The Role of Managers in Each Functional Area of Business

Categories: Business

Managers are essential for any type of business in order to succeed. They are specialists required to perform a particular set of specialized roles that are dependent on the functional area in which they work [1]. Their rule cannot be ignored. They are the ones who are responsible of planning, organizing, commanding, coordinating, and controlling [2]. This paper is designated to study the role of managers in the different functional areas of any business. But what are the functional areas of any business? What are the types of managers and what skills they need to have for each functional area? The following shows the answers for each question.

Any business consists of a number of functional areas. The functional areas are the specialized departments within a business. These departments carry out specific functions that assists the business overall. Businesses are classified as small or large. In the case of small businesses, the functional areas are not definite because the owner usually produces and markets his own products, does his own accounting and personnel work.

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Large businesses need more specialized departments. Most large businesses have four functional areas: Production, Finance, Marketing, Personnel, and Research and Development [3]. As we defined the functional areas, let’s take a brief look at each one and what type of management it has: 1. Production. Production is defined as the manufacture or assembly of the final product [4]. The production manager is the one who is in charged about making decisions to make sure that the final product follows the company’s policy regarding quality, quantity, time lines, and the assembly or manufacturing processes.

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He coordinates the work culture and plans and controls the processes of production. He also has to make sure that the quality of the final product complies with the company’s standards.

2. Finance. It’s the department where all the financial activities are processed. Sales, income, expanses, credit, and bills are processed within this department by accountants and credit controllers [3]. The financial managers’ job here is to control the work culture and coordinate with other departments about any financial issues. They plan payments and oversee sales and cash flow to guarantee profit. They coordinate and mange other departments’ expenses and payments.

3. Marketing. This department is one of the most important departments in any business. It identifies the customers’ needs, promotes and advertises products, and determines where to sell products. The marketing staffs are in charge of studying the market and see what the customer, which is the number one priority, need and what can he pay for this product. Then they design the product according to the market requirements and have it produced at the production department. After this, promoting the new product so that customers can know about it and how they can buy it. Again, managers here play a significant role of planning the processes and coordinating with the other departments to insure a high level of efficiency within the work culture.

4. Personnel. It also known as Human Resources (HR). This department is responsible of recruiting new employees, evaluating employees’ performance, arranging staff training, monitoring the employees work environments, maintaining the staff records, and any other tasks regarding employees and employment. The Human Resources managers should have solid communication skills and decision making capabilities that are based on critical thinking processes and analytical skills since they are responsible of hiring new employees and they are the ones who conduct job interviews for new positions and job openings. Their function is to oversee the department functions and manage the employees. That’s why they should be skilled in employee training and development. They also should have a wide knowledge in human resources disciplines and employee relations.

5. Research and Development. Research and Development department is one of the most important departments within large scale businesses. Its main purpose is to develop and create new products. This department uses the most recent technologies in the market or even creates new technologies that can be used to develop new products and improve the current products. The managers in this department have more stress since they have to be more creative. They coordinate researches and manage the company’s innovation teams. As the marketing department conducts studies on the market and what type of products it needs, research and development managers guide the research team to fulfill those requirements.

Managers in each functional area have to have a role to a greater extent than other roles [1]. For example, Production managers’ jobs require decisional roles more than any other roles. Marketing managers’ jobs require the informational roles more than other roles. However, this does not mean that they have to omit the other rules. They still have to focus on the other rules in order to succeed and lead their teams to the company’s benefit. From the above we can conclude that the managers for each functional area within the business share the same responsibilities as they plan, coordinate, command, and control in the work culture. They are the ones who are responsible of coordinating each department with all other departments. They plan the goals and what are the optimum ways to reach these goals. They command the employees how do their job efficiently. And the control production processes to reach the main goals of the business. Managers are the key of success for any type of business. That’s how important they are.

1. Role Profiles of Managers in Deferent Functional Areas. Paolillo, Joseph. University of Mississippi. March 1987; ProQuest Central. (Pg 109) 2. MANAGEMENT (11th edn.) by Stephen P Robbins & Mary Coulter. (Pg9). 3. Functional Areas of a Business. Raymond’s CXC Blog. November 19, 2009 at 2:28 am (P.O.B Lessons). 4. BTEC First Business – 2nd edition by Carysforth, et al. (2006)

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The Role of Managers in Each Functional Area of Business. (2016, Apr 13). Retrieved from

The Role of Managers in Each Functional Area of Business

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