Functional Areas of

Management
By: Divina Grace R. Librea
 Objectives
After going through this lesson, you are expected to:
1. Identify the different functional areas of management
2. Explain the nature in the firm of the different functional areas of
management
3. Describe the role in the firm of the different functional areas of
management
4. Integrate the different functional areas of management to the
five major functions of management
5. Appreciate the flow of business transaction and the art of
managing as managers in the firm of the functional areas of
management.
 Functional Areas of Management
1. Human Resource Management
2. Marketing Management
3. Operations Management
4. Financial Management
5. Material and Procurement Management
6. Office Management
7. Information, Communication and Technology
Management
01. Human Resource
Management
• Describes the process of recruitment and
selection of employees in the
organization.
• The company mission and vision as well
as the objectives are discussed on the
orientation and training of employees in
this area of management.
02. Marketing
Management
• It is the process whereby the supply of
goods and services are monitored to meet
the demand of customers to satisfy human
needs and wants.
• The primary focus of this area is the 4P’s of
marketing mix namely; Product, Price,
Promotion and Place.
03. Operations
Management
• This shows the flow of the manufacturing
process of the products and goods that the
firm needs to sell in the market to be globally
competitive.
• An innovation of products to be sold is their
operational strategy in this area
04. Financial
Management
• This area focuses on the sales, revenues and
expenses of the firm whether it is gaining profit or
have financial losses.
• Here financial statement needs to be reported
yearly among the different areas of management
in order to determine the position of the company
in terms of growth, stability and decline.
05. Material and
Procurement Management
• This is the proper distribution of materials
and supplies in the right time and places to
prevent delay transactions.
• This area of management stress out the
process of purchasing raw materials and
supplies from the supplier to monitor the stocks
delivered from the company warehouse.
06. Office Management
• It displays the overall work force of the
employees in the company primarily the
transactions of the business from the five
functions of management such as
planning, organizing, leading, staffing
and controlling to achieve the company
objectives.
07.Information, Communication
and Technology Management
• This is a two-way process in management that
involves the receiver and the sender.
• Since it is rampant nowadays that people are
engage to the internet by means of buying goods,
they act as the sender and the one who receives
orders act as the receiver.
• This area is also responsible on the internet
access of the firms for business productivity.
Role in the Firm
 Human Resource Management -
responsibility is to manage its people to
become skilled and competent workers.
(Training and Development)
 Marketing Management - primary concern is
the production and marketing aspects of the
company to target customer satisfaction.
(promote products and services)
Role in the Firm
 Operation Management - responsible for
manufacturing goods and services in the
company, this area of management must engage
to the other areas in order for the company to
adopt different operational strategies.
 Financial Management - duty is to focus on the
overall financial activities of the firm from sales,
revenues, expenses, income down to profit or
losses of the business to detect its stability.
Role in the Firm
 Material and Procurement Management - in
charge on buying raw materials at its lowest cost
to control the company budget.
 Office Management - liable on the overall
workforce of the firm, its office activities and the
task assigned to the employees to achieve the
organizational objectives.
 Information Communication and Technology
Management role in the firm is to track any
information of the firm’s business data to maintain
its profitability among its competitors.
Thank you!!