OM
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
---------------------------------------------------------------
 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.
 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.
 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.
 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.
-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.
------------------------------------------------------------
 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.
 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.
 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 advertisements
specified by the clients are produced and
delivered promptly.
 Media Director, meanwhile selects medium for
the advertisement.
 Promotion managers supervise all promotional
activities of the firm. These activities encompass
all activities for dealers, distributors, and
consumers.
 Promotions Specialists assist in the preparation of
promotional materials such as coupons, flyers,
pamphlets, brochures, gifts and discount cards.
They also provide support in the preparation of
contest mechanics and events such trade shows
to promote the products or service.
 Sales Managers who take charge of selling the
product or services by establishing sales
objectives and encouraging sales personnel to
attain or even exceed their sales targets.
 Sales Representatives do the actual selling and
ensure that the products reach consumers. They
are also in charge of identifying and monitoring
customer preferences and needs.
----------------------------------------------------------
 Operations Management -It involves overseeing,
designing, controlling the process of production,
and redesigning business operations in the
production of goods and services.
- focuses on designing and controlling production
and business operations related to production.
-It involves management of facilities, processes,
distribution and resource planning.
-In the manufacturing setting, the company has to
ensure the design of effective and efficient
production process, timely acquisition of raw
materials need for production, deployment or
adequate number or trained workers, and the
proper maintenance of equipment and other
resources of trained workers, and the proper
maintenance of equipment and other resources
required.
-In service-oriented setting, on the other hand,
the company has to ensure the availability of
trained and customer-oriented personnel,
presence of customer service locations, and
excellent provision of customer service.
 Production manager has to make sure that the
plant meets the production quota, considering
financial and time constraints. Production
techniques employed based on the requirements
of the top management.
 Production Supervisors are assigned to specific
parts of the assembly line or production area.
They oversee operators who do the actual
productions work. Production supervisors
regularly report to the production managers.
----------------------------------------------------------------
 Financial Management
-“The goal of any finance functions is to achieve
three benefits: business support services, lowest
cost, and effective control of the environment.”
-Toward the end, the firm has to ensure that it
sets up effective and efficient internal process
designed to achieve all these, while maintaining
the values of being vision-oriented, growth
focused, intuitive, and risk-taking.
Note: Finance is considered the “ lifeblood of
business” since all organizations need financing to
meet their sales requirements and sustain
operations.
 Finance is defined as the art and science of
managing money. It can also be defined as the
effective acquisition and management of the
assets of an organization. The organizational
function of finance is the procurement and
effective utilization of company funds.
 Finance Manager supervises all finance
operations. Finance managers raised funds,
invests assets, and manage them effectively in an
economically unstable environment. They allocate
resources efficiently to ensure that these
contribute to the growth of the organization.
 Chief Financial Officer (CFO) is the head of the
finance department in large companies. He/she
reports directly to the president or chief executive
office (CEO).
 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.
 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.
 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.
 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.
---------------------------------------------------------
 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.
-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.
 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  1. Sales and marketing information systems
prospective suppliers submit their bids which -engaged in sales forecasting, pricing analysis,
indicate their willingness to provide products and and order processing. The system is also
services to the company at certain prices. involved in planning of facilities, location,
-The company initiates the process by releasing machine control, and production.
invitations to various companies and suppliers to
submit their bids, suppling them specific  2. Finance and accounting information system
information such as specifications of the product -monitors the company’s assets and fund flows,
or descriptions of the services required, the and is indispensable in budgeting, account
criteria for evaluating the bid, and the terms of receivable, and financial planning.
conditions of purchase.  3. Human resource system -keeps track of
employee records, skills, performance and
-------------------------------------------------------------
training, and is utilized in compensation analysis,
 Office Management training and development, and human resource
It involves the proper handling and maintenance planning.
of the clerical aspects of all the functional  Information system managers take charge of
departments of the organization, as well as the establishing an information system, managing it
facilitation of proper communication, components and programs, and rendering
coordination, and storage of data. technical support to the various departments in
-Office management also involves payroll, records, the organization. Their tasks include software and
telecommunications, and parking management. hardware management, networking and internet
 Administrative managers or office managers maitainance.
-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.
-----------------------------------------------------
 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.
 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.

-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: