Functional: Management and Business

Functional Areas of Business Phillip D. Gilbert MGT/521 July 8, 2013 Christine Gniedziejka Functional Areas of Business There are several functional areas within the business world today that managers use to make certain that their businesses run successfully. The functions approach provides four major functional areas in the business world. The four functions include planning, organizing, leading, and controlling. The functional areas in the functions approach are vitally important when concerning operating a business. The two functional areas most important for managers when creating a business would be the planning and organizational areas. Planning is by far the most important functional area in business that managers can follow. I believe this because without proper planning whether in business or anything in general if proper planning is not laid out managers may run into short-term or long-term obstacles that could cause the business to suffer and perhaps even go under. Managers must know what organizational goals they have for the business and must be able to implement planning to target those goals. Managers must plan to provide direction and reduce uncertainty (Robbins & Coulter, Management, 2010). Planning for managers involves setting short-term and long-term goals, establishing strategies, and developing plans to coordinate activities (Robbins & Coulter, Management, 2010). Planning helps managers to minimize and to eliminate problems foreseen within the business. Planning is the foundation that a business is built upon. Because of the uncertainty involved with planning, the plan must be updated as information is gathered and changes take place (Ibahim, Angelidis, & Parsa, 2004). Proper planning gives management and businesses the opportunity to determine what the desired outcome should be and how to go about achieving that