Within each SBU, practically every impotent organization is divided into two fun

ctional
subdivisions. Most business have separate department for production (or operatio
n),
marketing, finance, and personal (or human resources management). Military
installations have supply, police, and maintenance department, among others. Chu
rches
have preaching, education, and music ministries. Each of these functional subdiv
ision is
typically vital to the success of the respective SBU and, therefore, to the tota
l
organization. Functional-level strategic management is the management of relativ
ely
narrow area of activity which is of vital, pervasive, or continuing importance t
o the total
organization. Strategic management of the finance function involves establishing
budgeting, accounting, and investment policies and the allocation of SBU cash fl
ows. In
the personnel areas, policies for compensation, hiring and firing, training. And
personnel
planning are of strategic concern. Strategic management at the functional level
does not
include the supervision of day- to-day activities but mainly general direction a
nd
oversight through setting and enforcing policies.