What Is an Administration Function?

Robert Nicholas/OJO Images/Getty Images

Administration functions comprise vital parts of an organization’s structure, helping the organization to manage resources and people in an efficient manner. Planning, budgeting and organizing are the three primary administration functions in any company, and a lack of quality in any of these is quite often detrimental to the health of the company.

Planning is vital to the success of any venture. This does not just refer to plans for the next month, quarter or year, but also to five, 10 and 25 years down the road. When IBM’s leadership said in the early 1970s that it was unlikely that anyone would ever want to use a home computer, this showed a lack of foresight that would plague the company for years to come.

Budgeting is in part an element within planning, but the financial organization within a company must have its own infrastructure to maintain a valid degree of control over the organization. Large ideas are an important part of any successful company, but without the budget in place to fund these large ideas, they remain just that, ideas rather than reality.

Organizing is the third part of major administration functions. Much of this has to do with assigning particular people and departments to specific tasks and ensuring that all of the many subsidiary tasks for a larger goal get accomplished.