The importance of management in the

company
Julio César Méndez Rosey

Agustin Reyes Ponce.

"The administration is the systematic set of rules to ensure maximum efficiency in

the ways to structure and manage a social organism."

José Antonio Fernández Arenas.

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"Social Science which seeks the satisfaction of institutional objectives by means of

a mechanism of operation and through human effort."

Heinz Weihrich and Harold Koontz.

"The administration is the process of designing and maintaining an environment in

which, working in groups, individuals meet efficiently specific objectives".

George R. Terry.

"The administration is a very particular process consisting in the activities of

planning, organization, execution and control, performed to determine and achieve
the objectives with the use of human and other resources."

On the basis of the concepts set out by the authors, we can conclude that:

The administration is an efficient process to achieve the objectives of the

Organization, through the coordination of all the resources and with the
collaboration of the human factor.

2. Features

The administration is based on the following characteristics, according to Reyes

Ponce and Hugo Rojas and Aguilar :

1. Its universality.

The administration is given in all types of organizations, whether state, army,

businesses, churches, family, etc.
2. Its specificity.

The administration has its own characteristics that are unmistakable with other
sciences, although assisted them.

3. Your temporary drive.

In the administration, are always giving all or some parts of the administrative
process.

4. Its hierarchical unit.

Always respected authority levels that are established within the organization.

5. Instrumental value.

The administration is a means to an end, since its purpose is eminently practical

and through this seeks to obtain certain results.

6. Flexibility.

The administration is adapted to the particular needs of each organization.

7. Breadth of exercise.

This applies at all levels of an organization.

3. Importance

In accordance with Agustin Reyes Ponce and Joaquin Rodriguez Valencia , the
importance of the administration is based on the following points:

1. The administration is given wherever it exists an organization.

2. The success of a company or social organism, is due to good management.
3. For large companies, scientific management is essential.
4. For small and medium-sized companies, the most appropriate way to
compete with other is the improvement of its administration, in other words,
having a better coordination of their resources including the human.
5. To achieve an increase in productivity will depend on a proper
administration.
6. For organizations that are in the process of development, the main element
to develop their productivity and competitiveness with other is to improve the
quality in its administration.

4. Principles of Management
The Free Encyclopedia Salvat tells us that a principle is:

"Any of the first proposals or truths where do you start to study, and are the
rudiments and as the foundations of them."

For nearly all of the classic authors of the administration, define the principles:

"How rules or "laws" capable of solving the problems of a social organism."

Therefore, we can say that the principles of management are:

Primary truths that serve as a guide to solving problems within the organization.

In the year of 1911, Frederick W. Taylor published his work "The

principles of Sicentific Management.", and establishes four basic principles of
scientific management that are the following:

1. Principle of planning.

In which prevents the worker improvise their work

2. Principle of preparation.

At this point is achieved that the employee obtains a training to develop their work
and, therefore, improves your productivity.

3. Principle of Control.

It oversees the worker to perform their jobs properly

4. Principle of implementation.

It distributes the responsibility in the work of work.

Taylor began to create the principles according to observations made at that time,
thinking about getting the best productivity on the basis of times and movements.

In France, Henri Fayol published his book called "Administration Industrielle et

Générale" in the year of 1916, where they appear for the first time the principles of
the administration, which are the following:

1. Division of labor.

This principle refers to the way to specialize the functions of the members of the
organization
2. Authority and responsibility.

Fayol considers related authority and responsibility, pointing out that there cannot
be one without the other and vice versa.

3. Discipline.

The members of the organization must conform to the established rules.

4. Control Unit.

This means that every employee should receive orders only of a boss.

5. Steering unit.

The goals and plans of the organization must be guided and coordinated by a
single head.

6. Subordination of individual interest to the general interest.

This tells us that the interests of the organization must be met before personal
interests.

7. Remuneration of staff.

The members of the organization must receive a fair pay according to the work
carried out within this.

8. Centralization.

The authority should be concentrated or dispersed in the organization, according to

the circumstances that determine the best final results to the same.

9. Line of Authority.

The members of each organization are governed by a string that starts with the
highest step down to the lowest.

10. Order

This point for the organization, can be defined as "every thing in its place and a
place for everything"

11. Equity.
Persons engaged in the administration must have the loyalty and devotion of the
personnel working within the organization, through justice and courtesy in the
treatment.

12. Stability in the job.

This principle shows us that the constant rotation of staff is a sign of a bad
administration, therefore, must be avoided.

13. Initiative.

This point invites us to create and execute a plan and at the same time, tells us
that we must encourage and promote creativity within the workers of the
organization.

14. Team spirit.

This principle shows us the importance of creating working groups to improve the
work environment that help us to increase the productivity and greater participation
of the employees.

Henri Fayol, I believe the principles on the basis of the observation, concepts and
ideas already made, and set them up to our days.

