The administrative level is the administration of an organization. It includes all aspects of overseeing and reviewing business operations, as well as related areas, which include finance, accounting, marketing, and project management.
It includes the performance or management of business operations and decision-making, and the effective organization of people and other resources to govern activities toward common goals and objectives.
Management generally refers to a broad management function, including financial services, personnel, and associated information systems.
Some analysts see the administrative level as a subset of management, specifically associated with the technical and operational aspects of an organization and distinct from the executive or strategic functions.
In business, day-to-day operations are just as important as long-term plans for the future. The administrative level is also related to information technology, leadership dynamics and increasingly with ethics and international relations.
Administrators’ roles
Success in business today depends on much more than the ability to produce or sell products.
An administrator at the administrative level of modern business must also be competent in managing finances, business resources, accounting, human resources, purchasing, marketing, inventory control, office organization and control, computerization, communications, and much more.
Many senior executives could start working at the administrative level of the office. Also in human resources management, distribution, operations or sales.
Tasks
Executives and administrators work in all industries, individual companies and companies with thousands of employees. The tasks corresponding to the administrative level are:
– Establish and execute departmental or organizational objectives, policies and procedures.
– Direct and supervise the financial and budgetary activities of an organization.
– Consult with other executives, board members and employees about operations.
– Manage general activities related to the manufacture of products and provision of services.
– Negotiate or approve contracts and agreements.
– Innovate by applying new technologies in the workplace.
– Appoint department heads and managers.
– Analyze financial statements, sales reports and other performance indicators.
– Identify places to reduce costs and improve performance, policies and programs.
Some typical areas of work at the administrative level include general management, human resource management, office management, operations management, store management, and sales management.
Specialist versus Generalist
The administrative level is designed to train new and future managers to manage businesses successfully, providing the foundation for managing any successful enterprise that involves business or administration.
The administrative level and the managerial level have a lot of overlap in a company. Both levels cover marketing, accounting, finance, ethics and business management.
Both managers and managers should know the basics of how companies work, how to manage money, and how to successfully market the company’s products.
However, those working at the administrative level are usually more specialized in their area of responsibility. Possible majors include economics, computer science, business and accounting.
It is recommended that business-level leaders take additional courses such as communications, logistics, decision-making, and human resources. The objective is not so much to master a specific area, but to prepare yourself with general skills to manage people and projects.
Administrator vs. manager
In a small, understaffed company, the difference between these two levels may not matter much. However, in larger companies with a larger number of administrators and managers, differences can start to show.
At the administrative level, a manager’s job is to keep the business, or a section of the business, running from day to day.
For example, accounting managers keep the books balanced. Information technology administrators keep computers running and also free from hackers.
Factory administrators keep the physical facilities running smoothly.
Managers work at a higher level. They deal with more important issues like expanding the business, acquiring or merging with another company, using new distribution channels, and diversifying into new products.
Managers set goals and benchmarks for departments and projects. Managers put these goals into action.
Main concepts at the administrative level
The administrative level is extremely wide within a company, as each area that composes it needs to be managed.
Therefore, the main topics that an administrator should address at the administrative level are as follows:
Business environment
Public, private and commercial companies, sole proprietors, corporations, limited liability companies, board of directors.
business goals
Business planning and forecasting, business plan, competitor analysis, location, knowledge and market potential.
Start or take over a business
Factors to investigate and consider, research, competition, market potential, location factors, intangible assets. Also, business organization, structure, expansion, delegation, reorganization.
Capital and business financing
Capital sources, issue of shares. Also income, expenses, production expenses, general expenses.
Importance of working capital, its components and management, cash flow and funds.
Budget
Budget control, limiting factors, sales, production and other minor budgets, master budget. Also, pricing policy and factors affecting established prices.
Communications
Internal and external, vertical and horizontal channels, effect on employees, communication with managers as well as with customers.
People management
Recruitment, job analysis, advertising, selection, induction, training, control, compensation. Also motivation, human resources, discipline, boards, layoffs, retirements.
Credit
Types and purpose, credit limits, credit control, bad debts, commercial discounts.
Sales
Sales and marketing management, market research, advertising and sales promotion, pricing policy.
Inventory control
The warehouse department, inventory holding costs, inventory levels, inventory records, inventory. Also buy, choose suppliers, order, negotiate.
production management
Market factors, technology and labor, production methods, factories, machinery and equipment, variable costs, standard costs, standard deviation.
Financial Accounting
Accounting records, bookkeeping, manufacturing and marketing, profit and loss accounts, balance sheet, ratios and analytics.
office management
Delegation of responsibilities, structure, statistical tables, control and rules, communication.
IT
Computer programs and systems, security, office machinery and equipment, word processing.
Office organization and control
Design, data, records, office environment, health and safety at work, as well as studies and organizational methods.
