TECHNICAL UNIVERSITY OF BABAHOYO

CENID
LANGUAGER CENTER

PROJECT THEME
DIAGNOSIS OF ADMINISTRATIVE PROCESSES IN SMALL
BUSINESSES

DIAGNÓSTICO DE LOS PROCESOS ADMINISTRATIVOS EN LOS

PEQUEÑOS NEGOCIOS

MODULE FOURTH

TEACHER
MR. DAVID GORTAIRE

STUDENTS RESPONSIBLE FOR THE PROJECT

JESSICA LLUMITAXI SISA
ELIZABETH SALVATIERRA MORALES
ELENA LEON GALEAS
JUDY VILLACIS SANCHEZ
DARLANNE PALMA RODRIGUEZ

PERIODE ACADEMIC
JANUARY – APRIL 2020
 DIAGNOSIS OF ADMINISTRATIVE PROCESSES

IN SMALL BUSINESSES

DIAGNOSTICO DE LOS PROCESOS

ADMINISTRATIVOS EN LOS PEQUEÑOS NEGOCIOS

ABSTRACT:

This project consists of distinguishing and recognizing the administrative process

through a diagnosis, which serves to analyze and resolve business problems. This

process is divided into four stages that are: planning, organization, direction and control.

To start a business the main thing is to have an economic base, help in future production

and achieve the proposed objectives. It is for this reason that each of the administrative

processes and activities must be carried out in a correct way to avoid any harm in the

business.

The methodology of this project is qualitative because it analyzes the administrative

processes according to a diagnosis used in the small business "Soda Bar". The type of

research is exploratory, descriptive and explanatory. The resources used were: material,

technological and human (The working group - five people). The method that is applied

is the synthetic analytic and inductive deductive. Also the bibliographic method which

is where the information on the subject will be collected according to the theories of the

different authors that help in the elaboration and analysis of the theoretical framework.

The technique used is an interview with the business owner. The instrument is an

interview guide.
In conclusion, we want to ensure that all entrepreneurs put the administrative process

into practice within small businesses to prevent disappointments and that there are

always favorable profits, and that a future can continue to be improved both with good

administration and excellent production.

KEYWORDS: Administrative activities, Administrative process, Small business.

RESUMEN:

Este proyecto consiste en distinguir y reconocer el proceso administrativo a través de un

diagnóstico, el cual, sirve para analizar y solucionar inconvenientes en el negocio. Este

proceso se divide en cuatro etapas que son: la planeación, organización, dirección y

control. Para emprender un negocio lo principal es tener una base económica, la que

ayudara en la producción futura y lograr alcanzar los objetivos propuestos. Es por esta

razón que cada uno de los procesos y actividades administrativas se deben realizar de

una forma correcta para evitar algún mal en el negocio.

La modalidad del presente proyecto es cualitativa porque se analizaran los procesos

administrativos de acuerdo a un diagnóstico empleado en el pequeño negocio “Soda

Bar”. El tipo de investigación es exploratoria, descriptiva y explicativa. Los recursos

utilizados fueron los: materiales, tecnológicos y humanos (El grupo de trabajo – cinco

personas). El método que se aplica es el analítico sintético e inductivo deductivo.

También el método bibliográfico que es donde se recopiló la información del tema de

acuerdo a las teorías de los diferentes autores que ayudan en la elaboración y análisis

del marco teórico. La técnica a emplear es una entrevista realizada al dueño del negocio.

El instrumento es una guía de entrevista.

En conclusión, se quiere lograr que todos los emprendedores pongan en práctica el

proceso administrativo dentro de los pequeños negocios para prevenir disgustos y que

siempre existan ganancias favorables, y que a futuro se pueda seguir mejorando tanto

con una buena administración y una excelente producción.

PALABRAS CLAVES: Actividades administrativas, Pequeños negocios, Procesos

administrativos,

INTRODUCTION

This research is focused on small companies in the commercial sector because these

establishments represent an important factor for the Ecuadorian economy, however,

they are surrounded by adverse situations that impede their development. This project

consists of distinguishing and recognizing the administrative process through a

diagnosis, which serves to analyze and evaluate a particular issue and solve problems in

the business.

According to Blandez Ricalde, (2014) "The administrative process is divided into four

stages, which are: planning, organization, direction and control." A microenterprise

needs these elements since they allow it to have a balance in the strategic and human

resources level, through personal analysis we know that planning is an initiative of

projects, which in the future give a vision of what we are trying to achieve With the

small business, the organization shows how the different work areas should be

structured, The management is a guide of the course that must be taken to obtain good

results, and the control deals with the order that must be taken so that there are no

problems in planned strategies, or discussions among human talent.

The tasks of the Administration are the basis of the operation of any company, having a

large number of tasks ranging from the preparation and control of the Data Bank, as

well as the different tasks of Operations Control, being on many occasions the engine of

new campaigns and tasks that allow growth or the elaboration of a plan to provide New

Income.

