Functional Areas of Business Paper

Functional Areas of Business Paper

Shaunelle Orridge
MGT/521
August 25, 2014
Ellen Thomas
When pursuing a Masters of Business Administration (MBA) degree, individuals may be under
the impression that having that degree will increase career success. According to Hay and
Hodgkinson (2006), a popular conception surrounding the MBA degree is that it leads to fast
track career success, typically construed in terms of improved salary and hierarchical position
([10] Baruch and Peiperl, 2000; [12] Carnall, 1992) (vol. 11(2), 108-124). Finance and
Accounting, Leadership, Production and Operations Management, Marketing and Sales,
Research and Development, and Human Resources are the primary functional areas of business.
How does a successful manager operate within functional business areas? In this paper, I will
analyze the role of a manager within the functional areas of business. In addition, issues that
pertain to leadership in these roles will be addressed. I will also depict the successful manager in
these roles in order to answer the question posed.
Managers in the Functions of Business
Businesses, whether large or small must implement crucial functions in order to stay productive
and profitable. These functions may include monitoring inventory, purchasing stock, performing
accounts receivable functions, or the hiring and firing of employees. Strategic planning is also a
key area in the functional areas of business. Functional areas include:
* Production and Operations Management involves managers ensuring targets, and quality is met
as schedule.
* The Sales Department is the moneymaker. Without sales, there would be no orders for the
production department to fulfill. Managers in this department must set and achieve solid goals.
* Marketing managers recognize and fulfill customers needs. Achieving this is done with the
marketing mix, which consists of product, price, promotion, and place.
* Research and Development (R & D) management involves the betterment of current products
or developing new products. Either way, these managers are the brainstorming genius behind a
good product or service.
* Human Resources involves the insurance of employee relations, which includes staffing,
wages, training and supporting of professional development
Potential Issues in the Functions of Business

Organizational Culture is defined in Management as, the shared values, principles, traditions,
and ways of doing things that influence the way organizational members act (Robbins, Coulter,
Stephen P., Mary, p. 53, para. 2). Although issues may arise in various areas of the functions of
business, the area of Human Resources may be the most challenging for a manager. As
previously stated the nature of Human Resources is to ensure employee relations; making sure all
management and staff are on the same page. The issue lies in setting the line between the
wellbeing of the employees and that of the manager or company. Guest (2012) states, this
article addresses two longstanding challenges from human resource (HR) manager: how far they
can and should represent the interests of both management and workers and how they can gain
the power to do so (111(1), 109-119). There has to be a balance; HR management cannot swing
too far in the direction of the workers nor management. Everyone must feel valued and
respected. Serious policy issues could arise if HR is not managed correctly.
Another issue that managers may face when dealing with the daily functions of business would
be managing marketing. Without proper marketing, a business can fold. An organizations
profitability, reputation, and its sustained survival can depend on the extent to which its targeted
publics support its policies and goals. Companies will be better able to provide customer needs,
reduce inventory surplus, and produce products for expeditiously if the marketing manager and
staff are aware of company goals.
The Successful Manager in the Functions of Business
Tiffan states (2011) a proactive manager greatly reduces the number of unforeseen problems
and is prepared to react appropriately and decisively when action is needed
(p.95).
Setting clear expectations is the number one area that can reduce problems (Tiffan, 2011). In
many instances, a successful manager can clearly identify each employees roles and
responsibilities, which empowers the employee to see a project through, from start to finish. This
line of thought falls in line with the Production and Operations function of business. Monitoring
employees to make sure all the work is done effectively and efficientlyis also an area where
managers can succeed. This effort can lead to prompt employee recognition for good work or
training when needed (Tiffan, 2011).
Many people spend more time with those in the workplace as opposed to anyone else, including
family. The daily routine often gets the better of many people, and they may even take others for
granted. Employee relations covers communications, conflict and grievance resolution, and
employee participation in management decisions. Employees at some organizations feel as
though management does not listen, and that management does not involve employees in the
planning process. The successful manager involves the employees in corporate, departmental
planning, which is one of the desired practices that can generate increased profits and improve
employee satisfaction, at almost no cost to the organization. In addition to employees being able
to have input into company decisions, many employees need to be recognized for a job well
done. The manager who makes the effort to recognize employees who make an extra effort to
contribute to the success of the company will see higher levels of employee morale.

