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Key Administrative Terminologies Explained

This document defines several key terms related to management. Explains concepts such as analysis, auditing, authority, communication, control, costs, coordination, organizational culture, decision, delegation, departmentalization, decentralization, direction, division of work, effectiveness, efficiency, effectiveness, environment, strategy and ethics. The document provides concise definitions of these important administrative concepts.

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0% found this document useful (0 votes)
35 views7 pages

Key Administrative Terminologies Explained

This document defines several key terms related to management. Explains concepts such as analysis, auditing, authority, communication, control, costs, coordination, organizational culture, decision, delegation, departmentalization, decentralization, direction, division of work, effectiveness, efficiency, effectiveness, environment, strategy and ethics. The document provides concise definitions of these important administrative concepts.

Translated by

ScribdTranslations
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

ADMINISTRATION TERMINOLOGIES

Analysis: Action of dividing a thing or problem into as many parts as possible, to recognize the nature of the
parts, the relationships between them and obtain objective conclusions about the whole.

Cost-benefit analysis: search for the best ratio between benefits and costs.

Risk Analysis: An approach to problem analysis that weighs the risks of a situation by including
probabilities to obtain a more accurate assessment of existing risks.

Break-even analysis: graphs and analyzes relationships, usually between sales and expenses, to determine
the size or volume at which an operation reaches the break-even point between losses and profits; It can be
used in any problem area where it is possible to accurately determine marginal effects.

Audit. It is the investigation, consultation, review, verification, verification, and evidence applied to the
company. It is the examination carried out by qualified and independent personnel in accordance with
Accounting Standards; In order to expect an opinion that shows what happened in the business,
independence is a fundamental requirement.

Administrative audit: auditing the quality of managers by evaluating them as individual executives and by
assessing the quality of a company's total administrative system.

Internal audit: analysis or evaluation carried out by a company of its position or the direction it is taking in
accordance with current programs, what its objectives should be and whether it is necessary to modify the
plans to achieve these objectives.
Operational audit.

It is the independent assessment of all operations of a company, in an objective and systematic analytical
manner, to determine whether acceptable policies and procedures are carried out; if established standards are
followed, if resources are used efficiently and economically, and if the organization's objectives have been
achieved in order to maximize results that strengthen the development of the company.

Self-management: management of a company by the workers themselves through bodies chosen by them.

Authority, centralization of: Tendency to restrict the delegation of decision making in an organizational
structure, usually keeping authority at or near the top of the structure.

Authority, fragmented or shared: situation in which the total authority to achieve a final result depends on
more than one position and must be grouped or combined to make the required decision.

Functional authority: right that is delegated to a person or department to control processes, practices,
policies or other specific matters, related to activities carried out by personnel from other departments.

Authority, parity with responsibility: principle that holds that responsibility for action should be neither
greater nor less than the delegated authority. Authority is the discretionary power to execute tasks and
responsibility is the obligation owed to the person who carried out the delegation so that these activities are
carried out.

Authority, delegation process: determination of the results expected of a subordinate, assignment of tasks,
delegation of authority to fulfill these and attribution of responsibility for their achievement.

Benchmarking: method for establishing goals and productivity measures based on industry best practices.
Position: It is the designation that requires the employment of a person who, with a minimum of
qualifications in accordance with the type of function, can competently exercise the powers that his exercise
confers on him.

Administrative career: Technical personnel administration system that aims to guarantee the efficiency of
the administration and offer equal opportunities for access to service, training, job stability and the
possibility of promotions.

Position classification: is a means of determining the relative value of each position within an organizational
structure and therefore, the relative position of each position in the organization's position structure.

Committee: group of people who, together, are entrusted with a matter for the purposes of information,
advice, exchange of ideas or decision-making.

Organizational behavior, modification: It is based on the idea that behavior depends on its consequences, it
is thus possible for managers to influence employees' behaviors by manipulating their consequences.

It is like a law of effect according to which the person tends to repeat behaviors accompanied by favorable
consequences ("reinforcement") and not repeat those with unfavorable consequences.

Communication: transfer of information from one person to another, as long as the recipient understands.

Control: administrative function that consists of measuring and correcting individual and organizational
performance to ensure that events conform to plans. It involves measuring performance with goals and
plans; show where deviations from standards exist and help correct them.

Costs: The sum of efforts and resources that have been invested to produce something.
Coordination: achieving harmony of individual and group efforts toward achieving the group's purposes and
objectives.

Schedule: It is the minute detail of the activities that a company performs or is going to perform when
carrying out an event or a series of events.

Organizational culture: general pattern of behavior, beliefs and values shared by the members of an
organization.

Decisions, making: selection of a course of action from several options; rational selection of a course of
action.