5. The Administrative Process

Lourdes Munch Galindo.

"A process is the set of steps or stages necessary to carry out an activity."

"The set of successive phases or stages through which the administration,

they are interrelated and form an integral process."

Agustin Reyes Ponce.

"All administrative process, is unique, form a continuous inseparable in which each

part, each act, each stage, have to be inextricably linked with each other, and that,
in addition, are yours at the same time."

The administrative process in its simplest concept is "in action". The administration
includes a number of functions or steps needed to know to apply to any structure,
the whole of the stages are known with the name of the administrative process.
The separation of elements used with methodological and analytical purposes,
since the stages are interrelated and are given as an integral process.

We came to the conclusion that a process is:

 The set of stages or steps for the realization of any administrative task.

Lyndall Urwick makes a fundamental separation in the administrative process,

calling them, phase mechanical and dynamic phase.

1. Mechanical phase.

This is the theoretical part of the administration or the structural part of the same
and has a projection toward the future.

2. Dynamic phase.

With regard to the operational part, is responsible to see that the activities and
review how to have been carried out within the organization.

The next step is to identify, within each phase, the elements or sectors that
correspond to each of them.

Henri Fayol tells us that the elements of the administration are the stages or steps
through which the administrative process.

Within the administration, the main exponents have different criteria in the
elements or factors that make up the administrative process; among them, we find
Henri Fayol, Lyndall Urwick, Koontz and O'Donnell, George R. Terry, Agustin
Reyes Ponce, José Antonio Fernández Sand and Isaac Guzman Valdivia. (Table
1)

Elements or factors of the administrative process. Fernández, Sand, José Antonio;

"The Administrative Process"; Editorial Diana; Mexico; 1991; p. 75.

(Table 1)

Author Year Elements or factors

HENRY FAYOL 1886 Forecast Organization Command Control

coordination

LYNDALL 1943 Previsionplaneacion Organization Command Control

URWICK coordination

KOONTZ AND 1955 Planning Organization Integration Address Control

O'DONNELL

GEORGE R. 1956 Planning Organization Implementation Control

TERRY
AGUSTIN 1960 Previsionplaneacion Organization Integration Address Control
REYES PONCE

ISAAC 1961 Planning Organization Integration Address Control

GUZMAN V.

J, ANTONIO 1965 Planning Decision motivation implementation Control

FERNÁNDEZ A. communication

The majority of the organizations manage an administrative process of four

elements, since they are the most widely used and accepted in almost all over the
world. For the administration in Mexico, its principal exponent is Agustin Reyes
Ponce, which proposes six elements of the administrative process, based on what
has been proposed by Terry and Koontz and O'Donnell, where only the planning
breaks down into two parts and explains in detail the steps to be taken within the
administration without being too practical or exaggerated in the factors, and
therefore, we will rely on them. (Table 2)

Administrative Process

Phases Elements Stages

1. Forecast Alternative ObjetivosInvestigacionesCursos

A. Mechanical 2. Planning PoliticasProcedimientosProgramas. Budget forecasts.

3. Organization FuncionesJerarquiasObligaciones

4. Integration SeleccionIntroduccionDesarrolloIntegracion of things

B. Dynamic 5. Address AutoridadComunicacionSupervision

6. Control Your establecimientoSu operacionSu interpretation

Agustin Reyes Ponce regarded as the essential first step of your process the
division made by Lyndall Urwick, which is the stage mechanical and dynamic
phase, then, relates the elements with assigned questions in each and are
answered at the time of your application:

Forecast: answer the question What can be done?

Planning: answer the question what are you going to do?

Organization: an answer to the question "How are you going to do?

Integration: An Answer to the question what are you going to do?

Address: responds to the problem should be seen to be done correctly.

Control: An answer to the question as has been done?

The elements of the mechanical phase are:

1. Forecast.

Consists of determining what you want to achieve by means of an organization,

and the investigation and assessment of what will be the future conditions that will
have to be found, to determine the various possible courses of action.

Is comprised of three stages:

(A) Objectives.

Secure the ends.

(B) Research.

Refers to the analysis and discovery of resources that can be counted.

(C) Alternative Courses.

Refers to the general adaptation of means, for the purposes intended, to see how
many different probabilities of action exist.

2. Planning.

Planning is the determination of the concrete path of action to be followed, setting

out the principles that are to preside and guide, the sequel of operations required
to attain it, and the fixing of times, units, etc., necessary for its realization.

The plan comprises three stages:

(A) POLICIES.

Ways to guide action.

(B) procedures.

Sequences of operations or methods.

(C) Programs.
Fixing times required. At this point, it also includes budgets, which is defined as
programs in required units, costs, etc. and different forecasts that are defined as
future visions.

3. Organization.

With regard to the structuring technique of relations, which must occur between the
hierarchies, roles and individual obligations in a social organism to improve
efficiency.

