Functional areas of Business Essay
Functional areas of Business
In today’s society, organizations need strong managers to lead their staff towards accomplishing goals. Managers are problem solvers, leaders, coordinators, communicators and planners. Managers fulfill many roles and have many types of responsibilities at different levels in an organization. Many roles Management can be very complex as they have to respond to planned and unplanned issues that can occur at any given time. Managers have a variety of duties to perform within an organization to help it function properly within the area of business. One of the areas of business that a manager plays a role in is Strategic Planning. Organizing and planning is a priority in businesses. Organizing and planning has objectives that involve developing business goals, organizing business resources to advance these goals. Both internal and external data is used about the industry, markets and competition provides information that is needed in order to direct the organizations resources and to also identify organizational needs. Managers are also responsible for making decisions in an organization, which involves choices that are related to changes that is needed to adapt internal and external factors that have an effect on business operations.
Managers must also decide how and where to use resources within an organization. Other decision making responsibilities can include choosing suppliers and vendors for goods and services for the organization. Managers use accounting for financial decision making. Accounting for managers involves forecasting, relevant costing, cost-volume-profit analysis, investment appraisal techniques.(Accounting for Managers) Managers that use accounting sets targets for strategic business units as well as for departments, accounting assists in the assignment of responsibility for achievement of business targets by individual managers. Responsibility accounting is achieved by appraising the performance of managers responsible for their business units while giving due consideration for factors not within their control or influence. Mangers are also responsible for ensuring that all accounting procedures are within accounting standards, business ethics and legal requirements of business, and making the organization financially, economically and legally sound. A manager in Human Resources create policies for employees, monitors training and performance evaluation, coordinates new hires and employees, recruits and operate along with the vision and mission of the company.
They become a positive influence to their work colleagues, sharing their experiences, to encourage employees to stay positive and perform at their best. The manager also directs his team to help monitor employees based on their performance, compensation and to carry out daily work tasks. As a manager considered a leader in an organization, you have to be able to motivate your employees in order to encourage productivity to ensure the highest level of job satisfaction. Leadership is defined as the action of leading people in an organization towards achieving goals. A manager must also have the ability to influence an employee in many ways. A leader sets clear realistic goals and vision for the organization, motivates employees and builds morale. Leadership is particularly important in senior management, such as VP, CEO, etc. To become an effective leader, a manager gas to lead people providing trust and purpose and self-management using influence and persuasion, achieving personal goals. It is important for managers to understand Economics in a business. Economics is very important because it enables managers to make decisions such as the price of goods and services to be produced, allocation of capital, and sales forecasting.
Economics also helps managers to understand the possible effects on the way the organization functions. Resources can become scarce, and managers must be able to make financial decisions about what products and services to produce. Economics has an effect on businesses in many ways, which can have a negative and positive affect on an organization. Research and statistics enables managers to make accurate decisions based on available data, which allows them to make smarter decisions and provide more accurate leadership to staff relying on them. Statistics also helps managers to back up assertions. When managers needs to persuade people to move into a direction, or to take some toe of risk, statistics can provide them with objective goals with figures to substantiate positions or to provide a level of certainty as to what direction that the company needs to take. It is important for managers to know the law in an organization to protect the vital interest of the organization which that they manage. It will also help the manager to prevent the organization from legal problems. Not only would the law protect the workers, but it will also protect stakeholders and people that invest in the company. If the organization is jeopardized, that can result in a huge lost.
The law regulates contracts between businesses by laying down rules and regulations for the smooth running of the business and economy. Operations management is defined as the area in business where efficiency and effectiveness of operation support and development plays a role to achieve an organization’s strategic goals. Managers in this area are focused on the design and operations of systems to provide goods and services. Operations management involves planning, scheduling, and control of all activates that will transform inputs into outputs. Managers in particular have to communicate effectively to motivate other people, manage job projects and work on multidisciplinary teams. Marketing is another skill that managers should know to put their company products on the market.
Marketing also enables managers to set prices for their products based on manufacturing costs. Directors also assist managers in deciding what type of advertising and promotion strategies that the organization will use. Managers may also assist advertising directors in establishing budgets for marketing and advertising their product. The manager can assist the marketing department with determining the right distribution product for the organization’s products. Great effective managers possess all of these skills to be successful in the workplace, along with other skills and assignments from upper-level management.
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