Functional Areas of Business
Functional Areas of Business In an organization, there are many functional areas of a business. These functional areas include management, law, human resource management, leadership, accounting, finance, economics, research and statistics, operations management, marketing, and strategic planning. A manager’s role is never the same in these functional areas. Within the paper, the writer will analyze the role of a manager with the functional areas of business. Management and Law
Managers have to ensure the business success; this is how management comes into play. Management has to use his or her human capital effectively, and efficiently to accomplish daily task within an organization. Human capital is also the organizational most important resource because employees can make a business successful. Managers need to ensure that a job is design properly, and when setting goals for employees are they reachable. Rewards are another part of how managers can get employees to complete his or her job in an efficient manner (Eveleth, D.
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M. , Liesz, T. J. , Pettit-O’Malley, K. L. , Rounds, M.S. , & Xu, S. , 2011).
In order for a business to function in today’s society, a manager has to ensure that the business is in compliance with the state, and federal laws. If a business operates in an international market, then the business also has international laws and regulations to follow. According to University of Phoenix MBA Overview Module (2014), “business law also helps managers safeguard the firm’s intellectual property and resolve situations when they arise” (para, Law). Human Resource Management and Leadership Human resource management in numerous organizations is the foundation of that business.
One such role is ensuring that the right candidate acquires the job. Managers also use this to develop employee’s skills by training him or her properly, and ensure that employees wages are correct. Managers also evaluate employees on his or her performance, and give disciplinary actions to correct the situation. Within this functional area, a manager also offers the employee benefits that the business has to offer (University of Phoenix MBA Overview Module, 2014). Not everyone can pose leadership qualities; however leadership qualities can be trained.
In this functional area, a manager may inspire, and motivate his or her employees; this helps employees achieve the company’s goals. Not all leaders are managers; however, leaders can assist managers with handling conflict, and power struggles with the company when they occur (University of Phoenix MBA Overview Module, 2014). Accounting and Finance One may believe that accounting and finance are the same; there are differences between the two. According to the online dictionary (2014), accounting is “the theory and system of setting up, maintaining, and auditing the books of a firm” (Accounting).
Accounting has two parts, financial accounting, and managerial accounting. Managerial accounting involves managers viewing income statements and balance sheets. The information from the accounting and finance statement assists managers with making a sound decision on behalf of the company. These decisions may include how the company will spend for the future, if the company can afford to employ new employee, and how to budget for upcoming ventures (University of Phoenix MBA Overview Module, 2014). One of the most essential parts of an organization is the constant acquisition of fixed earnings (Eveleth, D.M. , Liesz, T. J. , 2011).
In order for any business to grow and thrive, it is necessary that the business acquire assets. Managers within the company will have different choices on how to make these decisions. When dealing with a company’s international market and finance a manager also influences new ventures that the company may be taking (University of Phoenix MBA Overview Module, 2014). Economics, Research and Statistics Economics is the study of production, distribution, and consumption of goods and services within countries and individual firms” (University of Phoenix MBA Overview Module, 2014).
Mangers use economics to increase the company’s profit and to understand the market conditions; these conditions include recession, and depression. Managers use this information to determine what factors need to be viewed and understand before entering into a new market especially the international market. The research portion is information is collected from a person, and statistics is use to understand that data. Managers use this information to gain insight to the business. A manager can understand the consumption of a product, how often it is consume, and the usage time frame associated with the products.
All the above information assists managers with knowing when to continue using these products, and when to modify productivity in the future (University of Phoenix MBA Overview Module, 2014). Operations Management and Marketing Operations management ties into research and statistics. Operations management is how managers use the information they have received and interpret the data to determine the products that consumers use most, the seasons in which these products have the highest sale.
As previously stated, this information helps managers determine when to produce the product, or if the product should be pulled off the market (University of Phoenix MBA Overview Module, 2014). According to the business dictionary (2014) marketing is, “ the management process through which goods and services move concept to the consumer” (Marketing). Marketing uses different strategies that offer consumer products. One method of finding out what the consumer desire is the “push versus pull” promotional strategy (Eveleth, D. M. , Liesz, T. J. , 2011).
Managers identify what products the consumers need and want, and try to create a decent image and campaign to launch that brand to the public. Strategic Planning Strategic planning involves creating and implementing creative ideas that will apply to the company’s goal. Strategic planning is the last step that draws all the functional areas of business together. According to University of Phoenix MBA Overview Module (2014), “managers use strategic planning and implementation to bring all aspects of the firm together” (para, Strategic Planning).
These include economics, marketing, and finance to guarantee the business success. Conclusion In an organization, there are many functional areas of a business. These functional areas include management, law, human resource management, leadership, accounting, finance, economics, research and statistics, operations management, marketing, and strategic planning. A manager’s role is never the same in these functional areas. Within this paper, the writer has analyzed the role of a manager with the functional areas of business.