Delegation: giving one person to another the jurisdiction they have due to their job so that they can carry out
certain tasks or grant them representation. Another possible direction would be the process that allows us to
entrust a collaborator with the task of carrying out a task, granting him the necessary authority and freedom,
but always retaining the final responsibility for the result. Delegation implies at the same time the obligation
to render accounts to the superior for the tasks that have been delegated.

Functional departmentalization: grouping of activities by departments according to the characteristic


functions carried out by the company.

Department: A defined area, division, or branch of a company over which a manager has authority to
perform activities and achieve specific results.

Decentralization: It is the transfer of functions, resources and authority for decision-making from central
levels to autonomous entities.
Management: a function of managers that involves the process of influencing people to contribute to the
goals of the organization and group; It primarily relates to the interpersonal aspect of managing.

Division of labor: number of different tasks into which the work necessary for the production of a good or
service is distributed, tasks that must be carried out by different workers specialized in each of them.

Effectiveness: achievement of objectives; achievement of the desired effects.

Efficiency: achievement of goals with the least amount of resources; achieving objectives at the lowest cost
or other unintended consequences.

Effectiveness: It is the congruence between what is planned and the achievements obtained, without
questioning whether these objectives are adequate or not. Empowerment: the effective self-determination of
workers and teams implies that managers are willing to give up part of their authority to make decisions in
order to to give it to those.

Environment: Set of agents external to the organization - legal, political, social, economic, technological,
competitive, etc. - that affect its survival, maintenance or development and that provoke a specific response
in its own internal agents.

Entrepreneurs: people with the ability to see an opportunity to obtain the capital, labor and other necessary
inputs, as well as the knowledge to successfully structure an operation. They must also be willing to take the
personal risk of success or failure.

Administrative approach, group behavior: analysis that examines the behavior of people in groups the
approach is based on sociology and social psychology. The tension focuses on group behaviors.

Contingency or situational management approach: analysis that emphasizes the fact that, in practice,
managers depend on a certain set of circumstances or the “situation” and that there is no single “ideal” or
perfect way to manage. .

Empirical or case administrative approach: analysis that studies experience through practical cases,
identifying successes and failures.

Systems management approach: analysis that emphasizes systems concepts with broad applicability.
Systems have limits, but also a reciprocal influence with the external environment; That is, organizations are
open systems.

Balance: Situation of an economy in which the proportions of global quantities allow for the harmonious
adjustment of flows, price stability and the satisfactory functioning of the entire economy.

Team: a group of people with complementary skills committed to a common purpose and a set of
performance goals, for which they are mutually accountable.

Strategy: determination of the purpose (mission) and basic long-term objectives of a company and adoption
of action resources and allocation of resources necessary to achieve these purposes.

Ethics: system of moral principles or values that are related to moral judgment, duty and obligation;
discipline that deals with good and evil.

Supervision: Management function aimed at ensuring that personnel fulfill their tasks in the best possible
way (as indicated by the standard), through the guidance, help and training provided by their hierarchical
superiors (supervisors) and not only through control or control procedures. inspection.
Administrative management: It is the process by which a variety of basic resources are obtained, deployed
or used to support the objectives of the organization.

Gantt chart: planting and control technique developed by Henry L. Gantt that shows, through a bar chart, the
time requirements for the various tasks of a production or some other program.

Incentive: stimulus offered to a person, group or sector to increase production or the activity to be carried
out.

Initiative: idea that serves to start or carry out an activity in the organization.
Instruction: set of rules to execute something or to manage something.
Hierarchy of needs:

Kaizen: a Japanese term that indicates the importance of continuous improvement. The idea is that
continually taking small steps in improvement will be the key to long-term success.

Loyalty: compliance with what the laws of fidelity and honor require.

Leadership: influence, art or process of influencing people to make voluntary and enthusiastic efforts to
achieve group goals.

Line: authority relationship in organizational positions, where one person has responsibility for the activities
of another person.

Distribution logistics: operations research optimization model that treats a company's logistics as a single
system, from sales forecasting, purchasing and processing of materials and their control in inventories to the
shipment of products. determined towards sales warehouses

Administrative mesh: A way of analyzing leadership styles, developed by Blake and Mouton, through which
leaders are classified in a mesh or matrix according to two dimensions: concern for people and concern for
production.

Command, area of: Power that the superior exercises over the inferiors. Authority held over
subjects./Executive power. Hierarchical power over any fraction of troops, especially those of an Army or
among several allies./ Mandate, precept.

Administrative manuals: they are documents that serve as means of communication and coordination that
allow the information of an organization to be recorded and transmitted in an orderly and systematic
manner.

