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Stages of The Administrative Process
Stages of The Administrative Process
The administrative process is the set of activities that the company's management must
undertake to fulfill its functions.
Planning.
Planning is thinking and organizing what is necessary to achieve an objective, a business must
know what to do in the future to improve its commercial activity.
The person in charge of a company has to deal with day-to-day problems, but cannot lose sight of
what is important and, therefore, must take care of planning for the future.
Planning will not only allow us to achieve our objectives and be prepared for possible
contingencies in the future, but it will also be necessary to inform our partners, shareholders,
potential investors and external financing sources of very useful information, such as business
expectations. (sales, costs, profits and cash flow).
Organization.
As a group of people, economic and financial assets that it is, the company needs to organize itself
to meet its objective: it needs a structure to be able to function.
The organization of the entity consists of coordinating all those assets and people to achieve the
company's objectives.
The company's management has the mission of channeling all efforts, personal and economic, to
achieve both the company's objectives and the personal objectives of its members.
Address.
In the management stage comes the time to put into practice all the planning and organization
designed in the previous points: it is time to act and motivate collaborators.
It will be within their responsibilities to identify problems, adapt behaviors to apply solutions and
have the necessary good communication to do all this.
You must involve your workers in the business objectives, so that they feel part of the company.
Supervise, support and communicate with staff in all areas of the company's activities.
Control.
Control functions and activities must be assigned to certain managers; the interested parties
themselves cannot be left to control their own activity; they must be supervised by their direct
hierarchical superiors.
Make comparisons with other years or periods of the same type of results.
Not only will it be necessary to control the numerical data as results, it is also necessary to control
the procedures and actions of the personnel.
We can start by defining what financing is. It is the process of raising funds to develop a business
activity. It is what supports all the assets that an organization has and comes from different
sources.
Internal financing sources. Mainly, they represent the value of the assets contributed by the
partners plus the benefits generated by the activity (economic result for the year). These are own
funds or self-financing.
An increase in these items implies a greater degree of autonomy by reducing the need for debt.
Sources of external financing. They come from resources outside the company. They can be
enforceable or non-enforceable.
Non-requirable: this is capital received through non-refundable funds (public subsidies, donations
and similar resources).
Receivable (debt): loans, lines of credit, financial lease or commercial advances. In this case, it is
capital that must be returned and has a financial cost (in the form of interest, commissions or
other contractual obligations).
Short-term financing sources. They are resources destined for a permanence period of less than
one year, and within that period they must be amortized. They are dedicated to covering small
investments and current expenses. They may be:
Mortgage loans
In the accounting balance they are the elements of net equity or non-payable liabilities. In this
sense, these are the most outstanding solutions:
• Member contributions
Loans.
They are contracts that formalize the delivery of money by a financial company. The company
agrees to return the amount borrowed plus accrued interest (interest and commissions) over a
certain period: short or long term.
Credit lines
The financial institution makes a limited amount available to its client for a specific period. The
company only returns the amount it has used plus interest.