the goals and objectives of the company or organization, in order to achieve in this way an efficiency of the system and with it profitability and economic benefits.

Stages of the administrative process

As we detailed, the administrative process is made up of different stages which are known as PODC (the abbreviations of planning, organization, direction and control). These stages are consistent and are repeated with each of the objectives that have been determined by the company or the organization.

These stages are usually classified into two phases , which are:

– Mechanical phase : includes planning (What should be done?) And organization (How should it be done?). During this phase, it details what will be done and the structure to do it is established.

– Dynamic phase: Includes direction (How is it being done? And control (How was it done?). During this phase, how the organism that was structured in the previous stage was managed is verified and analyzed.

Below we will detail each of these stages of the process:

1. Planning

The first stage of this process is planning . It consists of knowing in advance what is going to be done, what direction to follow, what are the goals or objectives to be achieved, and who, when and how they will do it.

Within the administrative process, planning is the fundamental strategic tool to achieve the goals proposed in the development of the project. In this phase, the structure of the different bodies and positions that will make up the company is organized in order to manage and control activities in a more efficient way. In this way, by adapting the means and resources available to the company or organization, the objectives can be achieved.

During this stage it is essential to be able to distinguish between objectives and goals , since both have different functionality. The objectives will refer to the necessary stages during the journey to achieve in this way to achieve the goals that have been defined. Therefore, we can define the planning stage as a guide to determine the moment in which the company or organization is located and where it wants to take it.

Some of the tasks or steps in this stage are:

-Carry out an internal and environmental investigation (during this task, tools such as Porter’s five forces and SWOT analysis may be used)

-Statement of purposes, strategies and policies.

-Establishment of the actions to be carried out in the short, medium and long term.

-Predefinition of the objectives and goals to be achieved during a certain time.

-Implement a strategy with adequate methods and techniques to carry it out.

-Anticipate and plot against possible future problems.

-Clarify, expand and determine the objectives.

-Implement what the working conditions will be.

-Select and state the tasks to be carried out in order to meet the objectives.

-Construct a general plan of achievements emphasizing new ways of performing work.

-Establish performance policies, methods and procedures.

-Modify the plans based on the results of the control.

Those who study the subject agree that planning includes organizational goals, the development of a general strategy to achieve the goals and the achievement of priority plans to coordinate all activities.

The planning function must be exercised by the administrative body of the company or organization and they are the ones who will establish the objectives, goals and methods to be applied.

2. Organization

The second stage of the administrative process is the organization phase . Here are the set of rules that must be respected within the company by all who work there. The main objective of this stage is coordination.

Once the planning stage is concluded, what follows is to be able to distribute and assign the different activities to the work groups that make up the organization or company, thus achieving the correct use of resources to build a relationship between the staff and the work to be done.

The organization is to be able to use the work in order to achieve the established goals, including the tasks to be carried out, organize who will do them, where decisions will be made, among others. With the organization, it is possible to know what must be done to achieve the planned purpose, coordinating the activities and assigning the necessary resources. The main objective of this stage is to detail the purpose assigned for each activity to ensure that it is fulfilled with the minimum possible expense and with the maximum satisfaction.

Some of the most important activities of this stage are:

-Make a detailed selection of each worker for the different positions and tasks established.

-Subdivide tasks into operational units.

-Elect an administrative authority for each of the sectors.

-Provide materials and resources to each sector.

-Concentrate operational obligations on jobs by department.

-Keep the job requirements well established.

-Provide personal facilities and other resources.

-Adjust the organization based on the results of the control.

When organizing the production system, it must be known that it can be divided into two main stages. A first is the one that is done when creating a company or when expanding a business, where the work must be divided. In this way, those responsible for human resources must delimit the activities and divide the personnel based on their specialization and organize the company with hierarchies and departments.

The second stage occurs after the division of labor, and is coordination. Here, efforts should be unified to achieve the objectives and goals of the company. It is known as the development stage and is very useful for increasing productivity and improving organizational structures.

3. Address

The third stage of the process is that of direction . Within it, the execution of plans, communication, motivation and supervision necessary to achieve the objectives of the company are carried out. During this stage, the presence of a manager who has the capacity to make decisions, help, direct and collaborate with the different work areas is fundamental .

Among the main tasks that management must perform we find:

-Motivate staff.

-Exercise influence over workers to do their best.

-Train and develop workers to make them use their full physical and intellectual potential.

-Satisfy the different needs of employees by recognizing their effort at work.

-Adjust management and execution efforts based on the results of the control.

-Rewarding employees with the salary according to their functions and objectives achieved.

-Consider and respect the needs of the worker.

-To achieve good communication between the different labor sectors.

-Allow and encourage participation in the decision-making process.

-Execute the plans as established in the planning and organization phases.

-Guide the conduct and efforts of each member of the work team.

-Direct the actions of the work team respecting the established plan.

-Keep the team focused on the goals of the organization

-Delegate activities to other workers, facilitating the resources that are needed and ensuring the effectiveness of their use.

The managers will be the main ones in charge of motivating the work teams, coordinating them and helping with what each worker needs. Over time, the forms of leadership have evolved, today there are more empathic leaderships and with more human knowledge.

4. Control

The last and fourth stage is that of control. In it, an evaluation of the general development of the company or organization is carried out, to guarantee if the path leads them to the achievement of the objectives and goals set. This task must be carried out wth great transparency and professionalism.

This stage consists of controlling and analyzing the activities carried out, to verify the results and analyze if modifications and corrections are necessary to better achieve the goal. Here the results obtained are measured and compared with those planned in order to improve more and more. It is considered a stage focused on correcting possible deviations in relation to the objectives set and established.

Among the main activities of this stage we can find:

-Monitoring, evaluation and analysis of the results obtained.

-Analyze the results obtained against performance standards.

-Compare the results obtained with the planned objectives.

-Define and initiate corrective actions to correct deviations.

-Establish effective means to measure operability.

-Communicate and participate to all workers regarding the means of measurement.

-Communicate detailed information showing the variations and comparisons made.

-Suggest different corrective actions when deemed necessary.

As we mentioned, this control stage is the last of the administrative process and its main purpose is to evaluate and analyze if the objectives and goals established during the planning stages have been adequate or if it is necessary to manage changes that can get closer to the results established and expected.

Administrative process benefits

Several benefits arising from applying the administrative process have been analyzed and established , and they are the following:

-It is a great practical and methodological guide for business administration.

-Allows to systematize and control continuous operations.

-Establishing the bases for structuring, that is, better organizing work, dividing it into departments and hierarchies according to the needs and resources of the companies.

-Allows the establishment of a system for selecting individuals based on the needs of the company.

-Facilitates the development of skills and job skills.

-It facilitates the direction, by providing strategy and control to those who drive it.

-Allows the analysis of problems to find their solution.

-Gives the fundamental bases to apply the scientific method necessary to achieve the improvement of the company or in such case its rethinking.

-It is a very important instrument for the reorganization of the company.