In
businessA business is a legally recognized organization designed to provide goods and/or services to consumers. Businesses are predominant in capitalist economies, most being privately owned and formed to earn profit that will increase the wealth of its owners and grow the business itself...
,
administration consists of the performance or management of business operations and thus the making or implementing of major decisions. Administration can be defined as the universal process of organizing people and resources efficiently so as to direct activities toward common goals and objectives.
The word is derived from the Middle English word
, which is in turn derived from the
FrenchFrench is a Romance language globally spoken by about 65 million people as a first language , by 50 million as a second language, and by about another 200 million people as an acquired foreign language, with significant speakers in 57 countries. Most native speakers of the language live in France,...
, itself derived from the Latin
— a compounding of
("to") and
("give service").
Administrator can serve as the title of the general manager or company
secretaryA secretary is an administrative assistant in business office administration.The executive secretary has a myriad of administrative duties. Traditionally, these duties were mostly related to correspondence, such as the typing out of letters...
who reports to a corporate
board of directorsA board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. The body sometimes has a different name, such as board of trustees, board of governors, board of managers, or executive board...
.
In
businessA business is a legally recognized organization designed to provide goods and/or services to consumers. Businesses are predominant in capitalist economies, most being privately owned and formed to earn profit that will increase the wealth of its owners and grow the business itself...
,
administration consists of the performance or management of business operations and thus the making or implementing of major decisions. Administration can be defined as the universal process of organizing people and resources efficiently so as to direct activities toward common goals and objectives.
The word is derived from the Middle English word
, which is in turn derived from the
FrenchFrench is a Romance language globally spoken by about 65 million people as a first language , by 50 million as a second language, and by about another 200 million people as an acquired foreign language, with significant speakers in 57 countries. Most native speakers of the language live in France,...
, itself derived from the Latin
— a compounding of
("to") and
("give service").
Administrator can serve as the title of the general manager or company
secretaryA secretary is an administrative assistant in business office administration.The executive secretary has a myriad of administrative duties. Traditionally, these duties were mostly related to correspondence, such as the typing out of letters...
who reports to a corporate
board of directorsA board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. The body sometimes has a different name, such as board of trustees, board of governors, board of managers, or executive board...
. This title is
archaicIn language, an archaism is the use of a form of speech or writing that is no longer current. This can either be done deliberately or as part of a specific jargon or formula...
, but, in many enterprises, this function, together with its associated Finance, Personnel and management information systems services, is what is intended when the term "the administration" is used.
In some
organizationAn organization is a social arrangement which pursues collective goals, which controls its own performance, and which has a boundary separating it from its environment...
al analyses,
managementManagement in all business and human organization activity is simply the act of getting people together to accomplish desired goals and objectives. Management comprises planning, organizing, staffing, leading, directing, facilitating and controlling or manipulating an organization or effort for...
is viewed as a subset of administration, specifically associated with the technical and mundane elements within an organization's operation. It stands distinct from executive or strategic work.
In other organizational analyses, administration can refer to the
bureaucraticBureaucracy is the collective organizational structure, procedures, protocols, and set of regulations in place to manage activity, usually in large organizations and government...
or
operationalBusiness operations are those ongoing recurring activities involved in the running of a business for the purpose of producing value for the stakeholders. They are contrasted with project management, and consist of business processes....
performance of mundane
officeAn office is generally a room or other area in which people work, but may also denote a position within an organization with specific duties attached to it ; the latter is in fact an earlier usage, office as place originally referring to the location of one's duty...
tasks, usually internally oriented and reactive rather than proactive.
The world's first
business schoolA business school is a university-level institution that confers degrees in Business Administration. It teaches topics such as accounting, administration, finance, information systems, marketing, organizational behavior, public relations, strategy, human resource management, and quantitative...
, the Ecole Supérieure de Commerce de Paris, France, was established in 1819. The first business school in the United States, the Wharton School of the
University of PennsylvaniaThe University of Pennsylvania is a private research university located in Philadelphia, Pennsylvania, USA. Penn is the fourth-oldest institution of higher education in the United States, and is one of several institutions that claims to have been the first university in America...
, was founded in 1881. Anecdotically, top French business school
HECHEC could mean any one of the following:* Hautes Études Commerciales, French language business schools in Francophone countries* Hotel Ezra Cornell, Cornell Hotel School student-run Hospitality Leadership Conference...
was also created in 1881, while
Harvard Business SchoolHarvard Business School is a graduate business school in Boston, Massachusetts. The school offers a full-time MBA program, doctoral programs, as well as many . The School owns Harvard Business School Publishing, which publishes business books, online management tools for corporate learning, case...
, founded in 1908, was born just one year after France's prestigious
ESSEC Business SchoolESSEC is one of the foremost business schools and Grandes écoles in France. ESSEC was created by Jesuits in 1907, and originally located in the heart of Paris, next to the University of Paris II: Panthéon-Assas, rue d'Assas...
.
