INTRODUCTION TO THE

FUNCTIONAL
AREAS OF
MANAGEMENT
BY: Kian Danielle P. Valdez
 TABLE OF CONTENTS

01 02
MARKETING OPERATIONS
MANAGEMENT MANAGEMENT
03 04 04
HUMAN FINANCIAL TECHNOLOGY
RESOURCES MANAGEMENT MANAGEMENT
MANAGEMENT
 MARKETING MANAGEMENT
The marketing management functions of management include the following:
1. Analyses, planning, implementing, and controlling of goods, services,
and ideas to create exchanges that satisfy customer needs and company
goals.
2. Management of marketing resources.
3. Analyze, plan, and implement marketing programs that aim to bring
about an expected level and mix of business deals with target markets.
4. Stimulate demands for the products of the company.
5. Make crucial decisions that will ensure the company's competitiveness.
6. Make sure that marketing techniques employed are efficient, effective,
and socially responsible or ethical.
1. Analyses, planning, implementing, and controlling of goods, services, and ideas to create
exchanges that satisfy customer needs and company goals.
• Analyses of demand management start with the gathering of data through marketing
research. Activities under marketing planning include decision-making on target
markets, market positioning, product development, pricing, distribution channels,
physical distribution, communication, and promotion. The implementation of the
marketing plan is formally carried out by sales managers, sales people, advertising and
promotion managers, and customer service managers, among others.
• Controlling refers to monitoring of the marketing plan's progress. Goals and budgets
are set for each month or quarter. A review of the results follows in order to identify
businesses that are not attaining their goals. Managers of unsuccessful businesses must
explain what the problem is and propose contingency plans or steps that management
has to take in response to such negative developments.
 2. Management of marketing resources

• Marketing resources include sales people, advertising, and marketing

research.
• Management of salespeople
• Management of advertising
• Management of marketing research
 MANAGEMENT OF SALESPEOPLE
 Management of salespeople involves inculcating the establishment
of satisfying long-term relations with customers, suppliers, and
distributors in order to help their long-term preference and
business.
Good marketers are able to maintain win-win relationships by
seeing to it that they always deliver high quality, good service, and
fair and reasonable prices to the key parties that they deal with over
a long period of time.
 OPERATIONS MANAGEMENT
• Business managers today focus on productivity, technology use, quality of
goods and services, customer satisfaction, and speed. They are conscious
that they need to innovate on their processes and activities in order to
succeed in a highly competitive globalized market. Because of these, the
operations management functions of management must include the
following:
 Overseeing the transformation processes that change resources into
finished goods and services.
 Improvement of productivity and competitive advantage.
 Managing the sequence of activities and information along the whole
course of the value chain.
 Overseeing the transformation processes that change resources into finished
goods and services.

• In order to do this, managers must address resource acquisition inventories,

facilities, workflows, technologies, and quality. In doing so, productivity and
competitive advantage will be ensured as they accomplish the multiple
processes that transform the various resources- in the form of people,
material, equipment, and capital-into quality finished products and services.
 Improvement of productivity and competitive advantage
. • Productivity measures the efficiency by which inputs are turned into outputs. The
basic equation for productivity:

Productivity = Output / Input

• Competitive advantage is a competency of an organization to outperform a
competitor or competitors. To ensure productivity, work processes must be subjected to
complete analysis and redesigned, if necessary, through process engineering. Other
ways to ensure productivities are process value analysis and re-engineering. In process
value analysis, all elements of a process and their workflows are analyzed to be able to
know their contributions to key performance results. Reengineering discards work
steps that are not needed, combine other work steps, and uses technological know-how
to reduce costs and also ensure efficiency and effectively. Competitive advantage
follows when organizations improve their productivity.
 Importance of Operations Management

•Through the study of the essentials of operations management,

businesses of different types and sizes may increase their
chances of survival and success in today's business environment
which is characterized by intense competition and desire for
innovative quality products and services.
 HUMAN RESOURCES
Human MANAGEMENT
resources, also known as human capital, drive the performance of
organizations along with other resources; hence understanding the HRM functions of
management is very important. These include:

