Introduction to the

Different Areas
of Management
 01 Marketing Management
02 Production Management
Materials and
CONTENTS
03 Procurement Management

04 Financial Management
05 Human Resource Management
06 Office Management
01 Marketing
Management
01 Marketing Management

-is the process of planning, organizing, staffing, directing

and controlling the marketing activities.

Modern technology has improved the persons purchasing

power in a better choice of goods and services for his
consumption. A number of people have enough income not
only for them to live but also for them to grow. Consumers
needs and wants are affected by social, cultural and economic
changes.
01 Marketing Management

Every business must adopt a market-oriented approach to

capture a growing share of the market. It must develop and
satisfy demand, identify the need and wants of its potential
customers more effectively than its competitors.

The operational set-up of marketing may be the

responsibility of one department, but everyone should be
market-oriented
01 Marketing Management

There are some business that consider business marketing

unnecessary and wasteful. There may be excesses and abuses
made by some business enterprises for bigger return on
investments, but an option to a free but controlled market can
sometimes be less wasteful but which at all times is less
dynamic, less creative and less resourceful.
01 Marketing Management

The term “market” connotes many things. Its scope include

a wide range of activities. For example some cities call it:
“The farmers market”- a trading place where all types of fresh
fruits and vegetables are traded
“The Stock Market” -refers to the sales of corporation stocks in
the stock exchange.
01 Marketing Management
It may also refer to sales trends or fluctuations in consumer
demand, such as when the appliance market is picking up or
the car market is done, indicating strong or weak demand.

To the economist, the market for specific economic goods or

services is the sum of all transactions between buyers and
sellers of goods at any designated time or place. Thus, a market
must have a buyer and a seller, a commodity or service, an
exchange and an agreed selling price.
01 Marketing Management

The Nature and Scope of Marketing

Marketing is the performance of business activities that

direct the flow of goods and services from producer to
consumers or users for the latter’s ultimate consumption.

It refers to all activities involving the processing, sale and

physical distribution of goods from the time they are produced
up to the time they are delivered to their ultimate consumer.
01 Marketing Management

The Nature and Scope of Marketing

It also includes marketing research, transportation, product

packaging and the use of advertising and credits as the means
of satisfying consumer needs and influencing consumer
patronage.
The marketing function begins even before goods enter the
manufacturing process. The emphasis in marketing is no longer
focused on things, but a business that is market-oriented is
broadly concerned with consumers and their needs.
01 Marketing Management

The Nature and Scope of Marketing

Strictly defined, marketing is the system of interrelated

business activities of designing, promoting, pricing and
distributing goods and services to satisfy the needs and wants
of potential users.
Marketing emphasizes the management function with the
idea that the whole scheme of business activities should be
customer-oriented. It presents marketing as coordinated and
integrated rather than fragmented.
01 Marketing Management

The Nature and Scope of Marketing

Marketing and production are the two major areas of

business, each sharing approximately equally the consumer
money.

Marketing provides employment ranging from one-fourth to

one-third of the labor
01 Marketing Management

The Nature and Scope of Marketing

The arrangement of the different aspects of marketing into

an integrated function is the role of marketing management.
Goods and services are distributed and rendered into two
different markets, the industrial market and the consumer
market.

Marketing of goods is attained by the performance of varied

activities or functions.
02
Production and
Operations
Management
02 Production and Operations Management

-is the process of planning, organizing, staffing, directing

and controlling the production activities

Production is the creation of anything of value such as

goods, services or ideas that people want and are willing to pay
for. It is the operation stage of any business.
02 Production and Operations Management

Products are a blend of raw materials, extracted from the

earth or the oceans. The process of getting these raw materials
from the mines, oceans, forests and farms is part of the broader
process of production.
It includes:
-in addition to the raising of crops and the removal of lumber
and minerals
-manufacturing which is the process of making finished
goods.
02 Production and Operations Management

Industrial Research - is as old as production, but this area

has not been given the same importance as sales and finance
until recently. The research industry made its appearance at the
turn of 20th century with a few small research laboratories.
Researchers were concerned with solving special problems.