Raw materials: primary element that, when processed or conducted within a manufacturing process,
undergoes changes that will generate a good or service.

Measurement: Refers to numerical information that quantifies the resources, processes, services,
performance and results of the organization.

Market: The market, in economics, is any set of transactions, agreements or exchanges of goods and services
between buyers and sellers. In contrast to a simple sale, the market involves regular and regulated trade,
where there is some competition between participants.

Goal: purposes towards which the activity is directed; final points of the plantation.

Reasons, verifiable goals: A goal is verifiable if, at some future date, the person can look back and
determine with certainty whether or not it has been met.
Organization: concept used in various ways, such as 1 systems or pattern of any group of relationships in
any kind of operation 2 the company itself 3 cooperation of two or more people 4 the behavior of the
members of a group and 5 the intentional role structure in a “formally organized” company

Informal organization: generally patterns of behavior and human relationships that coexist with the formal
structure of the organization, or are found outside of it. It is a network of personal and social relationships
that the formal organization does not establish or require, but rather occur spontaneously when people relate
to each other.

Virtual organization: relatively loose concept referring to a group of independent companies or individuals
linked together through information technology. Companies linked in this way can be suppliers, customers
and even competing companies.

Organize: establish an intentional structure of roles to be filled by members of an organization.

Organizational development: systematic, comprehensive and planned approach to improve the effectiveness
of groups of people and the entire organization, by using various techniques to identify and solve problems.

Participation: It is being involved or playing a role in something. Be heard and taken seriously—usually
when decisions are made. Participation, however, can also be symbolic, meaning that the person is not taken
seriously and their participation is only allowed to keep them happy or because it looks good.

Planning: selection of missions and objectives, and strategies, policies, programs and procedures to achieve
them; decision making; selection of a course of action from several options.

Contingent planning: planting for future environments whose possibility of existence is remote, but which
may occur; If this possible future is very different from the assumption, it will be necessary to develop
alternative premises and plans.

Plans: purposes or mission, objectives, strategies, policies, procedures, rules, programs and budgets.

Power: the ability of people or groups to induce or influence the beliefs or actions of other people or groups.

Policies: general statements or interpretations that guide thinking during decision making; The essence of
policy is the existence of a certain degree of discretion to guide decision making.

Budget: statement of plans and expected results, expressed in numerical terms.

Principles: fundamental truth, or that at a given moment is considered as such, that explains the relationships
between two or more groups of variables.

Administrative principles: systematic order of the exercise of administration.

Procedures: plans that establish a method for managing future activities. They are chronological series of
required actions, guides for action, detailing the exact way in which certain activities should be carried out.

Productivity: production – inputs ratio in a period, duly taking quality into account.

Programs: set of goals, policies, procedures, rules, assignment of tasks, steps to follow, resources to use and
other elements necessary to execute a certain course of action, usually supported by capital and operating
budgets.

Linear programming: technique for determining the optimal combination of limited resources to obtain a
desired goal; It is based on the assumption that there is a linear relationship between the variables and that
the limits can be determined.
Vein forecast: prediction of expected sales, by product or service and price, for a future period; Sales
forecasts are inferred from plans and are also important planning premises.

Rationality: analysis that requires a clear goal and understanding of the alternatives by which a goal can be
achieved, an analysis and evaluation of the alternatives in terms of the desired goal, the information needed,
and the desire to optimize.

Rules: rules that dictate action or abstention, but do not allow discretion.

Responsibility: obligation that subordinates owe to their superiors with respect to the exercise of the
authority that was delegated to them as a way to achieve desired results.

Organizational reengineering: fundamental rethinking and radical redesign of a company's processes to


achieve drastic improvements in contemporary performance measures as important as cost, quality, service
and speed.

Scalar relationships: the chain of command that goes from the top of organizations to their lowest levels.

Feedback: input of information to a system that transmits messages about the operation of the system to
indicate whether it operates as planned; information related to any type of planned operation, directed to the
person responsible for its evaluation.

Risk analysis: An approach to problem analysis that weighs the risks of a situation by including probabilities
to obtain a more accurate assessment of existing risks.

Organizational role: organizational position designed to be filled by people; To be meaningful to them, it


must include: 1 verifiable objectives, 2 a clear description of its main duties or activities, 3 an area of
discretion or authority, 4 the availability of the information and resources necessary to accomplish a task.

Sanctions: evil arising from guilt and that is like a punishment.

Personnel selection: process by which the most qualified person is chosen for a particular position.

Jungle of administrative theory: term applied by Harold Koontz to identify the existence of various schools,
or approaches, of management theory and knowledge.

System, definition of: a group or set of things that are related or interdependent and that affect each other to
form a complex unit; all composed of parts in an orderly arrangement according to some program or plan.