Through this study, the aim is to know the current situation that these companies are

going through in terms of the administrative process, in order to publicize the results

obtained to promote an administrative culture in the entrepreneurs who manage this type

of business.

Due to the importance of the correct application of the administrative process, a field

study was carried out on the selected sample; a "SODA BAR", to collect the necessary

data through an instrument applied to the owner of the small business, in question,

everything done in order to know the current situation of their administrative process

and thus identify the main administrative problems.

The general objective is stated as follows: Identify how the administrative process is

applied in small companies within the activities they carry out.

Failure to correctly apply the phases of the administrative process results in improper

administrative and economic management of small businesses, being detrimental to

those who invest in the growth of the micro enterprise. For this reason, the following

has been raised as a problem: How does small business not follow administrative

processes correctly?
Its delimitations are; Space: Ecuador - Los Ríos - Babahoyo. Temporary: 2 months and

Demographic: 5 students and a tutor teacher.

The micro company "Soda Bar" is located on García Moreno streets between Bolívar

and Calderón. This small business is available to all people in order to satisfy food

needs at any time of the day. The soda bar "The Kiss" is located in a sector very

attended by the Babahoyenses citizens.

This project has the direction, or is defined in a soda bar, a micro-business entity in

which the processes used in it could be diagnosed. For more information, a series of

questions were asked to the owner, Mr. Jonny Carvajal Torres.

Thanks to the administrative process it is possible to know that it is necessary to

correctly apply all the elements within the business so that there are no future problems

and allow the planning, organization, management and control to serve for the

microenterprise to have significant growth; A good start so that the business has a very

emphatic approach when formulating work plans and there are no difficulties that harm

it in the future.

LITERATURE REVIEW

In this project, the initiative is to publicize the administrative processes and the

functions they perform in a small business.

According to Blandez Ricalde, (2014) The administrative processes are divided into

four activities that are: planning, organization, direction and control; each plays an

important role in small companies; planning is set out in policies, procedures, programs,

procedures, and budgets; the organization performs hierarchical functions within the
business; the management represents the authority, the communication and the

supervision, finally the control manages its establishment, its operation and

interpretation. This administrative process helps every small business be effective and

efficient. It is really necessary to know the administrative process, which is very

satisfactory to put it into practice so that the micro-company can move forward without

problems.

According to the author Díaz, (2013) Diagnosis is a process that regulates the efficient

way of a company's operations and even more so the micro-companies that are the most

representative organizations of the economy. Diagnosis in a small business is used to

identify problems if they should exist within the organization, that is, it allows us to

solve the problem in the small business.

According to Heber, (2016) "The administrative process refers to the actions that must

be carried out within an organization to enhance its efficiency and make the most of all

its resources, both human and material and technical."

According to the author Server, (2016) The Administration is understood by the

majority of theorists in this area as human activity, or social process, which is

specifically responsible for Planning, Organizing, Directing and Controlling the use of

resources, in order to fulfill –effectively and efficiently- a series of objectives, which

translate into the maximum benefit of the company or group where the administrative

exercise is being carried out as such.

Según el autor Osiris, (2013). Planning, at this stage, will be chosen or chosen, the

activity to be carried out, and the goals and objectives that are desired and expected to
be achieved and the way in which it will to achieve this. For this stage, the administrator

or manager with knowledge is going to ask a series of questions to do it.

Según el autor Heber, (2016) The organization refers to the technical structuring of the

relationships that must occur between hierarchies, this administrative element has some

common elements, regardless of the nature and scope in which the company operates:

• It is continuous, providing well defined guidelines and the administration of

resources over time

• Provides methods to execute activities much more efficiently

• Reduces production costs and increases business productivity, eliminating

superfluous expenses

• Avoid duplicate and, therefore, useless efforts, defining very precisely the

functions and competences of the personnel

  "Management in the administrative process is the most dynamic phase of the entire

process, due to the interactivity that exists between the members of a work team and

their manager." (Ugalde, 2016). Understanding the concept of management in the

administrative process and its functions is essential to advance in the other phases of the

process.

"Control is an element of the administrative process that includes all the activities that

are undertaken to ensure that the actual operations coincide with the planned

operations." (Romero Sanchez, 2003). All managers of an organization have an

obligation to control; For example, they have to conduct performance evaluations and

take the necessary steps to minimize inefficiencies. In this way, control is a key element

in administration.
According to the authors Peterson & Plowman, (1953) "Administration is a technique

by means of which the purposes and objectives of a particular human group are

determined, classified and carried out."

For Kroontz & O'Donnell, (1935) they consider the administration as the direction of a

social organism and its effectiveness in achieving the objectives, based on the ability to

lead its members.

According to the authors Juan Perez & Merino, (2009) A micro company is a small

company. Its definition varies according to each country, although, in general, it can be

said that a micro-company has a maximum of ten employees and a limited turnover. On

the other hand, the owner of the microenterprise usually works in it.

