THE FUNCTIONAL AREAS OF MANAGEMENT IN ORGANIZATIONS

The Major Functional

Areas Of Management FUNCTIONS AND RESPONSIBILITIES
-They take care of developing product packaging, pricing, as well as creative
materials for the company’s target customers
-It is the functional area that is responsible for making the decisions related to
the 5 Ps – people (customers or target market), product (goods/services),
Marketing promotion, place (distribution) and pricing.
- In day’s technology-driven business environment, marketing is also
responsible for building and overseeing a company’s Internet presence (e.g.,
the company Web site, blogs, social media campaigns, etc.)
- Although related to accounting, the finance function involves planning for,
obtaining, and managing a company’s funds.
-A company’s finance department answers questions about how funds should
Finance be raised (loans vs. stocks), the long-term cost of borrowing funds, and the
implications of financing decisions for the long-term health of the business.
- Finance is the functional area that is responsible for making the decisions
related to the acquisition and allocation of financial resources

-It is the functional area that is directly responsible for making the decisions
related to the creation of goods or provision of services. It is the part of the
organization that is directly involved in transforming inputs (resources: 6Ms +
Production/ information) into outputs (goods/services) through a transformation or
Operations conversion process.

The Minor Functional Areas Of

FUNCTIONS AND RESPONSIBILITIES
Management
 -It is responsible for the manpower resources of the organization.
-They have to make sure that the people they recruit have the
right skills, experience, and qualifications based on what the
company needs
Human Resources (HR) -HR is also in-charge of major areas like compensation and
benefits, training and learning, labour and employee relations,
and organisation development

- It is responsible for providing the organization’s machine and

material resources.
-Its responsibility involves evaluating and selecting suppliers;
Purchasing actual purchasing of materials, supplies and equipment; and
receiving, inspecting and conducting value analysis on purchased
items.

- Accountants provide managers with information needed to

make decisions about the allocation of company resources.
Accounting - This area is ultimately responsible for accurately representing
the financial transactions of a business to internal and external
parties, government agencies, and owners/investors.

-It is responsible for the work methods that enable the

organization to effectively and efficiently create the goods or
provide the service. Its responsibility involves process selection
Industrial engineering and design, facility layout, management of materials and energy,
and integrating the workers into the overall system.

- The Information Technology (IT) Department is responsible for

Management information systems
the architecture, hardware, software and networking of
computers in a business.
- It is responsible for gathering, processing, organizing, and
disseminating information so as to provide various levels of
management within the organization with accurate and timely
information needed for supervising activities, tracking progress,
making decisions, and isolating and solving problems.

- It is responsible for transporting the organization’s goods to

Distribution warehouses, wholesalers or retailers, or final customers.

-It is responsible for establishing and promoting a favorable

relationship with the public. Its responsibility involves building
and maintaining a positive reputation for the organization from
Public relations the point of view of its publics or stakeholders – its customers, its
employees, its suppliers, its investors, the government, the
community where it operates, and even its competitors.

- Responsible for keeping the organization’s equipment and

Maintenance facilities in proper working condition. Its responsibility may also
involve waste management and security.