OM Note: A human resource department typically
employs between 100 to 150 HR specialists and
Functional Areas of Management
(H.M.O.F.MP.O.IC)
 Human Resource Management
 Marketing Management
 Operations Management
 Financial Management
 Material and Procurement Management
 Office Management
 Information and Communication
Technology Management
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 Managers - focus their efforts in ensuring
that these areas function efficiently and
effectively by implementing the various
management functions in their respective
tasks and projects.
 Human Resource Management
- entire spectrum of management of people
that serves to maximize their performance in
order to meet the organization’s strategic
objectives.
-It covers, among others, the major
functions of recruitment, selection and
placement, training and development,
employees relation, and compensation and
benefits.
Note: The effective management of human
resources has a significant impact on operations
and productions. If human resources are not
managed properly, they can adversely affect the
utilization of material resources such as money,
raw material, and equipment resulting in a
decline organizational effectiveness.
-Smaller organizations = no human resource
departments and operating managers assume
many HR tasks and responsibilities. For large
organization, HR work is covered by human
resource management.
-Larger companies which are comprised of at
least 200 to 500 employees establish human
resources department to address the various
tasks related to human resource management.
employees.
-The success of any organization depends
primarily on the hiring, placement, and
development of employees. That is why HR
specialists must ensure the quality of hiring and
training process of the organization.
 Human resources specialists
- recruit, screen, interview, and place workers.
-They often handle other human
resources work, such as those related to
employee relations, compensation and benefits,
and training.
 HR managers
- outline the different positions form top
management up to the people in the lowest
level of the organizations. HR managers recruit,
conduct interviews, and manage benefits based
on the company policies.
- oversee human resource management and
see to it that employee potentials and abilities
are utilized to the fullest and that their work
satisfaction remains high.
 Recruitment managers -are specialists
responsible for the screening, hiring, and
placement of candidates in suitable positions in
the organization.
-continuously search for qualified applicant to
fill vacant positions by employing various means
and acquire people who can be an asset to the
organization.
Note: Applicants are screened through
interviews, specialized test, and background
checks to ensure that candidates are suitable
for the job and for the organization as a whole
 Job analysts - define and classify job positions
and ensure access to information on each job
and position in the organization.
 Compensation and benefits- managers develop
salary structures, analyze prevailing salary rates
in the market, and classify benefits based on
the job positions, levels and length of service.
They see to it that salaries are given fairly and
on time.
 Training and Development Managers enhance
and improve the skills of the employees
through the implementation of appropriate
training programs.
Note: These programs not lonely focus on the
skills related to job performance, but also
employees in their total growth as a person.
 Training Specialists develop module, prepare
lessons, invite speakers, and conduct training
needs analysis in order to create appropriate
training program for employees in coping with
technological changes by designing programs
that will orient them regarding the latest
technologies and develop their skills in using
them.
 Employees relations managers take charge of
formulating policies, crating employee
handbooks and manuals, coordinating with
labor groups, managing employee complaint
and concens, and dealing with employee
violations.
-They also handle dispute and conflict
settlements among employees. Specialist use
their knowledge of labor laws and wage and
salary data in dealing with employee concerns
as well as in negotiating with labor group.
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 Marketing Management
- According to Business Case Studies,
“Marketing is the management process
responsible for identifying, anticipating, and
satisfying consumer requirements profitably.
- involves overseeing the development of new
products, advertisement, promotions, or sales.
Note: In small companies, the owners do the
actual marketing activities such as selling,
advertising and promotions. Large companies,
on the other hand, have their own marketing
and sales department that oversees the
marketing activities of the organization. This
department is composed of employees who are
assigned various tasks.
 Marketing Director is tasked with managing the
overall marketing operations of the
organization. Extensive knowledge in
advertising, finance, and planning are crucial in
this position. The marketing director must
effectively manage both the budgeting and the
creative process. Apart from having a marketing
director, some companies also point a vice
president for marketing management.
 Marketing Managers are tasked with
developing strategies for the brand by analyzing
the demand for the product or service. They
monitor the activities and strategies of
competitors and formulate strategies to
maintain awareness of and demand of the
brand. They also identify potential markets,
distributions, and competitors.
-also deal with customers, distributors, and
government agencies in the course of their
work . Marketing managers are called product
managers or brand managers.
 Public relation managers take charge of
promoting the company or organization to the
public and enhancing its corporate image. They
a re in charge of publicity and ensure that the
company maintains its reputable image in the
market and its edge competitors.
Note: Several individuals work together to
create the content that will be used in
marketing such as advertisements,
commercials, and campaigns.
 Account Executives manage client accounts or
departments and prepare commercials and
advertisement for them. They coordinate with
advertising managers who supervise all creative
works including conceptualizing and creating
story boards and contacting media or
promotion agencies for the distribution of the
materials.
