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Administration: Definitions, Types, and Functions

To begin, you must be familiar with the term administration. It is used in various fields because it relates to many other elements, such as management and leadership. Administration is crucial to achieving goals. In this article, we will discuss the meaning administration as well as its functions, types, and characteristics.

What is the Meaning of Administration?

The administration has an infinitive form to administer, which means to manage. It also derives from the Dutch language “administratie” which meaning ranges from administration to management of organizational activities.

Some experts provide definitions for the term. Theo Haimann, a management expert, defines it as overall determination of policies, setting of major objectives, identification of general purposes, and laying down of broad programs and projects. Another management expert, William Newman, said that administration is the guidance, leadership, and control of the efforts of the groups towards some common goals.

We can conclude that administration is activities carried out by two or more people, including archiving, policy determination, and program and project planning, to achieve certain goals and objectives.

Functions of Administration

The following are some of the functions that are closely related to administration:

1. Planning

Before starting a project, you must make a plan. The things you need to determine include what to do, how to do it, when to do it and who should do it. In planning, you must establish goals and arrange them in logical order. Plans are useful for mapping the path from where your company stands to where you want it to be in the future.

2. Organizing

This function involves task division, grouping responsibilities into departments, specifying organizational relationships, and staffing (recruitment of workers to fulfill certain positions). The goal is to achieve coordinated efforts among all elements within the company. Organization must take into account delegation of authority and responsibility and span of control within supervisory units.

3. Managing resources

Sufficient resources must always be available for the plan to work properly. Resources include labor, capital, facilities, and others. Here’s a curated list of resource management best practices to consider:

  • Understand which resources are in short supply and focus on them
  • Agree on a common approach to prioritizing work across shared resources
  • Embrace different ways of working across the organization and resources
  • Realize resource management is an ongoing process, conflicts will occur, and changes are inevitable
  • Manage resource assignments and apply assignment types that align to your business needs
  • Account for non-project time
  • Avoid or limit multitasking
  • Use Procurement Software to help you prepare resources and get the best deals

4. Directing

Employees must receive guidance towards a common goal. In this case, you must allocate resources appropriately and provide effective support. Directing requires good interpersonal skills and the ability to motivate people. One of the most important things in directing is finding the right balance between emphasis on staff needs and emphasis on economic production.

5. Controlling

Control is the evaluation of quality in all areas and the detection of possible or actual deviations from the plan. This ensures high-quality performance in order to deliver satisfactory results while maintaining an orderly and trouble-free environment.

6. Budgeting

Budgeting is a process of looking at a business’ estimated incomes (the money that comes into the business from selling products and services) and expenditures (the money that goes out from paying expenses and bills) over a specific period in the future. So, it allows a business to see if they will be able to continue operating at their expected level with these projected incomes and expenditures. To stay within your budget, you can use HashMicro’s Accounting Software.

Related article: Company Organizational Structure: Key Success Factor

Definition, Types, and Functions of Administration
Source: Pexels

Types of Administration

There are numerous types, however, they can be largely classified into two categories:

1. Public administration

Dimock, a Professor of Public Administration at the Department of Government at New York University, said that public administration is the fulfillment or enforcement of public policy as declared by the competent authorities. Certainly, it deals with the problems and powers of the organization and techniques of management involved in carrying out the laws and policies formulated by the policy-making agencies of government. Public administration is the law in action. It is the executive side of a government.

2. Business administration

According to Wikipedia, business administration is the administration of a commercial enterprise. It 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 towards common goals and objectives.

Characteristics of administration

The five characteristics of administration are as follows:

  • Consists of a group of people. As stated earlier, the administration is the work of two or more people. The entire process is vast and complex, so it’s difficult to complete on your own. Therefore, administration must consist of a group of people who have a common goal.
  • Collaborative work. Administration is an activity that certainly involves a lot of tasks. However, with good cooperation, all work will feel lighter and be completed quickly.
  • Have clear goals. Activities that are carried out without a defined goal are a waste of time. Thus, you must set goals that are realistic, strong, and flexible.
  • Make things happen. Once a goal is set, you must put in the effort to achieve it. These efforts can be in the form of developing more detailed strategies, delegating duties, creating timelines, and others.
  • Guidance, leadership, and supervision. There needs to be a leader for work to be effective. A leader’s job is to provide clear direction toward a common goal. They must also supervise all activities to ensure that they go according to the plan.

Also read: Leadership Is a Skill that You Must Have!

Conclusion

In short, administration is critical in carrying out tasks in order to attain the objectives. One type is business administration, which is the management of the company to obtain the maximum profit. Therefore, it is one of the fundamental concepts that every business must follow. To simplify this process, you can use ERP Software from HashMicro which can be customized according to your business needs. Our ERP software is integrated with various modules, such as accounting, sales, and inventory, so administrative processes involving many fields will be more efficient.

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Viandita Shaquina Arlan
A learner who is passionate about exploring new things and meeting new people. Currently working as Junior Content Writer at HashMicro.

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