It consists of three stages:

A) hierarchies.

Establish the authority and accountability that will correspond to each level.

(B) functions.

The determination of how they should divide the large specialized activities,
necessary to achieve the common goal.

C) Obligations.

The specific for each unit of work suitable to be carried out by a person.

The elements of the dynamic phase are:

4. Integration.

It consists of procedures to provide the Organization with all the resources that the
mechanical phase identifies as necessary for its effective functioning,
escogiendolos, introducing them, intertwining them and looking your best.

The integration covers:

(A) Selection.

Techniques for finding and choosing the necessary elements.

(B) The introduction.

The best way to ensure that the new elements come together as best and as
quickly as possible within the organization.

(C) Development.
Each member of each organization seeks and needs to progress and improve.

5. Direction.

Is to promote, coordinate and monitor the actions of each individual and group in
an organization, so that the set of all of them make the most efficient plans.

The address is in three stages:

A) Remote control or authority.

Discusses how to delegate it and how ejercela.

B) Communication.

It is the process by which transmits and receives information, this being the
nervous system, leading to the center director all the elements that must be known,
and this, to every organ and cell, the orders of action, properly coordinated.

C) Monitoring.

The last steering function is to see if things are doing as they had planned and
commanded.

6. Control

It consists in the establishment of systems or methods that allow us to measure the

results of current and past in relation to the expected outcomes, in order to know if
it has been obtained what was expected, correcting, improving and make new
plans.

Comprises three stages:

(A) Establishment of standards.

Because without them it is not possible to make the comparison.

(B) Operation of controls.

This is usually a function of the technical specialists in each of them.

C) Interpretation of the results.

This is the function that returns to constitute a means of planning.

6. Concept of the company.

José Antonio Fernández Arena.

"It is the productive unit or services; acting as legal or practical aspects, composed
of resources; and supported in the administration to achieve its objectives."

Lourdes Munch Galindo.

"Social Group in which, through the administration of capital and labor, produce
goods and/or services designed to meet the needs of the community."

We can conclude as follows:

The company is a member set designed to meet the needs of a community through
a service or a well, through the administration and the integration of resources.

7. Difference between a private and a public company

According to Lourdes Munch Galindo and Agustin Reyes Ponce , companies are
divided into two classes, public and private.

(A) The private company.

In this endeavor the capital belongs to a group of investors, which has the purpose
of obtaining economic benefit through the satisfaction of a need

(B) The public company.

In this type of companies the capital belongs to the State, and its purpose is to
meet the needs of a social nature, and may or may not obtain an economic benefit.

8. Classification of the companies.

At present, there are different criteria for the classification of the company, then we
will present two types of them based in Lourdes Munch Galindo , because none is
accurate because they vary according to the characteristics of each company.

Activity or money.

Companies can be sorted according to the activity that they develop, and are
classified as:

1. Industrial.

The main activity of this shift is the production of goods through the processing
and/or extraction of raw materials. Industries have the following classification.
A) Extractive Industries.

Are those that are dedicated to the exploitation of natural resources, renewable or
non-natural resources, understood as all the things of nature which are necessary
for the subsistence of the human being.

B) Manufacturing.

Are companies that transform raw materials into finished product. Are divided into
two types:

 Enterprises that produce goods for final consumption.

 Enterprises that produce goods of production.

(C) Agricultural.

Its function is the exploitation of agriculture and animal husbandry.

2. Commercial.

These companies are dedicated to the purchase and sale of finished products, is to
be considered as intermediaries between the producer and the consumer. These
are classified as:

A) Wholesalers.

When conducting large-scale sales to other companies (retailers), which in turn

distribute the product to the consumer directly.

B) retailers or retailers.

The companies that sell products to the "retail", or in small quantities, to the
consumer.

(C) export agents.

Are involved in selling goods that the producers give appropriation of this function,
to receive a commission.

3. Service.

Are companies that provide a service to the community and non-profit purposes.
Are classified as:

(A) Transport.
 B) Tourism.

(C) financial institutions.

D) Professional Services.

 Advertising Agencies.
 Various services accounting, legal, administrative.
 Promotion and sales.

(E) Education.

F) Medical Services.

(G) Recreational Services.

Magnitude of the company.

According to the Official Gazette of the Federation published on 30 March 1999, is

classified as follows:

SECTOR

Size Classification BY NUMBER OF EMPLOYEES

Industry Trade Services

MICRO 0-30 0-5 0-20

Small 31-100 6-20 21-50

Medium 101-500 21-100 51-100

Large 501- in forward 101- in forward 101- in forward

Also in the Official Gazette of the Federation published the day 3 December 1993
according to the Program for the Integral Development of the Small and Medium
Industry, classified to the companies in accordance with the annual sales obtained:

Size of the company. Annual sales.

