Functional Areas of Business

Topics: Management, Business, Strategic management Pages: 7 (948 words) Published: January 28, 2015


Functional Areas of Business

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Functional Areas of Business

Intro
Every company is separated into particular sections to enable managers to concentrate completely on a specific area of the organization and to maintain it is running successful while operational highly productive. Commonly, businesses are broken into various functions: management, law, human resources, leadership, accounting, finance, economics, research and statistics, operation, marketing, and strategic planning. Managers play an important role for every business due to the wide range of responsibilities covered. Depending on the size of organization, functional areas may be directed by specific departments with upper management, mid-level and front line managers. In comparison, a small business is often managed by one leader only, who’s responsibilities overlap.

Management
The management role includes more than simply being in charge of employees. Instead, this position coordinates and oversees the work of others, ensures organization goals are accomplishable, and ensures the business success. Furthermore, managers monitor the efficiency and effective use of employees because workers are the most important resource of an organization (Stephen & Robbins, 2010). Managers also oversee and control functions that are not obvious, but play a crucial role in the company’s success. Law is the legal aspect of business that effect business and small firms. Managers use business law to ensure operations are legally sound, incompliance with all state, federal and international requirements, and regulations to help solve problems. Human resources or short HR address concepts of personal development throughout employee’s lifecycle. During the hiring and training process human resources have a high importance. For proper compensation and if disciplinary actions are taken (Stephen & Robbins, 2010). A large role for managers plays the aspect of leadership which covers different ways to influence employees to achieve organization goal, inspire and motivate, handle conflicts, as well as power struggle and organizational change. Accounting maintains and audits financial aspects of a business that is separated into financial and managerial accounting. Financial accounting studies the creation of financial statement, for example, income statements and balance sheets. Managerial accounting looks at statements and helps make decisions, including budgeting for upcoming projects and control cost within the firm (Stephen & Robbins, 2010). Finance addresses the process of setting up and maintaining the fiscal success of the firm including revenue. Finance is useful for managers in many ways, especially when needing fund for new business venture. The study of production, distribution and consumption of goods and services within countries and individual firms are a part of economics. It is used to maximize profits and to handle market conditions, for example, recessions (Stephen & Robbins, 2010). Leaders collect data and use methods as well as statics to interpret them to find out important information about their business as part of research and statistics. This fucntion will help make decisions on what business practices to continue to use and which ones to modify in the future. Operations management is devoted to increasing the value of the firms supply chain. This function is used to ensure that the process f getting goods and service is smooth and error free (Stephen & Robbins, 2010). Marketing interests the end consumer in a product or service and to keep this client happy. Such technique is used to determine which product or service to offer, the type of advertising and creation of a good image of their brand. Strategic planning is applied to ensure origination’s goals are met. Marketing helps bring all aspects of the firm together and ensures the company’s success (Stephen & Robbins, 2010). The Journal of...
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