The most important function of research is product

improvement. The evaluation and analysis of the standing of
competitors products is a continuing research-testing process.
02 Production and Operations Management
Research always involves future development. Research
personnel play an important role in supporting management in
planning for the future. Management seeks the help of research
departments for scientific and systematic advice regarding
products and processes.
Manufacturing Process- process of manufacturing a finished
product follows after the raw materials have been procured. A
finished product in one industry may be considered a raw
material in another industry that uses it in the manufacture of a
more complex product.
02 Production and Operations Management

In order to manufacture the wide variety of goods that we

use in this country, modern industry has seen different types of
production processes. The term “manufacturing process”
refers to the method used to change the form of materials

Classes/Types of Processes
Extractive
Analytical
Synthetic
Fabricating
02 Production and Operations Management
The Extractive Process- the raw materials used in making a
new product are taken from the land, air, and ocean. The term
“extractive process” means using methods, such as mining or
quarrying, in digging out these raw materials.
The Analytical Process - is one in which a raw materials is
broken up into its components.
One of the problems faced by management in industries that
use the analytical process is getting all the products to “come
out even” not in the sense of equal volume, but from the
standpoint of production and marketing schedules.
02 Production and Operations Management
The synthetic Process - is exactly the opposite of the
analytic to synthesize is to put together. The synthetic process
combines raw materials to form new products
Manufacturing must exercise care to ensure that adequate
supplies of all needed materials are on hand.

The Fabricating Process

To fabricate is to put together things to form a whole. The
fabricating process includes the shaping of materials into new
forms as well as the assembling of many parts into an
integrated product.
02 Production and Operations Management
Manufacturing pertains to the coordinated employment of
men and machines to produce economic goods from raw
materials. It is the cornerstone of any business because it
employs directly approximately one-fourth of all gainfully
employed persons.

Manufacturing is characterized by the practices of

specialization, mechanization and mass operations. The
machine is the key to modern industrial processes; manpower
is utilized to supervise, maintain, operate and coordinate
mechanized operation.
03 Procurement
Management
03 Procurement Management

-process of planning, organizing, staffing, directing and

controlling the procurement activities.

To assure the successful operation of any modern industrial

manufacturing concern, it is important to consider the
procedure in the proper delivery of materials and supplies at
the right price, at the right time and from the right source.
03 Procurement Management

The difference between the terms “procurement” and

“purchasing” is that,
Purchasing describes the process of buying, identifying the
need, selecting supplies, negotiating prices and following up to
insure effective delivery.
While the Procurement encompasses broader areas and
covers the responsibilities performed by purchasing as well as
other functions of material supervision and management.
Procurement covers Production Control, Traffic and Shipping.
03 Procurement Management
Importance of Procurement

Generally, procurement is not as vital as the production and

sales function of business, it is nonetheless important. When
the sales department gets a big order, the whole organization
feels good. Every employee feels a sense of pride and
satisfaction in his company when a new product is introduced
in the market.
03 Procurement Management
Importance of Procurement

Procuring materials and supplies will only involved

spending the company’s fund and thereby, it is not
complimented. However, Procurement is a vital function.

If it is disregarded or not effectively handled, a production

may be delayed or interrupted because of lack of supplies and
materials and sales contracts may be cancelled and profits
affected.
03 Procurement Management
Importance of Procurement

If the procurement function is intelligently and competently

performed, the entire organization would operate more
effectively.

Procurement is more than just a function of assisting

production. It has some commercial aspects.
03 Procurement Management
Importance of Procurement

Those responsible for purchasing may not bring in money to

the company’s treasury, but through the maintenance of the
advantages of vendor-company relationship, they may save the
business, the expenses involved in operating because of
properly-manned purchasing power.
03 Procurement Management
REASONS WHY PROCUREMENT IS VITAL

1. The proper utilization of money is extremely important to the

survival of every individual and company.

2. Purchased materials and services include the biggest part of

expenditure in most companies.

3. The investment in raw materials, parts and supplies inventory

in some companies is essential and the efficient management
of such inventory can contribute to profit.
04 Financial
Management
04 Financial Management
-is the process of planning, organizing, staffing, directing
and controlling the financial activities.

It is the management-level responsibility for capital

procurement, funds allocation, capital structuring and profit
administration.

This area is responsible for the liquidity, solvency

profitability and financial control of the business.
04 Financial Management
This responsibility involves:
Financial Planning
Analysis of Financial Condition
Supervision of Financial Operations

To perform these functions, the finance manager uses the

following tools:
1. Operating statements to measure income, expenses and
profits.
2. Operating margins to identify the components of gross sales
and percentage sales.
04 Financial Management
Continuation……
3. Comparative operating statements to compare results for the
current period against those earlier periods and the company’s
result against those of others in the same line of business.
4. Balance sheet analysis (comparative studies, ratios)
5. Operating budget to forecast sales, costs, expenses and
profits.
6. Cash budget to forecast short-run cash flows from
operations and short-run working capital requirements.
7. Capital budget to forecast capital expenditures.
04 Financial Management
Financial Planning

