ADMINISTRATIVE PROCESS 1

PLANNING AND ORGANIZATION

ADMINISTRATIVE PROCESS

For 21st century organizations

Cesar Augusto Bernal Torres, Hernán Darío Sierra Arango

PAOLA JOHANA BERNAL PERDOMO

UNIVERSITY CORPORATION MINUTE OF GOD

UNIMINUTO

BUSINESS ADMINISTRATION

CAJAMARCA, TOLIMA

2013
ADMINISTRATIVE PROCESS 2

PLANNING AND ORGANIZATION

ADMINISTRATIVE PROCESS

For 21st century organizations

Cesar Augusto Bernal Torres, Hernán Darío Sierra Arango

PAOLA JOHANA BERNAL PERDOMO

STUDENT

EDIIE SAAVEDRA POSADA

TUTOR

UNIVERSITY CORPORATION MINUTE OF GOD

UNIMINUTO

BUSINESS ADMINISTRATION

CAJAMARCA, TOLIMA

2013
ADMINISTRATIVE PROCESS 3

INTRODUCTION

The administrative process is the set of successive phases or stages through which

which the administration is carried out, which interrelate and form a process

integral.

A process is the set of steps or stages necessary to carry out a

activity or achieving a goal. The administrative process is the set of phases or stages

successive through which the administration is carried out, the same that

interrelate and form an integral process. This administrative process is made up of 4

fundamental functions, planning, organizing, directing, and controlling. They constitute the

administration process.

Many authors believe that the administrator should have an individual function.

to coordinate, however, it seems more accurate to conceive it as the essence of the skill

General to harmonize individual efforts aimed at compliance with

the group's goals. All these factors determine the functioning of the company

which integrate and combine to improve the performance of activities

organizational factors of the organization in which the factors operate and coincide

structural way to establish corporate operating conditions and

business within a company.

One of the most important factors is the planning process in which each

the company must plan its actions to ensure better participation from

the workers and the high executives of the organization. The decision-making
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it is also an important aspect because it is through it that one can differentiate

the various problems that arise and thus propose the best solution

suitable.

AUTHORS

Cesar Augusto Bernal Torres. PhD candidate in Business Administration.

Master's in Education from the University of La Sabana, economist with an emphasis in

business administration and psychology from the Universidad Santo Tomás, in Bogotá. Currently

He is an associate professor and director of research at the International School of Sciences.

Economic and Administrative Sciences of the University of La Sabana in Bogotá.

He is a research professor and a member of the Change and Innovation Research Group.

Technological, with classification from Colciencias; professor of the research seminar in the

Master's in Business Administration from La Salle University and speaker

international guest from different public and private universities in Mexico, Peru,

Ecuador, Panama, among others.

Hernán Darío Sierra Arango (may he rest in peace). Specialist and master's degree in Administration

Companies from the Polytechnic University of Madrid, diploma in business administration at INCAE, Costa Rica

rich, diploma in evaluation and improvement of quality at Harvard Graduate School of

Education and electrical engineer from the Pontifical Bolivarian University of Medellín.

Desde 1969 hasta 1995 estuvo vinculado con el sector textil colombiano donde ocupó

positions in the areas of production, sales, marketing, new product development, business

internacionales, hasta alcanzar la presidencia de dos importantes empresas del sector en el país.
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CHAPTER 2

General information about planning

Chapter content

Review and analysis activities

Instructions

Read the following statements carefully and respond to each of them with the support of

content of this chapter. Also completely with information consulted from other texts or

web pages that develop the same topic, with the purpose of enriching their learning.

Statements

. What does planning consist of as part of an integrated system of the process

administrative?
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RTA: Planning as an integral part of the administrative process basically consists of

in terms of its impact from the external environment such as (economic, political, legal, socio-cultural,

technological, biophysical, etc.), it is necessary to conceive it as an integral system since for each

one of the areas that make up the business structure must be taken into account

planning, organization, direction, and control for the development of a good structure

business.

. What does planning as a process consist of?

RTA: Planning as a process consists of decision-making to obtain

specific objectives in a future horizon. In itself, planning is based on these.

verbos: seleccionar, definir, establecer, trazar, integrar, coordinar, asignar, determinar,

diagnose, create, choose, follow.