MICRO Up to 900.000

Small Up to 9,000,000
Medium Up to 20,000,000

Large More than 20,000,000

According to the dimensions of each company, José Antonio Fernández Sand

concludes that:

A micro enterprise is one that is formed by a family workshop or artisanal in nature,

giving an emphasis on the services.

A small business with a modest initiative and with a survival of fragile.

A medium-sized company has a more solid effort, with differentiated products or

services and with a prestige and quality.

A large company has leaders in their fields of activity with products and services to
international levels.

Other classification criteria.

According to Lourdes Munch Galindo , there are other criteria for classifying
companies, the most important are listed below:

1. Criterion of legal constitution.

This classification is based on the legal regime of the establishment of a company,

it can be: Sociedad Anónima (S. A.), Sociedad Anónima de Capital Variable (S. A.
de C. V.), Cooperative Society (S. C.), Limited Liability Company (S. R. L.), etc.

1. National financial criteria.

For this institution, the classification is done according to the relative importance of
each company in turn.

2. Criterion of production.

This criterion ranks companies according to the degree of mechanization of each

organization.

10. Objectives of the company.

According to José Antonio Fernández , each company creates its own objectives
according to the needs that each one has, but states that there are three general
categories of objectives, these are the objectives of service, social objectives and
economic objectives.
Service Target.

At this point, objective is divided in three:

1. Scope of the service target.

The companies seek to meet the needs of the consumer, by means of your product
or service.

2. Consumer demands.

The companies offering a product or a service, and this is of poor quality or in its
defect, does not meet the needs of the client, it tends to fail unlike the companies
offering a product or service that meets with the expectations of the customer.

3. Demands of users.

According to the needs of customers companies are looking to satisfy them, as a

result, there is a greater competitiveness among them, to offer the best services
and, at the same time, customers are looking for the best satisfaction of their
needs, becoming more demanding in the search for the same.

Social objective.

This objective consists of four parts:

1. Scope of the social objective.

This objective is based on the needs of the company, the official authority and the
community.

2. Demands of the government.

This point is based on the timely comply with their tax obligations to contribute to
the development of the country.

3. Demands of the partners.

The company must seek the satisfaction of the members who work within it, this
satisfaction is not only economic but also must provide training to each of its
members.

4. Demands of the community.

The needs of the community must be respected by the company, establishing the
proper use of the occupied territory within the same, reducing the noise of its
machinery, the low emission of gases that contaminate the environment, etc.

Economic objective.

The latter , is divided into four:

1. Scope of the economic objective.

Companies aim to obtain utilities, by means of a service or product given to the

consumer.

2. Demands of the institution.

Organizations must be prepared for any situation that is presented to them.

3. Demands of the creditors.

The creditors have the need to charge in the time established by providing a
service or product.

4. Demands of shareholders.

The shareholders receive dividend per the investment made in the organization,
but at the same time, have an obligation to create new companies.

10. Elements of the company

According to Lourdes Munch Galindo , the elements are also called resources,
these are essential for reaching the objectives set out in the company because
they must contribute adequately to the functioning of the organization.

Are classified as:

1. Material resources.

Are all of the Company's tangible assets, such as buildings, land, machinery,
equipment, tools, etc.

2. Technical resources.

Are the instruments that are used in the coordination of other resources, such as:
production systems, systems, systems of finance, etc.

3. Human resources.
This resource is the most important thing for any organization, as it depends on the
proper functioning of the other resource and have the characteristic that they can
be creative, contribute ideas, to improve the development of the company.

4. Financial resources.

Are the monetary items that the company, whether their own or others, within their
own financial resources we find: cash, contributions of investors and utilities.

While, on the part of the financial resources outside we find: loans from creditors
and suppliers, bank loans, private loans, etc.

All resources are important within the company, as it must be handled properly to
achieve the proposed objectives from the start of the same, as a result, better
productivity and success of the company.

11. Functional areas of the company

Lourdes Munch Galindo said that the functional areas are also known as areas of
responsibility, departments or divisions, these are divided into four primarily:
production, finance, marketing and human resources.

1. Production.

This department is considered one of the most important within the organization,
as it is responsible for developing the products through supply and coordinate the
labor, materials, tools required, production equipment and facilities.

2. Marketing.

The purpose of this area is to create a product or service through to investigate the
needs of the consumer to meet them, and at the same time, provide a good service
at the price more affordable to the consumer.

3. Finance.

This division is responsible for the collection of funds and the provision of capital
that is used for the operation of the company, seeking to have the economic
means to the satisfaction of each department or area and work properly.

4. Human resources.

This department has the purpose of finding and assigning to the person in the
appropriate place for performing efficiently, it is also responsible for creating
harmony in each of the departments and, in turn, create a team of work throughout
the organization on the basis of the objectives set out in the same.