METHODS

The modality of this project is qualitative because the administrative processes will be

analyzed according to a diagnosis used in the small business "Soda Bar".

The type of investigation is exploratory, descriptive and explanatory because the

administrator and owner of the small business will be interviewed to find out if the

administrative process is properly applied within the business.

The method that is applied is synthetic and inductive analytical. Also the bibliographic

method which is where the information on the subject was sought according to the

theories of the different authors who contribute to the elaboration and analysis of the

theoretical framework.
The technique to use is an interview with the business owner; The instrument is an

interview guide to be applied to the business owner.

RESULTS

Fulfilling the objective of this research, the exploratory, descriptive and

explanatory methodology was implemented, considering as methods, instruments,

technique and resources available that should be involved in the application of the

methodology that will provide a diagnosis of administrative processes in small

businesses.

In this sense, the analysis of results showed to the problematic as they affect

small businesses not to follow correctly the administrative processes, are mainly:

planning, organization, direction and control.

Planning Organization,

Direction Control

Identification of the problem of administrative processes

The discussion tables were established as agreed. They gave their ideas on the proposed

topic generating a vast amount of information that we were able to synthesize in Table 1
 Table 1: Problems identified to the business owner.
Problems selling: Resistance to customer preferences; poor customer

orientation and service.

Trouble producing: Lack of technical capacity to handle production and

operations.
 Problems controlling: Inadequate management of credits and collections;

ignorance of the true financial state of the business and poor

management of inventories.

Table 1 presents the representative information provided by clients focused on the main

problems to sell, produce and control: lack of guidance, technical capacity to manage

production and poor inventory management.

DISCUSSION

The results of the analysis in Table 1 present us three problems identified to the

business owner to analyze the administrative process; here is what was discovered in the

results of the interview:

• Planning: is the determination of a strategy that allows you to achieve your

objectives by optimizing the available resources.

• Organization: is an administrative function that includes the organization,

structuring and integration of organic units and resources as material, financial, human

and technological for the business.

 • Management: It is reflected in the achievement of objectives, the

implementation of organizational methods, and the effectiveness of control systems. It

establishes the necessary communication for the organization to work.

• Control: this is the key step that allows organizations to improve and rectify

possible errors that may have been generated in the different phases of work.

CONCLUSIONS

On the basis of the results obtained in this investigation and on the basis of the

instruments used, I am partially carrying out the functions of the small business

administrative process which are not properly carried out.

An interview was conducted for the business owner in order to see if the

management of the inventories and the lack of technical capacity to manage the

production of the products are being planted correctly. Since there is no good

management of the administrative processes, we observe that they do not meet the

performance of a good Administrative Management for the business.

References
Blandez Ricalde, M. (2014). Administrative process. Col. La Loma Tlalnepantla. State

of Mexico: UNID.

Diaz, J. (May 4, 2013). Emprendices. Obtained from What is a business diagnosis ?:

https://www.emprendices.co/que-es-un-diagnostico-empresarial/

Heber, J. (March 6, 2016). emprendepyme.net. Obtained from The organization of the

administrative process: https://www.emprendepyme.net/la-organizacion-del-

proceso-administrativo.html

Juan Perez, P., & Merino, M. (2009). Definition of. Obtained from Definition of

microenterprise: https://definicion.de/micro-empresa/

Kroontz, & O'Donnell. (1935). ADMINISTRATION. Spain: McGraw-Hill.

Osiris, M. M. (July 29, 2013). Gestiopolis. Obtained from Planning and its

characteristics within the administrative process:

https://www.gestiopolis.com/planeacion-y-sus-caracteristicas-dentro-del-

proceso-administrativo/

Peterson, & Plowman. (1953). Principles and administration. Spain: CECSA.

Romero Sanchez, M. (August 26, 2003). Gestiopolis. Obtained from Control within the

administrative process: https://www.gestiopolis.com/control-dentro-del-proceso-

administrativo/

Server, R. (July 30, 2016). The Thinking education. Obtained from G.P Terry,

Administration concept: https://educacion.elpensante.com/g-p-terry-concepción-

de-administracion/
Ugalde, G. (May 5, 2016). Emprendepyme.net. Obtained from The address in the

administrative process: https://www.emprendepyme.net/la-direccion-en-el-

proceso-administrativo.html

ANNEXES

Interview guide to the owner of the soda bar "The Kiss"

1. How old is running soda bar "The Kiss"?

Twenty five years

2. Do you consider that having a planning of accounting processes would

improve the quality of the product they provide?

I think that’s what keeps us at the levels that we are.

3. In your opinion, would planning help to improve business development?

Of course.

4. Do you have tools, standards or measures to enable you to plan the

activities that are carried out within the business?

This is budget driven.

5. Are you aware of the importance of providing a good quality product to the

consumer?

It is, of course, what keeps us as leaders in international markets.