Open systems: those that have interaction with their environment and that exchange information, energy or
materials with it.

Closed systems: are those that have no interaction with their environment.

Sociotechnical systems: system that is seen as an interconnection of physical (technical) and social elements
in an organization.

Systematization: It is a permanent and cumulative process of knowledge construction based on our


experience of action/intervention in a specific reality. It is a first level of theorizing about practice. On the
one hand it aims to improve practice and on the other hand enrich existing theories.

Staff: relationship in an organizational position where the job holder's task is to give advice or advice to
someone.
Supervisor: Same as managers, but usually this name applies to lower-level, or first-line, managers in
management.

Tactics: action plans through which strategies are put into practice.

Theory: systematic grouping of interdependent concepts and principles that form a framework for more
meaningful knowledge.

Unity of command: making each subordinate directly dependent only on one superior. The principle of unity
of command only implies that the more a person depends on a single superior, the less the problem of
confusion of instructions and the greater the feeling of personal responsibility for the results.

Common questions

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Benchmarking and break-even analysis serve different but complementary purposes in organizational assessment. Benchmarking involves comparing organizational performance against industry best practices to set goals and productivity measures, fostering competitive improvement. Break-even analysis, on the other hand, focuses on financial assessment by analyzing the relationship between sales and expenses to find the point where an operation neither gains nor loses money. While benchmarking is more strategic and outward-looking, break-even analysis is tactical, focusing on cost management and operational efficiency to identify financial stability .

Functional authority is important within an organization as it allows for specific processes, practices, policies, or other matters to be controlled by designated individuals or departments. This delegation of authority to manage cross-departmental activities can enhance efficiency and ensure consistent application of policies, thus positively impacting employee performance. It facilitates specialization and ensures that decisions are made by those with relevant expertise, improving overall organizational performance .

Risk analysis contributes to more accurate assessments in administrative decision-making by weighing the risks of a situation and including probabilities. This approach allows for a thorough evaluation of existing risks, factoring in potential outcomes and the likelihood of their occurrence, which results in a more precise understanding of the threats and opportunities involved in a given decision .

The principle of unity of command seeks to address challenges such as confusion of instructions and lack of clear accountability by ensuring that each subordinate reports to only one superior. This clarity minimizes conflicting directives and enhances personal responsibility for outcomes. However, its limitations include potential rigidity in communication flows and decision-making, which can impede flexibility and responsiveness in dynamic environments, as it does not accommodate matrix or cross-functional team structures efficiently .

Empowering employees can significantly contribute to achieving organizational goals by encouraging creativity, innovation, and ownership of the work process. It enables workers to make decisions that can positively affect performance and customer satisfaction. Key factors determining the success of empowerment include clear communication of expectations, proper training, and management's willingness to relinquish some control. Trust and accountability are also vital to ensure that empowerment leads to positive outcomes rather than chaos .

Open systems in organizational theory refer to systems that interact with their external environment, exchanging information, energy, or materials. These interactions are essential for adaptability and survival, as organizations receive feedback and input from external factors such as legal, political, social, economic, and technological forces. By being receptive to external influences, open systems can adjust strategies and operations to align with environmental changes, promoting resilience and sustainability .

Decentralization enhances organizational flexibility and responsiveness by distributing decision-making authority closer to the operational level, allowing for quicker and more context-aware decisions. This flexibility can lead to innovation and improved customer service as departments adapt more swiftly to changes. However, potential drawbacks include the risk of inconsistent decision-making across the organization and challenges in maintaining a unified corporate strategy, which may lead to inefficiencies or conflicts between autonomous units .

Administrative audits play a crucial role in improving the efficiency and quality of management by systematically assessing the effectiveness of managers and organizational systems. They help identify areas for improvement by verifying standards and compliance with policies, thereby providing valuable insights into managerial strengths and weaknesses. This evaluative process can lead to better decision-making, improvement of administrative systems, and ultimately enhanced organizational performance .

Centralization of authority can impact organizational efficiency and decision-making processes by potentially slowing down responses to issues due to the need for approval from higher management. While it can lead to uniformity and consistency in decision-making, it may also stifle innovation and reduce the flexibility of departments to manage their operations effectively. Therefore, while centralized authority might bring coherence in strategic decision-making, it often requires a balance to maintain operational efficiency .

Organizational culture plays a crucial role in shaping the behavior and effectiveness of an organization's members by establishing a set of shared beliefs, values, and behaviors. It influences how individuals interact within the organization and respond to external challenges, thereby impacting productivity and morale. A strong culture aligns employee actions with organizational goals, fostering a sense of identity and commitment, which enhances the overall effectiveness in achieving these goals .

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