 Creative Director ensures that the Note: The operations department is staffed by
advertisements specified by the clients are personnel who are tasked with ensuring the smooth
produced and delivered promptly. flow of production and related activities.
 Media Director, meanwhile selects medium for
 Production manager has to make sure that the
the advertisement.
plant meets the production quota, considering
 Promotion managers supervise all promotional
financial and time constraints. Production
activities of the firm. These activities encompass
techniques employed based on the
all activities for dealers, distributors, and
requirements of the top management.
consumers.
 Production Supervisors are assigned to specific
 Promotions Specialists assist in the preparation
parts of the assembly line or production area.
of promotional materials such as coupons,
They oversee operators who do the actual
flyers, pamphlets, brochures, gifts and discount
productions work. Production supervisors
cards. They also provide support in the
regularly report to the production managers.
preparation of contest mechanics and events
----------------------------------------------------------------
such trade shows to promote the products or
 Financial Management
service.
-“The goal of any finance functions is to achieve
 Sales Managers who take charge of selling the
three benefits: business support services,
product or services by establishing sales
lowest cost, and effective control of the
objectives and encouraging sales personnel to
environment.”
attain or even exceed their sales targets.
-Toward the end, the firm has to ensure that it
 Sales Representatives do the actual selling and
sets up effective and efficient internal process
ensure that the products reach consumers.
designed to achieve all these, while maintaining
They are also in charge of identifying and
the values of being vision-oriented, growth
monitoring customer preferences and needs.
focused, intuitive, and risk-taking.
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Note: Finance is considered the “ lifeblood of
 Operations Management -It involves
business” since all organizations need financing
overseeing, designing, controlling the process of
to meet their sales requirements and sustain
production, and redesigning business
operations.
operations in the production of goods and
 Finance is defined as the art and science of
services.
managing money. It can also be defined as the
- focuses on designing and controlling
effective acquisition and management of the
production and business operations related to
assets of an organization. The organizational
production.
function of finance is the procurement and
-It involves management of facilities, processes,
effective utilization of company funds.
distribution and resource planning.
 Finance Manager supervises all finance
-In the manufacturing setting, the company has
operations. Finance managers raised funds,
to ensure the design of effective and efficient
invests assets, and manage them effectively in
production process, timely acquisition of raw
an economically unstable environment. They
materials need for production, deployment or
allocate resources efficiently to ensure that
adequate number or trained workers, and the
these contribute to the growth of the
proper maintenance of equipment and other
organization.
resources of trained workers, and the proper
 Chief Financial Officer (CFO) is the head of the
maintenance of equipment and other resources
finance department in large companies. He/she
required.
reports directly to the president or chief
-In service-oriented setting, on the other hand,
executive office (CEO).
the company has to ensure the availability of
Note: The finance department is composed of
trained and customer-oriented personnel,
finance personnel that include the treasurer and
presence of customer service locations, and
controller.
excellent provision of customer service.
 Treasurer- is mostly involved in major areas of
financial management such as investment,
financing and asset management. Treasurers
are responsible for overseeing the budget
requirements and assessing investment
opportunities and risks.
 Controller is tasked with preparing financial
reports such as income statement, balance
sheets, and cash flow. These report help in
assessing the financial position of the
organization. Controllers also supervise the
accounting, audit, and budget preparation.
Note: Finance managers direct the activities of
the finance department and are responsible for
making major financial decision for the
company. They formulate comprehensive
strategies and outline corresponding plans for
the other personnel in the department. Finance
managers make important decisions in the
following areas:
 1.Investment decision-This is the most
important financial decision because managers
have to determine how much of the total assets
should be held or utilized by the firm and how
will be used by the company.
 -For example , the finance manager has to
decide regarding two options that will increase
the company’s production. The company can
acquire a piece of land where a new plant
facility can be built or it can invest new
technology or equipment to improve operations
in existing facilities.
Note : Managers must weigh the pros and cons
of each financial option by analyzing financial
data and considering economic factors in the
business environment.
 2. Financing Decision-Finance managers have to
decide what type of financing should be availed
of by the company. The company can use its
existing assets, borrow, or sell share of stocks.
When the company decide to avail of loans to
finance the operations, finance managers
determine the amount of the loan, set its
interest rate, and define the terms of payment.
 3. Asset Management Decisions-After acquiring
assets and deciding on appropriate financing
options, the company must effectively manage
the resulting finances.
-Managers take charge of managing the funds
acquired from investments and loans and
ensure that these contribute to meeting the
objectives of the organization and result in
profits for the company.
-Finance managers are also classified into
various specialized positions with specific tasks.
 Credit Managers develop credit policies and
monitor collection of accounts.
 Cash managers monitor and establish control
mechanisms on the flow of cash receipts and
disbursement. They also develop strategies as
to where to invest surplus cash.
