Functional Areas of Business

Only available on StudyMode
  • Download(s) : 298
  • Published : May 27, 2013
Open Document
Text Preview
Functional areas of business
Businesses are composed of different areas that work cohesively to achieve goals. The areas are often referred to as departments or functional areas. Accounting, Human Resources, Operations, and Sales are all examples of functional areas. Every business needs the functional areas, but not every business will separate them into individual departments or functional areas. Small businesses could have one person responsible for Operations and Accounting, whereas larger business could have a leader or manager for each individual functional area. Two of the most important functional areas of every business are Accounting and Human Resources. Human Resources can be considered many things in business today. While 30 years ago Human Resources, or HR, were simply there to hire and fire, it has become more of a strategic business partner function in a business. Businesses have changed over the past 30 years and businesses need advisors to guide decision makers. HR has evolved into managing human capital, and the principle that effective management practices drives employee satisfaction, that drives customer satisfaction which eventually drives long-term profitability and growth. Cascio, W. F. (2005). In business today HR leverages human capital within a company and provides employees who fit the company strategy, vision and values. While at one time many of the transactional HR tasks such as Payroll, Benefits Administration and Training were outsourced to companies outside the business, HR has once again taken back the reigns and become specialized in each area. Staffing, Performance Management, Compensation, Benefits, and Safety are just a few areas HR now dominates within the business. The function of HR isn’t the only thing that has evolved; the role of the HR Manager has as well.

HR managers are responsible for a large array of tasks and functions within a business including Benefits, Compensation, Payroll, Legal requirements,...
tracking img