Planning is the first step of the administrative process where the

results that the social group aims to achieve. The need to plan arises from the fact that

that all social organisms in an environment that is constantly experiencing changes

technological, economic, political, social, cultural.

It consists of setting the specific course of action that should be followed, establishing the

principles that will guide it, the sequence of operations to carry it out, and the

determination of times.

. Explain the importance of planning in the activities of organizations.

RTA: Planning in organizations is of vital importance, as this will help to

that have a prolonged duration over time and achieve sustainable success. The companies that have
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A proper planning achieves many goals that are set, as it is one of the functions.

most important aspects of Management at any level.

Planning is setting objectives, goals that a company has, it is also exercising influence.

for events that are yet to come so that they happen as desired. Planning consists of making decisions

decisions to choose between alternative courses of action is to decide in advance: What,

When, Where and How? Decisions will be made and who will make them.

It is planned to respond, for a better use of resources, to guide the

decisions and having a clear vision pathway, to reduce uncertainty and clarify what it is

important, to have performance standards and to evaluate the scope.

. Explain the main types of planning (traditional, strategic, and prospective).

RTA:
TRADITIONAL: this consists of setting objectives for a certain horizon

time. It is a general form of planning by objectives and those in charge are the

executives.
STRATEGIC: it involves a systematic process of building futures

organizations, based on a rigorous understanding of their internal environment and

external to thus become more competitive.

PROSPECTIVE: it means looking far away, obtaining a vision across and wide. It is a

panorama of possible futures, which are not improbable considering the states

inertia of the past and the confrontation of the projects of the actors.
. Describe the main levels of planning (corporate, functional, operational).
RTA:
- CORPORATE: this designation is not only to mention large

companies, but it is used today to refer to a company, business, or

organizations as a whole regardless of their size. Their objectives are called

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institutional or corporate entities are defined a time horizon of more than four or

five years.
FUNCTIONAL: the purpose of this is to define the contribution of each area or department to the

corporate planning that is based on the medium term.

OPERATIVE: this defines the different operational positions to specify their respective

contribution to the development of planning. Its time is day to day.

. Describe the different aspects related to the objectives in planning.

(concept, hierarchies, formulation, types, criteria, advantages and disadvantages, etc.).

Objectives are goals, they are results that are desired within a certain time.

There is a diversity of objectives according to the different areas of the organization.

Within the hierarchy, objectives range from the general to the particular and specific.

Including them in a pyramidal form, the first is the mission of the organization, second

los objetivos generales (estratégicos). Tercero objetivos generales (funcionales). Cuarto objetivos

of the departments (areas). Fifth, the individual (personal) objectives.

In the formulation of objectives, workers are often considered more for

the preparation of these, which even the executives themselves.

The types with their following aspects are: utilities, market share,

satisfacción del cliente, satisfacción del empleado, calidad de los productos, eficiencia, ventas,

endeudamiento, niveles de inventarios, días de cartera.

The criteria for setting achievements are: to accurately specify the achievements that

are expected. Define criteria for the periodic review of progress in achieving the

objectives. Define the time for achieving the results. Define the objectives in

operational terms. Define the objectives with a minimum level of difficulty so that there is a
ADMINISTRATIVE PROCESS 9

greater commitment from individuals. Define a rational number of objectives. They must present a

challenge.

Advantages: better management, clarity in the functions of employees than

they form, greater commitment and motivation, adequate and effective controls to measure

results.

Disadvantages: the need to train people, requires self-control and self-direction.

Short-term objectives can harm the company. Unverifiable objectives can

lead to uncertainty. Worry can lead to not very ethical behaviors.

. Explain the relationship between the decision-making process and planning in the

organizations

The decision-making process is fundamental for the results that one expects to achieve.

future.

Decision-making within an organization is usually understood as a

form of 'bounded rationality'. It is limited because the organization already has a

specific purpose and, if established, a tradition of operation. A 'rationality

"limited" is inherent to planning and organizational decision-making because the company

supposedly has a purpose and a function that provide the basic variables for

help guide decisions.

Planning is directly related to decision-making, in this planning

a decision is the definition of an alternative within a set, from which

ADMINISTRATIVE PROCESS 10

they carry out the different activities of the organization to achieve a specific goal. One

Decision is a process of selecting alternatives.