The objective of financial planning is to appropriate the

needs and capabilities of the business through a projection of
the availability-funds for a:
Short-term period (working capital cash flow, operating
budgets and sources of working capital)
Long-range period (investment cash flow, capital and
conditions of the capital market).
04 Financial Management
Acquisition of Funds

Two Basic Types of Funds

1. Personal Equity
2. Borrowed Funds (Fixed claims by outsiders)

The selection between the two would be based on the

following:
1. Period of the obligation agreement
2. Priority of claim or preference on income
3. Priority of claim or preference on assets
04 Financial Management
General Rules in Acquisition of Funds:
1. The maturity of the obligation should be well within the
earning life of the asset or project being financed.
2. Projected regular capital requirements should be desired
from long-term investors or reliable sources which can
ordinarily be depended upon for loan renewals or extensions,
while short-term requirements should be covered through
short-term borrowings from commercial banks or the money
market.
3. The use of funds should generate income which is greater
than the cost of the funds.
04 Financial Management

For short-term financing the following may be resorted:

Trade credit
Promissory notes
Assignment of receivable and commercial drafts

The development of the money market has made available to

top-level borrowers sufficient amounts of short-term funds at
competitive interest rates.
05
Human Resource
Management
05 Human Resource Management

-is the process of planning, organizing, directing and

controlling of personnel activities.

Human Resource Department - has the main responsibility

for personnel activities. The scope of control which the Human
Resource Department exercises over the total personnel
function is determined by the order it receives from the top
management.
05 Human Resource Management

HRD works closely together with all other departments in the

organization. It is concerned with selecting new employees,
their hob assignments and their continuing development.

The safety and general welfare of the employees is the

general responsibility of human resource management.

Employee needs and wants, including adequate and

equitable compensation programs, are vital concerns of human
resource management.
05 Human Resource Management

Effective and well understood grievance procedures are

essential for maintaining high levels of morale.

Company magazines are utilized to keep workers informed.

Participative management techniques, including

suggestions, are used to show the employees that his ideas are
important to the company and its management.
05 Human Resource Management

As the business prosper and progresses, the proprietor of

large organizations discovers that he can no longer be
personally acquainted with each employee. So there is a need
to organize the large company into smaller units or
departments with personnel organized designated to oversee
each.
05 Human Resource Management

Management must study thoroughly the job required and

must define the personal requirements for doing it.

It should go without saying that the very conscious

employee ought to know how to perform knowledgeably and
skillfully the tasks for which he is responsible. But proficiency
takes more than knowledge and skill alone; it also takes into
consideration the desire to do a good job. Even the most
informed and able worker may perform at a low level if he is not
interested in what he is doing.
05 Human Resource Management

The effective employee is one who has a genuine desire and

interest to do the best possible job and strives constantly to
improve his performance.

Human resource management is not the sole concern either

of the HRD or the top management. It is part of the job of every
manager, for the personnel function is necessary in every
operation where people are employed.
05 Human Resource Management

Human resource management has the responsibility of

planning, organizing, directing, coordinating and controlling all
activities that concern employees: selecting, developing
compensating and meeting their needs in a number of respects.

It is the goal of human resource management to utilize

effectively each employee’s talents so that company objectives
attained efficiently and economically.
06 Office
Management
06 Office Management

-is the process of planning, organizing, staffing, directing

and controlling office activities and those performing them in
order to achieve determined objectives.

It covers managerial efforts over office work anywhere in the

company. It is not confirmed strictly to the activities of the
office manager some official with a similar positions, nor it is
limited to the work performed in the office only.

Office management is not routinary as some people view it.

06 Office Management

Office management requires ingenuity, decisiveness, and

creativity.

In general the supervisor’s operational activities may be divided

into two groups:
1. Those that contribute directly to the creation of his
group’s production unit.

2. Those that provide auxiliary support to the line activities.

06 Office Management
Supervisors involvement in the business will depend on several
factors:

1. The nature of the business, whether it is manufacturing,

merchandising or service.
2. The size of the business and the organizational level where
the supervisor is located.
3. The kind of operational function and selection in performing
line or staff functions.
06 Office Management

The Challenges of Office Management

The challenges are numerous for the supervisor performing

office works. Among the significant challenges are:
1. Careful analysis and involvement of remedial actions for
coping with mounting office cost.
2. Preparation for the “electronic function” or electronic
office.
3. Extent of specialization in individual office jobs.
06 Office Management

The Challenges of Office Management

4. Reduction in the amount of unnecessary paper work

performed.
5. Development of better means of motivating office employees.
6. Greater delegation of authority by the office manager.
7. Attracting and acquiring the better graduates from schools to
office jobs.