Modern administration

economic-dictionary

Modern administration is the process of applying best practices based on new practices and approaches that allow a better adaptation to the changes that are taking place in the social and economic environment of organizations, ceasing to use traditional administration practices.

To begin with, modern administration began in the 1890s with the contributions of Frederick Taylor, who proposed that to improve productivity levels, tasks should be simplified.

Taylorism

This was in contrast to the traditional idea of ​​forcing people to work harder to maximize work output.

It should be noted that in modern administration all planning, organization, direction and control activities must involve an adequate interconnection of human relations and time to achieve the objectives established within an organization.

As a consequence, modern administration processes can be applied to a broader and more complex context, for that reason it is used in companies, religious institutions, educational institutions and social organizations.

Modern administration

Modern management tools

The most important tools of modern administration are:

1. Reengineering

On the other hand, reengineering consists of carrying out a review of the processes in order to make them more efficient. When carrying out the analysis and redesign of the processes, it is sought to achieve significant improvements in the scope of costs, in the quality of the products, the speed of delivery and the service.

In other words, reengineering aims to obtain more and better results with the use of fewer resources. The objective of the organizations that apply it is to carry out a radical review and redesign of all processes, seeking to achieve significant improvements in the measurement of results.

2. Total quality

Likewise, the total quality approach aims to achieve an improvement in the quality and performance of organizations, to achieve maximum customer satisfaction.

However, total quality does not apply only to the production of goods and services that are offered to the customer. The principles of quality management apply to all activities and people that are part of an organization.

For this, all the functions and processes that are related to quality are integrated, so all the quality measures used by companies are controlled. These measures are quality of management and performance, quality of control and maintenance, quality improvement and quality assurance.

3. Outsourcing

For its part, outsourcing is the process in which an organization hires external companies to carry out any of its activities.The subcontracted company carries out certain activities that add value to the company that hires it, since they specialize in it and that means that it is carried out at a lower cost and with the same or better quality.

4. Empowerment

Instead, empowerment consists of delegating a certain level of power and authority to subordinates. In this process, functions are delegated to subordinates in order to allow them to have a greater degree of participation, so that they are especially involved in the decision-making of the company. In this way, leaders concentrate their efforts on key tasks of the organization.

5. Benchmarking

Benchmarking allows making comparisons and measurements of an organization's operations and processes. This comparison and measurement can be internal when carried out within the different departments and units that make up the organization. The external form is done in front of another company or organization that is considered a leader in the market.

The idea is to compare yourself with the most efficient competitors on the market in order to improve the operations and processes of the company, learning from the best.

6. 5´S

In contrast, this practice seeks to achieve the integral maintenance of a company, including the equipment, machinery, infrastructure and the work environment. Classification, order, cleanliness, standardization and maintenance of discipline are based on five fundamental principles.

It is a simple and effective practice that manages to obtain quality improvements, the reduction of downtime and the reduction of costs.

7. Just in time

Certainly, just in time is a method that organizes production. This organization is done through planning and control of production in order to produce the products that are needed in the quantity and at the exact time.

This method also has positive effects on human resource performance, manufacturing system, product design, maintenance system, and quality.

In short, we have mentioned some of the most used practices and methods in modern administration, but they are not the only ones, there are many more such as coaching, downsizing, E-commerce, Seven »S » by Mckinsey, among some of the many that can be mentioned.

Modern management tools

Finally, we can say that all these modern management practices have the common goal of improving the efficiency of organizations. Looking in an alternative way to reduce production costs and increase production levels. All these practices allow a better adaptation to the changes and trends that occur in the social and economic environment.

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