. Describe the decision-making process applied to the planning process in the

context of organizations.

The decision-making process involves a series of activities:

IDENTIFICATION OF A PROBLEM: in the face of a specific situation determined by the

it is necessary to act.
IDENTIFICATION OF DECISION CRITERIA: what aspects should be considered

taking into account for the solution of a problem.

WEIGHTING OF DECISION CRITERIA: greater importance should be given

about some criteria over others.

-DEVELOPMENT OF ALTERNATIVES: one must think about the problem in different ways

scenarios, with different possible responses.

ANALYSIS OF ALTERNATIVES: evaluation of the advantages and disadvantages of each one

they face the solution to the problem.

SELECTION OF AN ALTERNATIVE: the one that produces the most favorable results.
-IMPLEMENTATION OF THE RESPECTIVE ALTERNATIVE: not only the

practical and theoretical alternatives are important but it is also necessary the

implementación de muchas alternativas.

EVALUATION OF THE EFFICIENCY OF THE ALTERNATIVE: it is necessary to define

indicators to evaluate the results obtained from the implementation process

of the alternatives.
. Explain the main conditions under which decisions are made in the

organizations
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There are conditions that people face when making decisions:

OF CERTAINTY: those that are taken from a rigorous knowledge, which affects the

situation subject to the decision.

-RISK: for which there is little knowledge of the environment and the alternatives of

decision.
-OF UNCERTAINTY: those that are made with almost total ignorance of the environment and

with very few alternatives for solution.

. State the main tools for decision-making.

planning

process
organization
control administrate
administrator on
ivo

address
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Source: Own elaboration

Phases:
ANALYSIS
SITUATIONAL

RESULTS DEFINITION
DELETE
TAKE OF PROBLEM
DECISIONS

APPLICATION AND
GENERATION
CONTROL OF THE
EFFECTIVENESS OF THE
DE
SOLUTION ALTERNATIVES
AND SOLUTIONS

VALUATION
DE
SOLUTIONS

Source: Own elaboration

From the moment we wake up until we go to bed, we spend the day making decisions in

our life. Any manager, executive, businessman or middle manager of a company or

a person who is in charge of a business or a group of people is inevitably forced

to make decisions continuously. Although, often, one is not aware of it, things

they are like this. One must choose paths, select people, give orders, develop programs,

plan actions and a thousand more issues continuously. Not all will be of the same level nor

they will have the same importance, but they require making decisions. Source: Decision Making

in business management June 29, 2009 by Juan Carlos Valda, retrieved on April 21,
ADMINISTRATIVE PROCESS 13

2014Decision-making in management

companies/

CONCLUSIONES

In business planning, the available resources must be taken into account, that is

consider the problem of capacity, so that plans and programs are developed

feasible.

Consider the material needs, both of finished products and of raw materials.

raw materials and intermediate components for manufacturing according to the planning and

elaborate programming (planning, management, and inventory control). The planning must be

constantly reviewed as it can be affected by endogenous (internal) factors and by

exogenous factors (external) to the company.

Companies are constantly concerned about making decisions that allow them to optimize

their results in such a way as to obtain the greatest benefit. This is why Research of

Operations is an important tool for management when making any decisions.

decision.

In the current socioeconomic environment, highly competitive and complex, the methods

traditional decision-making processes have become relatively ineffective as the

Those responsible for directing the activities of companies and institutions face situations

complicated and dynamic, requiring creative and practical solutions for a resolution

adequate.
ADMINISTRATIVE PROCESS 14

Companies are constantly concerned about making decisions that allow them to optimize

its results in a way that obtains the greatest benefit. It is necessary then the

application of tools that support decision-making, in order to eliminate the strong

degree of empiricism shown by the managers.

LIST OF REFERENCES

Cesar Augusto Bernal Torres, Hernán Darío Sierra Arango, 2013 administrative process for the

21st century organizations, Bogotá, Colombia by Pearson Education of Colombia Ltd.

Source: Decision Making in Business Management June 29, 2009 by Juan Carlos Valda

recovered on April 21, 2014,[Link]

decisions-in-the-management-of-companies/