Conclusion
Acquiring a Masters of Business Administration (MBA) focuses on the growth in business
administration. Organizational leaders must place importance on studying and mastering the
functional areas of business. Successful managers must understand the role they play and convey
specific roles to each employee by monitoring and coaching employees. Business should flow
smoothly through the varying functions of business.
References
Guest, D. E., & Woodrow, C. (2012). Exploring the boundaries of human resource managers'
responsibilities. Journal of Business Ethics, 111(1), 109-119.
doi:http://dx.doi.org/10.1007/s10551-012-1438-8
Hay, A., & Hodgkinson, M. (2006). Exploring MBA career success. Career Development
International, 11(2), 108-124. doi:http://dx.doi.org/10.1108/13620430610651877
Robbins, Coulter, Stephen P., Mary. Management. 11th Edition. Pearson Learning Solutions,
2010. VitalBook file. Bookshelf.
Tiffan, B. (2011). Four important roles of a manager. Physician Executive, 37(4), 94-6. Retrieved
from http://search.proquest.com/docview/878544673?accountid=458

Running Head: FUNCTIONAL AREAS OF BUSINESS

1
Functional Areas of Business Paper Michael BishopMGT/521September 26, 2013Timothy Smith

Functional Areas of Business

2
The pursuit of a Master

s of Business Administration (MBA) concentrates on thedevelopment in business administration.

Organizations leaders have to study the functional areasof business
and find ways to communicate these informations to managers for effective
leadership. Organizations formulate their organizational structures on numerous functional
areasgenerating subdivisions around these functional areas and delegating responsibilities
asnecessary. This paper focuses on the functional areas of business and the importance
of managers to work in cross-sectional teams for a successful organization.
Functional Areas of Business

Small or large businesses have key functions to perform on a regular basis. It may includestock
to be bought, bills to be paid, customers with questions, or other requirements that formsthe
functional areas of the business. Small firms may have one or two people carrying out mostof
these jobs. However, in large organization people with different task are specialized. Somelarge
organizations have buyers purchasing stocks, an accounting department with staff to paytheir
bills and a customer service department with staff to checkout, service, and answer customers
inquires. Therefore, the role of a manager within the functional areas of the businesscould either
bring success or failure to the organization.
Functional Areas in Business Organizations
Because in a large organization, one could find people working together in departments;it is
easier to recognize separate functional areas. From the list below each department tasks
arecarried out, as it relates to that particular area. The list shows a typical organization
Functionalarea in business organizations to include:

Production involves ensuring targets and quality are met as schedule

Sales involves achieving targets goals

Functional Areas of Business

3

Marketing involves iden

tifying and fulfilling customers needs. T
his is achievethrough the marketing mix, which consist of product, price, promotion, and place

IT involves maintaining organization computer network systems

Human resources involves staffing, training and supporting of professionaldevelopment

Finance involves monitoring and supporting aim and objectives to maximize profits

Distribution involves goods delivered on time to the right place and in perfectcondition

Customer service involves keeping old customers satisfied while attracting newcustomers

Administration involves supporting the entire business

Research and development (R & D) involves new product development or improvement on

existing product
Relationship between Different Functional Areas
For an organization to remain successful, the functional areas must work in cohesion.Within
small firms contacts and collaborations among individuals, responsible for diverse rolescould be
generally informal and uninterrupted. For example sale staff may know customers whocannot
receive additional product because of non-payment; the manager may know average tothe best
worker without someone communicating any information, and a customer query easilyresolved
by advice from staff members. In larger organizations because people may work inseparate areas
or department the circumstances are different. Managers have to find ways for information and
support between the functional areas to remain and operate effectively.

Functional Areas of Business

4
Communication and cooperation has to be constant for maintaining the organization aims
andobjectives. For these reasons joint decisions are made amongst departments, for
fulfillingorganizational needs.

Therefore, managers
roles are more complex and demanding.
Managers Role
Managers have to find ways to remain confident, adaptable, and maximize profits for their
stakeholders in the modern business environment (Parker, 2003). Studies have hypothesized
in todays fast and competitive business environment, managers role whether it is new product
development (NPD) or activities that requires constant planning at various stages of the project;it
is important to develop cross-functional teams (Koufteros & Marcoulides, 2006; Clark
andFujimoto, 1991). Further studies by Carson, Tesluk and Marrone, 2007
propose that when
teams share the same voice, social support and shared purpose, the team is influenced
anddevelop positively by shared leadership over time
.

Managers role is to find ways to work

effectively in the different functional areas for maximizing stakeholders profits.
Conclusion
Because, the pursuit of a Master

s of Business Administration (MBA) concentrates on thedevelopment in business administration,

it is very important for organizations leaders to studythe functional areas of business, finding
methods to communicate
informations
to managers for effective leadership. After organizations formulate their organizational
structures, it is necessaryto delegate responsibility based on their functional areas. This
concluded the paper, whichfocused on the functional areas of business and the importance of
managers to work in cross-sectional teams creating successful organizations

Functional Areas of Business

5
Reference

Koufteros, X.A. and Marcoulides, G.A. (2006), Product development practices and
performance: a structural equation-based multigroup analysis, International Journal of
Production Economics, Vol. 103 No. 1, pp. 286-301.Mathieu,
J., Maynard, M.T., Rapp, T. and Gilson, L. (2008), Team effectiveness 1997
-2007:
a review of recent advancements and a glimpse into the future, Journal of Management,
Vol. 34 No. 3, pp. 410-76.Parker, G.M. (2003), Cross-Functional Teams: Working with Allies,
Enemies, and Other Strangers, Jossey-Bass, San Francisco, CA