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 Materials and Procurement Management
-It is the responsibility of the firm to ensure
that it manages the procurement process and
the supply base effectively and efficiently. This
includes buying high quality products and
services at the right price from the right,
reliable resource, based on the right
specification, in the right quality for delivery, at
the right time to the right customers.
 Procurement is the act of purchasing or
acquiring goods and services for company use.
Note: Company usually have a separate
department for procurement, which is called the
purchasing department. This department is
charged with the acquisition of materials and
resources for the different departments in the
organization.
-In other companies, procurement is part of the
organization’s operations, particularly its supply
chain management.
-Apart from purchasing, procurement
management also involves purchasing planning,
standard determination, inventory control, and
disposal.
 Purchasing managers or procurement
managers supervise the procurement process
of the company. They evaluate and approve
requests for acquisition, and ensure that
materials purchased are of good quality and
purchased at competitive prices.
 Buyers or Purchasing officers acquire specific
products and services required for the
company. They write request for bids,
proposals, and quotes, and evaluate
information regarding procurement.
 Note: Purchasing officers should be familiar
with the items to be purchased since they
communicate and negotiate with suppliers.
-Officers in charge of purchasing equipment
and machines should know the technical
aspects of these goods. Those who are in
charge of procurement in government offices
should ensure that the proper procedure are
observed in awarding contracts, supplies, and
projects for public use consumptions.
-It is customary for purchasing officers to use
sealed bids and offers from suppliers.
 Sealed bid-a type of bid where suppliers put
their bids in sealed envelopes that are only
opened during the actual review. The bids are
evaluated to determine the capacity of the
suppliers to fulfill the terms and conditions set
by the company, and the contract is usually
awarded to the bidder with the lowest price.
 Competitive bidding is the process where
prospective suppliers submit their bids which
indicate their willingness to provide products
and services to the company at certain prices.
-The company initiates the process by releasing
invitations to various companies and suppliers
to submit their bids, suppling them specific
information such as specifications of the
product or descriptions of the services required,
the criteria for evaluating the bid, and the terms
of conditions of purchase.
Note: After receiving the bids, the company
evaluates the information and decides on a
specific supplier. The bidding process is
implemented to ensure transparency and allow
the company to purchase quality materials at
the lowest possible price.
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 Office Management
It involves the proper handling and
maintenance of the clerical aspects of all the
functional departments of the organization, as
well as the facilitation of proper
communication, coordination, and storage of
data.
Note: Many companies have a separate
department for office management which is the
administrative department. It employs a pool of
secretaries, office managers, and executive
assistants who serve in the different
departments. The department also takes charge
of facility management and supervises the
custodial and maintenance personnel such as
receptionist, janitors, and security personnel.
 -Office management also involves payroll,
records, telecommunications, and parking
management.
 Administrative managers or office managers
-perform diverse tasks in the conduct of office
management but mostly concentrate on
monitoring and reviewing office operations to
determine the best work processes that will
contribute to efficiency in the workplace.
Note: Middle managers or supervisors perform
a number of roles related to office
management, such as coordinating with
support services, and ensuring that deadlines
are met and efficiency is maintained in their
respective departments by formulating
appropriate strategies.
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 Information and Communication Technology
Management
-This includes a related form of communication
or application that encompasses radio,
television, cellular phone, computer and
network hardware and software, satellite
system, and so on as well as the various
services and applications associated with them
such as video conferencing and distance
learning.
-It is the responsibility of the firm to provide
necessary information and communication
facilities to all its business units in order to
ensure the yare able to perform their functions
more effectively and efficiently.
 Information Technology refers to the
application of computer and
telecommunications technology to store,
manage, and transmit data in business and
other organization.
 Information Systems are organized systems or
network that collect, store, and disseminate
information required to support key
organizational functions. Collected data are
processed by the systems through three basic
activities: input, processing, and output.
 From the business standpoint, an information
system provides another option for a firm in
solving problems and overcoming obstacles
faced by their organization.
Note: Information technology is extensively
used in business operations, with many of the
information regarding process, personnel,
clients, suppliers, and market statistics now
provided in electronic formats for easy access
and exchange.
-Business organizations also employ a variety of
information systems in the conduct of their
operations, each handling a specific set of
information related to specific functional areas:

 1. Sales and marketing information systems

-engaged in sales forecasting, pricing
analysis, and order processing. The system
is also involved in planning of facilities,
location, machine control, and production.

 2. Finance and accounting information system

-monitors the company’s assets and fund flows,
and is indispensable in budgeting, account
receivable, and financial planning.
 3. Human resource system -keeps track of
employee records, skills, performance and
training, and is utilized in compensation
analysis, training and development, and human
resource planning.
 Information system managers take charge of
establishing an information system, managing it
components and programs, and rendering
technical support to the various departments in
the organization. Their tasks include software
and hardware management, networking and
internet maitainance.
