Functions of Business Administration

The administration of a business is inter changeable with the performance or management of business operations and management maybe including important decision making, controlling, organizing the various elements etc. Thus it is likely to include the efficient organization and management of people and other resources available in the company so as to direct activities for achieving common goals and objectives.
The word is derived from the Middle English word administration, which is in turn derived from the French administration, itself derived from the Latin administratio — a compounding of ad ( ad means "to") and ministrare (means "give service").
Administrator can occasionally serve as the title of the general manager or company secretary who reports to a corporate board of directors. This title is archaic, but, in many enterprises, the general management function, including the associated Finance, Personnel and management information systems services, is what is meant by the term "administration".
The major functions of Administration can be mentioned as follows. These "functions" of the administrator were described by Henri Fayol as "the 5 elements of administration.
• Planning - 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 a 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 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 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 a 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 controls...