 Conducting Job Analysis  Communicating

 Planning Labor Need and Recruiting
 Selecting Candidates for the Job
 Orienting and Training New Employees
 Managing Compensation or Pay
 Providing Incentives and Benefits
 Evaluating Employees' Performance
 Developing Employees
 Building Employee Commitment
 Providing Good Working Conditions
 Handling Grievances and Industrial Relations
 CONDUCTING JOB ANALYSIS
• Job analysis is the process of obtaining information of jobs needed to
achieve the organization's goal/ objectives by determining the duties, tasks
or activities involved in jobs.
• Job analysis data may be gathered through interviews, questionnaires,
observation and diaries. These may also be collected through position
analysis, critical incident method, task inventory analysis, and competency-
based analysis. Decision-making regarding job-related problems is done
objectively by analyzing the requirements for each job.
 PLANNING LABOR NEED AND
RECRUITING
• It is important to determine the number and kind of people that may be
attracted for employment. External recruitment enables the organization to
fill job openings with special qualifications and to employ a person with
new knowledge, skills, values, ideas, and perspectives. Internal
recruitment may also be done if management finds it more advantageous
to promote or transfer present employees to fill the job openings.
Recruitment from within the company is said to be less expensive as
existing employees no longer need extensive orientation programs.
 ORIENTING AND TRAINING NEW
EMPLOYEES
• This is done in organizations so that they could contribute to the achievement of
their organizational goals'/objectives' achievement. The phases involved in this
function are:
 conducting needs assessment of the organization, of the person, and of the
task/work;
 designing the training program by considering the institutional objectives, the
trainees' readiness and motivation, and the principles of learning;
 implementation of the training program for non-managerial employees using:
on-the-job training, apprenticeship training, cooperative training, internship,
government training, classroom instruction, e-learning, and others; and
 evaluating the training program in order to determine effectiveness, considering:
reactions, learning, the behavior of the trainees, return on investment (ROI) or
results and benchmarking.
MANAGING COMPENSATION OR PAY
• Compensation or pay represents a reward received by
employees in exchange for their contributions to the
achievement of organizational goals. In doing so, pay
equity must be considered. It must be fair and just,
acceptable to all concerned parties, and commensurate
with the value of the work performed. It is important as it
determines job performance motivation of workers.
SELECTING CANDIDATES FOR THE JOB
• This involves the matching of people and jobs. Job
specifications help identify the person-job fit, and, in
particular, identify the individual competencies, their
knowledge, skills, abilities, and other factors that may
lead to excellent performance. Managers may use
different selection methods such as interviews,
psychological tests, calling references, and others.
 PROVIDING INCENTIVES AND
• Incentives BENEFITS
are generally based upon a pay-for performance philosophy which-
means that a performance "threshold" or a baseline performance level must be
reached by an employee or group of employees in order to qualify for incentive
payments. Examples of individual incentives are bonuses, merit pay, and sales
incentives, among others. Group incentives include team compensation, scanlon
plan, and improshare. Enterprise incentives are profit sharing, stock options, and
employee stock ownership plans. Benefits, on the other hand, include social
security, workers' compensation, health care and educational assistance, vacation
leave, sick leave, life insurance, retirement benefits, and travel benefits, among
others. It is important that incentives and benefits programs be based on specific
objectives compatible with the organizational philosophy and policies and on the
organization's financial standing.
 FINANCIAL MANAGEMENT
• Gaining profit is the main goal of businesses. To attain this goal, managers must be
able to practice good financial management and this, of course, starts with
understanding the financial management functions of management. These functions
include:

 Taking charge of the company's financial policies and strategies, investments,

capital structures, and dividend policies.
 Financial management and control.
 Financial planning.
Taking charge of the company's financial policies and strategies, investments, capital
structures, and dividend policies.

• Financial managers of organizations must be able to formulate sound financial

standing plans that will communicate broad guidelines for their financial decisions
and strategies. These include, among others, typical financial policies that address
the organization's investments, capital structures, and dividend policies. Investment
policy covers choice of product lines and capital project. Capital structure policy
covers working capital policy (for the balancing of assets and liabilities); and
leverage policy (for balancing long-term financing).Dividend policy considers the
use of either a systematic pattern of earnings retention or dividend distribution.
 FINANCIAL MANAGEMENT AND CONTROL
. • The management and custody of the organization's funds also include control
which makes sure that these said funds are properly utilized to provide for all the
organization's needs. Examples of standard financial management and control
practiced by organizations are project management which makes sure that long-
term projects are implemented according to previously planned budgets and
checks if these have yielded forecasted cash returns; working capital management.
This includes cash, accounts receivable, and inventory management. Cash
management makes sure that there is enough cash balance, that idle cash is
invested in marketable securities, and that proper cash control rules are instituted.
Accounts receivable management ensures that accounts receivable investments
are optimized and that sound credit evaluation and collection procedures are
formulated.
 FINANCIAL PLANNING