Administrative functions
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 FayolHenri Fayol was a French mining engineer, director of mines, and management theorist, who developed independent of the theory of Scientific Management, a general theory of business administration also known as Fayolism...
as "the 5 elements of administration" (in bold below).
- Planning
Planning in organizations and public policy is both the organizational process of creating and maintaining a plan; and the psychological process of thinking about the activities required to create a desired goal on some scale. As such, it is a fundamental property of intelligent behavior...
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 logical order. Administrators engage in both short-range and long-range planning.
- Organizing involves identifying responsibilities to be performed, grouping responsibilities into departments or divisions, and specifying organizational relationships. The purpose is to achieve coordinated effort among all the elements in the organization (Coordinating). Organizing must take into account delegation of authority and responsibility and span of control within supervisory units.
- Staffing means filling job positions with the right people at the right time. It involves determining staffing needs, writing job descriptions, recruiting and screening
One meaning of screening is the investigation of a great number of something looking for those with a particular problem or feature. For example at an airport many bags are screened by x-ray to try to detect any which may contain weapons or explosives, and people are screened by passing through a...
people to fill the positions.
- Directing (Commanding)is leading people in a manner that achieves the goals of the organization. This involves proper allocation of resources
A description of the mechanics of investment; where one applies one's goods ; how one disposes of one's resources .-See also:*Project planning*Project management*Earned value management...
and providing an effective support system. Directing requires exceptional interpersonal skills and the ability to motivate people. One of the crucial issues in directing is to find the correct balance between emphasis on staff needs and emphasis on economic production.
- Controlling is the function that evaluates quality in all areas and detects potential or actual deviations from the organization's plan. This ensures 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.
- Budgeting, exempted from the list above, incorporates most of the administrative functions, beginning with the implementation of a budget plan through the application of budget
A budget is generally a list of all planned expenses and revenues. It is a plan for saving and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods...
controls.
See also
- Administration (insolvency)
Administration, as a legal concept, is a procedure under the insolvency laws of a number of common law jurisdictions. It functions as a rescue mechanism for insolvent companies and allows them to carry on running their business...
(for administration of an insolvent business)
- Bachelor of Business Administration
The Bachelor of Business Administration is a bachelor's degree in business studies. In most universities, the degree is conferred upon a student after four years of full-time study in one or more areas of business concentrations. The BBA program usually includes general business courses and...
- Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. The body sometimes has a different name, such as board of trustees, board of governors, board of managers, or executive board...
- Business school
A business school is a university-level institution that confers degrees in Business Administration. It teaches topics such as accounting, administration, finance, information systems, marketing, organizational behavior, public relations, strategy, human resource management, and quantitative...
- Central Administration
Central Administration is the leading or presiding body or group of people, and the highest administrative department who oversee all lower departments of an organization. In most cases, a school or school district will have a leading group of people as a part of Central Administration...
- Chairman
- Charitable organization
A charitable organization is a type of non-profit organization . The term is relatively general and can technically refer to a public charity or a private foundation. It differs from other types of NPOs in that its focus is centered around goals of a general philanthropic nature A charitable...
- Chief executive officer
A chief executive officer or chief executive is one of the highest-ranking corporate officers or administrators in charge of total management...
- Chief administrative officer
A chief administrative officer is responsible for administrative management of private, public or governmental corporations. The CAO is one of the highest ranking members of an organization, managing daily operations and usually reporting directly to the chief executive officer. In some companies,...
- Fundraiser
A fundraiser is an event or campaign whose primary purpose is to raise money for a cause. See also: fundraising. A fundraiser can also be an individual or company whose primary job is to raise money for a specific charity or non-profit organization...
- Human resources
Human resources is a term used to refer to how people are managed by organizations. The field has moved from a traditionally administrative function to a strategic one that recognizes the link between talented and engaged people and organizational success. The field draws upon concepts developed in...
- Master of Business Administration
The Master of Business Administration is a master's degree in business administration, which attracts people from a wide range of academic disciplines. The MBA designation originated in the United States, emerging from the late 19th century as the country industrialized and companies sought out...
- Non-profit organization
A nonprofit organization is an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals . Examples of NPOs include charities , trade unions, and public arts organizations...
- Private sector
In economics, the private sector is that part of the economy which is both run for private profit and is not controlled by the state. By contrast, enterprises that are part of the state are part of the public sector; private, non-profit organizations are regarded as part of the voluntary...
- Public Administration
Public administration can be broadly described as the development, implementation and study of branches of government policy. The pursuit of the public good by enhancing civil society, ensuring a well-run, fair, and effective public service are some of the goals of the field.Public administration...
- Public sector
The public sector is a part of the state that deals with the delivery of goods and services by and for the government, whether national, regional or local/municipal....
- White Collar
White collar could refer to:* White-collar worker refers to a salaried professional or an educated worker who performs semi-professional office, administrative, and sales coordination tasks, as opposed to a blue-collar worker, whose job requires manual labor....