. • Financial planning is the process of setting

financial objectives and determining what
should be done to accomplish them. This
includes financial forecasting, financial analysis,
and financial performance evaluation.
• Financial forecasting involves cash budgeting, profit planning, and balance sheet forecasting.
• Cash budgeting is a forecast of cash needs and sources. Profit planning is a forecast of
revenues and expenditures.
• Balance sheet forecasting considers future assets, liabilities, and the organization's net worth
position.
• Financial analysis involves capital budgeting techniques, operating leverage analysis,
financial leverage analysis, and analysis of pricing and costs.
• Capital budgeting involves the assessment of long-term investments.
• Operating leverage analysis critically examines cost-volume-profit relationships, and
• financial leverage analysis studies the effect of debt on income to the organization's common
stockholders.
• Analysis of pricing and costs of products, materials, supplies, and production/manufacturing
also falls under financial analysis.
• Financial performance evaluation refers to the assessment of financial ratios to indicate the
overall performance of the organization, as well as the assessment of market-wide financial
indicators.
 IMPORTANCE OF FINANCIAL MANAGEMENT
• Financial management facilitates the choice of investments, financial policies, and
operating mechanism of the organization in order to effectively achieve its goals
and objectives, which includes maximizing its profits as well as those of its
shareholders and stockholders. In doing so, financial shareholders and such other
goals are satisfied. Managers are able to maximize the wealth of the organization
and its shareholders are actively participating in present societal concerns, among
others.
 IMPORTANCE OF FINANCIAL MANAGEMENT
• To be able to accomplish the above mentioned functions that give importance to financial
management in organizations, control techniques that measure the company's financial
soundness, management effectiveness, production and service efficiency, and human resource
attitudes and morale, must also be considered. These include the following:
 Break-even chart – used by the organization's financial management planners and
accountants to identify how the various sales levels affect the income and profits of the
firm; the break-even point is the level of operations that shows equal income and expenses
incurred by the company
 Financial statements – these include income statements, balance sheets, and cash flow
statements carefully analyzed after examining them thoroughly. The company's viability is
determined by these techniques.
 Financial ratios – these make use of the above-mentioned financial statements to
determine the formulation of a series of ratios that will, in turn, determine if the company is
stable or unstable, strong or weak and on the road to bankruptcy. Examples of such ratios
are the rate of return on capital invested, rate of return on assets, rate of return on sales,
and others.
 IMPORTANCE OF FINANCIAL MANAGEMENT
• To be able to accomplish the above mentioned functions that give importance to financial
management in organizations, control techniques that measure the company's financial
soundness, management effectiveness, production and service efficiency, and human resource
attitudes and morale, must also be considered. These include the following:
 Break-even chart – used by the organization's financial management planners and
accountants to identify how the various sales levels affect the income and profits of the
firm; the break-even point is the level of operations that shows equal income and expenses
incurred by the company
 Financial statements – these include income statements, balance sheets, and cash flow
statements carefully analyzed after examining them thoroughly. The company's viability is
determined by these techniques.
 Financial ratios – these make use of the above-mentioned financial statements to
determine the formulation of a series of ratios that will, in turn, determine if the company is
stable or unstable, strong or weak and on the road to bankruptcy. Examples of such ratios
are the rate of return on capital invested, rate of return on assets, rate of return on sales,
and others.
 TECHNOLOGY MANAGEMENT
Information and Communication Technology Management Management in
the 21st century, without a doubt, is driven by information and
communication, networked digitally and ever-changing. Computers provide
more data about more things to more individuals, groups, or teams in
organizations, more quickly than ever before; hence, the study of the
information and communication technology management (ICTM) functions
of management is relevant. These include the following:
 Developing the organization's hardware, software, and other computing
and communicating technology.
 Developing the organization's management information system (MIS)
tailored to the needs of the firm's units.
 Encouraging e-commerce through Internet use.
 DEVELOPING THE ORGANIZATION'S HARDWARE, SOFTWARE, AND
OTHER COMPUTING AND COMMUNICATING TECHNOLOGY

• IT encompasses different kinds of technology, such as various types of hardware

(examples: computers and printers), software (example: operating systems), and
computing and communication technology (examples: telecommunications and
management of databases). The fast rate at which these are changing requires
managers to be ready to develop and adapt to new technology.
 DEVELOPING THE ORGANIZATION'S MANAGEMENT INFORMATION
SYSTEM (MIS) TAILORED TO THE NEEDS OF THE FIRM'S UNITS

. • IT has developed management information systems that gather, process and

disseminate internal and external information to the company on a timely basis in
order to support managers in their tasks. Electronic equipment makes fast and
reasonably priced processing' of voluminous amounts of data possible. The
computer can process data and provide logical conclusions, and classify and
prepare them for use in decision-making.
IMPORTANCE OF INFORMATION AND COMMUNICATION TECHNOLOGY
MANAGEMENT

• The widespread use of ICT has brought about the emergence of a "knowledge
society" due to easy access to information at low costs through the Internet.
Management may use it for its different managerial functions. It may be used for
scenario planning or identifying future scenarios in the business environment,
which may need careful planning; decision-making through the use of information
generated by IT; aiding teamwork; facilitating productivity measurement;
communicating easily; selling worldwide through the Internet; and many others. It
may be said, therefore, that ICT has revolutionized the business world.
THANK YOU!